Pakistani Courts have pro-enforcement Policy for foreign arbitral award: Lahore High Court


Justice Jawad Hassan of the Lahore High Court in case titled M/s Tradhol International SA
Sociedad Unipersonal
Versus M/s Shakarganj Limited, Civil Original Suit No.80492 of 2017, has rendered a comprehensive judgment on the enforcement of foreign arbitral award. Declaring the objections of the respondent that the application for execution of foreign award is not maintainable as the agreement was signed by an unauthorized person, invalid the court held that the Tribunal has settled these points in its arbitral award. The Court further held that Pakistani Courts have pro enforcement policy or pro enforcement bias with regard to foreign arbitral award. The Court held as under: โ€œit is imperative that, Pakistan is one of the countries that have yet to develop jurisprudence on international commercial arbitration, and we must be cautious, and ought to adopt standards of practice in line with the international community. There is also a need to develop best standing practices for our own courts, which are seeing a rise in cases pertaining to international commercial arbitration; therefore, there is an utmost need to deliver precedent that is consistent and does not open floodgates to frivolous litigation. Indeed, the very purpose of parties going to arbitration is the (relatively) speedy settlement of disputes, which ought not to be impeded by a party resorting to litigation once an award is rendered.โ€. Accordingly, the Court finds that all requirements for the enforcement of the โ€œFinal Awardโ€ have been satisfied.”

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