CRTG-MATRACON JV vs FEDERAL EMPLOYEES BENEVOLENT FUND AND GROUP INSURANCE FUND (FEBFGIF) Ss

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CRTG-MATRACON JV VS FEDERAL EMPLOYEES BENEVOLENT FUND AND GROUP INSURANCE FUND (FEBFGIF) Ss.8(2) & 20---appointment of arbitrator---Jurisdiction of Civil Court---Scope---Contract price variation on account of legislative changes and market-based currency fluctuation---Distinction---Issues regarding contract interpretation including whether a party is entitled to compensation for escalation based on legislative changes or currency fluctuation---Issue reserved for arbitrator---Civil Court in an application under Ss.8 & 20 of the arbitration act, 1940 (act), only has to see whether a dispute exists and whether it is covered by the arbitration agreement, and it is not meant to delve into the merits of the dispute itself, and threshold of the examination has to be extremely low to see only whether the dispute raised is one which, under the terms of the dispute resolution clause, could be considered a dispute under or in relation to that contract and can by no means extend to interpretation of the contract clauses to examine whether that interpretation justifies or precludes the claim in dispute, which is the arbitrator's job---assertion of a claim by one party and the repudiation thereof by the other party constitutes a dispute warranting the arbitration clause to become operative---While proceeding the matter to arbitration, one has to be careful with any observations on the merits of the case, but it needs to be said that there can be a distinction between a variation to the contract price occurring due to a change in legislation and variation on market-based currency fluctuation in the ordinary course---Consequences of changes in legislation on the foreign cost component and the consequences of exchange rate fluctuations due to ordinary market movements are not necessarily the same thing---Question as to whether this distinction held in the case in hand and whether the petitioner was entitled to any escalation on that basis on the proper construction of the Contract was a job reserved for the arbitrator and not for the Civil Court---Civil revision was allowed, in circumstances.

CRTG-MATRACON JV vs FEDERAL EMPLOYEES BENEVOLENT FUND AND GROUP INSURANCE FUND (FEBFGIF) Ss — 2024 CLD 1346 ISLAMABAD

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