1725/2000 Suit PAK. STATE OIL CO. LTD. (Plaintiff) V/S M/S. GILLANI PVT. LTD. & ORS. (Defendant)

1725/2000 Suit PAK. STATE OIL CO. LTD. (Plaintiff) V/S M/S. GILLANI PVT. LTD. & ORS. (Defendant) Sindh High Court

Bench: Hon'ble Mr. Justice Nazar Akbar Order Date: 26-APR-18

Arbitration Act (X of 1940)--- ----Ss. 8, 20, 25, 32 & 34---Suit for recovery of money---Arbitration clause---Referring matter to Arbitrator---After filing of suit, proceedings were stayed and matter was referred to Arbitrator---Subsequently plaintiff filed application for restoration of suit and sought appointment of Arbitrator under Ss. 8 & 20 of Arbitration Act, 1940---Validity---Once parties were referred to Arbitrator, the purpose / object of Arbitration Act, 1940, was effectively achieved and parties were prevented to obtain a decree from Court contrary to their own agreement that their disputes were to be adjudicated by a private party as provided in arbitration agreement---Order on application under S. 34 of Arbitration Act, 1940, and / or on application under S. 20 of the Act, was one and the same---Purpose of both the provisions was to seek enforcement of an 'arbitration clause/agreement' against the party guilty of avoiding / refusing arbitration for resolution of their dispute---High Court declined exercise of discretion under S. 25 of Arbitration Act, 1940---Plaintiff had repeatedly approached the High Court by suppressing arbitration agreement and attempted to obtain a decree from a civil Court despite the fact that the suit was barred under S. 32 of Arbitration Act, 1940---Suit was dismissed in circumstances.