Law: Arbitration Act, 1940

Section: 31

JUDGMENT SHEET

 MIANGUL HASSAN AURANGZEB, J:- Through the instant civil revision petition, the petitioner, Syed Munir Syed, impugns the order dated 16.03.2017, passed by the Court of the learned Additional District Judge-V (West), Islamabad, whereby the petitioner’s appeal against the order dated 09.11.2016, passed by the Court of the learned Civil Judge, Islamabad, was dismissed. Vide the said order dated 09.11.2016, the learned Civil Court, allowed respondent No.1’s application under section 31 of the Arbitration Act, 1940 (“the 1940 Act”) and stayed the proceedings before the Arbitrator. In the said application, respondent No.1 had prayed for the arbitration proceedings to be stayed on account of having lost confidence in the Arbitrator.       2. The facts essential for the disposal of the instant civil revision petition are that on 01.05.2015, an agreement was executed between the petitioner (Syed Munir Syed) and respondent No.1 (Sardar Muhammad Kamal-ud-Din). As per the contents of the said agreement, the petitioner was to help respondent No.1 in vacation and demarcation of his land situated in village Sarai Madhu, District Islamabad. It is not disputed that the land which was the subject matter of the said agreement spread over 255 kanals, details whereof are set out in "ScheduleA" thereto. Respondent No.1 was to pay the petitioner Rs.2 million as earnest money. This amount was to be repaid/returned to respondent No.1 out of the petitioner’s share in the sale proceeds of the said land. All other costs associated with the vacation and demarcation of the said land were to be borne by the petitioner but be repaid to him by deducting 20% from the sale proceeds of the said land. The amount remaining after the deduction of said 20% from the sale proceeds was to be equally divided between the petitioner and respondent No.1 at the time of the sale mutation. The petitioner was placed under an obligation to present the purchaser of the land to respondent No.1 for the approval of the sale price. Upon agreement of the sale price with the purchaser, respondent No.1 was to be responsible for arranging the transfer by mutation. The said agreement contained an arbitration clause which is reproduced herein below:-

“In case of any dispute arising between both parties, both parties are barred from going to the Court of Law and Sardar Mansoor Hayat Tamman will be the Sole Arbitrator. And his judgment will be final.”