Case Details

Citation(s)
1991 SLG 1537 1991 SLD 1537 1991 SCMR 2324
Supreme Court of Pakistan
Civil Appeal No.93 of 1987, decision dated: 31st July, 1991, hearing DATE : 7-11-1990. (On appeal from the judgment dated 28-2-1987 of the Lahore High Court, Lahore, passed in R.SA. No.148 of 1977)
NASIM HASAN SHAH, RUSTAM S. SIDHWA AND MUHAMMAD AFZAL LONE, JJ

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Messrs FRIEND ENGINEERING CORPORATION, THE MALL,

GOVERNMENT OF PUNJAB and 4 others

Law:

Section:

(a) Civil Procedure Code (V of 1908)--OXX, R.16---Liability to render accounts---Court is empowered to pass a preliminary decree where it feels necessary that to ascertain the amount due to one party from the other side, the accounts should be taken---When the relationship between the parties was contractual, the respondent (Department) were not under any obligation to render accounts to the appellant (Contractor) for work done, the material supplied to the department (respondent) by the contractor (appellant) and the payments received from them by the contractor were well within his knowledge and it was for him to have ascertained the amount due to him and filed a money suit for recovery thereof. Liability to render accounts is the foundation for maintainability of a suit for rendition of accounts. Such a liability exist when there is fiduciary relationship between the parties as in the case of partners of a firm, guardian and ward, principal and agent trustee and beneficiary of the trust. These instances are only enumerative and under Order XX, Rule 16, C.P.C., the Court is empowered to pass a preliminary decree where it feels necessary that to ascertain the amount due to one party from the other side, the accounts should be taken. But, where the relationship between the parties was undoubtedly contractual in such a case, the respondents (department) were not under any obligation to render accounts to the appellant (contractor). The work done, the material supplied to the department and the payments received from them by the appellant (contractor) were well within his knowledge. It was, therefore, for him to have ascertained the amount due to him and filed a money suit for recovery thereof. (b) Civil Procedure Code (V of 1908)--- ----OXX, R.16 & S.97-,-Suit for rendition of accounts---When such suit was not maintainable, ex parte preliminary decree was not void, without jurisdiction and thus could not be ignored by the High Court in appeal from the final decree. By jurisdiction is meant a power to hear and decide legal controversy between the parties, to pronounce and execute the same. It cannot be said that the Trial Co1irt who was seized of the suit and…
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