MUHAMMAD YOUNAS KHAN vs SUI NORTHERN GAS PIPELINES LIMITED (SNGPL) art

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MUHAMMAD YOUNAS KHAN VS SUI NORTHERN GAS PIPELINES LIMITED (SNGPL) art. 199---Enforcement of contractual obligations, matter of---Invoking constitutional jurisdiction of High Court---Scope---Petitioners (enlisted distribution contractors) deposited security in year 2021 in light of policy introduced by SNGPL in 2018---a memorandum was issued by SNGPL on 13th September, 2023, ('Memorandum-in-question') in the light of a decision of the Islamabad High Court allowing constitutional petition filed by a contractor of SNGPL---Vide memorandum-in-question, SNGPL decided to return the security amount deposited by each contractor against their pre-qualification yet with certain conditions including 5% Performance Bond/Warranty of the total value of the Work Order---Petitioners filed constitutional petition as SNGPL (Respondents) denied return of security to them ('impugned decision')---Validity---There is no cavil that the High Court in exercise of constitutional jurisdiction can neither settle the terms and conditions of the contract inter se parties nor direct the executive to insert or exclude certain condition in the contract, which undoubtedly is within the domain of the executive---Undeniably, in the matter of enforcement of contractual obligations, the High Court in ordinary course abstains to exercise constitutional jurisdiction for enforcement of the terms and conditions of the contract or to remedy the breach of contract but at the same time the constitutional jurisdiction cannot be abridged if some perversity or patent illegality is floating on the surface of the record---Though constitutional jurisdiction ordinarily should not be exercised in case of breach of contract but if such breach does not entail any inquiry or examination of minute or controversial questions of fact, if committed by Government, semi-Government or Local authorities, it can adequately be addressed in exercise of jurisdiction contemplated under art. 199 of the Constitution---Petitioners had not canvassed any issue involving intricacy of facts---They had entered into a lawful contract with "SNGPL" on the terms and conditions settled by the latter, so now the petitioners could not be confronted with conditions, which were alien to existing contract and prejudicial to the interest of the petitioners almost at the fag end of the contractual period---Terms of impugned memorandum could be enforced for the upcoming contracts provided these were in accord with law---High Court set aside the impugned order (dated 15th December, 2023) passed by the Respondents (SNGPL), being illegal and unlawful---Respondents were further restrained from refunding the security already deposited and from asking the petitioners to abide by notification dated 13th September, 2023, for the current contracts---Constitutional petition was partly allowed.

MUHAMMAD YOUNAS KHAN vs SUI NORTHERN GAS PIPELINES LIMITED (SNGPL) art — 2025 CLC 535 LAHORE-HIGH-COURT-LAHORE

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