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1987 MLD 317

Messrs JOMALINA SDN.BHD. vs Messrs SOLVEX (PAKISTAN) Ltd.

Citation1987 MLD 317
CourtSindh High Court
Case No.Suit No.178 of 1986
Date1987-02-02
Judge(s)Nasir Aslam Zahid
ResultSuit dismissed

' This is an application under section 20 of the Arbitration Act filed by the plaintiff. According to the plaintiffs, the parties had entered into a contract on 26-6-1982 (Annexure 'iv to the application) whereby the defendant had agreed to purchase Palm Oil from the plaintiff. The plaintiff's grievance is that the defendant has committed breach of contract and there is an arbitration agreement to refer disputes arising out of the contract to arbitration but the defendants are not agreeing for arbitration and as such the present application under section 20 of the Arbitration Act has been moved by the Plaintiff. I have heard Mr.Azhar Ali Siddiqui, learned counsel for the plaintiff and Mr.Mansoorul Arfin, learned counsel for the defendants.

2. There is no specific arbitration clause in the contract, dated 26-6-1982. However, learned counsel for the plaintiff relies upon clause 3 of the last clause of the contract which reads as follows:- ' OTHER TERMS AND CONDITIONS:-

(1) Buyers are to nominate properly caliborated storage tanks.

(2) Buyers to guarantee one safe berth at Karachi.

(3) In accordance with the published rules of NIOP/FOSFA in force at the date of this contract."

' According to Mr. Azhar Ali Siddiqui, learned counsel for the plaintiff, the published rules of FOSFA in force at the date of the contract provide for reference of disputes to arbitration. Learned counsel relies upon Annexure 'B' to the plaint and submits that these are the published rules of the Federation of Oils, Seeds and Fats Associations Limited (FOSDA). On a perusal of Annexure 'B' to the plaint, it is found that this is a photocopy of a specimen of a contract. According to the learned counsel these are the published rules of FOSFA but, in my view, these could not be the published rules of any association. Annexure to the plaint is what it appears to be i.e. Specimen of a contract.

' Mr.Azhar Ali Siddiqui, Advocate, submits that according to the settled principles of arbitration law in Pakistan, an agreement of arbitration may not be signed by the parties if otherwise it has been entered into between the parties, and, secondly, there can be an agreement of arbitration by reference as has been done in the present case. Learned counsel for the plaintiff is no doubt correct in his statement that the agreement may not be signed by the parties if otherwise the parties agree for arbitration and the agreement is reduced into writing and also that agreement of arbitration can be made by reference to another document. However, in the instant case, no published rules of NIOP/FOSFA have been produced.

' Mr.Azhar Ali Siddiqui then submitted that he may be allowed to lead evidence to the effect that copy of the specimen contract is in fact the published rules of FOSFA. The request of the learned counsel is not allowed. As already observed, Annexure 'B' to the plaint, on which reliance has been placed, is a copy of a specimen contract and cannot be the published rules of any association.

3. In the circumstances, suit No.178 of 1986 is dismissed but with no order as to costs.

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