| Case ID |
0a69e030-fb3c-4bff-b615-422e47935da7 |
| Body |
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| Case Number |
Writ Petition No. 6779 of 2021 |
| Decision Date |
Feb 08, 2021 |
| Hearing Date |
|
| Decision |
The Lahore High Court dismissed the constitutional petition filed by Habib Construction Services Limited challenging the issuance of the Taking Over Certificate (TOC) related to the Lahore Orange Line Project. The court determined that the dispute fell within the purview of an arbitral mechanism as stipulated in the contract, emphasizing that the issue was not merely about the availability of alternate remedies but rather about jurisdiction. The court found that the TOC issued was valid and effective from September 30, 2020, and rejected the petitioner's claims regarding the effective date of the TOC, asserting that the petitioner's request for the release of retention money could not be entertained until all contractual obligations were fulfilled. The decision reinforced the principle that disputes arising under contracts should be resolved through the mechanisms provided therein, thus upholding the contractual arbitration agreement. |
| Summary |
This case revolves around a dispute between Habib Construction Services Limited and the Lahore Development Authority concerning the issuance of a Taking Over Certificate (TOC) for the Lahore Orange Line Project. The petitioner argued that the TOC issued was contrary to the terms of the agreement, asserting that the project was substantially completed before the date assigned by the LDA. However, the Lahore High Court ruled that the matter was subject to arbitration as per the contractual agreement, highlighting that judicial review could not substitute the established dispute resolution mechanism. The court emphasized the importance of respecting arbitration clauses in contracts and determined that the TOC's effective date was correctly set based on the recommendations of the project consultant. This case underscores the significance of adhering to contractual obligations and the necessity of resolving disputes through agreed-upon arbitration processes, reflecting broader themes in construction law and administrative accountability. |
| Court |
Lahore High Court
|
| Entities Involved |
LAHORE DEVELOPMENT AUTHORITY,
HABIB CONSTRUCTION SERVICES LIMITED
|
| Judges |
ASIM HAFEEZ
|
| Lawyers |
Syed Tassaduq Mustafa Naqvi for Petitioner,
Sahabzada Muzaffar Ali, Legal Advisor on behalf of LDA
|
| Petitioners |
HABIB CONSTRUCTION SERVICES LIMITED THROUGH AUTHORIZED REPRESENTATIVE
|
| Respondents |
LAHORE DEVELOPMENT AUTHORITY THROUGH CHIEF ENGINEER AND OTHERS
|
| Citations |
2021 SLD 1280,
2021 MLD 1109
|
| Other Citations |
Nizamuddin and another v. Civil Aviation Authority and 2 others 1999 SCMR 467,
Dr. Sher Afgan Khan Niazi v. Ali S. Habib and others 2011 SCMR 1813,
United Bank Ltd, through Authorized Attorneys of the Bank and 2 others v. Muhammad Ashraf and another PLD 2020 Lah. 400,
Messrs Airport Support Services v. The Airport Manager Quaid-e-Azam International Airport, Karachi and others 1998 SCMR 2268,
Muhammad Aslam v. Senior Member (Colonies), Board of Revenue, Punjab and others 2004 SCMR 1587,
Ishaq Khan Khakwani v. Railway Board through Chairman and others PLD 2019 SC 602,
Al Mahmood Industries (Pakistan) Ltd. v. The Trading Corporation of Pakistan Ltd. and another 1974 SCMR 51
|
| Laws Involved |
Constitution of Pakistan, 1973
|
| Sections |
199
|