Case Details

Citation(s)
2025 SLG 1451 2025 SLD 1451 = 2025 SCP 215
Supreme Court of Pakistan
CPLA No.813-L of 2024 (Against judgment dated 04.03.2024 of the Lahore High Court, Lahore passed in C.R. No.79723 of 2022)
JUSTICE YAHYA AFRIDI, CJ JUSTICE MUHAMMAD SHAFI SIDDIQUI JUSTICE MIANGUL HASSAN AURANGZEB

Pakistan Railways through Chief Controller of Purchase, Pakistan Railways, Lahore ...Petitioner

VERSUS

CRRC Ziyang Co. Limited, Lahore .Respondent

Law: Arbitration Act, 1940

Section: 30,17

Law: Code Of Civil Procedure, 1908.

Section:

Summary of Judgment

The Supreme Court dismissed the petition filed by Pakistan Railways challenging the Lahore High Court’s order, which had set aside a civil court’s decision to frame issues and record evidence on objections to an arbitration award. The Court reaffirmed that under the Arbitration Act, 1940, judicial intervention in arbitral matters is strictly limited. The High Court’s direction to decide objections based solely on the existing record—without converting the proceedings into a full trial—was upheld.

Core Points

Background: Disputes between Pakistan Railways and CRRC Ziyang Co. Limited, arising from a 2017 contract, were referred to a two-member arbitral tribunal, which issued an award in July 2021. Pakistan Railways filed objections under Section 30 of the Arbitration Act, 1940, alleging arbitrator misconduct and seeking to set aside the award.

Civil Court Proceedings: The civil court framed general issues and ordered the recording of evidence, treating the objections as a factual controversy requiring a trial-like process.

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