Law:

Section:

Arbitration Act (X of 1940)-------S. 34---Stay of proceedings---Appointment of one of the defendants as an arbitrator---Effect---Trial Court dismissed application of the appellant/plaintiff for stay of proceedings and refused to appoint one of the respondents/defendants as an arbitrator---Validity---Appointing such a person as an arbitrator and referring to him the dispute between the parties would amount to making such a person a Judge in his own cause and the same would be nothing but a mockery of justice---Named arbitrator was a party to the suit as a contesting defendant--­Held, such an arbitrator would not be able to act fairly, justly, independently and without bias---Order of the Trial Court refusing stay of proceedings and appointment of arbitrator was upheld and appeal was dismissed in circumstances. Director Housing, A.-G's. Branch, Rawalpindi v. Messrs Makhdum Consultants, Engineers and Architects 1997 SCMR 988 distinguished. ORDER Respondent No.2 was appointed as an agent under the name and style of Respondent No.l by the appellants for the sale and distribution of their several publications in Rawalpindi. The agreement appointing respondent I4o.2 as an agent was terminated. Feeling himself aggrieved of the termination of his appointment as an agent, he filed a suit for damages against the appellants. During the pendency of the suit filed by the respondents, the appellants filed an application under section 34 of the Arbitration Act praying that the suit be stayed for the reasons that there was an arbitration clause in the agreement between the parties appointing respondent No.2 as an agent which provided that in the event of a dispute arising between the parties, the same shall be referred to the arbitrator named as such in the agreement. The said application was resisted by the respondents. The application under section 34 of the Arbitration Act was rejected by the learned lower Court vide its order, dated 5-7-1997. The present F.A.O. is directed against this order of the learned trial Court whereby it refused to stay the suit. The appellants wanted Mir Shakeel-ur-Rehman who was then defendant and at present appellant No.5 to be appointed as an…

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