QATAR LUBRICANTS COMPANY W.L.L. ("QALCO") vs ATIF NAEEM RANA Ss — 2025 CLD 78 LAHORE-HIGH-COURT-LAHORE

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QATAR LUBRICANTS COMPANY W.L.L. ("QALCO") VS ATIF NAEEM RANA Ss. 34, 126 & 278---Power to stay legal proceedings, where there is an arbitration agreement---Scope---Parties to the dispute in the main petition not parties to the agreement or in the arbitration clause---Effect---Exclusive jurisdiction of High Court while functioning as a Company Bench over certain company-related matters---Scope---Third party interest---Factual controversies---Applicants sought stay in the main petition and for referring the dispute regarding rectification of register to the arbitration---Validity---Where all parties to the main petition were not parties to the arbitration clause, which constituted a separate agreement, bifurcation of judicial action could not be allowed, which would not only cause inevitable delay in the resolution of the dispute but could also lead to conflicting decisions, increased litigation costs, and harassment of the parties---Right to arbitrate could not be enforced by anyone who is not a party to the agreement containing the arbitration clause, thus, proceedings in the main petition could not be stayed under S. 34 of the Arbitration Act, 1940 (Act)---Non-signatory could not compel arbitration except under exceptional circumstances---In the absence of any contract, an agent could not personally enforce contracts entered into by them on behalf of their principal, nor were they personally bound by them---Court may refuse to stay the proceedings if it is satisfied that there is no sufficient reason to refer the matter to arbitration and that a substantial miscarriage of justice or inconvenience to the parties would occur---Staying proceedings under S.34 of the Act is discretionary and not mandatory---There is no fixed rule for determining when a stay should be refused, however, each case has different facts, and the decision to grant or refuse a stay depends on the specific facts and circumstances of each case---Court can make an objective assessment and decide whether the stay of legal proceedings should be granted or refused---Section 34 of the Act, implies that the Court should first examine whether the arbitration clause applies to the dispute and if it does, the Court must determine whether the nature of the dispute is such that the ends of justice would be better served by a decision of the Court or by the private forum chosen and agreed upon by the parties---Matters involving third-party rights and factual controversies related to companies should be resolved by the courts established under Company Law, which have the authority to frame issues and admit both oral and documentary evidence for adjudication of the dispute---Application for staying the proceedings and for referring the matter to arbitration was dismissed, in circumstances.

QATAR LUBRICANTS COMPANY W.L.L. ("QALCO") vs ATIF NAEEM RANA Ss — 2025 CLD 78 LAHORE-HIGH-COURT-LAHORE

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