Law: Arbitration Act, 1940

Section: 20

Arbitration Act (X of 1940)--- ----S. 20-Arbitration agreement---Application for referring matter to the arbitration---Arbitration clause existed in the contract with regard to referring matter for arbitration in case of any dispute between the parties had attempted to seek resolution of controversy through negotiation and upon failure sought enforcement of arbitration clause of contract---Arbitration clause should be considered independently as the sole determination to be made to the forum for the resolution of dispute upon terms contained therein---Arbitration agreement between the parties having arbitration clause therein---Present application had been preferred within time and defendant had no sufficient cause to preclude a reference to arbitration---Matter was referred for arbitration and arbitrator was appointed to determine the dispute in accordance with law---Application for referring matter to the arbitration was allowed, in circumstances. Federation of Pakistan v. Ch. Fazal Muhammad 2005 YLR 2896; Mehdi K. Lavji v. Province of Sindh and others 2010 MLD 561; Agro Trade (Private) Limited and another v. Karachi Port Trust and others 2018 CLC 1140; Commodities Trading International Corporation v. Trading Corporation of Pakistan and another 1987 CLC 2063; Lithuanian Airlines v. Bhoja Airlines (Private) Limited 2004 CLC 544; Industrial Fabrication Company v. Pak American Fertilizer Limited PLD 2015 SC 154 and Sadat Business Group Limited v. Federation of Pakistan and another 2013 CLD 1451 rel. JUDGMENT AGHA FAISAL, JUSTICE:---.--- This suit has been filed under Section 20 of the Arbitration Act, 1940, (Act) whereby the plaintiff is seeking a reference to arbitration, in enforcement of the arbitration clause in contracts executed inter se 2. Mr. Abdul Qayyum Abbasi, Advocate, argued on behalf of the plaintiff and submitted that two contracts were executed between the parties hereto, dated 02.10.2016 and 14.03.2017, respectively (Contracts). It was demonstrated from the record that each of the Contracts contained an arbitration clause, which stipulates that in case of any dispute, relating to the said Contracts, the same shall be referred to the arbitration.…

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