| Case ID |
10b2baef-af54-4e98-871c-7dc96432962f |
| Body |
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| Case Number |
First Appeal from Original Order No. 181-A of 1972 |
| Decision Date |
Apr 27, 1973 |
| Hearing Date |
Mar 14, 1973 |
| Decision |
The Lahore High Court ruled that the Chancellor of the University, appointed as the sole arbitrator by virtue of his office, is not the only individual who can arbitrate in disputes arising from contracts with an arbitration clause. The court emphasized that there is no specific provision in the contract preventing the appointment of another arbitrator if the named arbitrator declines to act. The court also held that the agreement to refer disputes to arbitration remains valid even if the named arbitrator fails to act, thus allowing the court to appoint an arbitrator in such circumstances. |
| Summary |
In the case of UNIVERSITY OF THE PUNJAB vs. PERFECT ELECTRIC CONCERN, the Lahore High Court addressed the validity of an arbitration clause in a contract concerning an electrification project. The dispute arose after the Chancellor of the University, designated as the sole arbitrator, failed to act. The court examined whether the arbitration agreement became ineffective due to the named arbitrator's inaction. The ruling clarified that an arbitrator described by virtue of office does not preclude the appointment of another arbitrator when the named individual declines to act. This case underscores the importance of ensuring that arbitration agreements remain enforceable and that parties can seek redress even when initial arbitrators fail to fulfill their duties. Key legal principles regarding arbitration, appointment of arbitrators, and enforcement of arbitration clauses were emphasized, making this ruling significant for future arbitration-related disputes. |
| Court |
Lahore High Court
|
| Entities Involved |
UNIVERSITY OF THE PUNJAB,
PERFECT ELECTRIC CONCERN
|
| Judges |
AFTAB HUSSAIN, J
|
| Lawyers |
S. M. Zubair,
Z. K. Qureshi
|
| Petitioners |
UNIVERSITY OF THE PUNJAB
|
| Respondents |
PERFECT ELECTRIC CONCERN
|
| Citations |
1980 SLD 599,
1980 PLD 305
|
| Other Citations |
District Co-operative Federation Ltd. v. Khub Chand A I R 1961 H P 35,
Chief Engineer, Buildings & Roads, Jaipur and another v. Harbans Singh A I R 1955 Raj. 30,
Firm Duni Chand Ram Parkash v. Firm Prem Chand Maya Dass A I R 1945 Lah. 264,
Mst. Khodeja and another v. Ghulam Nabi I L R 1 Lah. 45,
Messrs D. Gobindram v. Messrs Shamji Kalidas & Co. A I R 1961 S C 1285
|
| Laws Involved |
Arbitration Act (X of 1940)
|
| Sections |
8(a),
20,
20(4),
30,
39
|