An Ordinance to provide for the recognition and
Enforcement of arbitration agreements
And foreign arbitral awards

[Gazette of Pakistan, Extraordinary, Part-I, 28th December, 2006]

No. F. 2(I)/2006/Pub., dated 28-12-2006, The following Ordinance promulgated by the president is hereby published for general information;
Whereas Pakistan is a signatory to the United Nations Convention on the recognition and enforcement of foreign arbitral award, 1958;
Whereas it is expedient to provide for the recognition and enforcement of arbitration agreements and foreign arbitral awards pursuant to the said convention and for matters connected therewith;
And, whereas, the national assembly is not in session and the president is satisfied that circumstances exist which render it necessary to take immediate action;
Now, therefore, in exercise of the powers conferred by clause (1) of Article 89 of the constitution of Islamic Republic of Pakistan, the president is pleased to make and promulgate the following Ordinance;

1. Short title, extent, application and commencement (1) This Ordinance may be called the Recognition and Enforcement (Arbitration Agreements and Foreign Arbitral Awards) Ordinance, 2006;

(2) It extends to the whole of Pakistan.

(3) It shall apply to arbitration agreements made before, on or after the date of coming into force of this Ordinance.

(4) It shall not apply to foreign arbitral awards made before the 14th day of July, 2005, on which the Recognition and Enforcement (Arbitration Agreements and Foreign Arbitral Awards) Ordinance, 2005 (VIII of 2005) come into force.

(5) It shall come into force at once and shall be deemed to have taken effect on the 5th day of November, 2006.

2. Definitions, In this Ordinance, unless there is anything repugnant in the subject or context,

(a) Contracting State means a state which is a party to the Convention;

(b) Convention means the United Nations convention on the Recognition and enforcement of foreign arbitral awards, done at New York on 10th June 1958, set forth in the schedule to this ordinance;

(c) Court means a High Court and such other superior court in Pakistan as may be notified by the federal Government in the official Gazette; and

(d) Foreign arbitral award means an arbitral award made in a contracting state and such other state as may be notified by the federal government, in the official gazette.

3. Jurisdiction of Court (1) Notwithstanding anything contained in any other law for the time being in force, the court shall exercise exclusive jurisdiction to adjudicate and settle matters related to or arising from this ordinance.

(2) An application to stay legal proceedings pursuant to the provisions of article II of the convention may be filed in the court, in which the legal proceedings are pending.

(3) In the exercise of its jurisdiction, the court shall.

(a) Follow the procedure, as nearly as may be provided in the code of civil procedure, 1908 (Act V of 1908) as amended from time to time; and

(b) Have all the powers vested in a civil court under the code of civil procedure, 1908 (Act V of 1908) as amended from time to time.

4. Enforcement of arbitration agreements, (1) A party to an arbitration agreement against whom legal proceedings have been brought in respect of a matter which is covered by the arbitration agreement may, upon notice to the other party to the proceedings, apply to the court in which the proceedings have been brought to stay the proceedings insofar as they concern that matter.

(2) On an application under subsection (1), the court shall refer the parties to arbitration, unless it finds that the arbitration agreement is null and void, inoperative or incapable of being performed.

5. Furnishing of documents, The party applying for recognition and enforcement of foreign arbitral award under this ordinance shall, at the time of the application, furnish documents to the court in accordance with Article IV of the Convention.

6. Enforcement of foreign arbitral award. (1) Unless the curt pursuant to section 7, refuses the application seeking recognition and enforcement of a foreign arbitral award, the court shall recognize and enforce the award in the same manner as a judgment or order of a court in Pakistan.

(2) A foreign arbitral award which is enforceable under this ordinance, shall be treated as binding for all purposes on the persons as between whom it was made, and may accordingly be relied on by an y of those persons by way of defense, set off or otherwise in any legal proceedings in Pakistan.

7. Unenforceable foreign arbitral awards The recognition and enforcement of a foreign arbitral award shall not be refused except in accordance with article V of the Convention.

8. Inconsistency, In the event of a inconsistency between this ordinance, any other law, or any judgment of any court and the convention, the convention shall prevail to the extent of the inconsistency.

9. Rules, The Federal Government may, by notification in the official gazette, make rules to carry out the purposes of this ordinance.

10. Repeal and saving, (1) The Arbitration (Protocol and Convention) Act, 1937 (VI of 1937) (hereinafter in this section referred to as the Act,) is hereby repealed.

(2) Notwithstanding the repeal of the Act, it shall continue to have effect in relation to foreign arbitral awards made. ¬

(a) Before the date of commencement of this ordinance; and

(b) Within the meaning of section 2 of him Act, which are not foreign arbitral awards within the meaning of section 2 of this ordinance?

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