| Case ID |
03ec4d8c-820f-4237-b447-95d090257a2f |
| Body |
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| Case Number |
Civil Petition No.1573/L of 2002 |
| Decision Date |
Feb 26, 2009 |
| Hearing Date |
|
| Decision |
The petition for leave to appeal was dismissed by the Supreme Court as it found no arbitration agreement between the parties. The court ruled that the instructions to bidders and the letter of intent did not constitute a binding agreement containing an arbitration clause. The petitioner was found to have rescinded the contract by withdrawing the first installment and failing to fulfill the conditions laid out in the letter of intent. The court emphasized the lack of a formal written agreement and upheld the previous judgments, affirming that the invitation to tender and the subsequent documents did not create enforceable obligations. |
| Summary |
In the case of Messrs Parks Pakistan (PVT.) Ltd. vs. Privatization Commissioner, the Supreme Court of Pakistan addressed the issue of whether a binding arbitration agreement existed following the auction of the Malam Jabba Resort. The court examined the Arbitration Act of 1940, specifically sections 2(a), 8, and 20, to determine the validity of the arbitration application filed by the petitioner after the Privatization Commission refused to extend the liquor license, which was a critical condition for the project's viability. The court concluded that the documents presented did not establish an enforceable agreement, and the petitioner had effectively rescinded the contract by withdrawing the initial payment. This case highlights the importance of clear contractual agreements in the context of arbitration and the legal implications of withdrawing from such agreements. Keywords include arbitration agreement, contract law, legal proceedings, Supreme Court ruling, and privatization issues. |
| Court |
Supreme Court of Pakistan
|
| Entities Involved |
Privatization Commission,
Parks Pakistan (PVT.) Ltd.
|
| Judges |
MUHAMMAD AKHTAR SHABBIR,
MIAN HAMID FAROOQ,
MUHAMMAD FARRUKH MAHMUD
|
| Lawyers |
Muhammad Ali Khan
|
| Petitioners |
Messrs PARKS PAKISTAN (PVT.) LTD.
|
| Respondents |
PRIVATIZATION COMMISSIONER
|
| Citations |
2009 SLD 1728,
2009 SCMR 838
|
| Other Citations |
Mst. Shamim Akhtar v. Najma Baqai and 3 others PLD 1977 SC 644,
Messrs Progressive Constructions Ltd. v. Bharat Hydro Power Corporation Ltd AIR 1996 Delhi 92,
Messrs M.A. Khan and Co. through Sole Proprietor Muhammad Ali Khan v. Messrs Pakistan Railway Employees Cooperative Housing Society Ltd. Through its Principal Officer/Secretary Karachi 2006 SCMR 721
|
| Laws Involved |
Arbitration Act, 1940
|
| Sections |
2(a),
8,
20
|