637/1983 Suit M/S. NATIONAL MOTORS (Plaintiff) V/S GOVT. OF PAKISTAN (Defendant)

637/1983 Suit M/S. NATIONAL MOTORS (Plaintiff) V/S GOVT. OF PAKISTAN (Defendant) Sindh High Court

Bench: Hon'ble Mr. Justice Nazar Akbar Order Date: 10-FEB-15

Arbitration Act (X of 1940)--- ----Ss. 30 & 33---Contract for supply of vehicles---Arbitration award in favour of defendant was remitted by the court with directions to the arbitrator to state reasons for the award, which direction was not complied with by the arbitrator---Defendant, during pendency of said arbitration proceedings, appropriated an amount lying with it, which amount was in consideration for another later contract between the parties---Plaintiff's present suit for recovery sought recovery of the said amount---Held, that the defendant's act of appropriation of amount in respect of the earlier contract from amount lying with the defendant under a contract was not justified nor lawful---Failure of defendant to pursue legal remedy for recovery of said amount once arbitration award was set aside by the court rendered the defendant liable to refund the said amount forthwith---Suit was decreed accordingly.