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Civil Petition for Special Leave to Appeal No. K‑113 of 1975, decided on 24th October 1975.
(On appeal from the judgment and order of the High Court of Sind & Baluchistan at Karachi, dated the 22nd of August 175, in Suit No. 361 of 1975).
‑‑ Art. 185(3) ‑Matter in dispute already taken in appeal before High Court and appeal also admitted for hearing‑Matter held, should first be decided by High Court‑Petition for leave to appeal dismissed,‑[Practice and Procedure].
Nasim Ahmad Farouqui, Advocate Supreme Court instructed by V. A. Kidwai, Advocate‑on‑Record for Petitioner.
Saeed A Shaikh, Advocate Supreme Court instructed by S. Amer Ali, Advocate‑on‑Record for Respondent.
Date of hearing : 24th October 1975.
‑The petitioner had been given a contract by the respondent for the construction of a hotel at Lahore to be styled as "Lahore Hilton". The contract, Inter alia provided for furnishing the petitioner with a mobilisation fund for executing the work at Lahore. For this mobilisation fund the petitioner through Messrs National & Grindlays Bank Ltd., Karachi furnished to the respondent a bank guarantee to cover the amount of the mobilisation fund. For some reasons the petitioner stopped the construction work and the respondent pressed the Bank for encashment of the aforesaid Bank guarantee. The petitioner, however, disputed the encashment of the Bank guarantee and this is the dispute before us.
The petitioner made an application under sections 20 and 41 of the Arbitration Act, 1940, before the High Court of Sind & Baluchistan and prayed for an order restraining the respondent from realising or encashing the said bank guarantee furnished by the National & Grindlays Bank. The High Court dismissed the petitioner's application under sections 20 and 41 of the Arbitration Act, 1940, and refused to give the interim injunction asked for.
It appears that the petitioner has already filed an appeal before the High Court and it has been admitted for hearing.
We, accordingly, think that the matter should first be decided by the High Court. The petition is dismissed.
Petition dismissed.
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