CRESCENT TEXTILE MILLS LTD. vs ISLAMIC REPUBLIC OF PAKISTAN
This matter comes before the Supreme Court of Pakistan upon petitions for special leave to appeal directed against a judgment of the High Court, which followed its earlier ruling in Lahore Textile and General Mills Ltd v. Islamic Republic of Pakistan. The core legal question concerns the correctness of the legal view adopted by the High Court regarding the underlying dispute affecting state revenue. The Supreme Court granted leave to appeal to examine the correctness of the said High Court judgment, ordered the appeals to be heard together on the present record with permission to file additional documents, directed early listing of the appeals due to the involvement of substantial state revenue, and ordered that during the pendency of the appeals the existing bank guarantees shall continue to be renewed but not encashed. The holding establishes that leave to appeal is warranted to review conflicting or contentious interpretations adopted by the High Court involving state revenue matters, ensuring interim protection through the continuation and non-encashment of bank guarantees.
- Whether leave to appeal should be granted to examine the correctness of a High Court judgment determining state revenue matters?
- Can bank guarantees be ordered to remain in force without being encashed during the pendency of appeals before the Supreme Court?
ORDER
1. ' SAAD SAOOD JAN, J.-- The judgment of the High Court in these petitions for special leave to appeal is based upon its decision in an earlier constitution petition reported as Lahore Textile and General Mills Ltd v. Islamic Republic of Pakistan (PLD 1988 Lah. 461). Leave to appeal has already been granted to consider the correctness of the view taken by the High Court in the said judgment.
2. ' Leave to appeal is granted in these petitions also. Security for costs in the sum of Rs, 2,500 in each petition. All the appeals should be heard together and be prepared for hearing on the present record with permission to the parties to file additional documents, if any. The appeals should be listed for hearing at an early stage as a large amount of the State Revenue is involved. During the pendency of the appeals the bank guarantees shall continue to be renewed but not encashed.