Case Details

Citation(s)
1998 SLG 1458 1998 SLD 1458 1998 CLC 1610
Sindh High Court
High Court Appeal No. 187 of 1996, decision dated: 4-05-1998. dates of hearing: 19th February and 11-11-1997
WAJIHUDDIN AHMED, C.J. AND SAIYED SAEED ASHHAD, J
Khalid M. Ishaque and Sami-ud-Din Sami for Appellant. Khalid Anwar for
Respondents

Messrs TRADING CORPORATION OF PAKISTAN (PVT.) LTD.

VS

Messrs NIDERA HANDLES COMPAGNIE B. V and another

Law:

Section:

(a) Contract Act (IX of 1872)-------S.2(h)---Arbitration Act (X of 1940), S.2---Civil Procedure Code (V of 1908), O.XLIII, R.1---Arbitration agreement in writing not signed b; parties--­Effect---Arbitration agreement, although in writing, need not be signed by parties if circumstances were to establish that formalities notwithstanding, there in fact subsisted concluded arbitration agreement. (b) Civil Procedure Code (V of 1908)--- ----S.9---Contract Act (IX of 1872), S.2(h)---Arbitration Act (X of 1940), S.33---Suit to challenge existence, effect or validity of contract wherein arbitration clause was included---Provision of S.9, Civil Procedure Code, 1908, would not bar suit where existence, effect or validity of contract was questioned wherein arbitration clause was also incidentally included---Such broad contract, as a whole, could not be challenged under S.33, Arbitration Act, 1940, though arbitration clause therein separately could be so challenged. The Law of Contract by Hugh Collins, p.72; Consensus ad Idem State of Punjab v. Hindustan Dev AIR 1960 Punjab 585; The Law of Contract by Treitel, p. 20; Snell's Principles, of Equity, 1947, p. 557; The Contract Act, 1872 by Dr. M. A. Mannan, p. 81, S.9; Bank of India v. Rustom Fakirji AIR 1955 Bom. 419; Corbin on Contracts, Vol. I, 1963 Edn., p.310; Korean Transport v. Jaya Bharat AIR 1987 SC 2289; Awan Industries Ltd. v. Ex-Engineering Lines Channel 1992 SCMR 65; Badri Narayan v. Pak Jute PLD 1970 SC 43; AIR 1959 SC 1357; Shiva Jute Baling Limited v. Hindley & Co. Limited AIR 1959 SC 1357 and Jawahar Lal Barman v. Union of India AIR 1962 SC 378 ref. (c) Civil Procedure Code (V of 1908)--- ----S. 9---Contract Act (IX of 1872), S. 2(h)---Arbitration Act (X of 1940), S.33---Agreement between parties included arbitration clause---Suit in terms of S.9, C.P.C. was filed wherein agreement as a whole was challenged including arbitration clause---Effect---Notwithstanding such suit, arbitration clause in contract could not be suspended or unreasonably whittled down solely because main agreement was under challenge---Where any party was disinclined to go to arbitration then, notwithstanding such general or broad…
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