Law: Civil Procedure Code (V of 1908)

Section: O.VIIR.11

Law: Civil Procedure Code (V of 1908)

Section: O.VIIR.11

Law: Arbitration Act, 1940

Section: 34

Civil Procedure Code (V of 1908)------O. VII R. 11---Arbitration Act (X of 1940), S.34---Stay of proceedings in presence of an arbitration agreement between the parties---"Step in proceedings"---Scope---Suit for recovery---Defendant had filed application for rejection of plaint under Order VII, R.11, C.P.C. and thereafter made application under section 34 of the Arbitration Act, 1940 for stay of proceedings---Said application under section 34 of the Arbitration Act, 1940 was rejected on the ground that after making application under O.VII, Rule 11, C.P.C. the defendant could not request stay on legal proceedings under section 34 of Arbitration Act, 1940---Validity---Criterion to decide whether an act constituted a step in proceedings was whether an application was made to the court on summons or orally and whether the act was such as would indicate that party was acquiescing to the method adopted by the other side of having the dispute decided by court---Intention of statute was that defendant who wanted to take advantage of an arbitration clause must without any ado, and before submitting to the jurisdiction of the court; inform the court in unequivocal terms that he was going to insist upon implementation of the arbitration clause---Defendant would disentitle himself from protection of section 34 of Arbitration Act, 1940 if he did not take such stand before filing a written statement and such situation was not different if he took steps in proceedings before raising an objection---Defendant had taken steps in the proceedings before moving application under S.34 of the Arbitration Act, 1940 and therefore Trial Court had rightly rejected his application for stay in proceedings---Appeal was dismissed in circumstances. Director Housing, A.G's Branch, Rawalpindi v. Messrs Makhdum Consultants Engineers an Architects 1997 SCMR 988; ACB (Pvt.) Ltd. v. Ups Worldwide Forwarding Inc. 2007 MLD 1520; Pakistan Telecommunication Corporation Ltd. v. Dr. Waqar Hussain Chaudhary PLD 2007 Lah. 678; Aftab Khalil and 5 others v. Shaukat Hussain 2008 CLC 1592 and Mrs. Rubby Hameedullah and 3 others v. Dr. Arif and 4 others 2010 YLR 3331 ref. Industrija Masina-i-Traktora v. Bank of…

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