Law:

Section:

Specific Relief Act (I of 1877) --------- ----------Ss. 42 & 56 --------- Export Processing Zones Authority Ordinance (IV of 1980), S. 24 --------- Arbitration Act (X of 1940), S. 34 --------- Suit for declaration and injunction --------- Stay of proceedings --------- Reference to arbitrator --------- Defendant filed application for stay of proceedings before court and decision through arbitrator --------- Validity --------- Plaintiff initiated legal proceedings for number of reliefs including one of declaration and cancellation of lease in favour of defendant --------- Such dispute was never agreed to be referred to arbitrator nor the parties to agreement at that time were competent or legally justified to keep such authority with them or to get a matter referred for arbitration at their choice when the title, status and rights of defendant would in any case of arbitration were likely to be prejudiced --------- High Court declined to stay the proceedings --------- Application was dismissed in circumstances. 2009 CLC 676; 2012 CLD 267 and 1987 CLC 2205 ref. Shah Muhammad v. Export Processing Zones Authority 2011 YLR 2413 rel. THIS ORDER PASSED BY: SALAHUDDIN PANHWAR, JUSTICE:---------- Through instant application i.e. CMA No. 8169 of 2004 the defendant No. 1 prayed that:- ".to stay the instant proceedings and may graciously refer the matter to Arbitration in terms of Section 24 of the Export Processing Zones Authority Ordinance No. IV of 1980 and General Agreement dated 1.2.1990'. 2. To explain the back-ground of filing of instant application, it is necessary to unfold that the plaintiff M/s Franklin Credit and Investment Company ltd. (FCIC) filed instant suit for 'Declaration and Injunction' against the defendant Nos.1 (Export Processing Zones Authority) and defendant No. 2 (Bank Al-Habib Ltd.) for following relief (s):- a) declare that the cancellation of lease by the Defendant No. 1 is illegal and without authority, consequently, declare that the lease in respect of property Nos.W/1 and W/2 in favour of the Plaintiff is valid and subsisting; b) grant injunction against the Defendants, their Servant (s), Agent (s), Person (s) acting for and on behalf of…

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