Law:

Section:

Perma Construction (Pvt.) Limited, petitioner herein, challenged the appointment of Mr. Muhammad Tahir Chaudry, Advocate as sole Arbitratior by filing a petition under sections 5, 11, 12 and 20 of the Arbitration Act, 1940, in the Civil Court, Lahore. The petition was contested by the respondents and the Learned Civil Judge, Lahore by an order dated 24-5-1994 dismissed the petition. Hence this revision petition.   Admitted facts between the parties are that petitioner Messrs Perma Construction ( Pvt. ) Limited in December, 1990 entered into a contract with respondent No. 1 Oberoi Textiles Limited, whereby the petitioner-Company was asked to construct main building and other unit of the Mills and a Housing Colony. It is stated that the petitioner started construction of work in February, 1991. The work was in progress when respondent No.1 stopped making the payments and ultimately forcibly took over the possession of the site on 31-12-1991. It is also alleged that the respondent took over the machinery and equipment and materials of the petitioner. The petitioner issued a notice for arbitration to the respondent and without replying the notice the respondent informed the petitioner that Mr. Muhammad Tahir Chaudry, Advocate, Lahore has been appointed as sole Arbitrator. The petitioner challenged the appointment of Mr. Muhammad Tahir Chaudhry as sole Arbitrator by filing a petition under sections 5, 11 , 12 and 20 of the Arbitration Act, 1940, in, the Civil Court, Lahore, the same was contested by the respondent and the learned Civil Judge by an order dated 24 - 5-1994 dismissed the petition.   The learned counsel for the petitioner has argued that the Civil Judge has failed to consider that the appointment of the Arbitrator was to be regulated between the parties under clauses 3.18.1 of the agreement. According to him, the order of priority of appointment of a specific arbitrator was given which was that the Arbitrator shall be a retired Judge of Supreme Court of Pakistan or of High Court or an Advocate having not less than 10 years standing. According to the learned counsel, under the above-stated clause it was incumbent on the respondent that first…