CIC Feeds (Pvt) Limited vs Pan Asia Bank Limited – SC CHC APPEAL NO. 36/2004-2016

In the case between CIC Feeds (Pvt) Limited (formerly Nutrena (Pvt) Limited) and Pan Asia Bank Limited, the court addressed whether a contract of guarantee—express or implied—existed in connection with a cheque transaction involving Rs. 8,000,000/– and a proposed bank guarantee for ALDC. It was determined that issuance of the bank guarantee was contingent upon receipt of documentation from ALDC, and the arrangement did not give rise to an enforceable contract as essential elements such as intention to create legal relations and mutual consent were absent. The finding reaffirmed the principle that liability for a contractual guarantee must be established by clear intention and fulfillment of requisite contractual prerequisites. Reliance was placed on the evidence of communications between t