THE SALMAN CORPORATION (REGD.), LYALLPUR vs THE SUTLEJ COTTON MILLS — 1972 SCMR 547

Citation: 1972 SCMR 547

Court: Supreme Court of Pakistan

Year: 1971

Decision Date: 1971-12-31

Parties: THE SALMAN CORPORATION (REGD.), LYALLPUR vs THE SUTLEJ COTTON MILLS JUDGMENT

Headnotes

Case cited as 1972 SCMR 547

Judgment Text

Court Name: Supreme Court of Pakistan Judge(s): Salahuddin Ahmad, Waheeduddin Ahmad Title:THE SALMAN CORPORATION (REGD.), LYALLPUR vs THE SUTLEJ COTTON MILLS JUDGMENT Reported As: 1972 SCMR 547 Result: Appeal dismissed Judgment JUDGMENT SALAHUDDIN AHMED, J.-The appellant-firm filed a suit-in the civil Court for a perpetual injunction to restrain respondent Sutlej Cotton Mills Limited from realising the amount covered by the Bank guarantee which the appellant had furnished to the Mill in the sum of Rs. 5,02,000 as coverage for its appointment as an agent of the Mill for sale of its manufactured cloth. The suit was necessitated because the Mill had initiated proceedings against the appellant for enforcing the Bank guarantee which, according to the appellant's case, could not be done without going into the accounts between the parties. . Alongside the suit, a prayer for temporary injunction was made, which was granted by the trial Court on the 26th of November 1969, on the condition that the appellant furnished a fresh Bank guarantee in the sum of Rs. 2,50,000. The need for a fresh guarantee arose because the guarantee already furnished by the appellant was to expire on the 7th of December 1969. Against the order of the trial Court granting temporary injunction on the condition aforesaid, the respondent filed an appeal in the Court of the District Judge, Lyallpur, which was heard and decided ex parte against the appellant and the order of the trial Judge was set aside. The…

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