Pan Arch Architecture (Pvt) Limited vs Neat Lanka (Pvt) Limited and Neat Property Developers (Pvt) Limited – SC CHC APPEAL NO. 37/2011-2023

Brief
In the case between Pan Arch Architecture (Pvt) Limited and Neat Lanka (Pvt) Limited together with Neat Property Developers (Pvt) Limited, the court addressed whether a binding agreement, including a pre-incorporation contract, existed between the Plaintiff and both Defendants. The court held that both Defendants are jointly and severally liable for consultancy services rendered by the Plaintiff, reaffirming the principle that liabilities arising from pre-incorporation arrangements can extend to the company subsequently formed as well as the contracting original party where conduct evidences clear mutual intent. This decision relied on established principles of contractual interpretation regarding pre-incorporation agreements and mutual intention to create legal relations, emphasizin