| Case ID |
38cf73cf-fea6-4d19-ab29-d663bd424131 |
| Body |
View case body. Login to View |
| Case Number |
Suit No. 205 of 2014 |
| Decision Date |
May 21, 2014 |
| Hearing Date |
|
| Decision |
The Sindh High Court ruled that the suit filed by K Electric Limited should proceed despite the existence of an arbitration agreement. The Court found that the dispute raised by K Electric, particularly regarding the constitutional validity of a decision made by the Council of Common Interests, was not suitable for arbitration. The Court held that constitutional issues are inherently within the jurisdiction of the courts, especially a superior court like the High Court. Therefore, the application by the National Transmission and Despatch Company to stay the suit and refer the matter to arbitration was dismissed. |
| Summary |
In the case of K Electric Limited vs. Federation of Pakistan, the Sindh High Court addressed the complexities surrounding arbitration agreements in the context of constitutional disputes. K Electric sought to draw 650 MW from the national grid but faced limitations imposed by a decision from the Council of Common Interests, which had reduced their supply quota. The Court emphasized that when a dispute raises significant constitutional questions, it must be resolved within the judicial system rather than through arbitration. This decision underscores the primacy of constitutional law and the limitations of arbitration in matters that involve questions of constitutional validity. The ruling also highlights the importance of jurisdictional authority, clarifying that arbitrators cannot adjudicate on constitutional matters. This case serves as a pivotal reference for future disputes involving arbitration agreements and constitutional issues, reinforcing the judicial system's role in maintaining constitutional integrity. |
| Court |
Sindh High Court
|
| Entities Involved |
Federation of Pakistan,
Province of Sindh,
Council of Common Interests,
SITE Association of Industries,
Judicial Activism Panel of Pakistan,
K Electric Limited,
National Transmission and Despatch Co. Ltd
|
| Judges |
MUNIB AKHTAR, J
|
| Lawyers |
Abid S. Zuberi,
Ayan Memon,
Usman Akram Sahi,
Arshad Tayebaly,
Abdul Qadir Laghari
|
| Petitioners |
K ELECTRIC LIMITED
|
| Respondents |
FEDERATION OF PAKISTAN
|
| Citations |
2014 SLD 68,
2014 PLD 504
|
| Other Citations |
Not available
|
| Laws Involved |
Arbitration Act, 1940,
Specific Relief Act, 1877,
Constitution of Pakistan, 1973
|
| Sections |
34,
13,
42,
54,
153,
154
|