| Citation(s) |
|---|
| 2014 SLG 2286 2014 SLD 2286 2014 PLD 424 |
Lahore High Court
Regular First Appeal No. 226 of 2011, decided on 3rd July, 2013. DATE of hearing: 6th June, 2013
IJAZ AHMAD AND ALI BAQAR NAJAFI, JJ
Muhammad Azam Chattha for Appellant. Waqar-ul-Haq Sheikh for
Respondents
Regular First Appeal No. 226 of 2011, decided on 3rd July, 2013. DATE of hearing: 6th June, 2013
IJAZ AHMAD AND ALI BAQAR NAJAFI, JJ
Muhammad Azam Chattha for Appellant. Waqar-ul-Haq Sheikh for
Respondents
FAUJI FOUNDATION through GENERAL Manager (Engineering)
VS
Messrs CHANAN DIN AND SONS through Attorney and others
Law: Arbitration Act, 1940
Section: 14,20,30,17
(a) Arbitration Act (X of 1940)--- ----Ss. 14, 20 & 30---Non-completion of work by respondent within agreed time---Award of fresh contract by applicant to a third party for completing remaining work---Respondent's notice to appellant claiming Rs.1,13,78,207---Reference of dispute between parties to Arbitrator in terms of arbitration clause in contract---Submission of claim by respondent for Rs.2,24,18,619 instead of Rs.1,13,78,207---Award by Arbitrator for differential amount of Rs.4.9 million made rule of court by Trial Court---Validity---According to terms of contract, respondent's claim had to be confined to amount for which he had issued notice to applicant---Neither court nor Arbitrator was competent to enlarge scope of contract or application made under S.20 of Arbitration Act, 1940---Award for differential amount between respondent's contract and such third party's contract was beyond jurisdiction of Arbitraor---Arbitrator's function was not to be influenced by his imagination and opinion, rather he was obliged to apply agreed clauses of contract between parties---High Court set aside impugned and remanded case to Trial Court for its decision afresh in terms of reference. Fauji Foundation and another v. Shamimur Rehman PLD 1983 SC 457 and Shamim-ur-Rehman v. Fauji Foundation Rawalpindi and another 1992 SCMR 1496 ref. House Building Finance Corporation v. Shahinshan Humayun Corporative Housing Building Society and others 1992 SCMR 19 and Shamim-ur-Rehman v. Fauji Foundation, Rawalpindi and another 1992 SCMR 1496 rel. (b) Arbitration Act (X of 1940)--- ----Ss. 17 & 30---Making award rule of court---Powers of court---Scope---Court while examining correctness and legality of award could neither act as a court of appeal nor undertake reappraisal of evidence recorded by Arbitrator in order to discern error or infirmity therein. (c) Arbitration Act (X of 1940)--- ----S. 30---Award, setting aside of---"Misconduct of Arbitrator"---Meanings. In the judicial sense, the misconduct of an Arbitrator means his failure to perform his essential duty resulting in substantial miscarriage of justice between the parties. Mian Corporation through Managing Partner v.…
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