KARACHI, Aug 4: The Sindh High Court on Monday disposed of a suit instituted by a wheat importer against shipment of sub-standard wheat from Australia in 2004 on the point of territorial jurisdiction.

The plaintiffs, M/s Tradesmen International, sought over $1 million for the actual loss and billions of rupees as damages suffered by it on account of reputation and mental torture. The plaintiff concern said it was asked by the federal government to arrange import of wheat from Australia after acceptance of its bid.

It was only to arrange supplies while all other matters were settled by the federal food and agriculture ministry and the Pakistan Agricultural Supplies and Storage Corporation (Passco) in consultation with the Australian wheat board in accordance with the agreement signed by them

The samples sent by the Australian wheat board before an order for supply was placed were found satisfactory and that was why the purchase of 500 million tones was approved.

The plaintiff concern said the wheat shipped from Australia was found infested with fungus on arrival at Karachi. The samples were sent to different laboratories and finally 20 food scientists declared it unfit for human consumption. Federal minister Ataur Rehman placed the matter before the cabinet, which decided to send back the shipments.

The plaintiff concern said it suffered a financial loss and earned a bad name for no fault of its own. It was for the Australian authorities to ensure the quality of wheat and for the agriculture ministry and the Passco to make sure that the Australian wheat board fulfilled its commitments in this behalf.

The government and Passco counsel, however, contended that the suit could not be entertained by any court outside Lahore. They said an arbitration agreement obliged all the parties concerned to approach a competent court located in Lahore if they failed to settle any issue by arbitration. The Sindh High Court, however, passed an interim injunction against the unloading of shipments.

Upholding the preliminary objection to the maintainability of the suit, Justice Munib Ahmed Khan held that in view of the stipulation in the arbitration agreement the suit cannot proceed in Karachi.

Notice to DHA

Justice Nadeem Azhar Siddiqui, meanwhile, issued a notice to the Defence Housing Authority in a petition alleging construction of a school on a park. Two residents of Block 15 and Block 26, Seaview Apartments, DHA V Extension, said a model school was already functioning on the park situated in front of their blocks. The DHA now planned to expand it and raise construction on the adjoining park.

The court appointed its nazir on a previous date to inspect the site and he confirmed that construction material was being brought to the park premises. A notice was issued to the DHA on the receipt of the nazir’s report.