"ARBITRATION - PAKISTANTHE IMPLEMENTATION OF THE NEW YORKCONVENTION FOR THE ENFORCEMENT OF FOREIGNARBITRAL AWARD IN PAKISTANABSTRACTHas Pakistan been favor of implementing the Alternative Dispute Resolution – especiallyarbitration for resolving commercial disputes? Has it taken effective measures for theexecution of the Geneva and New York Conventions while enacting of a foreign award?There is a considerable mistaken belief that Pakistan is one of the developing countries not incomplete favor of implementing the international arbitration, the main aim of this dissertationis to identify and examine the measures taken by Pakistan to date, in enforcing the foreignawards under the NY Convention.The dissertation has been divided under five chapters, beginning with Chapter I thedissertation elaborates the approach of different authors on this subject and differentmethodologies in supporting the research. Chapter II explains in detail the process ofArbitration in Pakistan with a brief focus on its history. The dissertation further continues inexploring the different facets of implementation and enactment of the arbitration awardthrough the New York Convention and also the arbitration proceeding observed before theratification of convention under Chapter III. Subsequently, the dissertation identifies thedifferent challenges involved and puts forward recommendations for implementation of theaward under Chapter IV. Finally, Chapter V concludes by analyzing the different proceduresand most recent developments in the arbitration laws of Pakistan in implementing the award. Page 1 ARBITRATION - PAKISTANThe dissertation concludes by arguing that upon observation it can be understood thatPakistan has made extensive reforms in the implementation of its arbitration laws both ininternational commercial and investment arbitration. This step has been taken with an aim tomodernize the application of arbitration laws and also fulfill its obligations under the NewYork Convention and the International Convention on the Settlement of Investment DisputesConvention. KEYWORDSInternational Commercial Disputes, Alternative Dispute Resolution, Arbitration, the GenevaConvention, the New York Convention, Intervention of Courts, Foreign Arbitration, Award,UNICITRAL Model Law, Arbitration Act, EnforcementABBREVIATIONSAA – The Arbitration Act, 1940ADR – Alternative Dispute ResolutionAIDA – Arbitration (International Investment Disputes) Act, 2011AIR – All India Law ReportsAPC – Arbitration (Protocol and Convention) Act 1937GOP – Government of PakistanICC – International Chamber of CommerceICSID – International Convention for the Settlement of Investment DisputesICSID Convention - International Convention on the Settlement of Investment DisputesLHC – Lahore High CourtMLR – Monthly Law ReportNLR – National Law ReportPLD – Pakistan Legal DecisionsREA Ordinance - Recognition and Enforcement (Arbitration Agreements and ForeignArbitral) Awards Ordinance, 2005 Page 2 ARBITRATION - PAKISTANREFA – Recognition and Enforcement (Arbitration Agreement and Foreign ArbitralAwards), Act 2011SCMR – Supreme Court Monthly ReviewSCP – Supreme Court of PakistanSHC – Sindh High CourtTHE GENEVA CONVENTION - the Geneva Convention on the Execution of ForeignArbitral Awards of 1927UNCITRAL – United Nations Commission on International Trade LawYLR – Yearly Law ReportCPC - Code of Civil Procedure FATA - Federal Administered Tribal Areas CIArb - The Chartered Institute of Arbitrators Page 3 ARBITRATION - PAKISTANContentsABSTRACT ................................................................................................................................................ 1KEYWORDS .............................................................................................................................................. 2ABBREVIATIONS ...................................................................................................................................... 2INTRODUCTION ....................................................................................................................................... 5LITIGATION AS DISPUTE RESOLUTION ............................................................................................ 7LITERARY REVIEWS .................................................................................................................................. 8RESEARCH METHODOLOGY .................................................................................................................. 13CHAPTER I: ARBITRATION IN PAKISTAN ................................................................................................ 15I.I HISTORY......................................................................................................................................... 16I.II CASE STUDY .................................................................................................................................. 19I.III WHEN A FOREIGN ARBITRAL AWARD CAN BE FILED AND ENFORCED ....................................... 22CHAPTER II: IMPLEMENTATION OF THE NEW YORK CONVENTION – THE ELEMENT OF A SOUNDLEGAL FRAMEWORK ............................................................................................................................. 28II.I COMMERCIAL DISPUTE RESOLUTION BEFORE THE NEW YORK CONVENTION ........................... 28II.II CASE STUDY ................................................................................................................................. 36II.III AFTER THE NEW YORK CONVENTION ........................................................................................ 37II.IV CASE STUDY ............................................................................................................................... 44CHAPTER III: CHALLENGES AND RECOMMENDATIONS ........................................................................ 46III.I CHALLENGES ............................................................................................................................... 46III.II ENFORCING FOREIGN ARBITRAL AWARD IN PAKISTAN ............................................................. 51III.III RECOMENDATIONS ...................................................................... Error! Bookmark not defined.CONCLUSION ......................................................................................................................................... 55 Page 4 ARBITRATION - PAKISTANINTRODUCTIONArbitration is one of the effective available methods for resolving commercial disputes bothat domestic and international levels. It is a very simple and voluntary procedure elected bythe parties to the contract for resolving their disputes through an impartial judge appointed1 through their mutual acceptance. An ADR mechanism is considered as an alternate methodfor resolving disputes other than litigation. It greatly includes neutral methods such as2 evaluation, negotiation, medication, conciliation and arbitration. Of all the methods statedarbitration has been considered to be the most effective method for resolving disputes3 especially if it involved cross border transactions or within the country.The greatest advantage of this method over litigation is the cost effective nature and reducethe time consumed in the court proceedings. It can be understood to be one of the neutralways for resolving the disputes over court proceedings as it involves no judge, no court butan individual neutrally elected with the consent of the parties to the contract. It is a privateprocess where the courts do not have the right to intervene while resolving the commercial4 disputes thus it can be presumed of not being part of the sovereign power.As per Sir Gordon Borrie, Arbitration is considered to be one of the healthy and desirableprocess for resolving consumer disputes and requires greater attention in the form ofpublicity noting its merits and should never be neglected due to its deficiency in publicity and5 information.’Additional, measures taken for modernizing and reforming the laws on arbitral proceedingsare the UNCITRAL Model Law, Geneva Convention and the New York Convention. These1Zafar Ranjha, Public Policy & Foreign Arbitral Awards, (January, 2015), Legal Counsel; https://www.linkedin.com/pulse/public-policy- foreign-arbitral-awards-zafar-ranjha; (accessed on 6 June, 2015) 2Alternative dispute Resolution, (Legal Information Institute), Cornell University of Law;https://www.law.cornell.edu/wex/alternative_dispute_resolution ; (accessed on 6 June, 2015)3Lord Mustill, Lord Justice of Appeal, 1989 „Arbitration - History and Background?, Journal of International Arbitration4Geoffrey M. Beresford Hartwell ,2000Arbitration and the Sovereign Power,Journal of International Arbitration 17(2) 11-18; (accessedon 6 June, 2015)5McAvoy Ken, Manson Macnair, Why Arbitrate? 06 Feb1998 – 148 New Law Journal (NLJ) 168; (accessed on 6 June, 2015) Page 5 "