| Case ID |
ff12a4c3-3637-4813-9149-3859ad0b3bb2 |
| Body |
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| Case Number |
F.A.O. No. 70 of 2022 |
| Decision Date |
Oct 03, 2023 |
| Hearing Date |
Feb 13, 2023 |
| Decision |
The Islamabad High Court dismissed the appeal filed by the National Highway Authority (NHA) challenging the decision of the Trial Court which had dismissed NHA's objections against an arbitration award. The Court ruled that the NHA had failed to demonstrate valid grounds for setting aside the arbitration award and emphasized the importance of adhering to legal advice. The Court noted that the NHA's frivolous contestation of the award not only burdened the courts but also resulted in significant financial implications, including late payment charges. The appeal was dismissed with costs imposed on NHA, underscoring the need for accountability in decision-making processes within public organizations. |
| Summary |
In the case of F.A.O. No. 70 of 2022, the Islamabad High Court addressed the appeal of the National Highway Authority (NHA) against an arbitration award favoring Messrs Sardar Muhammad Ashraf D. Baloch (Private) Limited. The appeal arose from the NHA's objections to the Trial Court's decision, which had ruled in favor of the arbitration award made on September 14, 2021. The Court highlighted the significance of legal advice in decision-making, indicating that the NHA's failure to heed such advice led to unnecessary litigation and financial penalties. The Court reaffirmed the principles of the Arbitration Act, 1940, particularly sections 30, 33, and 39, emphasizing the limited grounds on which arbitration awards can be challenged. The ruling serves as a critical reminder for public entities to maintain accountability and adhere to expert legal guidance in their operational decisions, especially in matters involving significant public funds and ongoing liabilities. This case illustrates the importance of timely payments to avoid accruing additional charges, which can escalate to substantial sums over time. |
| Court |
Islamabad High Court
|
| Entities Involved |
NATIONAL HIGHWAY AUTHORITY (NHA),
Messrs SARDAR MUHAMMAD ASHRAF D. BALOCH (PRIVATE) LIMITED
|
| Judges |
Sardar Ejaz Ishaq Khan
|
| Lawyers |
Muhammad Hassan Alam,
Babbar Ali Khan,
Jawad ur Rahim Malik
|
| Petitioners |
NATIONAL HIGHWAY AUTHORITY (NHA) through Chairman
|
| Respondents |
another,
Messrs SARDAR MUHAMMAD ASHRAF D. BALOCH (PRIVATE) LIMITED
|
| Citations |
2024 SLD 81,
2024 PLD 18
|
| Other Citations |
PLD 1996 SC 108,
2013 CLD 1483,
PLD 2006 SC 169,
1983 SCMR 718,
2019 CLD 566
|
| Laws Involved |
Arbitration Act, 1940
|
| Sections |
30,
33,
39
|