1. ' This application under section 34 of Arbitration Act is filed on behalf of the defendants seeking stay of further proceedings and its reference to Arbitration in terms of clause 7(1) of General.
2. Agreement dated 25th February, 1984 executed between the parties hereto.
3. ' On behalf of the defendants it is urged that the parties had entered into a General Agreement whereby the defendants had agreed to establish a manufacturing unit within the Export Processing Zone. The plaintiff had also executed Licence Agreement for establishment of the manufacturing unit, as above, favouring the defendants on 25th day of November, 1984 whereunder certain utilities and the right for such provision was guaranteed by the plaintiff: ' The General Agreement under clause 17 contain arbitration clause in the following terms:
(1) Any dispute between the parties shall be referred to Arbitration as provided under section 24 of Ordinance IV of 1980 and such proceedings shall take place at Karachi."
4. ' It is urged on behalf of the defendants that in view of the above-referred provisions, the plaintiff cannot maintain the present proceedings since the amount, recovery whereof is claimed by the plaintiff pertains to the various rights guaranteed by the General Agreement and the Licence Agreement referred to hereinabove. It is further urged by the learned counsel for the defendant that the plaintiff had initially agreed for reference of the controversy raised through the present proceedings to Arbitrators in terms of the above-referred arbitration clause but has not filed the suit in order to evade such arbitration. The amount, recovery whereof is sought through the present proceedings, according to the plaint, is claimed under various heads as are specified in para. 5 of the plant, which being relevant, is reproduced as follows:-- "5. That due to continuous default in payment of dues of plaintiff, defendant No,1 is liable to pay up to 30-6-1995 annual ground rent amounting to US $ 10,260 (or equivalent Pakistani Rs,326,165.40) and utilities amounting to US $ 36554.39 (or equivalent Pakistani Rs,11,62,064.00) aggregating US $ 46814.39 (or equivalent Pakistani Rs,14,38,229.40). Hence the plaintiff served a show-cause notice on defendant No,1 dated 9th March, 1994 which was replied by the defendant No,1 by their letter dated 21st March 1994 which mentioned that the factory of defendant No,1 has been closed since 1993, further undertaking to clear their balance/outstanding dues at the earliest subject to finalization of a Court case instituted against them. This was hardly justification for non-payment of dues of the plaintiff which consisted of annual ground rent and utilities."
5. ' The learned counsel for the plaintiff in reply urged that the heads of various accounts, as are mentioned in the above-referred paragraph 5 of the plaint, are not covered by the General Agreement or the Licence Agreement and therefore the arbitration clause would not be attracted thereto. The present proceedings, in the circumstances, are maintainable and may not be stayed in terms of section 34 of the Arbitration Act.
6. ' It is pertinent to note that arbitration clause in para .17 of the General Agreement by reference includes the provisions of section 24 of Export Processing Zones Authority Ordinance, 1980 (Ordinance IV of 1980) which is as follows: "24. Disputes to be referred to arbitration.---(1) Any dispute relating to the interpretation of the provisions of any agreement made under any scheme prepared under section 10 between the Authority and an Investor or the rights of the parties to such agreement or any rights conferred or any liability imposed by this Ordinance shall be referred for arbitration to an arbitrator appointed by the parties.
(2) Any award made upon such reference shall be final and binding on the parties and shall not be subject to any appeal or any other remedy.
(3) The provisions of the Arbitration Act, 1940 (X of 1940), shall so far as they can be made applicable, apply to arbitrations under subsection (1)."
7. ' The arbitration stipulated under the above-referred section 24 is not limited to the disputes relating to interpretation of the agreement(s) but is also extended to any rights conferred or any liability imposed by the Ordinance. The payment of ground rent and the charges for the various utilities are specifically stipulated by Licence Agreement dated 25th November, 1984 executed between the parties and the plaintiff has undertaken to provide such utilities. In the circumstances, the provision of utilities and the payment of ground-rent and the charges for such utilities are the rights and liabilities incurred and provided under the Statute and the two ,agreements.
8. Consequently, such question squarely falls within the arbitration clause contained in section 24 of the Export Processing Zones Authority Ordinance, 1980.
9. In the circumstances, the dispute raised through the present proceedings, having been found to be covered by Arbitration Agreement, the plaintiff cannot be allowed to say good-bye to such agreement and resort to Court proceedings. It is by now well-established that where the parties have agreed to resolve their disputes through domestic tribunal, the matter cannot be taken to Court unless there are allegations of mala fides which render it improper to refer the matter to arbitration or such domestic forums. The learned counsel for the defendants has referred to the judgments reported in PLD 1993 Kar. 459---Associated Agencies Ltd. And others v. Industrija Masina/Tractors and another, PLD 1994 Lah, 122--Anjuman Faizul Islam (Regd.), Rawalpindi v. M/s. Building Artisans Ltd. And another and 1994 MLD 2227--M/s. Danish Brothers Limited and others v.
10. Cotton Export Corporation of Pakistan (Pvt.) Limited. In support of the above position, the learned counsel for the plaintiff candidly concedes to the legal position as is established from the above- referred authorities.
11. ' The result is, this application is granted and further proceedings in the suit are stayed. Both the parties may take further steps in accordance with the Arbitration Agreement contained in the General Agreement dated 25th November, 1984.