Pakistan Court Rejects Daewoo’s Petition Due to Arbitration Clause

Table of Contents

1. Introduction
2. Background of the Case
3. Daewoo’s Claims Against NHA
4. NHA’s Defense and Arguments
5. Court’s Decision and Ruling
6. Legal Precedents Cited
7. Conclusion
8. Legal Assistance in Pakistan

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Introduction

The Islamabad High Court dismissed Daewoo Pakistan Motorway Service Limited’s petition. The court ruled that disputes must be resolved through arbitration, as agreed in the contract.

Background of the Case

Daewoo filed a petition challenging the contract for modernizing the Lahore-Islamabad Motorway (M-2). The company argued that the authorities violated Public Procurement Rules, 2004. It also claimed that taking over motorway service areas was unlawful.

Daewoo’s Claims Against NHA

• The contract was awarded illegally.
• NHA violated procurement laws.
• The company was wrongfully removed from service areas.
• The court should stop NHA from taking over their operations.

NHA’s Defense and Arguments

• The contract had an arbitration clause under ICC Rules.
• Arbitration had already taken place, and a final award was issued in 2014.
• A civil court had rejected Daewoo’s lawsuit based on the arbitration clause.

Court’s Decision and Ruling

• If arbitration is available, a writ petition is not valid.
• The parties must resolve disputes through arbitration as per their contract.
• The court does not interfere in private contracts unless there is unlawful government action.

Legal Precedents Cited

The court referred to past cases, including:

• Mumtaz Ahmad v. Zila Council, Sahiwal (1999 SCMR 117) – Courts enforce arbitration clauses.
• Echo West International (Pvt.) Ltd. v. Government of Punjab (PLD 2009 SC 406) – Courts do not allow personal disputes under public interest claims.

Conclusion

The High Court dismissed the petition, stating that Daewoo must follow the arbitration process agreed upon in its contract.

Legal Assistance in Pakistan

For legal advice on arbitration and contract disputes in Pakistan, contact Advocate Muhammad Amin at 0313 9708019.