Escolar Documentos
Profissional Documentos
Cultura Documentos
INTRODUCTION
. PAGE 03
OVERVIEW OF
CPC..
PAGE 04-06
PRIVILAGE AND
DISCLOSURE. PAGE 07-10
INTERNATIONAL
ARBITRATION...PAGE
10-13
ENFORCEMENT OF
JUDGMENT/AWARDSPAGE 13-14
JURISDICATION OF CIVIL
COURT.PAGE 14-15
2 | Page
4 | Page
89A of the CPC, a legal obligation to encourage them, and the stage to do
that is the pre-trial stage. A manifestation of this can be found in Section 7(4)
of the Muslim Family Laws Ordinance, 1961 and Section 10(3) of the Family
Courts Act, 1964 whereby an obligation has been placed on the judge
hearing the matter to try and effect reconciliation between the parties before
proceeding to the stage of recording evidence.
A detailed account of the law that governs arbitration and mediation in
Pakistan has been provided below under separate headings, yet it would be
useful to make a handful of observations about the overall effectiveness of
ADR. Lord Denning famously said in his judgment in the seminal case of
Bremer v. South Indian Shipping Corporation,17 When I was young, a
sandwich-man wearing a top-hat used to parade outside these courts,
proclaiming arbitrate, dont litigate. It was very good advice, so long as
arbitrations were conducted speedily. This statement stresses the
importance of ADR, while asserting that arbitrations serve no practical ends
if they are not conducted speedily. This precisely describes why the current
ADR framework in Pakistan is underdeveloped and at the stage of infancy.
Despite the fact that Pakistan is a signatory to the New York Convention and
that legislation has been promulgated to make the ADR structure more
attractive to investors, nevertheless ADR in Pakistan has not yet become an
expeditious method for the resolution of commercial disputes. The high
costs, and the entire process being fraught with inordinate delays, render
ADR an unattractive alternative to litigation. However, there have been
promising developments on the mediation front, as will be examined below.
way of obtaining leave of the court under Order VII, Rule 18. In case of the
defendant, although he too is bound by the said provision and must produce
such documents with the written statement, no penalty has yet been
provided in the event of his non-compliance. The documents described in the
second category have to be entered in a list which is to be annexed with the
plaint, irrespective of whether they are in the plaintiffs possession or not. If
the documents are in possession of the plaintiff, they should be fi led along
with the plaint, as per the requirement in Order VII, Rule 14. If this is not the
case, all such documents are to be produced at the first date of hearing of
the suit, as required under Order XIII, Rule 1. If the plaintiff later on relies on
a document that is not in his possession, he should specify the same in the
list annexed. These provisions are to be strictly complied with. Order VII, Rule
18 provides the penalty for non-compliance with the requirements
expounded above: it is that a document which should have been produced
with the plaint, or should have been entered in the list of reliance, but which
is not so produced or entered, cannot without leave of the court, be received
on his behalf at the date of hearing of the evidence. Nevertheless, the court
is empowered to order production of documents in the power and possession
of a party at any time that the suit is pending adjudication. An order of that
nature will not be made as a matter of course. It should be governed by
sound judicial discretion, and keeping in mind the following facts: ability of
the plaintiff to produce the document at the proper stage; reasons for nonproduction being good or bad; nature and authenticity of the document itself;
and whether an intention of delaying the proceedings is the cause of default
of the plaintiff to produce the document at an earlier stage. The court may
require any person present in court to give evidence or to produce a
document, then and there in his possession or power, and if the person so
required is a party to the suit and refuses to do so without lawful excuse, the
court may pronounce judgment against him, or make such order in relation
to the suit as it thinks fit. The powers of the court in relation to ordering the
production of documents can extend to privileged documents in possession
of the Government or any third party. In such cases, privilege can only be
claimed by filing an affidavit with the court. The court can deal with the
document as it deems fit, unless validity of the cause is determined. In some
instances, however, a third party can refuse to disclose documents that are
in his possession for some other person.
Costs:
Section 35 of the Code leaves it to the discretion of courts to award costs of
and incidental to a suit, subject to conditions and limitations set by the law.
Costs awarded can be actual or compensatory.
Actual costs can be awarded to reimburse the expenses incurred by a
successful litigant in the assertion of his rights before the court.
Compensatory costs, on the other hand, can be granted under Section 35A of
the Code, in a case of false or vexatious claim. Where costs are awarded
wrongly and beyond the limit prescribed, their payment may be exonerated.
After withdrawal of suit on the condition of payment of costs, a fresh suit on
the same cause of action will not be competent where default was made on
payment. It is settled in law that a suit for recovery of costs is not
competent. In practice, the discretion granted under Sections 35 and 35A is
rarely exercised, and parties are made to bear their own costs of litigation.
Interim relief:
Interim relief in Pakistan is regulated by the Code of Civil Procedure, 1908
but is granted at the courts discretion. Section 151 of the Code relates to
the courts inherent powers and its explanation follows that the inherent
powers have not been conferred by the Code, but are inherent to the court
by virtue of its duty to do justice between parties before it. It is under this
section that most applications for interim relief are made. This section can be
10 | P a g e
pressed into service for securing the ends of justice or preventing abuse of
the process of court. Accordingly the court can grant injunctions, vacate a
mistaken order, order restitution, correct its own mistake, etc. However,
proceedings cannot be pursued under Section 151 where there are other
remedies available for securing redress. This inherent power is only to be
exercised where there is no other provision or procedure for providing
redress or rectifying a clear injustice. Rules under Order 39 specifically deal
with injunctions and interlocutory orders in relation to property and
contracts. Injunctions granted under Rules 1 and 2 in the absence of the
defendant cannot ordinarily exceed 15 days. Where the injunction has been
granted after hearing the parties or after notice to the defendant, it will
cease to have effect on expiration of six months unless extended by court.
International arbitration
Litigation remains the principal method for resolving disputes in Pakistan,
primarily because the Arbitration Act, 1940 (hereinafter the Act) has been
viewed as involving inefficient and tedious processes. However, introduction
of new laws on the subject, albeit during subsistence of the Act, have been
viewed as a welcome advance. Although arbitration finds no mention in the
Constitution, it has been referred to in Section 89A of the Code. The said
section grants the court power to resort to arbitration, conciliation or
mediation for the expeditious disposal of cases. The procedural framework
for the exercise of this power can be found in the Arbitration Act, 1940.
However, certain special laws surpass the jurisdiction of the court under the
Act. These laws provide their own dispute-resolution mechanisms and
include: the Punjab Consumers Protection Act, 2005; Cooperative Societies
Act, 1925; Companies Ordinance, 1984; and Small Claims and Minor
Offences Courts Ordinance, 2002.
Most of the law on domestic and international arbitral awards in Pakistan has
developed under the Arbitration (Protocol and Convention) Act 1937 and the
1940 Act. While the former has been repealed by the Recognition and
Enforcement (Arbitration Agreements and Foreign Arbitral Awards) Act 2011
and is only applicable to foreign awards made before 14 July 2005, the
latter still holds sway.
13 | P a g e
Mediation:
Aside from mediation facilitated by a court under Section 89A of the Code,
two important institutions have also marked their place in Pakistan. With the
support of the Sindh High Court and financial backing from the International
Finance Corporation (IFC)/World Bank Group, the first reliable ADR institution
was set up in Pakistan in 2007 in the form of the Karachi Centre for Dispute
Resolution (hereinafter the KCDR). The KCDR provides mediation services
to a wide array of clients including private parties and Government entities.
The KCDRs primary objective is to institutionalize ADR with the help of its
accredited mediators. In 2012, a Memorandum of Understanding was signed
between the KCDR and the Karachi Chamber of Commerce with the intention
of providing members of Karachis business and industrial community with a
forum to resolve their disputes through ADR. All mediation proceedings
before the KCDR are subject to international standard rules and codes of
ethics governing mediation. In view of the success of KCDR, the Lahore
Chamber of Commerce & Industry (hereinafter the LCCI), in collaboration
with International Finance Corporation, established the LCCI Mediation Centre
to provide mediation services to local and foreign companies in relation to
business disputes. The LCCI Mediation Centre offers its services through
more than two dozen accredited mediators enrolled with LCCI and trained by
CEDR, a UK-based company.
Enforcement of judgments/awards
Enforcement of foreign judgments:
The expression foreign judgment means the judgment of a foreign court,19
and foreign court means a court situated beyond the territorial limits of
Pakistan, which has no authority in Pakistan and is not established or
continued by the Government of Pakistan. A party that has obtained a
foreign judgment has the option of getting that judgment enforced under
Section 44A of the CPC. It provides that a certified copy of a foreign decree
may be filed in a District Court, and such a decree may be executed in
Pakistan as if it had been passed by that District Court. Section 44A,
however, relates only to judgments/decrees that have been passed by a
14 | P a g e
Cross-border litigation:
A freezing injunction can be sought before the commencement of
proceedings, during the course of proceedings, and after judgment has been
obtained, to prevent the disposal of assets before the judgment is enforced.
Freezing orders can be granted by the court in respect of overseas
proceedings in certain limited circumstances. Freezing orders preserve
assets for enforcement purposes and also render assistance in asset-tracing
claims, by ordering the party subject to the freezing order to disclose the
details of its assets.
In Pakistan, the enforcement of freezing orders passed by a foreign court
would be governed by the same principles that have been expounded above,
under the heading of Enforcement of judgments/awards. A freezing order is
not executable by itself, and would not be binding unless the courts in
15 | P a g e
Pakistan are moved for its recognition and execution following the procedure
detailed above.
Classification of Jurisdiction:
I.
II.
III.
IV.
I.
II.
Pecuniary Jurisdiction
A jurisdiction of a court which is fixed by legislative order, in
accordance with the West Pakistan Civil Courts Ordinance (ii of
1962).It is necessary that court passing the decree must have
pecuniary jurisdiction over the consideration being allowed by it.
III.
Territorial Jurisdiction
16 | P a g e
IV.
Personal Jurisdiction
THE END
17 | P a g e