HAJVAIRY ASSOCIATES (PVT.) LTD. vs POWER CONSTRUCTION CORPORATION OF CHINA LIMITED S

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HAJVAIRY ASSOCIATES (PVT.) LTD. VS POWER CONSTRUCTION CORPORATION OF CHINA LIMITED S. 34---Specific Relief act (I of 1877), S. 54---Suit for recovery of contractual amount and injunction---arbitration clause---Stay of proceedings---Words "taking any other steps in the proceedings"---Scope---appellant / defendant was aggrieved of refusal of Trial Court to stay proceedings of trial---Validity---appellant / defendant invoked discretion of Trial Court under S. 34 of arbitration act, 1940---It was necessary that appellant / defendant should not have disentitled itself from doing so either by filing written statement or by taking any other step in the proceedings---application of appellant / defendant to Trial Court under S. 34 of arbitration act, 1940, was filed "before filing a written statement or taking any other step in the proceedings"---Words "taking any other steps in the proceedings" did not include each and every step, it must be such a step which clearly and unambiguously manifested intention to waive benefit of arbitration agreement and to proceed with the suit---Taking other steps in suit proceedings connoted the idea of doing something in aid of the progress of suit or submitting to jurisdiction of Trial Court for the purpose of adjudication of merits of the controversy in suit---Once a party exercised option to invoke arbitration clause in terms of S. 34 of arbitration act, 1940, that was a manifestation of its readiness and willingness to do all things necessary for the proper conduct of arbitration---If Trial Court was satisfied that dispute pending before it in a suit (legal proceedings) should be decided by arbitration in accordance with arbitration agreement and parties were ready and willing to do all things necessary for proper conduct of arbitration, it could make an order staying the proceedings before it---Effect of an order under S. 34 of arbitration act, 1940, was of a stay of the suit---High Court set aside order passed by Trial Court whereby appellant's / defendant's application under S. 34 of arbitration act, 1940, was dismissed and proceedings in the suit instituted by respondent/plaintiff were stayed---appeal was allowed, in circumstances.

HAJVAIRY ASSOCIATES (PVT.) LTD. vs POWER CONSTRUCTION CORPORATION OF CHINA LIMITED S — 2024 CLD 1507 ISLAMABAD

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