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GUL AHMED TEXTILE MILLS LTD., KARACHI versus STARKO LTD., KARACHI


Article 30 and Ar 33 Arbitration, the appointment of appointments that no contract has been entered into between the parties considered under the Bye Laws of the Association, the appointment of arbitrators under any of the Bye Laws of the relevant Association Held, as a directory in the nature of illegal law, cannot terminate a contract unless such effect is made by the rule of the law or by some other law or association of all material terms. Not to be treated as a special class or clarification contract under the same rules or by-laws of the Association To be eligible. In no particular form may it be void or unenforceable as required by another under the law of the Association. [Arbitration]

1981 C L C 1667

[Karachi]

Before Saeeduzzaman Siddiqui, J

MESSRS GUL AHMED TEXTILE M ILLS LTD., KARACHI‑Petitioner

versus

Messlss STARKO LTD., KARACHI‑Respondent

Suit No. 307 of 1974, decided on 8th April 1981.

(a) Arbitration Act (X of 1940) -----

‑‑S. 2-- (a)‑Arbitration agreement‑Need not be‑signed by parties‑ Written agreement containing reference to rules, bye‑laws, or regulations of Associations requiring reference being made to arbitration in case of dispute‑Held, valid.

(b) Arbitration Act (X of 1940)‑ ,---

‑---‑Ss. 30 & 33‑‑Arbitrator, appointment of‑Contentions that no contract having been executed between parties as contemplated under bye‑laws of Association concerned appointment of arbitrators under one of bye‑laws of Association not legal‑Bye‑law in question being directory in nature non‑compliance of same, held, cannot render agreement void unless such effect produced by law or some bye‑law or rule of Association‑Contract containing all material terms so as to be qualified to be treated as a contract of a particular class or description under same rule or bye‑law of Association cannot be rendered void or unenforceable for reason of its being required under some other by‑law of Associ ation to be made in a particular form.‑[Arbitrator].

Muhammad Amin‑Muhammad Bashir v. Standard Oil & Ice Mills P L D 1973 Kar. 409 ref.

(c) Arbitration Act (X of 1940)‑---

‑‑S. 8‑Arbitration‑Alleged settlement only a claim under original contract‑Does not get substituted in place of original contract-- Proceedings for arbitration, in circumstances, held, started under original contract on breach of alleged settlement and therefore competent.

Maganlal Jhanwar v. M. R. Khan & Co. P L D 1968 Dacca 361 ; Karachi Shipyard & Engineering Works Ltd. v. General Iron & Steel Works P L D 1971 Kar. 501 and Uttam Chand Saligram v. Mafurtood Jewa A T R 1920 Cal. 143 ref.

(d) Arbitration Act (X of 1940)‑‑---------

‑‑‑‑Ss. 13 & 30‑‑‑‑Award, setting aside of‑Arbitrators not bound by technical rules‑ of procedure or Evidence Act, 1872‑‑No error discoverable on face of award‑‑Award based on oral evidence and material produced before arbitrators‑ Whether award based on sufficient evidence or not‑Not open to question before High Court‑Objections rejected.‑‑‑(Award).

Nizam Ahmed for Plaintiff.

Syed Ishtiaq All for Defendant.

Dates of hearing : 30th and 31st March 1981.

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