Legal Case Summary

Case Details
Case ID f8ddb1b9-1ded-471e-a181-e85aae58859f
Body View case body.
Case Number Suit No.403 and C.M.A. No.2230 of 2008
Decision Date Apr 29, 2009
Hearing Date
Decision The Sindh High Court ruled on the application under section 20 of the Arbitration Act, 1940. The court found that all necessary conditions for granting the application had been met, including the existence of a pre-existing arbitration agreement between the parties and the prima facie existence of a dispute. The court emphasized the importance of jurisdiction and noted that a part of the cause of action arose within its territorial limits. The court dismissed the application for a garnishee order due to lack of evidence of imminent danger of the defendant absconding with the payments.
Summary In the case of Pakistan Insulations (Pvt.) Ltd. vs. Ranhill Engineers and Constructors DDFC Group of Companies, the Sindh High Court addressed the application under section 20 of the Arbitration Act, 1940. The plaintiff, a Karachi-based insulation company, sought to refer disputes regarding unpaid dues under a subcontract to arbitration. The court outlined the necessary conditions for such applications, which include a valid arbitration agreement and the presence of a dispute. The court confirmed its jurisdiction based on the location of the cause of action and the terms of the subcontract. The decision underscored the importance of jurisdiction in arbitration matters and clarified that the application for a garnishee order was not justified as there was insufficient evidence of potential asset dissipation by the defendants. This case highlights significant legal principles in arbitration and civil procedure, particularly regarding jurisdiction and the enforcement of arbitration agreements.
Court Sindh High Court
Entities Involved Pakistan Petroleum Limited, Pakistan Insulations (Pvt.) Ltd., Ranhill Engineers and Constructors, DDFC Group of Companies
Judges SALMAN TALIBUDDIN, J
Lawyers Muhammad Ali Mazhar for Plaintiff, Asad Abbas Zaidi for Defendants Nos. 1 and 2, Nemo for Defendant No. 3
Petitioners PAKISTAN INSULATIONS (PVT.) LTD.
Respondents Defendant No. 3, Messrs RANHILL ENGINEERS AND CONSTRUCTORS DDFC GROUP OF COMPANIES, General Pakistan Operations Manager
Citations 2009 SLD 1890, 2009 CLD 1077
Other Citations Ali Muhammad v. Muhammad Shafi PLD 1996 SC 292, Pir Sabir Shah v. Shad Muhammad Shah, Member Provincial Assembly, N.W.F.P. PLD 1995 SC 66, Dr. Salahuddin v. Revenue Commissioner, Balochistan PLD 1978 Quetta 61, Mian Nawaz Sharif v. Sardar Farooq Ahmad Khan Leghari 1996 CLC 1714, State Life Insurance Corporation of Pakistan v. Rana Muhammad Saleem 1987 SCMR 393, Kadir Motors (Regd.) Rawalpindi v. National Motors Ltd., Karachi 1992 SCMR 1174, Chaudhry Mehtab Ahmed v. Mir Shakeel-ur-Rehman 2004 MLD 662, Das Consultants Private Ltd. v. National Mineral Development Corporation Ltd. AIR 1981 Cal. 202, Fauji Foundation v. Yousaf 1985 CLC 2799, Saleem Chemical Industries v. Bird & Co. (P) Ltd. AIR 1979 Mad. 16, Ratan Lalji Gulab Chand v. Dali Chand AIR 1954 Hyd. 39, Shipyard K. Damon International v. Karachi Shipyard and Engineering Works Ltd. 2003 CLD 309, Commodities Trading International Corporation v. Trading Corporation of Pakistan Ltd. 1987 CLC 2063
Laws Involved Arbitration Act (X of 1940), Civil Procedure Code (V of 1908), Limitation Act (IX of 1908)
Sections 20, 41(b), 15, 20, 181