FEDERAL GOVERNMENT EMPLOYEES HOUSING FOUNDATION vs EJAZ AHMED KHAN Ss — 2023 PLD 17 ISLAMABAD

Fields are extracted from the reported citation and judgment text. Where a detail is not stated in the record, it is not shown.

FEDERAL GOVERNMENT EMPLOYEES HOUSING FOUNDATION VS EJAZ AHMED KHAN Ss.42 & 54---Contract Act (IX of 1872), S. 18(1)---Suit for declaration and injunction---Allotment of plot---Misrepresentation---Vicarious liability, principle of---Negligence of employee of company---Effect---Plaintiff was transferee of suit plot which was in the management defendant Foundation---Plaintiff sold suit plot to another person but defendant Foundation few years after the transfer made by plaintiff, cancelled his allotment on the plea that it was made by fraud---Suit filed by plaintiff was dismissed by Trial Court---Validity---Defendant Foundation was vicariously responsible for loss occasioned by negligence of its employees---Barring some exceptions, such was the doctrine of vicarious liability having a good commercial rationale---Defendant Foundation was a company that charged transfer fee and had issued a document of title---Defendant Foundation held out to the world at large that its document of title was one on the basis of which title holder could transact the plot---Result would be monstrous, if defendant Foundation could turn around and disclaim its title document as bereft of any credence---Provisions of S. 18(1) of Contract Act, 1872, enumerated ingredients of misrepresentation which made actual knowledge of person making representation of it being untrue, irrelevant---Even if defendant Foundation as a corporate body did not know at the relevant time that transfer letter in question was not genuine, its employees per inquiry report knew so and their acts were vicariously attributable to defendant Foundation---Plaintiff carried out his due diligence of plot files at defendant Foundation's office---Plaintiff was entitled to rely on transfer letter regarding title document issued by defendant Foundation to his predecessor-in-interest---Defendant Foundation was entitled to cancel the plot once it had found out that transfer letter was issued as a result of what the defendant Foundation called a fraud in which its employees were complicit with fake persons or such was an instance of gross negligence---Defendant Foundation was vicariously liable for negligence act of its employees, per its inquiry report, and was liable to compensate plaintiff---High Court set aside judgment and decree passed by Trial Court---Appeal was allowed accordingly.

FEDERAL GOVERNMENT EMPLOYEES HOUSING FOUNDATION vs EJAZ AHMED KHAN Ss — 2023 PLD 17 ISLAMABAD

Case information

Judgment text as reported

Other judgments reported in 2023 PLD