997/2007 Suit HASHAM ALIIBHAI (Plaintiff) V/S NEW JUBILLEE INSURANCE CO. (Defendant)
Sindh High Court
Bench: Hon'ble Mr. Justice Jawad Akbar Sarwana(Author)
Order Date: 13-OCT-23
As a rule, Articles of Association normally exclude any interest claim on unpaid dividends. The Defendant Company had withheld payment of unpaid dividends to Plaintiff even though Articles 6, 5 and 14 of the Articles of Association of 1953, 1986 and 2007 provided an exception to the rule. The relationship between Plaintiff and Defendant Company from 1970 to 2005 was not governed by the Articles of Association but was crystallised by the Order of the Court. Defendant Company liable to compensate Plaintiff in the sum of Rs.154,110,753 (net of taxes) being the equalizer profit on the dividend income retained and utilized by the Defendant Company based on principles of equity and in the alternative, unjust enrichment, read in the light of Articles 6, 5 and 14 of the series of Defendant Company's Articles of Association. Bar of Order 2 Rule 2 CPC not applicable to the two rounds of litigation of 1978 and 1993 culminating in Judgment of 07.08.2003 (2007 CLC 1448) amended by a Compromise Application allowing Plaintiff to claim interest on dividends recorded by Division Bench Order dated 20.12.2005 involving, Counsel for Defendant/Respondent Company who fully participated in the final order even though the Defendant/Respondent Company had not signed the Compromise Application.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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