A.M. CONSTRUCTION COMPANY (PRIVATE) LIMITED vs TAISEI CORPORATION S

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A.M. CONSTRUCTION COMPANY (PRIVATE) LIMITED VS TAISEI CORPORATION S. 4---Courts in Pakistan---Jurisdiction---Provisions of Recognition and Enforcement (Arbitration Agreements and Foreign Arbitral Awards) Act, 2011, do not envisage "ouster of jurisdiction of the Courts of Pakistan" having jurisdiction to entertain and try civil suit(s), irrespective of availability of arbitration agreement / arbitration clause, but extends option / remedy to the party, to such arbitration agreement / arbitration clause, for seeking stay of legal proceedings, provided conditions prescribed under S. 4 of Recognition and Enforcement (Arbitration Agreements and Foreign Arbitral Awards) Act, 2011 are available and met. Citation Name: 2025 CLD 474 LAHORE-HIGH-COURT-LAHOREBookmark this Case A.M. CONSTRUCTION COMPANY (PRIVATE) LIMITED VS TAISEI CORPORATION S. 4---arbitration act (X of 1940), S. 34---Foreign arbitral award---Stay of arbitration proceedings under arbitration act, 1940---Scope---It was an absurdity to infer or assume that mere non-mentioning of exclusion of the provisions of arbitration act, 1940 in Recognition and Enforcement (arbitration agreements and Foreign arbitral awards) act, 2011 would conversely imply applicability of arbitration act, 1940---Provision of S. 34 of arbitration act, 1940 would not apply, as various provisions of arbitration act, 1940 are inconsistent with the provisions of Recognition and Enforcement (arbitration agreements and Foreign arbitral awards) act, 2011---Such inconsistency renders arbitration act, 1940 inapplicable---Provisions of Ss. 46 & 47 of arbitration act, 1940, exclude applicability of S. 34 of arbitration act, 1940 in the wake of inconsistency apparent with S. 4 of Recognition and Enforcement (arbitration agreements and Foreign arbitral awards) act, 2011. Citation Name: 2025 CLD 474 LAHORE-HIGH-COURT-LAHOREBookmark this Case A.M. CONSTRUCTION COMPANY (PRIVATE) LIMITED VS TAISEI CORPORATION S. 4---arbitration act (X of 1940), S.14---arbitration---Stay of proceedings---Subcontract---Scope---Petitioner / plaintiff was a subcontractor, whereas main contract was between respondent / foreign company and respondent / National Highway authority (NHa)---Petitioner / plaintiff filed civil suit under S. 14 of arbitration act, 1940 against respondent / foreign company---Trial Court on application filed by respondent / foreign company stayed proceedings of suit under S. 4 of Recognition and Enforcement (arbitration agreements and Foreign arbitral awards) act, 2011, as Foreign arbitral award had already been issued in its favour---Validity---Mere exchange of few letters or act of registering some complaints, in absence of privity of contract between petitioner / plaintiff and respondent / NHa, did not give any cause of action to petitioner / plaintiff to sue respondent / NHa---Subcontract was independent and any representation made therein, or scope of obligations undertaken in the context thereof did not bind respondent / NHa- the employer, which could not be held liable for any vicarious liability in the guise of subcontract---arbitration agreement, under reference, was not null and void, inoperative or incapable of being performed---High Court declined to interfere in the order passed by Trial Court and directed that legal proceedings would remain stayed till the circumstances so warranted and could be resurrected if conditions so arise---Revision was dismissed, in circumstances.

A.M. CONSTRUCTION COMPANY (PRIVATE) LIMITED vs TAISEI CORPORATION S — 2025 CLD 474 LAHORE-HIGH-COURT-LAHORE

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