| Case ID |
08891458-456d-4f83-a04a-1e806b9cae0e |
| Body |
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| Case Number |
Writ Petition No.2020 of 2007 |
| Decision Date |
Nov 03, 2011 |
| Hearing Date |
|
| Decision |
The Lahore High Court determined that the arbitration award of Rs.16,49,033 in favor of the petitioner Muhammad Nadeem was valid and lawful. The court found that the respondent, Unilever Pakistan Ltd., did not raise any objections regarding the arbitrator's jurisdiction or the scope of reference during the arbitration proceedings. The court ruled that the objections raised after the award was announced were unsustainable and that damages could be claimed under Section 73 of the Contract Act, 1872, even if not explicitly mentioned in the agreement. The court set aside the decisions of the lower courts which had invalidated the arbitrator's award and allowed the writ petition as prayed for. |
| Summary |
This case revolves around a dispute between the petitioner Muhammad Nadeem, a distributor for Unilever Pakistan Ltd., and the respondent after the termination of his distributorship. The petitioner sought a declaration to prevent the cancellation of his distributorship and filed for damages after the arbitration award favored him. The case highlights the enforceability of arbitration awards and the ability to claim damages under the Contract Act, even in the absence of a specific provision in the agreement. The Lahore High Court's ruling emphasized the importance of raising objections at the appropriate time during arbitration proceedings and upheld the integrity of the arbitration process, ensuring that parties are bound by their consent to the arbitrator's jurisdiction and the issues framed. The decision underscores the legal principles surrounding arbitration and contract law, particularly in commercial disputes involving distributorship agreements. |
| Court |
Lahore High Court
|
| Entities Involved |
Lever Brothers of Pakistan,
Unilever Pakistan Ltd.
|
| Judges |
CH. SHAHID SAEED, J
|
| Lawyers |
Syed Shahab Qutab,
Muhammad Iqbal Akhtar
|
| Petitioners |
MUHAMMAD NADEEM
|
| Respondents |
ADDITIONAL DISTRICT JUDGE, BHAKKAR,
UNILEVER PAKISTAN LTD.
|
| Citations |
2012 SLD 2206,
2012 CLD 458
|
| Other Citations |
Messrs Aslam Saeed & Co. v. Messrs Trading Corporation of Pakistan Ltd. PLD 1985 SC 69,
Messrs Sirmur Chemical and General Industries Ltd. Nahan v. The Union of India and others AIR 1958 Himachal Pradesh 20,
Syed Arif Ali Sabir v. Abdul Samad through LRs and 2 others 2008 YLR 2309,
Messrs Farooq & Co. v. Federation of Pakistan and 3 others 1996 CLC 2030,
Messrs Quality Builders Ltd. v. Karachi Metropolitan Corporation 1999 CLC 1777,
WAPDA and another Messrs Khaznzada Muhammad Abdul Haque Khan Khattak and Co. PLD 1990 SC 359,
Messrs Agrimpex Trading Company Ltd. v. Trading Corporation of Pakistan (Pvt.) Ltd. 2004 MLD 477
|
| Laws Involved |
Arbitration Act, 1940,
Contract Act, 1872,
Specific Relief Act, 1877,
Constitution of Pakistan
|
| Sections |
20,
30,
34,
39,
73,
42,
54,
199
|