| Case ID |
08a4dd5d-bfa9-4de1-a30b-54e0dc4ea280 |
| Body |
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| Case Number |
Civil Appeal No. 1547 of 2019 |
| Decision Date |
Aug 17, 2021 |
| Hearing Date |
Dec 12, 2019 |
| Decision |
The Supreme Court dismissed the appeal, affirming the lower court's decision that the Gas Supply Agreement (GSA) and the Payment Agreement were interconnected contracts. The ruling emphasized that both agreements served a single purpose, with the Payment Agreement being a response to expert determination related to the GSA. The court found that the obligations under the Payment Agreement were economically interdependent on the GSA, thus, the arbitration clause in the GSA covered disputes arising from the Payment Agreement. The court reiterated that the continuous reference to the GSA within the Payment Agreement indicated the parties' intention to treat both agreements as one indivisible contract. |
| Summary |
This case revolves around the interpretation of contractual obligations within interconnected agreements in the context of gas supply and payment disputes. The Supreme Court of Pakistan addressed the complexities of the Gas Supply Agreement (GSA) and the Payment Agreement, determining that they formed an indivisible contract. The court reinforced the importance of recognizing arbitration clauses that extend across related agreements, emphasizing the necessity for clear contractual terms. The ruling serves as a significant precedent for similar cases involving interconnected contracts, highlighting the courts' approach to arbitration and contractual interpretation in Pakistan. Key terms include arbitration, contract law, gas supply agreements, and payment disputes, all of which are crucial for legal practitioners and scholars focusing on commercial law and arbitration in Pakistan. |
| Court |
Supreme Court of Pakistan
|
| Entities Involved |
Sui Northern Gas Pipelines Limited,
Orient Power Company (Private) Limited
|
| Judges |
MUSHIR ALAM, JUSTICE,
QAZI FAEZ ISA, JUSTICE,
SAJJAD ALI SHAH, JUSTICE
|
| Lawyers |
Salman Akram Raja, Advocate Supreme Court for Petitioner.,
Kh. Ahmad Hosain, Advocate Supreme Court for Respondent.
|
| Petitioners |
ORIENT POWER COMPANY (PRIVATE) LIMITED THROUGH AUTHORIZED OFFICER
|
| Respondents |
SUI NORTHERN GAS PIPELINES LIMITED THROUGH MANAGING DIRECTOR
|
| Citations |
2021 SLD 1116,
2021 SCMR 1728
|
| Other Citations |
Philippe Leboulanger Multi-Contract Arbitration (1996) 13 (4) J Int Arb 43, 47,
Fiona Trust and Holding Corporation v. Privalov [2007] UKHL 40,
AmTrust Europe Ltd v. Trust Risk Group SpA [2015] EWCA Civ 437,
Government of Punjab v. Sanosh Sultan PLD 1995 SC 541,
Raunaq Ali v. Chief Settlement Commissioner PLD 1973 SC 236,
SBP Co. v. Patel Engineering Ltd. 8 SCC 618 = AIR 2006 SC 450,
M.R. Engineers and Contractors (P) Ltd v. Som Datt Builders Ltd. (2009) 7 SCC 696,
Messrs MacDonald Layton v. Associated Electrical Enterprises PLD 1982 Karachi 786
|
| Laws Involved |
Contract Act (IX of 1872),
Recognition and Enforcement (Arbitration Agreements and Foreign Arbitral Awards) Act (XVII of 2011),
Arbitration Act (X of 1940)
|
| Sections |
74
|