Law: Arbitration Act, 1940

Section: 14,17

Summary:

The petitioner challenged the order dated 26.03.2024 by the Civil Judge (Special Court Admin for Commercial Cases), Lahore, which dismissed their application to reject the enforcement of an arbitral award under Sections 14 and 17 of the Arbitration Act, 1940. The petitioner argued that the civil court lacked jurisdiction since the award should be enforced under the Recognition and Enforcement (Arbitral Agreement & Foreign Arbitral Award) Act, 2011 as a foreign arbitral award.

The arbitration was conducted under LCIA Arbitration Rules, 2014, with the sole arbitrator appointed by LCIA. However, the seat of arbitration was Lahore, Pakistan, and the award was also made in Lahore. The court ruled that under the 2011 Act, a foreign arbitral award must be made in a contracting state (signatory to the New York Convention). Since the award was made in Lahore and both parties were Pakistani entities, it could not be considered a foreign arbitral award.