LAHORE DEVELOPMENT AUTHORITY vs MESSRS KHALID JAVED & Co.
This petition for leave to appeal was directed against the order of the Lahore High Court, which had dismissed in limine the petitioner's First Appeal against a Civil Judge's decree making an arbitration award the rule of the court. The underlying dispute arose from a road-widening contract awarded by the petitioner to the respondent, which was referred to two arbitrators who were both nominees of the petitioner. The arbitrators awarded a sum to the respondent, and the petitioner's objections were rejected by the trial court. The Supreme Court of Pakistan observed that the arbitrators were the petitioner's own nominees, both parties were afforded a fair opportunity to present their cases, and each item of the claim was adequately considered on its merits. Finding that no legal misconduct was established against the arbitrators, the Court held that the trial court was fully justified in making the award the rule of the court and dismissed the petition.
- Whether an arbitration award can be set aside or challenged if no legal misconduct is established against the arbitrators?
- Can a party successfully object to an arbitration award rendered by its own nominees where a fair opportunity was given to both sides and claims were decided on merit?
ORDER
1. NASIM HASAN SHAH, J.-This petition is directed against the order dated 22nd January, 1983 passed by a learned Single Judge of the Lahore High Court dismissing the First Appeal (F. A. O. 12/83) preferred by the petitioner against the judgment and decree of a learned Civil Judge, Lahore, whereby he ordered that the award of the Arbitrators be made the rule of the Court.
2. The dispute arising out of a contract given by the petitioner to the respondent for widening of the Lahore Cantonment Approach Road was referred to arbitration, under the Clauses of the Agreement and two Arbitrators, both of whom were the nominees of the petitioner, were appointed by a Civil Judge of Lahore to arbitrate in the matter. The Arbitrators made an award, which was filed before the Court on 18th October, 1981, in which the petitioner was held liable to pay Rs.
3. 5,44,156.52 to the respondent.
4. Objections were preferred to this award by the petitioner but the learned Civil Judge in a detailed judgment, wherein the merits of the objections were properly discussed, rejected all the objections raised to the Award and made it the rule-of the Court. The petitioner filed an appeal against the said judgment and decree before the Lahore High Court, which was heard by a learned Single Judge thereof. The learned Judge found no merit in the appeal and ,d4smissed it in limine. Hence this petition for leave to appeal.
5. Mohammad Ahmad Hasan Khan attempted to support this petition by raising some hyper- technical pleas. However, considering the fact that both the Arbitrators were nominees of the petitioner ; that a fair and proper opportunity was given by them to both the parties to establish their respective cases and the award shows that every item of the claim made by the respondent has been adequately considered and decided on its merits with the result that while some have been allowed, others modified, there are some others which have been rejected completely and to top it all no "misconduct", as the said term is understood in law, has been established against them, the learned trial Court was, therefore, fully justified in making the award the rule of the Court and the High Court acted properly in dismissing summarily the appeal preferred against the said determination. Accordingly, there is absolutely no ground for inter--ference with the judgment of the High Court. This petition must fail and is rejected hereby and the interim order dated 9th February, 1983 staying the payment of the decretal amount stands vacated.
Cited by 23 cases
- National Highway Authority vs M/S Kingcrete Builders & Another 2025 IHC 148
- NATIONAL HIGHWAY AUTHORITY Versus HUSNAIN COTEX LIMITED 2025 CLD 598
- National Highway Authority vs M/S Hussain Cotex Limited & Another 2025 IHC 88, 2025 CLD 598
- National Highway Authority (NHA) vs M/s Sardar Muhammad Ashraf D. 2024 IHC 66, 2024 PLD Islamabad 18, 2024 CLD 220
- BALOCHISTAN UNIVERSITY OF INFORMATION AND TECHNOLOGY AND MANAGEMENT SCIENCES, QUETTA vs NAWAB BROTHER (PVT.) LIMITED 2019 CLC 1685
- Messrs MATRACON PAKISTAN (PVT.) LTD. through Authorized Co-ordinator 2019 CLC 1732
- DEFENCE HOUSING AUTHORITY, ISLAMABAD vs MULTI-NATIONAL VENTURE 2019 CLD 566
- Defence Housing Authority, Islamabad. vs Multi-National Venture 2014-IHC-80
- NATIONAL HIGHWAY AUTHORITY vs ZARGHOON ENTERPRISES (PVT) LTD K.L.R. 2015 Civil Cases 141, 2015 MLD 746
- National Highway Authority vs Zarghoon Enterprises Pvt. Ltd K.L.R. 2015 Civil Cases 141
- Shaukat Aziz Siddiqui, J OIL & GAS DEVELOPMENT COMPANY LIMITED vs Messrs MARATHON CONSTRUCTION COMPANY and another 2013 CLD 1483
- Oil & Gas Development Company Limited vs M/s. Marathon Construction 2013 KLR Civil Cases 191
- Messrs HUSSAIN (PVT.) LTD. vs KARACHI FISH HARBOUR AUTHORITY 2011 CLC 108
- T.D.C.P vs MODERATE BUILDERS 2005 YLR 1269
- PROVINCE OF PUNJAB vs Sh. FAZALUL HUSSAIN 2003 CLC 1780
- S.M.I. BROTHERS through Managing Partner vs MUNICIPAL COMMITTEE, MURREE through Administrator 2003 CLC 419
- WATER AND POWER DEVELOPMENT AUTHORITY Through Chairman And Another vs Messrs ICE PAK INTERNATIONAL CONSULTING ENGINEERS OF PAKISTAN Through Chairman And Another 2003 YLR 2494
- PAKISTAN through Secretary to Government of Pakistan, Ministry of Railways and anothers vs Messrs RAJASTAN ALLOY AND STEEL (PVT.) LIMITED 2002 CLD 61
- PROVINCE OF THE PUNJAB, through its Secretary, Communication & Works 1990 PLD Lahore 25
- PROVINCE OF BALUCHISTAN AND ANOTHERs vs MESSRS SALEEM BROTHERS 1985 PLD Quetta 48
- Export Promotion Bureau vs Dadabhoy Padube Limited and Siddiqsons
- WATER AND POWER DEVELOPMENT AUTHORITY through its. Chairman, Wapda H_3b49e708 2002 C.L.R. 747
- Tourism Development Corporation of Punjab, Ltd., Lahore through its 2005 C.L.R. 1092