| Case ID |
42ce2d34-ffa9-4e11-9dfa-037735eac5f4 |
| Body |
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| Case Number |
I.C.A. No. 210640 of 2018 |
| Decision Date |
Aug 01, 2019 |
| Hearing Date |
Jun 17, 2019 |
| Decision |
The Lahore High Court ruled that the High Court has exclusive jurisdiction to recognize and enforce foreign arbitral awards under the Recognition and Enforcement (Arbitration Agreements and Foreign Arbitral Awards) Act, 2011. The court held that allowing simultaneous remedies before both the High Court and civil court for the same foreign arbitral award would create conflicting judgments and uncertainty. The court further distinguished the current case from previous judgments concerning domestic awards, confirming that the provisions of the 2011 Act take precedence over the Arbitration Act, 1940 for foreign awards. The 'take or pay' clause was upheld as valid, and the court determined that the arbitrator had jurisdiction over claims arising from the Payment Agreement, which was linked to the Gas Supply Agreement. The court emphasized the importance of recognizing the binding nature of arbitration agreements and their enforceability under Pakistani law. |
| Summary |
The case revolves around the enforcement of a foreign arbitral award under the Recognition And Enforcement (Arbitration Agreements And Foreign Arbitral Awards) Act, 2011. The Lahore High Court addressed jurisdictional issues concerning the enforcement of foreign arbitral awards, emphasizing that the High Court holds exclusive jurisdiction in such matters. The court clarified the applicability of the 'take or pay' clause in the Gas Supply Agreement, asserting its validity and relevance to the dispute. The decision highlights the court's commitment to uphold arbitration agreements and the need for clarity in jurisdiction to prevent conflicting judicial outcomes. This ruling is pivotal for parties involved in international arbitration, particularly in the energy sector, as it reinforces the enforceability of arbitration clauses and foreign awards in Pakistan. The judgment serves as a guide for future cases, establishing a precedent for the interpretation of arbitration laws in the context of commercial contracts. The case underscores the importance of understanding the implications of arbitration agreements and the legal framework governing their enforcement. |
| Court |
Lahore High Court
|
| Entities Involved |
ORIENT POWER COMPANY (PRIVATE) LIMITED,
SUI NORTHERN GAS PIPELINES LIMITED
|
| Judges |
AYESHA A. MALIK,
JUSTICE SHAHID,
JAMIL KHAN
|
| Lawyers |
Khawaja Ahmad Hosain,
Chaudhry Muhammad Usman,
Ms. Faryal Nazir,
Zaheer Cheema,
Minam Karim,
Imran Javed
|
| Petitioners |
Shabbir Hussain,
Salman Akram Raja,
Faisal Islam,
Umer Akram Chaudhary,
Ahsan Mahmood,
Usman Ali Bhoon,
Majid Jehangir,
Mian Ahmad Hammad,
Mehrunissa Sajjad
|
| Respondents |
SUI NORTHERN GAS PIPELINES LIMITED THROUGH MANAGING DIRECTOR, LAHORE
|
| Citations |
2019 SLD 2796,
2019 PLD 607
|
| Other Citations |
Taisei Corporation v. A.M. Construction Company (Pvt) Ltd. PLD 2012 Lah. 455,
Hitachi Limited and another v. Rupali Polyester and others 1998 SCMR 1618,
G.M. Pfaff A.G. v. Sartaj Engineering Co. Ltd., Lahore and 3 others PLD 1970 Lah. 184,
Nan Fung Textiles Ltd. v. Sadiq Traders Ltd. PLD 1982 Kar. 619,
Marines Limited v. Aegus Shipping Co. Ltd and 4 others 1987 CLC 1299
|
| Laws Involved |
Recognition And Enforcement (Arbitration Agreements And Foreign Arbitral Awards) Act, 2011,
Contract Act, 1872,
Arbitration Act, 1940
|
| Sections |
2(d),
3,
4,
6,
7,
74,
14,
30,
33
|