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PAKISTAN 2026-1
High Court, Islamabad, 24 October 2024
(Zaver Petroleum Corporation (Pvt.) Limited v. Saif Energy Limited)
PAKISTAN 2026-1
The High Court granted enforcement of three LCIA awards, explaining inter alia that Pakistani parties may opt for a foreign arbitration seat and the application of a foreign law in respect of a contract concluded and to be performed in Pakistan. The Court rejected Saif’s argument that Zaver could not commence arbitration before the annulment of the status quo order Saif had obtained in the context of court proceedings it had commenced in Pakistan seeking cancellation of the agreement containing the arbitration clause. The status quo order, the Court found, went against the mandate of Art. II of the New York Convention, which requires courts to recognize arbitration agreements and to refer disputes covered by an arbitration agreement to arbitration.
The court discusses whether referral of the resolution of disputes to arbitration is mandatory under the Convention and whether mandatory referral is an internationally uniform rule which supersedes municipal law.
The court discusses the principle that the procedure for the enforcement of awards under the Convention is governed by the lex fori, as well as procedural issues (such as the competent enforcement court) not falling under the specific cases of ¶¶ 302-307.
The court discusses the conditions under which a party may be estopped from raising a ground for refusal of enforcement under the Convention or has waived the right to raise it.
The court discusses issues relating to the manner of authentication and certification of the award and/or arbitration agreement.
The court discusses the overall scheme and/or pro-enforcement bias of the Convention.
Public policy: The court discusses the effect of other alleged violations of public policy on the recognition and enforcement of an arbitral award, such as contradictory reasons, manifest disregard of the law (US), etc.