1797/2022 Suit THE HUB POWER COMPANY LTD & OTHERS (Plaintiff) V/S CHINA POWER HUB GENERATION COMPANY (PVT) LTD & ORS (Defendant)
Sindh High Court
Bench: Hon'ble Chief Justice Mr. Justice Muhammad Shafi Siddiqui(Author)
Order Date: 30-NOV-22
I- Despite different designations there are in fact `legal similarities` attached to both the documents i.e. standard letter of credit and standby letter of credit, if compared. There may be some differences in the banking practice but are functionally similar and makes no material difference when it comes to execution and implementation. The SBLC thus has evolved as one of the kind of letter of credit and forms on independent guarantee such as performance bond/surety ship guarantee. II- While in every instance where there is a fraud there would have been a lack of bonafides as well, however, to its contrast it does not mean that in every instance where beneficiary of credit lacks bonafides there is necessarily a fraud behind it. One may be compelled to or had no choice, despite having knowledge. III- The concept of unconscionability runs the same way i.e. the concept of unconscionability involves unfairness as distinct from dishonesty or fraud or conduct of a kind so reprehensible or lacking in good faith that the court of conscience either restrain the party or refuse to assist the party. Mere breaches of contract by a party would not by themselves be unconscionable. Thus unfairness is also excluded for the concept of unconscionability to prevail.Full judgment text for this case is not yet available on Pakistan Law Reports. Check the official Sindh High Court case law portal for the complete order.
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