Law:

Section:

(a) Arbitration Act (X of 1940)--- ----Ss. 2(a) & 17---Civil Procedure Code (V of 1908), S.12(2)---Application under S.12(2), Civil Procedure Code, 1908, for setting aside agreement for reference to arbitration and award based on it on ground of fraud and misrepresentation, was competent. Muhammad Yasin v. Sh. Hanif Ahmad and 4 others 1993 SCMR 437 fol. Government of Sindh and another v. Ch. Fazal Muhammad and another PLD 1991 SC 197 ref. (b) Civil Procedure Code (V of 1908)--- ----S. 12(2)---Limitation Act (IX of 1908), Art. 181 & S. 18---Arbitration Act (X of 1940), Ss.2(a) & 17---Setting aside arbitration agreement and award on ground of fraud---Limitation---Commencement of---Terminus a quo of period of three years provided in Art. 181, Limitation Act, 1908, commenced upon discovery of fraud---Article 181, coupled with principle contained in S. 18, Limitation Act, 1908, entitled the person who was victim of fraud to apply, when fraud was discovered or known to him---Respondent gave sufficient evidence to establish that their predecessor (victim of fraud) was not a party to the documents i.e., arbitration agreement, award and proceedings in the Court culminating in final decree against him and that upon gaining knowledge of essential facts immediately, applied to Court for relieving him of ill effects of fraud committed by petitioner---Application under S.12(2), Civil Procedure Code. 1908, for setting aside documents in. question, were thus, filed within time prescribed under Art.181, Limitation Act, 1908. (c) Arbitration Act (IX,of 1940)--- ----Ss. 2(a) & 17---Civil Procedure Code (V of 1908), Ss. 12(2) & 115---Setting aside decree of Court which had culminated on basis of arbitration agreement and award, on ground of fraud---Proof---Petitioner (respondent) in application under S.12(2), omitted to give evidence to refute and rebut material brought on file by respondents to establish fraud and misrepresentation for obtaining decree of Court---Petitioner himself did not step in the witness-box to make his own statement on oath in support of his defence---Such omission was the strongest circumstance against truth of his case, for he knew the…

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