| Case ID |
1abd771e-022a-4361-8ac9-13a1dfd89f63 |
| Body |
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| Case Number |
Civil Petitions Nos.22-L and 23-L of 1996 |
| Decision Date |
Apr 01, 1996 |
| Hearing Date |
Apr 01, 1996 |
| Decision |
The Supreme Court granted leave to appeal in the case concerning a dispute over the sale of shares of Shaffi Woollen Industries Limited. The Court examined the implications of the winding-up order issued by the Lahore High Court and how it affected the arbitration proceedings. The petitioner argued that the High Court's reference to Section 316 of the Companies Ordinance was misconceived since the arbitration did not directly involve the company in liquidation. The Supreme Court found merit in the petitioner's contention and decided to hear the appeal, emphasizing the need to clarify whether the arbitration award confirmation was indeed a matter that could be adjourned sine die due to the winding-up order. |
| Summary |
In the case of Civil Petitions Nos.22-L and 23-L of 1996, the Supreme Court of Pakistan addressed a significant legal issue involving arbitration and company liquidation. The dispute arose from the sale of shares in Shaffi Woollen Industries Limited, where the petitioner, Aurangzeb Shaffi Burki, sought to have an arbitration award confirmed by the court. The respondent, Farooq Ahmad, filed objections under the Arbitration Act, which led to a complex legal situation when a winding-up order was issued against the company during the arbitration process. The Supreme Court scrutinized the application of Section 316 of the Companies Ordinance, determining that the arbitration proceedings should not have been adjourned due to the winding-up order, as the case did not involve the company directly. This case highlights the intersection of corporate law, arbitration, and the judicial process in Pakistan, underscoring the importance of clarity in legal proceedings involving companies in liquidation. The decision to grant leave to appeal paves the way for a detailed examination of these legal principles, with implications for future cases in similar contexts. |
| Court |
Supreme Court of Pakistan
|
| Entities Involved |
Shaffi Woollen Industries Limited
|
| Judges |
SAIDUZZAMAN SIDDIQUI,
MUKHTAR AHMAD,
JUNEJO,
RAJA AFRASIAB KHAN
|
| Lawyers |
Mian Hamid Farooq,
Mahmood A Qureshi
|
| Petitioners |
AURANGZEB SHAFFI BURKI
|
| Respondents |
FAROOQ AHMAD
|
| Citations |
1998 SLD 1219,
1998 SCMR 243
|
| Other Citations |
Not available
|
| Laws Involved |
Companies Ordinance (XLVII of 1984),
Arbitration Act (X of 1940),
Constitution of Pakistan (1973)
|
| Sections |
316,
30,
33,
185(3)
|