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PAKISTAN 14 January 2020 Tallahasee
High Court, Islamabad, 14 January 2020, F.A.O. No.124 of 2020 14/01/2020
(Tallahasee Resources Incorporated through Mrs. Maleeha Waheed Malik vs. ... Read more
High Court, Islamabad, 14 January 2020, F.A.O. No.124 of 2020 14/01/2020
(Tallahasee Resources Incorporated through Mrs. Maleeha Waheed Malik vs. Director General Petroleum Concessions, Ministry of Energy (Petroleum Division) and Another)
PAKISTAN 14 January 2020 Tallahasee
The Court dismissed the appeal by which Tallahasee challenged the lower court’s order to stay court proceedings based on the ICSID arbitration clause in the Petroleum Concession Agreement concluded between Tallahassee and the Ministry of Energy of Pakistan. Tallahasee had commenced a court action against the respondents seeking, inter alia, an injunction restraining them from cashing a bank guarantee. The High Court found that the Ministry had not waived its right to seek a stay and referral to arbitration: although it had not filed the stay application for over six months after the institution of the suit, the court where Tallahasse’s suit was pending had been closed for several months due to the COVID-19 pandemic. On the facts of the case, the Court then found that the lower court had not abused its discretion to order a stay, as it had found, among others, that the respondents had not taken any steps in the proceedings.
The court discusses the meaning and effect of the referral of the resolution of disputes to arbitration, including: who can ask for referral and when, whether a party has waived its right to request arbitration, the defense that there was no contract at all; whether there was a condition precedent to the commencement of arbitration (e.g. mediation), stay of proceedings v. compelling arbitration, and national procedural specificities such as remand and removal (US), effect of class action. etc.