Law:

Section: 20

(a) Arbitration Act (X of 1940)--- ----S. 20---Application to file in court arbitration agreement---Locus standi of party to file such an application---Scope---Only a party to an arbitration agreement could file an application for referral of contractual disputes with the contracting party to arbitration with the intervention of the Court---Person who was not a party to the arbitration agreement could not take advantage of such an agreement or take steps for its enforcement. Pakistan through Secretary, Ministry of Religious Affairs v. Dallah Real Estate and Tourism Holding Company 2003 CLC 1411 and Medhi K. Lavji v. Province of Sindh 2010 MLD 561 ref. (b) Arbitration Act (X of 1940)--- ----S. 20---Application to file in Court arbitration agreement---Territorial jurisdiction of a court to entertain such an application---Scope---Contract between parties was executed at city "K", whereas the application under S. 20 of Arbitration Act, 1940 was filed in civil court of city "I"---Legality---Contract between the parties did not obligate the parties to file legal proceedings in a certain court---Furthermore consultancy services under the contract were to be performed at city "I"---Objection with regard to the territorial jurisdiction of the civil court at city "I" to entertain the application under S. 20 of Arbitration Act, 1940 was rejected accordingly. (c) Arbitration Act (X of 1940)--- ----S. 20---Application to file in Court arbitration agreement---Allegation of fraud---Question as to whether allegation of fraud was sufficient for court to refuse reference to arbitration---Bare and unsubstantiated allegations of fraud made by a party in order to resist a reference to arbitration had to be discouraged by court---Every allegation imputing some sort of dishonesty or fraud would not be "sufficient cause" to refuse reference to arbitration---Only in cases where serious allegations of fraud were made against a party or an arbitration agreement in a criminal complaint, and such a party was charged with fraud and desirous that the matter should be tried in an open court, that the court could decline to refer a dispute which was also the subject matter of the criminal…

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