| Citation(s) |
|---|
| 1991 SLG 1163 1991 SLD 1163 1991 SCMR 1292 |
Supreme Court of Pakistan
Civil Petition No. 1023 of 1986, decision dated: 23rd October, 1989(From the judgment dated 23-11-1986 of the Lahore High Court, Lahore in RFA No. 11 of 1980)
MUHAMMAD AFZAL ZULLAH AND SAAD SAOOD, JAN, JJ
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Civil Petition No. 1023 of 1986, decision dated: 23rd October, 1989(From the judgment dated 23-11-1986 of the Lahore High Court, Lahore in RFA No. 11 of 1980)
MUHAMMAD AFZAL ZULLAH AND SAAD SAOOD, JAN, JJ
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SHAHBAZ KHAN
THE MUNICIPAL CORPORATION, FAISALABAD and others
Law:
Section:
Constitution of Pakistan (1973)--Art. 185(3)---Leasing out sullage farm---Defendants being the highest bidders secured the lease which was subsequently confirmed---Defendants failed to fulfil the terms on which auction was held---Plaintiff had to reauction their sullage farm---Plaintiff then filed suit against defendants to recover difference between the bid made by them and the highest bid that was made at the re-auction--Plaintiff's suit was decreed by Trial Court and affirmed by High Court---Leave to appeal---Defendants' plea was that plaintiff could not enter into a contract with any person unless terms of contract were evidenced by a written deed; and that no proper agreement having been drawn up between plaintiff and defendants there was no basis upon which plaintiff could found its claim against them---Held, foundation of claim of plaintiff was not breach of the terms of lease but the violation of the terms on which auction was held---Defendants did not deny-having signed the bid sheet at the conclusion of auction proceedings---Plaintiffs suit having been rightly decreed was also rightly affirmed by the High Court--Leave to appeal was refused. ORDER SAAD SAOOD JAN, J.---The petitioner and respondent No.l took part in an auction held by the Municipal Corporation, Faisalabad for the purposes of leasing out its sullage farm for a period of two years. They offered the highest did and signed the did sheet to confirm their bid. The bid was later approved by the Controlling Authority. Though they did make some deposits but failed to pay the entire amount as required by the terms on which the auction was held. Consequently, no proper lease agreement was drawn up and the lease of the sullage farm was again put to auction. The highest did at the auction was much less than that which was offered by the petitioner and respondent No.l. The Municipal Corporation filed a suit against the petitioner and respondent No. 1 to recover the difference between the bid made by them and the highest bid that was made at the re-auction. The suit was decreed by the trial Court after adjusting the amount, already deposited by the petitioner and respondent No. 1 by way of security…
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