| Case ID |
0a7e447b-9378-45ed-90d3-977767fd5e2a |
| Body |
View case body. Login to View |
| Case Number |
Civil Appeal No.147 of 1989 |
| Decision Date |
Oct 22, 1989 |
| Hearing Date |
|
| Decision |
The Supreme Court of Pakistan dismissed the appeal, reiterating that the arbitration clause in the agreement was sufficiently broad to encompass any disputes regarding the interpretation of the agreement. The court emphasized that the questions of whether the agreement was valid and whether the issues raised could be determined by an arbitrator were within the scope of the arbitration clause. The court also highlighted that disputes regarding the legal existence of the agreement, including the arbitration clause, were to be resolved by the arbitrator unless it was established that the agreement was void ab initio. The decision confirmed that the arbitrator is the sole judge of facts and law in disputes arising from the agreement, and thus the appeal did not warrant any interference. |
| Summary |
In the landmark case of Lahore Stock Exchange Limited vs. Fredrick J. Whyte Group (Pakistan) Ltd., the Supreme Court of Pakistan addressed critical issues surrounding arbitration agreements under the Arbitration Act of 1940 and the Contract Act of 1872. The case centered on the validity of an agreement made on October 1, 1982, which included a broadly worded arbitration clause. The court examined whether the disputes arising from the agreement could be arbitrated, particularly questioning the legal standing of the respondent company and the authority of Mr. John A. Whyte to enter into the agreement. The ruling underscored the importance of arbitration as a means of dispute resolution, affirming that questions regarding the existence and validity of the agreement fell within the jurisdiction of the arbitrator, provided the agreement was not deemed illegal. This case is pivotal for understanding arbitration law in Pakistan and the enforceability of arbitration clauses. |
| Court |
Supreme Court of Pakistan
|
| Entities Involved |
LAHORE STOCK EXCHANGE LIMITED,
FREDRICK J. WHYTE GROUP (PAKISTAN) LTD.
|
| Judges |
SHAFIUR RAHMAN,
ALI HUSSAIN QAZILBASH,
NAIMUDDIN
|
| Lawyers |
K.M.A. Samdani, Advocate Supreme Court,
M.Saleem Seghal, Advocate Supreme Court,
Khawaja Mushtaq Ahmad Advocate-on-Record (absent),
S.M. Zafar, Senior Advocate Supreme Court,
Mr. Tanvir Ahmad, Advocate-on-Record (absent)
|
| Petitioners |
LAHORE STOCK EXCHANGE LIMITED
|
| Respondents |
others,
FREDRICK J. WHYTE GROUP (PAKISTAN) LTD.
|
| Citations |
1990 SLD 346,
1990 PLD 48
|
| Other Citations |
Manzoor Construction Co. Ltd. v. University of Engineering & Technology, Taxila 1984 CLC 3347,
Chandmull Goncshmull v. Nippon Munkwa Kabushiki Kaisha AIR 1921 Cal. 342,
Messrs Dhanrajamal Gobindram v. Messrs Shamji Kalidas & Co. AIR 1961 SC 1285,
Renusagar Power Co. Ltd. v. General Electric Company and another AIR 1985 SC 1156,
Heyman v. Darwins Ld H.L. (E) 1942 AC 3-5,
Waverly Jute Mills Co. Ltd. and others v. Raymon & Co. (India) Pvt. Ltd. AIR 1963 SC 90,
Halsbury's Laws of England, 4th Edn., para. 553,
Chitty on Contracts, 24th Edn., p. 873
|
| Laws Involved |
Arbitration Act (X of 1940),
Constitution of Pakistan (1973),
Contract Act (IX of 1872)
|
| Sections |
20,
185(3),
23,
19
|