1975  PLD  193     SUPREME-COURT 

KARACHI GAS CO.LTD

Versus

DAWOOD COTTON MILLS LTD

 

Contract Act 1872 –Ss. 7, 8, 9, 63 & 72-Implied agreement-Contract between Gas Company (appellant-defendants) and consumers (respondents-plaintiffs) providing for upward revision of price of Gas in case of rise in price of furnace Oil beyond certain limit-Defendant subsequently modifying clause of agreement empowering them to discontinue supply in case of price of furnace Oil rising beyond given figure and agreeing that “should the price of Oil reach the quoted figure . . . . this would naturally be subject to negotiations”-Rise in price of furnace Oil over-reaching prescribed limit, defendants notifying plaintiffs of their intent to increase price of Gas -Plaintiffs paying defendants consumers bilk without protest at increased rates for almost two years and also getting supply of Gas extended to other premises but making protest against increased rates two years after wards Held : Doctrine of acceptance by silence applied to case-Plaintiffs accepted increased rates by their conduct before commencement of supply of Gas , dispensed with requirement of negotiations, and could not retract from such position.-[ Muhammad Yaqoob Ali, J. (contra) 1.