Taisei Corporation v A.M. Construction Co. (Pvt.) Ltd.—Decision of the Lahore High Court in light of the New York Convention

Abstract

The objective of promulgation of the New York Convention, 1958, was to ensure the recognition and enforcement of foreign arbitral awards in Member States. Contrary to the letter and spirit of that objective, certain provisions enshrined in the Convention have given room to national courts for un-harmonized interpretation, thereby causing undesirable delay in the enforcement of awards. Article V(1)(e) represents one such provision that has been subject to different treatments by the courts at distinct jurisdictions. A widely endorsed international interpretation seemingly exists parallel to a parochial one adopted by a few jurisdictions, including Pakistan. The decision given in the Taisei v A.M. Construction Co. by the Lahore High Court further consolidates the position of Pakistani courts in this regard. However, the matter is now pending adjudication before the Supreme Court of Pakistan. It remains to be seen whether the Apex Court will nullify the High Court’s ruling and proceed to deposit a new precedent in conformity with international arbitral practice. Pakistani Recognition and Enforcement of (Arbitration Agreements and Foreign Awards) Act (2011) Pakistani Arbitration Act (1940) (New York) Convention on the Recognition and Enforcement of Foreign Arbitral Awards (1958) Taisei Corporation v AM Construction Co (Pvt.) Ltd , Lahore High Court (2012) Bharat Aluminium Co v Kaiser Aluminium Technical Service, Inc , Supreme Court of India (2012) Hitachi Ltd v Rupali Polyester and ors , Supreme Court of Pakistan (1998)