| Case ID |
e1cacc3f-d15d-4c66-bb07-195671c11126 |
| Body |
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| Case Number |
Execution Application No. 9 of 2019 |
| Decision Date |
Oct 04, 2023 |
| Hearing Date |
Sep 13, 2023 |
| Decision |
The Islamabad High Court decided to recognize and enforce the foreign arbitral award dated June 30, 2019, in favor of China International Water and Electric Corporation (CWE) against the National Highway Authority (NHA). The court found that the grounds for refusing recognition and enforcement under Article V of the New York Convention were not satisfied. The court emphasized that it cannot review the merits of the arbitral tribunal's decision, and therefore, upheld the validity of the award, directing NHA to execute the award and return the bank guarantee to CWE without conditions. The appeal filed by NHA was dismissed, affirming the execution of the award as equitable and justified under the prevailing arbitration laws. |
| Summary |
This case revolves around the enforcement of a foreign arbitral award issued in favor of China International Water and Electric Corporation (CWE) against the National Highway Authority (NHA) in Pakistan. The Islamabad High Court addressed the application for execution of the award dated June 30, 2019, which arose from a contractual dispute regarding construction delays and associated costs. The court examined the principles governing arbitration agreements and their enforceability under both Pakistani law and international conventions, particularly the New York Convention. The decision highlights crucial aspects of arbitration, including the independence of the arbitral process from local court interventions, the role of curial law, and the obligations of parties to honor arbitration awards. The ruling reinforced the importance of respecting international arbitration agreements and the enforcement of foreign arbitral awards within Pakistan's legal framework. This case serves as a significant precedent for future arbitration disputes, emphasizing the judiciary's role in upholding arbitration as a viable dispute resolution mechanism in international contracts. |
| Court |
Islamabad High Court
|
| Entities Involved |
National Highway Authority (NHA),
China International Water and Electric Corporation (CWE)
|
| Judges |
Miangul Hassan Aurangzeb,
Arbab Muhammad Tahir
|
| Lawyers |
Javaid Akhtar,
Zakir Hussain Baig,
Hamid Nawaz,
Rizwan Faiz Muhammad,
Barrister Afzal Khan Shinwari,
Barrister M. Usama Rauf
|
| Petitioners |
CHINA INTERNATIONAL WATER AND ELECTRIC CORPORATION (CWE) P.R. CHINA
|
| Respondents |
NATIONAL HIGHWAY AUTHORITY
|
| Citations |
2023 SLD 2170,
2023 CLD 1400
|
| Other Citations |
Mehmood-ul-Hassan Babar Khan v. Liaqat Ali Kareem 2002 YLR 2227,
Farooq Ahmed Sheikh v. Privatization Commission 2006 CLD 1130,
Orient Power Company (Private) Limited v. Sui Northern Gas Pipeline Limited PLD 2019 Lah. 607,
Taisei Corporation v. A.M. Corporation Company (Private) Limited 2018 MLD 2058,
Bharat Aluminum Co. v. Kaiser Aluminum Technical Service Inc. AIR 2012 SC (Supp) 44,
Karaha Bodas Co. LLC v. Perusahaan Pertambangan Minyak Dan Gas Bumi Negara 335 F 3d 357,
Karaha Bodas Co. LLC (Cayman Islands) v. Perusahaan Pertambangan Minyak Dan Gas Bumi Negara - Pertamina (Indonesia) Yearbook Comm. Arb'n Vol.XXVIII (2003) Page 752,
International Electric Corporation v. Bridas Sociedad Anonima Petroleva, Industrial Y Commercial 745 F Supp, 178 SDNY 1990,
International Standard Electric Corp. (US) v. Bridas Sociedad Anonima Petrolera (Argentina) 1992 VII Ybk Comm Arb 639,
Louis Dreyfus Commodities Suisse S.A. v. Acro Textile Mills Ltd. PLD 2018 Lah. 597,
POSCO International Corporation v. Rikans International PLD 2023 Lah. 116
|
| Laws Involved |
Arbitration Act, 1940,
Recognition and Enforcement (Arbitration Agreements and Foreign Arbitral Awards) Act, 2011,
United Nations Convention on the Recognition and Enforcement of Foreign Arbitral Awards, 1958
|
| Sections |
31,
3(3)(a),
6,
Art. V(1)(e)
|