| Case ID |
2d0131be-b2f8-44e9-a324-87b3f8f42d6f |
| Body |
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| Case Number |
Suit No. 1051 of 1999 |
| Decision Date |
May 20, 2003 |
| Hearing Date |
Jan 20, 2003 |
| Decision |
The Sindh High Court dismissed the suit on the grounds that the matter had already been resolved in arbitration proceedings, which were validly invoked prior to the filing of the suit. The Court emphasized that the arbitration agreement was an exception to the general rule against agreements in restraint of legal proceedings. Moreover, the Court stated that the existence of a contract providing for arbitration barred the suit to the extent of the matters covered by the arbitration clause. The Court found that the plaintiff participated in the arbitration, thus estopping them from contesting the arbitration proceedings in court. The ruling reiterated the principle that once arbitration proceedings have commenced, the courts should not interfere unless specific conditions are met under the Arbitration Act or the Arbitration (Protocol and Convention) Act. |
| Summary |
The case involved a dispute over a charter party agreement between the plaintiff, MESSRS HASAN ALI RICE EXPORT CO., and the defendants, FLAME MARITIME LIMITED AND ANOTHER. The plaintiff sought injunctive relief and damages, claiming the terms of an addendum to the charter party were agreed upon under duress. However, the defendants invoked an arbitration clause that was part of the agreement, leading to arbitration proceedings in London. The Sindh High Court held that the arbitration agreement was valid and that the suit was barred due to the existence of the arbitration clause. The ruling reaffirmed the importance of arbitration as a means of dispute resolution, highlighting the principle of res judicata, which prevents the same issue from being re-litigated if it has already been decided in a prior proceeding. This case underscores the enforceability of arbitration agreements and the limitations on court intervention in matters already subject to arbitration, especially when the arbitration has occurred in a foreign jurisdiction. |
| Court |
Sindh High Court
|
| Entities Involved |
Not available
|
| Judges |
MUSHIR ALAM
|
| Lawyers |
Moulvi Yousaf,
Khalid Rehman
|
| Petitioners |
MESSRS HASAN ALI RICE EXPORT CO. THROUGH SOLE PROPRIETOR
|
| Respondents |
FLAME MARITIME LIMITED AND ANOTHER
|
| Citations |
2004 SLD 535,
2004 CLD 334
|
| Other Citations |
2000 MLD 641,
AIR 1924 Sind 146,
AIR 1935 Lah. 916,
3 KBD 257,
AIR 1960 SC 1058,
PLD 1970 Lah. 184,
1999 CLC 437,
PLD 1983 Kar. 247,
1990 MLD 1675,
PLD 1990 Kar. 254,
Suit No. 1681 of 1998
|
| Laws Involved |
Contract Act (IX of 1872),
Arbitration Act (X of 1940),
Arbitration (Protocol and Convention) Act (VI of 1937),
Civil Procedure Code (V of 1908),
Specific Relief Act (I of 1877)
|
| Sections |
28,
2(a),
34,
3,
10,
11,
21
|