EMPLOYEES OLD AGE BENEFIT INSTITUTION through Director Law EOBI vs MUGHALS PAKISTAN (PVT

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EMPLOYEES OLD AGE BENEFIT INSTITUTION through Director Law EOBI VS MUGHALS PAKISTAN (PVT.) LTD. through Chief Executive Officer Ss. 14, 17, 20 & 30(c)---arbitration proceedings---Party to arbitration agreement, non-impleading of---award, setting aside of---Principal-agent relationship---Proof---Dispute between parties was referred to arbitral Tribunnal and award was made Rule of the Court---Respondent / Company was impleaded as party to arbitration proceedings on the ground that it was a subsidiary company of appellant / Institution---appellant / Institution assailed Rule of the Court on the plea that no proceedings could be referred to arbitral Tribunal---Validity---Respondent / Company had an independent legal-cum-corporate existence and its claim of being a wholly owned subsidy of appellant was clearly indicative of the distinct statuses enjoyed and claimed, respectively---Respondent / Company could not be declared or treated as party to the agreement for the purposes of proceedings under S. 20 of arbitration act, 1940 nor the same could be construed as an entity, which substituted or novated appellant / Institution as party to the agreement---No resolution of Board of appellant / Institution was shown or relied upon to demonstrate or establish that respondent / Company had assignment of rights and obligations of appellant / Institution or any novation took place---No person or entity, merely signatory to agreement, for and on behalf of one of the party to the agreement, was competent to file petition under S. 20 of arbitration act, 1940, unless its status as party to the agreement was satisfactorily established, by virtue of any law or under any contractual arrangement---Respondent / Company failed on both counts to claim any alleged assignment of rights or novation of contractual obligation---Order passed by Trial Court referring the matter to arbitral Tribunal and proceedings conducted subsequent thereto, including arbitration proceedings and issuance of award without appellant / Institution were unlawful and invalid---No validity could be extended to the award in wake of an invalid order of reference---High Court in exercise of jurisdiction under S. 30(c) of arbitration act, 1940, declared that the award procured was invalid and the decree, making award rule of the Court, was also unlawful and of no legal effect, in wake of illegality of the order of reference of matter to arbitrators, in purported exercise of jurisdiction under S. 20 of arbitration act, 1940---appeal was allowed in circumstances.

EMPLOYEES OLD AGE BENEFIT INSTITUTION through Director Law EOBI vs MUGHALS PAKISTAN (PVT — 2024 CLC 2021 LAHORE-HIGH-COURT-LAHORE

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