The Lahore High Court (LHC) on Saturday rejected the intra-court appeal filed by Mughal Iron and Steel and upheld an international arbitration forum’s decision in favour of a US company, reported 24NewsHD TV channel.
A two-member bench, headed by Justice Ahmad Nadeem Arshad, rejected the company’s appeal.
The 16-page decision has been described as a judicial precedent.
In the verdict, the court rejected the Mughal Iron’s stance that it did not receive the notice, and said that all notices were served as per law.
The court further said that Mughal Iron could not deny the existence of an agreement against which it had itself filed a civil suit.
It noted that the implementation of international arbitration forum’s decision was neither contrary to Pakistan’s public policy nor to moral principles. “The basic purpose of the New York Convention and Act, 2011is to ensure compliance with global trade decisions and agreements as well as their implementation,” the court said.
In February, 2020, Mughal Iron had entered into an agreement with a US firm, Metro Metals, for the purchase of metals.
However, a dispute arose between the two parties over the non-supply of goods.
The matter was referred to a US court and international arbitration forum.
The arbitration forum, after taking into account all the facts, ruled in the favour of Metro Metals, which filed a petition in the LHC under Act, 2011 for the enforcement of the decision.
A single bench of the high court rejected the objections raised by Mughal Iron, and ordered enforcement of the decision by giving it the status of a degree.
Mughal Iron challenged it on the grounds that without ratification by a US court, the decision could not be enforced in Pakistan.