Saturday February 04, 2023

SHC tells builder to deposit Rs5.4m in lawsuit for refund to citizen

December 04, 2022

The Sindh High Court has directed a private builder to provide security to the extent of Rs5.4 million before the Nazir of court in a lawsuit of a citizen who sought return of his amount which he had deposited for a residential multistory building project in the Clifton area.

The interim order came on a lawsuit of Shahid Ahmed, who submitted that the amount deposited by him through installments for a flat in the project ought to be refunded as his economic circumstances had changed.

He stated that he approached the private builder for refund, but upon rejection of the request he filed the lawsuit.

A high court single bench headed by Justice Agha Faisal, after hearing the counsel observed that the matter was first came up on June 30 when the court had restrained the private builder from advertising, promoting or offering any further apartments or projects in the reclaimed lands, or create third- party interest, till the next date of hearing.

The defendant’s counsel submitted that the ad interim order exceeds the remit of the suit and is prima facie disproportionate, contrary to public interest and precipitates a paralysis of the entire project.

He said the interim order was jeopardizing the unrelated interests of thousands of people, not exclusive to merely those residents therein.

The plaintiff’s counsel submitted that the order is entirely commensurate with the relief claimed; hence, it ought to be sustained.

The plaintiff’s counsel also sought a continuance, which was opposed by the defendant’s counsel upon the grounds that irreparable harm is being caused each day that the interim order is maintained in its present state.

The court observed that as per the memorandum of the plaint, that the interest of the plaintiff is squarely in respect of refund and the same has been quantified by the plaintiff himself which is Rs5,418,380.

The court directed the private builder to provide security to the extent of Rs5,418,380 before the Nazir of the court, via a pay order or a bank guarantee.

The court observed that if the security is provided via a pay order, then the amount may be invested as per the rules.