POSCO INTERNATIONAL CORPORATION vs RIKANS INTERNATIONAL art — 2023 PLD 116 LAHORE-HIGH-COURT-LAHORE

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POSCO INTERNATIONAL CORPORATION VS RIKANS INTERNATIONAL art. V (1)(b) of Schedule---Terms "public policy"---Effect---Recognition and enforcement of an arbitral award may be refused if competent authority in the country finds that the award would be contrary to the public policy of that country---Term "public policy" has been subject of interpretation of Courts all around the world and still remains an extremely fluid term not capable of definite meaning---Concept of public policy gained wide-ranging and polycentric traction and scope of its application became broader---Same principles have been used interchangeably for both foreign and domestic awards losing sight of the purpose and intent in enacting law for enforcement of foreign awards to which different set of principles narrower in scope, must by applied---Such is necessary to maintain integrity of international commercial contracts and trust in Pakistani Courts to enforce foreign awards---Trust may be shaken irretrievably if Courts of Pakistan are to evince an anti-enforcement policy by seeking shelter in nebulous concept of "public policy". Citation Name: 2023 PLD 116 LAHORE-HIGH-COURT-LAHOREBookmark this Case POSCO INTERNATIONAL CORPORATION VS RIKANS INTERNATIONAL arts. II & V(1)(a) of Schedule---Terms "incapacity" and "parties to the agreement" ---Connotation---Term "incapacity" used in art.V(1)(a) of Schedule to Recognition and Enforcement (arbitration agreements and foreign arbitral awards) act, 2011, has a reference to capacity of parties to enter into a contract in the first place---Words "parties to the agreement" referred to in article II of Schedule to Recognition and Enforcement (arbitration agreements and foreign arbitral awards) act, 2011, are closely tied in with the words "under some incapacity". Citation Name: 2023 PLD 116 LAHORE-HIGH-COURT-LAHOREBookmark this Case POSCO INTERNATIONAL CORPORATION VS RIKANS INTERNATIONAL agreement---Scope---arbitration agreement not only imposes a "positive" obligation upon parties to proceed with a dispute but also creates negative undertaking for parties which obligates them not to bring any claims falling within the scope of arbitration agreement, in a forum other than arbitration. Citation Name: 2023 PLD 116 LAHORE-HIGH-COURT-LAHOREBookmark this Case POSCO INTERNATIONAL CORPORATION VS RIKANS INTERNATIONAL Justice and morality---Scope---Justice or morality do not signify any concept of precision---Morality may fluctuate from one community to another and from one country to the other---Courts are not required to enforce moral standards but as Courts of law are merely concerned with enforcement of law enacted by Legislature. Citation Name: 2023 PLD 116 LAHORE-HIGH-COURT-LAHOREBookmark this Case POSCO INTERNATIONAL CORPORATION VS RIKANS INTERNATIONAL Ss. 3, 6 & art. V (1)(a)(b) of Schedule---Foreign arbitral award---Recognition and enforcement---Challenge to award---Plea of "Public policy"---applicability---Civil suit, pendency of---Effect---applicant company sought recognition and enforcement of foreign arbitral award---Respondent company raised plea of pendency of civil suit before Civil Court in Pakistan---Validity---There was a need to fence the power so that opinion of Courts exuded deference to Legislative intent---arbitral award was contrary to public policy, if it had offended a Constitutional mandate or was forbidden by law or would defeat provisions of any law---Such were the only grounds on which a public policy challenge could succeed---Multiplicity of proceedings, conflicting decisions (between arbitral Tribunal and Courts in Pakistan) and futility were not grounds covered by the doctrine of public policy---High Court recognized the Foreign award in question as a binding and enforceable award---High Court granted judgment in the amount represented in the Foreign award and the same would be executed as a decree of High Court---High Court in terms of O. XXI, R. 10, C.P.C. converted the application into execution proceedings---application was allowed accordingly.

POSCO INTERNATIONAL CORPORATION vs RIKANS INTERNATIONAL art — 2023 PLD 116 LAHORE-HIGH-COURT-LAHORE

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