WAQAS YAQUB vs ADEEL YAQUB S — 2024 CLD 990 LAHORE-HIGH-COURT-LAHORE

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WAQAS YAQUB VS ADEEL YAQUB S. 34---Specific Relief act (I of 1877), Ss.42 & 54---Suit for declaration, injunction, rendition of accounts, recovery of damages and mesne profit---arbitration---Stay of legal proceedings---Phrase "taking any other steps in the proceedings"---applicability---appellant / defendant was aggrieved of dismissal of his application to stay legal proceedings so as to refer the matter to arbitration---Validity---If in a contract, there is provision of resolution of dispute between the parties by way of arbitration and parties have agreed to such forum, then such forum is to be resorted to and given preference over filing of suit---If one of the parties to the contract by-passing forum of arbitration files a suit, then the other party can file application for stay as contemplated under S.34 of arbitration act, 1940 and if Trial Court is satisfied then order for stay of proceedings in the suit can be passed to enable resolution of dispute between the parties by way of arbitration only---Conditions precedent for application under S.34 of arbitration act, 1940 are that the party applying for stay has not filed written statement or taken "any other steps in the proceedings" indicating that right to invoke arbitration clause is intentionally abandoned in favour of Court proceedings---Nothing was available over surface of record to construe that conduct of appellant / defendant, in order to be termed as "a step in the proceedings", was such as would manifestly had displayed an unequivocal intention to proceed with the suit and giving up right to have the matter disposed of by arbitration---High Court set aside order in question as the same was passed by Trial Court in disregard of parameters and criteria for test laid down by the Supreme Court for ascertainment and determination of act of appellant / defendant in order to be termed as "a step in the proceedings"---High Court remanded the matter to Trial Court for decision afresh on application under S.34 of arbitration act, 1940---appeal was allowed, in circumstances.

WAQAS YAQUB vs ADEEL YAQUB S — 2024 CLD 990 LAHORE-HIGH-COURT-LAHORE

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