Case Details

Citation(s)
1993 SLG 303 1993 SLD 303 1993 PLD 42
Supreme Court of Pakistan
Civil Appeal No.257-K of 1986, heard on 22-01-1992 (On appeal from the judgment/order of the High Court of sindh, dated 9-1~4985 passed in High Coirt Appeal No.61 of 1983). .Leave refused. Per Sajjad Ali Shah, J.-
AJMAL MIAN, MUHAMMAD AFZAL LONE AND SAJJAD ALI SHAH, JJ
Sajid Aahid, Advocate Supreme Court instructed by M. Shabbir Ghaury , Advocate-on-Record for Appellant. Faizanul Haq, Advocate-on-Record.

Messrs ECKHARDT & CO, Marine GmbH

VS

MUHAMMAD HANIF

Law:

Section:

(a) Arbitration Act (X of 1940)----- S.34 --- Stay of suit for reference of dispute to arbitration as per terms of contract between parties --- Refusal to stay suit --- Essentials --- Considerations weighing with the Court in refusing or allowing stay --- Stay of suit could be refused by Court on its satisfaction that there was no sufficient reason for making reference to arbitration and substantial! miscarriage of justice would take place or inconvenience would be caused to parties if stay was granted---­ No hard and fast rule could be laid down or fine of demarcation could be drawn to say in what cases refusal could be made --- Grant or refusal of stay was dependent upon peculiar facts and circumstances of each case --- Court could make objective assessment and come to conclusion whether stay of legal proceedings (suit) could be granted or refused. Rungta Sons Private Ltd. v. Jugometal Trg. Republike and another AIR 1959 Cal. 423; Swedish East Asia Company Ltd. v. B.P. Herman and Mohatta (India) Private Ltd. AIR 1962 Cal. 601; Michael Golodetz and others Haji Haban v. v. Serajuddin & Co. AIR 1963. SC 1044; Haji Soomar Muhammad Amin Muhammad Bashir Ltd. 1981 SCMR 129; Ramji Dayawala & Sons v. Invest Import 1982 PSC 12; Akbar Cotton Mills Ltd. v. Messrs VES/OjuanoJo Objedinenije Tech/Amesh Export and another 1984 CLC 1605 and Messrs V/0 Techmash-Export v. Messrs Akbar Cotton Mills Ltd. 1987 MLD 600 ref. (b) Arbitration Act (X of 1940)- ---- S.34 --- Contract Act (IX of 1872), S.2(h) --- Constitution of Pakistan (1973), Art.185(3) --- Contract between parties remaining unfulfilled --- Arbitration clause in such contract postulated that in case of dispute, same was to be referred to a foreign Arbitral Tribunal--Plaintiff filing suit for damages for non-performance of contract --- Defendant seeking stay of suit for reference of dispute to foreign Arbitral Tribunal as stipulated in the contract --- Refusal to stay suit by Courts below---Validity --- No interference was warranted in findings of Courts below for discretion was exercised by the Courts in refusing to stay suit on cogent grounds and additionally non-performance of contract giving rise to suit…
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