5H INSAAT VE TICARET ANONIM SIRKETI vs SECRETARY Rr — 2025 CLD 813 LAHORE-HIGH-COURT-LAHORE

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5H INSAAT VE TICARET ANONIM SIRKETI VS SECRETARY Rr.2(1)(f), 2(1)(g), 2(1)(n), 2(1)(s), 2(1)(w), 3, 31, 32, 63(a) & 63(b)---Procurement process through competitive bidding---Role and rights of a bidder stated---Awarding a contract to a party---Process and scope---A bidder is an individual or organization that submits a proposal to undertake a specific project or provide goods/services at a specified price and in the context of public interest projects or government contracts, the bidders play an important role in competing for projects/contracts---The basic role of a bidder is to (i) submit proposals or bids for a project or contract; (ii) provide goods or services as specified in the said project or contract and (iii) comply with the terms and conditions of the project/contract awarded to him---Whereas the rights of a bidder include the right of fair evaluation of his bid; right to be notified of bid evaluation results; and most importantly right to protest or dispute the awarding of the contract if necessary---As regards, the scope of awarding a bidding contract, it involves several key aspects which are (i) Notification; (ii) Publication; (iii) Contract execution; (iv) Conditions precedents; (v) Timeline---The process of awarding a contract or project involves bid evaluation, recommendation of the contracting authority regarding the winning bidder, approval by the relevant authority and then signing of the contract between the contracting authority and the winning bidder. Citation Name: 2025 CLD 813 LAHORE-HIGH-COURT-LAHOREBookmark this Case 5H INSAAT VE TICARET ANONIM SIRKETI VS SECRETARY art.18---Freedom of trade, business and commerce---Project for public welfare---Encouraging promotion and protection of public welfare project involving foreign investment---Foreign investment and the role of foreign investors in Pakistan---Scope---One of the basic purpose behind provision of article 18 of the Constitution is certainly to advance culture of socio-economic progress and to protect and promote business and trade activities and, at the same time, to encourage simplification of the process of establishing and carrying out new business ventures throughout the country---It is the duty of the courts in Pakistan to see the rights of the parties and to protect their interest in order to build confidence of investors in Pakistan but at the same time the interest of government functionaries also has to be examined regarding financial interest of the government---If such like projects are delayed then it will negatively impact the quality of life of the individuals, who are to be benefited from it, particularly when the project is intended to provide essential services or infrastructure---Especially, when the foreign investment is involved then delay in completion of such kind of projects will jeopardize tendency of entering new technologies, management practices and marketing techniques in the country. Citation Name: 2025 CLD 813 LAHORE-HIGH-COURT-LAHOREBookmark this Case 5H INSAAT VE TICARET ANONIM SIRKETI VS SECRETARY S.2(b)---alternate Dispute Resolution ("aDR")---Mediation---Object, purpose and scope---Significance of mediation stated---Distinction from arbitration---Cancellation of a contract by the authorities---accruing of vested right of the contractor after submitting Rs.2.2 billion as performance security---Matter referred to mediation after setting aside the cancellation notice---Facts in brevity where that the petitioner was awarded a contract of a project titled "Developing Resilient Environment and advancing Municipal Services" and thereafter it fulfilled all legal formalities, submitted performance securities worth over Rs. 2.2 billion, and requested mobilization advances and work commencement orders, however, after four months, termination notices were issued to the petitioner---The petitioner challenged these notices through the present Constitutional petition---Held: admittedly the contract was awarded to the petitioner and since it had invested a huge amount of more than Rs.2.2. billion in the project, therefore, vested rights had been created in its favour and if the contract was terminated, the petitioner would suffer a huge financial loss---Contract executed between the parties provided amicable settlement by mentioning that both the parties would attempt to settle the dispute amicably before the commencement of arbitration---Then, under clause 21.6 of the contract, any dispute in respect of which the decision of the DaaB had not become final and binding were agreed to be finally settled by international arbitration under the Rules of arbitration of International Chamber of Commerce---In order to avoid such arbitration, while seeking guidance from the jurisprudence developed on mediation from time to time, High Court deemed it appropriate to refer the matter for mandatory mediation, before the arbitration started---The reasons which make mediation a compelling choice to resolve disputes efficiently and effectively, inter alia, include: (i) Cost-effectiveness; (ii) Time efficiency; (iii) Flexibility; (iv) Confidentiality; (v) Preservation of relationships; (vi) Control over the outcome; (vii) Expertise; (viii) Reduced hostility---an ounce of mediation is worth a pound of arbitration and a ton of litigation---Supreme Court of Pakistan has put more emphasis on resolving disputes through mediation as the benefits of mediation are manifold---It reduces the costs associated with protracted legal battles, alleviates the burden on courts, and ensures quicker resolution of disputes---The confidential nature of mediation protects the privacy of the parties, and its informal setting encourages honest communication and problem-solving---Moreover, the flexibility of the process allows parties to explore creative, interest-based solutions that a court of law may not be empowered to grant---The earlier a dispute is channeled through mediation, the greater the potential for cost and time savings, reduced emotional strain, and restored relationships---Therefore, in view of the above background and the facts of the present case, specifically when consensus had also been reached between the parties for amicable settlement of the dispute, the impugned notices of termination of contractwere set-aside and the respondent No.1/Secretary, Local Government and Community Development Department, Government of the Punjab who had already dealt with the matter, and who had passed the detailed order by confirming rights of the Petitioner, and he having awareness of the matter, could play an important role to mediate all the differences/disputes between the parties---Respondent No.2 was appointed as the neutral facilitator/mediator with a view to resolve the dispute in amicable and expeditious manner because the project related to welfare of the public at large---Constitutional petition was disposed of accordingly. Citation Name: 2025 CLD 813 LAHORE-HIGH-COURT-LAHOREBookmark this Case 5H INSAAT VE TICARET ANONIM SIRKETI VS SECRETARY Significance of arbitration---Types of arbitration---Arbitration is a dispute resolution process where the parties agree to submit their disputes to a neutral third-party called the arbitrator, who, after listening to the stance of the parties, makes a binding decision---There are two types of arbitration; the first is "voluntary arbitration" in which the parties agree to arbitration voluntarily, through a contract or agreement and second type is known as "mandatory arbitration" which is required by law or contract, and the parties must participate in the process---The first and the basic benefit of arbitration is the faster resolution of a dispute because it contains a process which is faster than traditional litigation, reducing the time and cost associated with resolving disputes---Arbitration can be more cost-effective than approaching the court as it eradicates many of the formalities and procedures associated with the litigation---It is commonly used to resolve commercial disputes, labour disputes, such as grievances and collective bargaining agreements but the arbitrator can also play pivotal role in resolving international disputes, such as disputes between countries or multinational corporations. Citation Name: 2025 CLD 813 LAHORE-HIGH-COURT-LAHOREBookmark this Case 5H INSAAT VE TICARET ANONIM SIRKETI VS SECRETARY Rr.3(3) & 10---Responsibilities and functions of the heads of government departments---Scope---Under R. 3(3) of the Punjab Government Rules of Business, 2011, business of the Government has been distributed amongst several departments in the manner indicated in the Second Schedule and functions of the Secretary are described under R. 10 of the Punjab Government Rules of Business, 2011---The Secretary, being official head of the department, having constitutional powers, is responsible for its efficient administration and discipline; for the conduct of business assigned to the department, and for the observance of laws and rules.

5H INSAAT VE TICARET ANONIM SIRKETI vs SECRETARY Rr — 2025 CLD 813 LAHORE-HIGH-COURT-LAHORE

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