| Case ID |
1ee1382c-a9c0-4e2b-a0ba-06c78ef7afb5 |
| Body |
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| Case Number |
Suit No.1134 of 2011 |
| Decision Date |
May 09, 2013 |
| Hearing Date |
Apr 05, 2013 |
| Decision |
The Sindh High Court ruled that despite the cancellation of the contract, the arbitration clause remains in effect. The court appointed an arbitrator to resolve the disputes arising from the contractual obligations between the plaintiff and defendant. The court emphasized that termination of the contract does not invalidate the arbitration agreement, enabling the parties to seek resolution through arbitration as per the contract's terms. This decision reinforces the principle that arbitration clauses survive even when the main contract is terminated. |
| Summary |
In the case of Suit No.1134 of 2011, the Sindh High Court addressed the complexities surrounding arbitration clauses in contractual agreements. The plaintiff, MESSRS SADAT BUSINESS GROUP LTD., sought the appointment of an arbitrator under Section 20 of the Arbitration Act, 1940, following the alleged wrongful termination of their contract by the defendant, the FEDERATION OF PAKISTAN THROUGH SECRETARY. The court examined the implications of force majeure events, including heavy rainfall that delayed shipments, and the responsibilities of both parties in adhering to contractual obligations. Ultimately, the court ruled that the arbitration clause survived the termination of the contract, allowing the dispute to be resolved through arbitration. This case highlights the importance of arbitration agreements in commercial transactions and their resilience against contract termination. Key phrases like 'arbitration clause', 'contract termination', and 'dispute resolution' are crucial for understanding the legal framework surrounding contractual obligations and arbitration in Pakistan. The decision serves as a precedent for future cases involving similar legal issues. |
| Court |
Sindh High Court
|
| Entities Involved |
MESSRS SADAT BUSINESS GROUP LTD.,
FEDERATION OF PAKISTAN THROUGH SECRETARY
|
| Judges |
MUHAMMAD ALI MAZHAR
|
| Lawyers |
Faisal Kamal,
Malik Muhammad Riaz,
|
| Petitioners |
MESSRS SADAT BUSINESS GROUP LTD.
|
| Respondents |
,
FEDERATION OF PAKISTAN THROUGH SECRETARY
|
| Citations |
2013 SLD 1053,
2013 CLD 1451
|
| Other Citations |
Firm Karam Narain v. Volkart Bros. AIR (33) 1946 Lahore 116,
The Hub Power Company Ltd. v. Pakistan WAPDA PLD 2000 SC 841,
Jaikishan Dass Mull v. Luchhiminarain Kanoria & Co. AIR 1974 SC 1579,
Khardah Company Ltd. v. Raymon and Co. (India) Private Ltd. AIR 1962 SC 1810,
Messrs Friends Trading Co. v. Messrs Muhammad Usman-Moula Bux PLD 1954 Sindh 56,
Malik Muhammad Mumtaz v. Malik Abdul Rauf 2002 YLR 2238,
Hitachi v. Rupali PLD 1998 SCMR 1618,
Corpus Juris Secundum, Volume-6, 2004, Chapter Arbitration (Page 76-77),
Manzoor Construction Co. Ltd. v. University of Engineering & Technology, Textila 1984 CLC 3347,
Das Consultants Pvt. Ltd. v. National Mineral Development Corporation Ltd. AIR 1981 Calcutta 202,
Muhammad Azam Muhammad Fazil & Co. v. Messrs Trading Corporation of Pakistan 1986 CLC 2630,
Lahore Stock Exchange Limited v. Fredrick J. Whyte Group (Pakistan) Ltd. PLD 1990 SC 48
|
| Laws Involved |
Arbitration Act, 1940
|
| Sections |
20
|