| Case ID |
2602101f-87c3-41a7-a67a-9b4a8d681063 |
| Body |
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| Case Number |
Civil Petition No. 3767 of 2020 |
| Decision Date |
Feb 13, 2023 |
| Hearing Date |
Feb 13, 2023 |
| Decision |
The Supreme Court dismissed the petition challenging the arbitration award on the grounds that the arbitrators did not misconduct themselves under Section 30(a) of the Arbitration Act, 1940. The court emphasized that the arbitrators are the final arbiters of disputes and their decisions should not be lightly interfered with unless there is a clear breach of duty or irregularity. The petitioner failed to demonstrate any substantial error or misconduct. Additionally, the court imposed costs on the petitioner for vexatious litigation that spanned over a decade, hindering the efficient administration of justice. |
| Summary |
This case revolves around the arbitration dispute between the National Highway Authority (NHA) and Messrs Sambu Construction Co. Ltd. regarding additional work performed under a contract for the rehabilitation of a national highway. The NHA contested the arbitration award which favored the respondent for additional costs incurred for work that was not initially part of the contract. The Supreme Court ruled that the decision of the arbitrators should not be interfered with as they acted within their jurisdiction and authority. The ruling underscored the limited scope for judicial review of arbitration awards, emphasizing the importance of honoring arbitration as an alternative dispute resolution mechanism. This decision is pivotal for understanding the application of the Arbitration Act, 1940, particularly in terms of judicial interference in arbitration processes. The court also highlighted the detrimental effects of prolonged litigation on the judicial system, stressing the need for parties to adhere to arbitration outcomes to maintain the integrity of alternative dispute resolution processes. |
| Court |
Supreme Court of Pakistan
|
| Entities Involved |
NATIONAL HIGHWAY AUTHORITY,
Messrs SAMBU CONSTRUCTION CO. LTD.
|
| Judges |
Syed Mansoor Ali Shah,
Ayesha A. Malik
|
| Lawyers |
Zahid Idris Mufti, Advocate Supreme Court for Petitioner,
Barrister Muhammad Mumtaz Ali, Advocate Supreme Court,
Anis Muhammad Shahzad, Advocate-on-Record for Respondents
|
| Petitioners |
NATIONAL HIGHWAY AUTHORITY through Chairman
|
| Respondents |
others,
Messrs SAMBU CONSTRUCTION CO. LTD. ISLAMABAD
|
| Citations |
2023 SLD 1409,
2023 SCMR 1103
|
| Other Citations |
Mian Corporation v. Messers Lever Brothers of Pakistan Ltd. PLD 2006 SC 169,
Nigel Blackaby and Constantine Partasides QC, Redfern and Hunter On International Arbitration (6th edn, Oxford University Press, United Kingdom 2015), 569-573,
Tony Cole and Pietro Ortolani, Understanding International Arbitration (1st edn., Routledge, New York 2020), Chapter-7, 216,
Federation of Pakistan v. Messrs Joint Venture Kocks K.G./Rist, PLD 2011 SC 506,
Gerry's International (Pvt.) Ltd v. Aeroflot Russian International Airlines 2018 SCMR 662,
Shahin Shah v. Government of Khyber Pakhtunkhwa 2022 SCMR 1810,
Brooke Bond (Pakistan) Ltd. v. Conciliator Appointed by the Government of Sindh PLD 1977 SC 237,
President of Islamic Republic of Pakistan v. Syed Tasneem Hussain Naqvi 2004 SCMR 590,
Muhammad Ramzan v. Additional District Judge, Multan 2005 SCMR 1542,
Province of Punjab v. Messrs Sufi Construction Company 2005 SCMR 1724
|
| Laws Involved |
Arbitration Act, 1940
|
| Sections |
30,
30(a)
|