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PAKISTAN 20 May 2015 Cummins
High Court, Sindh, 20 May 2015, C.A. no. 237 of 2008
(Cummins Sales and Service (Pakistan) Limited Through Authorized Signatory v. Cummins ... Read more
High Court, Sindh, 20 May 2015, C.A. no. 237 of 2008
(Cummins Sales and Service (Pakistan) Limited Through Authorized Signatory v. Cummins Middle East Fze through Chief Executive and 4 Others)
PAKISTAN 20 May 2015 Cummins
The High Court dismissed the appeal from the first instance order staying court proceedings and referring the matter to arbitration. The court action concerned the allegedly illegal termination of contracts between the parties, which contained an arbitration clause. The High Court held that the first instance court had a discretionary power to refer a dispute to arbitration, and that it had exercised it correctly in the present case, on the facts of the case.
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.