2023 PLD 369 KARACHI-HIGH-COURT-SINDH

Full text

HASCOL PETROLEUM LIMITED VS IIIRD SENIOR CIVIL JUDGE/RENT CONTROLLER, KARACHI S. 13---Arbitration Act (X of 1940), S. 34---eviction of tenant---Power to stay legal proceedings where there is an arbitration agreement---Scope---Respondent sought eviction of petitioner---In response, the petitioner filed an application invoking S. 34 of the Arbitration Act, 1940, read with S. 94 of the C.P.C.---Application requested a stay on the rent case proceedings and an order referring the parties to arbitration in accordance with the Lease Deed---However, the Rent Controller dismissed the application---Validity---Specific nature of disputes to be referred to arbitration was outlined in Clause 11 of the Lease Deed---Said clause stipulated that any questions, differences, objections, or disputes relating to the Lease Deed or the rights, duties, or liabilities of either party would be referred to arbitration with the petitioner company's General Manager Retail---Nevertheless, the clause appeared to exclude disputes concerning arrears of rent between the parties from arbitration---Moreover, the petitioner's reliance on the Lease Deed was deemed inconsequential due to other clauses that governed the matter of recovery of arrears---Sindh Rented Premises Ordinance, 1979, prescribed a specific procedure for ejecting a tenant under S. 13, and it did not allow the Rent Controller to order or disallow eviction based on an arbitration award---Rent Controller, operating under the Sindh Rented Premises Ordinance, 1979, held a limited scope of inquiry to determine the existence of grounds for eviction---Arbitration was not contemplated within this limited jurisdiction---Additionally, as the Rent Controller was not a Civil Court, as such he lacked the authority to receive an award from an arbitrator and make it binding---Entire framework of the Sindh Rented Premises Ordinance, 1979, clearly intended to exclude the settlement of disputes between landlords and tenants through arbitration---Constitutional petition was dismissed.