Recovering Losses (2018)

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SK Mills (Sugar manufacturing mills) entered in a contract for the sale of sugar with Nasir and Ali.
Nasir and Ali made the full payment in advance to the SK Mills for the delivery of sugar. However, the SK Mills failed to deliver the sugar as per the delivery order; thus signing a new forward contract. The delivery kept on getting delayed each time causing both the parties to sign a new forward contract. Soon Nasir and Ali defaulted on the forward contracts and faced the loss of clientele. Consequently, a lawsuit was filed against the SK Mills in the High Court of Sindh with regards to non-delivery of sugar as per the delivery order. Moreover, Nasir and Ali also demanded the fulfillment of specific terms of the agreement and additionally claimed damages amounting to Rs. 1,000,000,000.Moreover, they requested for the temporary injunction (where court prohibits the defendants from doing a specific act in this particular case; the court directed the SK Mills not to sell sugar to the extent of other party’s claim nor create any third party interest till the disposal of the suit).

On the other hand, SK Mills claimed that there is no remaining obligation for the supply of sugar to the other party and that there was no rescheduling of the said agreements because the other party did not produce any document which shows that the agreements were ever rescheduled. The High Court on the other hand, dismissed the application of SK Mills and the case ended in favor of Nasir and Ali.

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Policy Research Institute of Market Economy

آزاد معیشت – خوشحال پاکستان