| Case ID |
20d872ef-cdd4-4fd7-b863-83bc650e0052 |
| Body |
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| Case Number |
Regular First Appeal No. 87 of 1985 (Now First App |
| Decision Date |
Mar 28, 2003 |
| Hearing Date |
Mar 28, 2003 |
| Decision |
The Lahore High Court addressed the complexities surrounding the Arbitration Act (X of 1940), particularly focusing on the validity of the arbitration agreement and the role of the arbitrator. It was determined that the arbitrator, who was a party to the dispute, could not validly act as an arbitrator due to inherent bias, violating fundamental principles of justice. The court emphasized that the power of attorney must explicitly authorize such actions, and the absence of specific authority rendered the arbitration agreement void. Consequently, the court set aside the impugned order and award, ruling that the award had no legal value. |
| Summary |
This case highlights critical aspects of arbitration law, particularly under the Arbitration Act (X of 1940). The Lahore High Court scrutinized the validity of an arbitration agreement where the arbitrator had a vested interest in the dispute. The court ruled that no individual should serve as a judge in their own cause, reaffirming principles of natural justice. The decision underscores the necessity for explicit authority in power of attorney documents when engaging in arbitration agreements. The ruling is pivotal for understanding the limitations imposed on arbitrators and the importance of impartiality in arbitration proceedings. Legal practitioners must ensure compliance with statutory provisions to uphold the integrity of arbitration. The case serves as a significant precedent for future arbitration disputes, reinforcing the need for clarity and specificity in legal authorizations and agreements. |
| Court |
Lahore High Court
|
| Entities Involved |
Not available
|
| Judges |
MIAN SAQIB NISAR, J
|
| Lawyers |
Ch. Khurshid Ahmed,
Ch. Shahbaz Khurshid,
Ch. Muzammal Khan,
Abdul Rehman Madni
|
| Petitioners |
RASHIDA BEGUM
|
| Respondents |
Ch. MUHAMMAD ANWAR and others
|
| Citations |
2003 SLD 3315,
2003 PLD 522
|
| Other Citations |
PLD 2002 SC 71,
PLD 1968 Pesh. 30
|
| Laws Involved |
Arbitration Act (X of 1940)
|
| Sections |
17,
39,
14,
30,
22
|