Law:

Section:

Arbitration Act (X of 1940) --------- ----------Ss.34 & 39 --------- Stay of proceedings in a suit in presence of an arbitration clause in the agreement between the parties --------- Scope --------- Plaintiff filed a suit for declaration with permanent injunction against defendants --------- During pendency of suit, defendants filed an application under S.34 of Arbitration Act, 1940 for stay of proceedings --------- Arbitrator was appointed who submitted his Award which was accepted by plaintiff --------- Defendants objected the same, on the grounds that objections of Finance Department had not been addressed in a proper manner and Provincial Government being necessary party was not made party and award was set aside by Trial Court and not made Rule of Court --------- Held, that in agreement deed executed between plaintiffs and defendant it was mentioned that in case of dispute between parties, the dispute would be referred to arbitration under Arbitration Act, 1940 --------- Arbitrator while proper and necessary party and without its impleadment no effective decree could be passed --------- Trial Court had therefore rightly passed an order for impleading Finance Department as party to suit and impugned order could not be interlard with --------- Such circumstances, appeal was dismissed, accordingly. THIS JUDGMENT DELIVERED BY: MUHAMMAD GHAZANFAR KHAN, JUSTICE:---------- Through the instant appeal under Section 39(vi) of the Arbitration Act 1940, Malik Tila Muhammad, appellant herein, has assailed the judgment/order dated 4-12-2012 passed by the learned Civil Judge-V Peshawar, whereby the Award dated 28/3/2012 drawn by the Arbitrator within the meanings of Section 30 of the Arbitration Act 1940 was set aside and not made Rule of the Court. 2. Brief resume of the case is that Malik Tila Muhammad, plaintiff/petitioner herein, brought a suit for declaration coupled with permanent injunction against the defendants to the effect that he is a Tobacoo Development Cess Contractor for the year 2008-09 and suffered a loss of Rs. 6.6 million on account of restraining order passed by the learned Additional District Judge-I Lakki Marwat with effect from 1/7/2008 to…

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