LRIP

PIA vs. Time Travel Agent

19th August 2021

A report from London informs that PIA has attained a milestone case at the Supreme Court of England. Farani Taylor Solicitors represented PIA for a long period in contradiction of the petitioner Times Travel.

According to English law, economic duress occurs when illegitimate economic pressure is exerted so that the weaker party has no other practical option but to agree to enter into a contract or accept particular terms. In the PIAC in opposition to the Times Travel case, the probable answer to derive was whether pecuniary compulsion could ascend in a situation where a party makes legalized acts or intimidates in support of a demand which it unaffectedly has reliance in it is authorized to make. The Birmingham-based firm argued that in 2012 it was subjected to economic pressure, and harried into signing a contract without paying the commission.

After the judgment was released, Managing Partner Farhan Farani of Farani Taylor Solicitors reported that this was an intense and imperative case and was also interceded in by the Ukrainian and Russian governments. They said the ruling was significant to the commercial negotiators as well. The PIA’s lawyers justified that they proceeded legitimately when PIA dismissed its contract with its UK-based Pakistani agents, offering them a new contract. The ruling for PIA means that it will not have to recompense commissions with hindsight for the fuel addition part of the tickets.

Read: https://lrip.org.pk/dishonoring-woman/

The contract between the two parties was signed in 2008. At that time, PIA was the only airline operating direct flights between the UK and Pakistan, and Times Travel, like dozens of other Pakistani travel agents, relied completely on the sale of flight tickets. In 2012, as online business started taking over and PIA’s reliance on around 60 travel agents lessened, issues started when the airline announced to terminate contracts with British Pakistani travel agents, many agents refused and filed petitions against PIA. However, Times Travel accepted the new contract. Two years later in 2014, Times Travel sued PIA at the London High Court claiming to recover unpaid commission and other payments which it claimed PIA owed legally.

In the first round, the HC governed that Times Travel was eligible to sidestep the contract with PIA on the foundation of economic duress. The PIA beseeched to the Court of Appeal counter to the decision where its request was endorsed. The Times Travel then tossed an appeal at the top UK court. 2019 judgment came in favor of the PIAC. The Court of Appeal disagreement emphasized that PIA is legally authorized to bring about the economic pressure because of it its position as an indomitable purveyor of air travel tickets for Pakistan.

Please contact the Legal Research Institute of Pakistan for further assistance

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