Law:

Section:

(a) Arbitration Act (X of 1940) ----S. 34---Sale of Goods Act (III of 1930), S.4---Contract of sale of goods containing arbitration clause---Dispute relating to terms and conditions of contract was to be referred to arbitration---Plaintiff filing suit objecting to quality of goods supplied to him---Defendants applied for referring such dispute to arbitration---Effect---Deed of contract consisted of two pages of which front page was signed by parties while reverse page which contained terms. and conditions and also including reference to arbitration was not signed by parties---Plaintiff claimed that terms and conditions having not been signed, same were not applicable, therefore, dispute arising out of such contract could not be referred to arbitration---Plaintiff, however, did not deny those terms and conditions which were scribed on reverse page---Parties had, in fact, acted upon those terms and conditions otherwise contract itself would be impossible to be performed being devoid of any modalities for working the same---While arbitration agreement must be in writing, it need not be signed by parties--,Arbitration agreement, thus, existed between the parties---Dispute related to quality of goods being shipped from foreign country and not its short delivery or damage to it---Dispute with regard to quality would be required detailed testing and examination by Inspectors/Experts which could best be done in that place from where material originated i.e. foreign country---Most of evidence would be available there---Valid and subsisting contract between parties for referring dispute to arbitration being in existence they were bound to abide by same--Proceedings in suit were stayed till further orders. PLD 1986 Kar. 138; 1993 SCMR 866; PLD 1993 SC 42; AIR 1963 SC 1685 and 1987 CLC 83 ref. (b) Sale of Goods Act (III of 1930)--- ----S. 4---Qanun-e-Shahadat (10 of 1984), Art.30---Dispute relating to quality of imported goods---Offer to discount by defendants---Effect---Defendant's offer to discount by way of compensation at U.S. Dollar 70 per metric ton of the commodity in future shipments in view of long standing business relationship between parties was to assuage…

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