BUSINESS LAW (HANDOUT No.

2)


Federation of Pakistan through the Govt. of Pakistan, Ministry of Defence &
2 others vs. IPHCO Int. Pharmaceutical Corp. Lahore

Appellants, Respondent & Nature of the Case:
Appellants: Federation of Pakistan through The Govt. of Pakistan,
Ministry of Defence & 2 others
Respondent: IPHCO Int. Pharmaceutical Corp. Lahore
Nature of The Case: Sales Of Goods Act
Facts of the Case:
Case was 1
st
suited before the Trial Court by the respondent in this court
(High Court) for the recovery of money amounting to Rs. 305,200 with
interest as it entered into a contract for the supply of Glucose Powder,
64,000 Kg. For a total consideration of Rs. 13,19,680 at 20.62 per Kg on 27-
02-1984. Case went in favor of IPHCO Corp.
The Supply was to be made in Installments, the 1
st
installment was made and
was accepted but the appellants in this court (Defence Ministry) didnt
accept the 2
nd
Installment of 52,000 Kg. and rejected it on 21-02-1985. The
reason was provided that the said supply couldnt pass the Foreign Sugars,
Soluble Starch & Dextrin's Test.
IPHCO Pharmaceutical after continued fruitless efforts for negotiation, sent
a sample from the same batch of supply, made to the appellants (Defence
Ministry), to the National Institute of Health Islamabad where it was
opinioned that the supply of Glucose made is in accordance with the said
test.
But, in spite of this, the supply was not accepted.
The respondent in this court filed a suit in the Trial Court claiming damages
and for the recovery of money for this unlawful and unjustifiable rejection of
the supply.
BUSINESS LAW (HANDOUT No. 2)


Position Of The Appellants:
The submission of the learned counsel of appellants is that the supply
couldnt pass the requisite test.
Position Of The Respondent
The position of the respondent is that she had been making continuous
efforts for the completion of the contract and even got the sample tested by
the National Institute of Health with a positive result.
Judgments:
The High court dismissed the case in the favor of IPHCO and complied with
the trial court with few amendments in the Judgment.
The court said that the evidence provided by Respondent (IPHCO) was valid
and as the Appellants couldnt provide any evidence pointing that the said
supply was not in accordance with the requisite test, IPHCO is entitled to the
damages claimed.
IPHCO was entitled with the following damages.
The Price of the Glucose Supplied.
The cost of storage by IPHCO amounting Rs. 18,000.
The Profit that IPHCO could have earned otherwise amounting Rs. 200,000.
The sum total of Rs. 14,55,200 was to be recovered from The Appellants in
this court.
Case Dismissed
Presented By: Hamid Sarfraz.