| Case ID |
37f290c7-56fb-420d-88aa-a8325aec696b |
| Body |
View case body. Login to View |
| Case Number |
Civil Appeals Nos. 85D, 86D and 87D of 1968 |
| Decision Date |
Jun 15, 1970 |
| Hearing Date |
Dec 17, 1969 |
| Decision |
The Supreme Court of Pakistan ruled on the validity of exclusive jurisdiction clauses in bills of lading. The Court found that such clauses, which specify that disputes be resolved in a foreign jurisdiction, do not necessarily oust the jurisdiction of local courts. It emphasized that while parties can agree on a specific forum, this cannot contravene local laws or public policy. The Court held that these clauses should be treated similarly to arbitration clauses, where local courts maintain the discretion to stay proceedings in favor of arbitration or foreign jurisdiction, provided it is reasonable and just. The judgment aimed to preserve the sanctity of contracts while ensuring access to justice within Pakistan's legal framework. |
| Summary |
This case addresses the validity of exclusive jurisdiction clauses in bills of lading, which stipulate that disputes arising from a contract be resolved in a foreign court. The Supreme Court examined whether such clauses could legally exclude the jurisdiction of Pakistani courts. The ruling clarified that while parties have the right to choose a forum, this choice must not be in violation of local laws or public policy. The Court underscored that exclusive jurisdiction clauses should not be interpreted as an absolute bar to accessing local courts, thus maintaining the balance between contractual freedom and the integrity of local legal systems. This landmark decision is essential for international trade law, particularly in maritime contexts, and impacts how contracts are drafted in terms of jurisdictional stipulations. The ruling aligns with global trends in recognizing the limits of jurisdictional clauses, reflecting a broader commitment to uphold justice within national legal frameworks. |
| Court |
Supreme Court of Pakistan
|
| Entities Involved |
M/s. Habib Bank Ltd.,
M/s. M. A. Chowdhury & Co.,
M/s. Mitsui O. S. K. Lines Ltd.,
M/s. Scandinavian Joint Service,
M/s. Holland Bengal Burma Line,
M/s. Eastern Insurance Co. Ltd.
|
| Judges |
HAMOODUR RAHMAN, C.J.,
ABDUS SATTAR,
M. R. KHAN
|
| Lawyers |
Md. Muzammal Huq, Senior Advocate Supreme Court instructed by D. K Khadim, Advocate-on-Record,
Farid Ahmad, Advocate Supreme Court instructed by S. M. Huq, Advocate-on-Record,
Ahmad Sobhan, Senior Advocate Supreme Court instructed by Aminul Huq, Advocate-on-Record,
Md. Mozammel Huq, Senior Advocate Supreme Court instructed by D. K. Khadim, Advocate-on-Record,
M. J. Jaffar and S. M. Hossain, Advocates Supreme Court instructed by Abdur Rab-11, Advocate-on-Record
|
| Petitioners |
M. A. CHOWDHURY,
MD. AYUB SIDDIQUE,
EASTERN FEDERAL UNION INSURANCE Co. LTD.
|
| Respondents |
MESSRS MITSUI O. S. K. LINES LTD.,
SCANDINAVIAN JOINT SERVICE,
MESSRS HOLLAND BENGAL BURMA LINE
|
| Citations |
1970 SLD 89,
1970 PLD 373
|
| Other Citations |
Abdur Razak v. East Asiatic Co. Ltd. 5 D L R 394,
Tar Muhammad & Company v. Federation of Pakistan and others 9 D L R 197,
Narayanganj Iron Works Ltd. v. Pakistan 15 D L R 434,
Osaka Shosen Kaisha O. S. K. Line, Japan v. The Province of East Pakistan P L D 1966 Dacca 481,
British India Steam Navigation Co. Ltd. v. A. R. Chowdhury and others P L D 1968 Dacca 860,
Swedish East Asia Co. Ltd. v. Md. Masud Raza & Co. 21 D L R 343
|
| Laws Involved |
Contract Act (IX of 1872)
|
| Sections |
28
|