Case Details

Citation(s)
2026 SLG 789 2026 SLD 789 = 2026 LHC 1155 = 2026 PLJ 255
Lahore High Court
W.P.No.1640/2025
Presented By: (JAWAD HASSAN) JUDGE
Date of hearing: 16.02.2026 Petitioner By: Barrister Syed Hassan Ali Raza, ASC alongwith Syed Jarrar Hassan Kazmi and Ms. Zunaira Baz Khan, Advocates.
Respondent(s) By: Ms. Afshan Ghazanfar, ASC alongwith
Respondent No.2/Malik Khuda Baksh.

HASCOL Petroleum Limited

VERSUS

Additional Rent Controller etc.

Law: Constitution of Pakistan

Section: 199

Law: Arbitration Act, 1940

Section: 20

Law: Cantonments Rent Restriction Act, 1963

Section: 17

Law: Alternative Dispute Resolution Act, 2017

Section:

Tagline: Hascol Petroleum Limited v. Additional Rent Controller, Chaklala Cantonment & Others – Appointment of mediator and direction for dispute resolution under arbitration clause and mediation framework. SUMMARY: Facts: Petitioner (Hascol Petroleum Ltd.) entered into a License Agreement dated 10.07.2017 with Respondent No.2 for land at PAF Base Nur Khan for a fuel/service station. Agreement contains a dispute resolution clause (Clauses 11.2 & 11.7) requiring: Friendly consultations within 13 days of notice; Referral to arbitration under the Arbitration Act, 1940 if unresolved. Petitioner filed application under Section 20, Arbitration Act, 1940 seeking appointment of arbitrator. Respondent No.2 counter-filed eviction proceedings under Section 17, Cantonments Rent Restriction Act, 1963. Petitioner sought stay of eviction proceedings under Section 34, Arbitration Act, 1940, claiming arbitration clause binds parties. Additional Rent Controller rejected stay application (impugned order dated 29.04.2025). Petitioner approached High Court under Article 199 for relief. Proceedings & Outcome: During High Court proceedings, parties agreed to explore amicable resolution through mediation. Court emphasized jurisprudence favoring mediation/ADR (Alternative Dispute Resolution) to save time, costs, and preserve public interest. Supreme Court had earlier directed High Court to expedite the matter (CPLA No.5579 of 2025, order dated 13.01.2026). Court appointed Hon’ble Mr. Justice (R) Maqbool Baqir as mediator. Mediation scheduled at IBA ADRIC, Karachi on 23.02.2026, to conclude within four weeks. Mediation fee Rs.1,000,000 to be shared equally by parties. Writ petition disposed of accordingly. ORDER; Jawad Hassan, J. This case is being decided today in pursuance of the directions issued by the Supreme Court of Pakistan in CPLA No.5579 of 2025 titled “Hascol Petroleum Limited, Islamabad versus Additional Rent Controller, Chaklala Cantonment Rawalpindi and others”, vide order dated 13.01.2026. The relevant portion thereof is reproduced hereunder:…
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