COSCO SHIPPING PROJECT LOGISTICS CO. LIMITED vs SHANGHAI MARINE DIESEL ENGINE RESEARCH INSTITUTE Ss

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COSCO SHIPPING PROJECT LOGISTICS CO. LIMITED VS SHANGHAI MARINE DIESEL ENGINE RESEARCH INSTITUTE Ss.6 & 7---Foreign arbitral award---Recognition and enforcement---Scope---Facts: The applicant company moved an application under section 6 of the Recognition and Enforcement (Arbitration Agreements and Foreign Arbitral Awards) Act, 2011 seeking recognition and enforcement in Pakistan of a foreign arbitral award passed by China International Economic and Trade Arbitration Commission (CIETAC), arising out of a tripartite logistics service agency agreement relating to the wharf revamp project at 'Port Qasim', which contained an arbitration clause providing for CIETAC arbitration---After a dispute had arisen, arbitration was conducted and culminated in the award, and the applicant sought to have the award recognized, made rule of Court and executed as a decree---Issue: "Whether the CIETAC award fell within the ambit of the 2011 Act and was liable to be recognized and enforced as a decree of the Court, or whether enforcement was to be refused on any legally permissible ground under the Act read with the New York Convention?"---Held: The argument advanced by the respondents was that reliance was made on an arbitration clause in asubsequent agreement, while ignoring such a clause in a precursor agreement---While the respondents did not draw the High Court's attention to any specific precursor clause, it would beggar belief that the concerned respondents could be proceeded against vide aclause in an agreement that it was not a party to---Notwithstanding, the award had discussed and upheld the validity of the agreement and the pertinent arbitration clause---Perusal of the award demonstrated that the arbitration tribunal exhaustively dealt with the aspects of law and jurisdiction in the award---Clause 3 thereof expressly stated that the agreement was in consonance with the relevant laws and regulations---It was also exhaustively deliberated and concluded that clause 5.2 of the agreement did not violate the provisions of the Arbitration Rules---While the said deliberation and conclusion remained within the purview of the tribunal, the respondents remained unable to demonstrate any patent infirmity therewith or that it could not be rested upon the rationale relied upon---The competence of the executants of the present proceedings was called into question before the High Court---The documentation annexed, power of attorney etc., could not be demonstrated to be afflicted with any infirmity; capable of vitiating the award or otherwise---No infirmity with the agreement and / or the award could be identified, within the mandate of Art. V of the New York Convention---The foreign arbitral award was recognized as binding and enforceable against, hence, made rule of Court---Application filed per S. 6 of the Act was allowed, in circumstances.

COSCO SHIPPING PROJECT LOGISTICS CO. LIMITED vs SHANGHAI MARINE DIESEL ENGINE RESEARCH INSTITUTE Ss — 2026 PLD 58 KARACHI-HIGH-COURT-SINDH

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