INTERPRETATION AND CONSTRUCTION OF NEW YORK CONVENTION IN PAKISTAN: A CRITICAL STUDY

Abstract

Convention on the recognition and enforcement of foreign arbitral awards 1958 (New York Convention) aims to promote and regulate the out of the court settlement i.e. Arbitration and other methods of alternative dispute resolution. It regulates the relations between two parties when they are specifically involved in a contractual relationship and working transnationally and across the borders. The convention has undoubtedly created a great opportunity for multinational companies and international bodies including investors and enterprises to go for international agreements with a piece of mind that their rights will be taken care of and an award received by an overseas authority will be honored in all signatory states of the convention. Considering it an international opportunity Pakistan became signatory to the convention in 2005 and hence it became international obligation for the state of Pakistan to give effect the spirit and scope of convention in the legal system. It was initially incorporated through an ordinance in 2005 which after multiple renewals became act of the parliament in 2011. As convention is complete and exhaustive in nature and scope and it clearly states the grounds which can be used by competent authority of signatory states to refuse its implementation in a specific jurisdiction. The grounds provided by the convention have been construed and interpreted since ratification of the convention and this study critically analyzes the instances that how and when provisions of the convention have been interpreted by the courts of the land including apex court of the Land I.e. Supreme Court of Pakistan.