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OIL AND GAS DEVELOPMENT COMPANY LTD. vs SHAH LATIF CNG Ss — 2024 CLC 1846 KARACHI-HIGH-COURT-SINDH

Case information

Citation
2024 CLC 1846 KARACHI-HIGH-COURT-SINDH
Court
Sindh High Court
Year
2024
Reporter
CLC
Parties
OIL AND GAS DEVELOPMENT COMPANY LTD. vs SHAH LATIF CNG Ss
Subject matter
Civil
Provisions referred to
Civil Procedure Code (V of 1908)

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

Judgment text as reported

OIL AND GAS DEVELOPMENT COMPANY LTD. VS SHAH LATIF CNG Ss.42 & 54---Civil Procedure Code (V of 1908), O.XXXIX, Rr.1 & 2---Suit for declaration and injunction---Interim injunction, refusal of---Contractual liability---Plaintiff sought stay of auction proceedings to preserve continuation of its business activities---Trial Court declined to issue interim injunction but Lower Appellate Court allowed the same---Validity---On a consideration of respective cases of parties and documents laid before it, Trial Court refused injunction; the Lower Appellate Court should not have interfered with the exercise of discretion unless such exercise was found to be palpably incorrect or untenable---General assertion in plaint was regarding a substantial investment made by respondent / plaintiff for the purposes of Agreement---This would be imperiled if the arrangements thereby put in place were to be discontinued---No details were set out as to the nature of such investment in the form of plant and machinery beyond a generalized reference to installation of compressors, generators, pipe lines and civil works, etc. and the same did not entirely represent a sunk cost---This aspect was within the contemplation of respondent / plaintiff when entering into initial Agreement and should have been borne in mind at the time of executing Addendum---Order passed by Lower Appellate Court reflected a flawed approach on its part---Lower Appellate Court failed to properly consider and apply the principles laid down by Superior Courts relating to temporary injunctions, hence committed material irregularity in exercise of jurisdiction---High Court set aside interim injunction issued by Lower Appellate Court---Revision was allowed, in circumstances.

Other judgments reported in 2024 CLC

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