JS BANK LIMITED, KARACHI vs PROVINCE OF PUNJAB through Secretary Food, Lahore Rr

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JS BANK LIMITED, KARACHI VS PROVINCE OF PUNJAB through Secretary Food, Lahore Rr. 9(3), 17(6) & appendix II, Forms 7 & 8---Law Reforms Ordinance (XII of 1972), S. 3(2)---Intra-Court appeal---Maintainability---Dispute between cane growers and sugar mills over payment of price of sugar cane provided to the mills---Cane Commissioner allowed the sugar mills to start crushing for fresh season but upon their undertaking and offer for sale of sugar stocks for paying the cane growers---Petitioner-banks filed Constitutional petitions before the High Court challenging the action of the Cane Commissioner whereby the refined sugar as per their contention, was pledged with the banks against the "Running Finance" facility extended to the Sugar Mills, and therefore the banks had a first charge being secured creditors upon the refined sugar---Constitutional petitions filed by the banks were dismissed, and Intra-Court appeals filed there against were dismissed as being non-maintainable---Held, that for purchase of cane sugar cane growers and sugar factories entered into a mandatory agreement under R. 9(3) of the Punjab Sugar Factories Control Rules, 1950 ('the Rules')---In accordance with Forms 7 & 8 of appendix II to the Rules any dispute pertaining to the agreement was to be referred to arbitration---Furthermore in accordance with the R. 17(6) of the Rules any party considering himself aggrieved by an award made during the arbitration may appeal to the Provincial Government within one month of the date of communication of the award and Government shall pass such order as it deemed fit---admittedly, the matter in issue was a dispute regarding payment of price of sugarcane provided by the cane growers to the occupier of the sugar mills---as the applicable law for such dispute provided for an appeal, therefore, in terms of S. 3(2) of the Law Reforms Ordinance, 1972, the Intra-Court appeals filed by the banks were not maintainable.

JS BANK LIMITED, KARACHI vs PROVINCE OF PUNJAB through Secretary Food, Lahore Rr — 2021 SCMR 1617 SUPREME-COURT

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