Arbitration is a key form of Alternative Dispute Resolution (ADR) in Pakistan, offering an efficient and flexible method for resolving disputes without resorting to the traditional court system. Arbitration allows the disputing parties to resolve their issues through an independent arbitrator, whose decision is final and legally binding. This method is increasingly used in commercial, civil, and construction disputes, both in domestic and international contexts.
At Barrister Hasnain Khan Law Chamber, we offer comprehensive arbitration services aimed at delivering effective resolutions while preserving relationships and minimizing costs. Our team of experienced arbitrators and legal experts ensures that the arbitration process adheres to the best legal standards, providing clients with solutions tailored to their specific needs.
Our Services:
Pre-Arbitration Advice and Consultation:
We offer in-depth consultations on whether arbitration is the best course of action for a client’s dispute.
Advising on arbitration clauses in contracts, ensuring they are properly drafted to avoid future complications.
Arbitrator Representation:
Representing parties in both domestic and international arbitration proceedings.
Liaising with arbitration institutions and other relevant authorities to ensure smooth proceedings.
Drafting and Reviewing Arbitration Agreements:
Drafting customized arbitration agreements that include specific terms and conditions regarding the arbitration process, selection of arbitrators, governing laws, etc.
Reviewing existing agreements to ensure enforceability and compliance with Pakistani law.
Conducting Arbitration Hearings:
We handle the preparation and presentation of cases before the arbitrator(s), ensuring that the client’s case is effectively argued.
Handling both the procedural and substantive aspects of arbitration hearings.
Post-Arbitration Services
Assisting clients in enforcing or challenging arbitral awards under Pakistani law.
Providing advice on appeals or further dispute resolution mechanisms if necessary.
Arbitration in Specific Sectors:
Construction arbitration (e.g., disputes under FIDIC contracts).
Commercial and corporate arbitration, including shareholder disputes.
International arbitration under bilateral investment treaties (BITs) and other international agreements.
Types of Arbitration:
Domestic Arbitration:
Domestic arbitration refers to disputes arising within Pakistan and resolved under the Arbitration Act, 1940. This is generally used in commercial disputes, real estate matters, and contractual disagreements.
International Arbitration:
For cross-border disputes, international arbitration is frequently used. The New York Convention, to which Pakistan is a signatory, facilitates the recognition and enforcement of foreign arbitral awards.
Ad-Hoc Arbitration:
In ad-hoc arbitration, the parties do not rely on any institutional framework. They choose their own arbitrators and establish procedures independently.
Institutional Arbitration:
Institutional arbitration involves a third-party arbitration institution that provides administrative support. Common institutions include the International Chamber of Commerce (ICC) and the London Court of International Arbitration (LCIA). In Pakistan, the Pakistan Arbitration Council (PAC) is a local option.
Binding and Non-Binding Arbitration::
Binding arbitration results in an award that is final and enforceable by law.
Non-binding arbitration, on the other hand, provides a recommendation or resolution that the parties can choose to accept or reject.
Procedures
Initiation of Arbitration: The process begins with a notice of arbitration, where the aggrieved party formally notifies the other party of its intention to resolve the dispute via arbitration, usually as per an arbitration clause in the contract.
Agreement to Arbitrate: Arbitration usually starts with an agreement between the parties, either in a contract or by mutual consent after the dispute has arisen.
Appointment of Arbitrators: The parties either select arbitrators themselves or follow the procedures in their arbitration agreement, which may refer the appointment to an institution such as the Pakistan Arbitration Centre.
Selection of Arbitrators: The disputing parties typically select a neutral arbitrator or a panel of arbitrators. In cases of disagreement over the selection, the courts or an arbitration institution may appoint the arbitrators.
Preliminary Hearings: The arbitrators hold preliminary hearings to discuss procedural matters, such as timelines, submission of documents, the scope of the arbitration and clarify the points of contention.
Submission of Claims: The parties exchange their statements of claims, defenses and evidences. These documents outline the legal and factual basis for their respective positions in the dispute.
Evidence and Hearings: Both parties present their evidence and arguments before the arbitrators. The procedure is less formal than in court proceedings, but adherence to procedural fairness is crucial. This can involve written submissions, oral hearings, witness testimony, and expert opinions. Witnesses may be called, and cross-examination is permitted.
Arbitral Award: After reviewing the evidence and arguments, the arbitrator renders a decision, known as the arbitral award, which is binding on the parties. The award may include monetary compensation, specific performance, or other forms of relief.
Enforcement: If one party does not voluntarily comply with the arbitral award, the other party may seek enforcement through the courts under the Arbitration Act, 1940, or the Recognition and Enforcement (Arbitration Agreements and Foreign Arbitral Awards) Act, 2011 (for international arbitration).
Challenging the Award: In certain cases, an arbitral award may be challenged in court on limited grounds such as misconduct of the arbitrator, fraud, or lack of jurisdiction.
Top Judgments on Arbitration:
Hub Power Company v. WAPDA (2000 SCMR 841):
A landmark case that discusses the scope and enforcement of arbitral awards in Pakistan.
Pakistan Telecommunication Company Limited v. International Industries Limited (PLD 2021 SC 97):
This case highlights the enforceability of arbitration clauses in commercial contracts and the procedural aspects of challenging awards.
The Crescent Steel Case (PLD 2015 SC 134):
Discusses the recognition and enforcement of foreign arbitral awards under the New York Convention in Pakistan.
Relevant Laws
Arbitration Act, 1940:
Governs the procedural aspects of domestic arbitration in Pakistan, including the appointment of arbitrators, arbitration proceedings, and enforcement of awards.
Recognition and Enforcement (Arbitration Agreements and Foreign Arbitral Awards) Act, 2011:
This law facilitates the recognition and enforcement of international arbitral awards in Pakistan under the New York Convention.
The Arbitration (International Investment Disputes) Act, 2011:
This act deals with arbitration under international investment treaties and the recognition of awards rendered by the International Centre for Settlement of Investment Disputes (ICSID).
New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards, 1958:
Pakistan is a signatory to this international treaty, ensuring the enforcement of foreign arbitral awards in Pakistan and Pakistani awards abroad.
The Pakistan Arbitration Council Ordinance, 2005:
o Establishes the Pakistan Arbitration Council (PAC) for the facilitation and regulation of arbitration within Pakistan, especially in commercial disputes.
The Civil Procedure Code, 1908:
o Relevant provisions of the CPC may be applicable to arbitration, particularly in terms of procedural aspects like the execution of arbitral awards.
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