Revised draft Legislation

The Arbitration Act, 2024

Law and Justice Commission of Pakistan

Supreme Court Building, Block-I, 2nd Floor
Constitution Avenue
Islamabad
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 A
BILL
to consolidate and amend the law rela4ng to domes4c arbitra4on and interna4onal
commercial arbitra4on and for ma8ers connected therewith or incidental thereto

WHEREAS the prac/ce of arbitra/on has greatly developed since the Arbitra/on Act, 1940;
AND WHEREAS the Arbitra/on Act, 1940 needs to be repealed and replaced by a modern
statute which provides for the speedy resolu/on of disputes, reduces judicial interven/on in
arbitra/on, caters for ins/tu/onal arbitra/on, and recognizes the principle of party
autonomy;
AND WHEREAS the United Na/ons Commission on Interna/onal Trade Law (UNCITRAL) has
adopted the UNCITRAL Model Law on Interna/onal Commercial Arbitra/on in 1985 (and
amended the said text in 2006);
AND WHEREAS the General Assembly of the United Na/ons has recommended that all
countries give due considera/on to the said Model Law, in view of the desirability of
uniformity of the law of arbitral procedures and the specific needs of interna/onal
commercial arbitra/on;
AND WHEREAS the said Model Law makes significant contribu/on to the establishment of a
unified legal framework for the fair and efficient seYlement of disputes arising in
interna/onal commercial rela/ons;
AND WHEREAS the provinces of Balochistan, Khyber-Pakhtunkhwa, Punjab and Sindh have
passed resolu/ons authorising Parliament and the Federal Government to act in this regard;
AND WHEREAS it is expedient to make this law respec/ng arbitra/on, taking into account
the aforesaid Model Law and the considera/ons noted above.
It is hereby enacted as follows:-
PRELIMINARY
1. Short 4tle, extent, and commencement.
(1) This Act shall be called the Arbitra/on Act, 2024.
(2) It extends to the whole of Pakistan.
(3) It shall come into force at once.
 CHAPTER I
General provisions
2. Defini4ons.
(1) In this Act, unless the context otherwise requires,—
(a) “arbitra4on” means any arbitra/on whether or not administered by an arbitral
ins/tu/on;
(b) “arbitra4on agreement” means an agreement referred to in sec/on 8;
(c) “arbitral award” means a decision of the arbitral tribunal on the substance of the
dispute and includes any final, interim, or par6al award and any award on costs or
interest but does not include any order made or direc6on given under sec6on 19;

(d) "arbitral ins4tu4on” means a permanent organiza/on with a set of its own
arbitra/on rules which has been duly no/fied by the Ministry of Law and Jus/ce as a
recognized arbitral ins/tu/on.
(e) “arbitral tribunal” means a sole arbitrator or a panel of arbitrators and, in the
case of an arbitra/on conducted under the rules of an arbitral ins/tu/on providing
for appointment of an emergency arbitrator, includes such emergency arbitrator;
(f) “commercial” includes, but is not limited to, maYers arising from all rela/onships
of a commercial nature, whether contractual or not, such as any trade transac/on for
the supply or exchange of goods or services; distribu/on agreement; commercial
representa/on or agency; factoring; leasing; construc/on of works; consul/ng;
engineering; licensing; investment; financing; banking; insurance; exploita/on
agreement or concession; joint venture and other forms of industrial or business
coopera/on; and, carriage of goods or passengers by air, sea, rail or road;
(g) “Competent Court” means—
(i) in rela/on to interna/onal commercial arbitra/on, and subject to any
pecuniary limit as may be specified by a High Court, the High Court having
jurisdic/on under this Act;
(ii) where relief is sought under either sec/on 10 or sec/on 29 in rela/on to
arbitral proceedings seated outside Pakistan, the High Court having
jurisdic/on under this Act; and
(iii) in all other cases, the District Court having jurisdic/on under this Act.
(h) “District Court” has the meaning assigned to that expression by the Code of Civil
Procedure, 1908 (Act V of 1908) but does not include either (i) any court of a grade
inferior to the court of an Addi/onal District Judge; or (ii) a High Court, whether in
the exercise of its ordinary original civil jurisdic/on or otherwise.
 (i) "foreign arbitral ins4tu4on” means an arbitral ins/tu/on whose head office is
registered outside Pakistan.
(j) “interna4onal commercial arbitra4on” means an arbitra/on rela/ng to
commercial maYers arising out of legal rela/onships, whether contractual or not,
and where at least one of the par/es is—
(i) an individual who is a na/onal of, or legally en/tled to permanent
residence in, any country other than Pakistan; or
(ii) a body corporate incorporated in any country other than Pakistan; or
(iii) an associa/on or unincorporated body of persons whose central
management and control is exercised in any country other than Pakistan; or
(iv) the government of a foreign country.
Provided that an arbitra/on:
(i) governed by the rules of a foreign arbitral ins/tu/on; or,

(ii) in which the par/es have expressly s/pulated that the substan/ve law
of the contract shall be the laws of a country other than Pakistan; or

(iii) where the par/es have agreed, whether before or afer a dispute
arises, to have the maYer treated as an interna/onal commercial
arbitra/on;
shall be deemed to be an interna/onal commercial arbitra/on.
(k) “legal representa4ve” means a person who in law represents the estate of a
deceased person, and includes any person who intermeddles with the estate of the
deceased, and, where a party acts in a representa/ve character, the person on whom
the estate devolves on the death of the party so ac/ng.
(l) “party” means a party to an arbitra/on agreement.
(m) “seat of the arbitra4on” means the juridical seat of the arbitra/on designated—
(i) by the par/es to the arbitra/on agreement, or
(ii) by any arbitral or other ins/tu/on or person vested by the par/es with
powers in that regard, or
(iii) by the arbitral tribunal under sec/on 22(2).
3. Scope of applica4on of provisions.
(1) Except as is otherwise expressly provided in this Act, this Act shall –
(a) apply to all arbitra/ons seated in Pakistan;
(b) not apply to:
 (i) any arbitra/on seated outside Pakistan; or,
(ii) any award governed by the Arbitra/on (Interna/onal Investment Disputes)
Act, 2011).
(2) Unless otherwise agreed by the par/es, the powers conferred by the following sec/ons
apply even if the seat of the arbitra/on is outside Pakistan or if no seat has been designated
or determined—
(a) sec/on 10;
(b) sec/on 29; and,
(c) clause (b) of sub-sec/on (1) of sec/on 42.
(3) Sub-sec/on (1) of Sec/on 18 and sec/on 45 shall apply where the law applicable to the
arbitra/on agreement is the law of Pakistan even if the seat of the arbitra/on is outside
Pakistan or has not been designated or determined.
(4) This Act shall not affect any other law for the /me being in force by virtue of which
certain disputes may not be submiYed to arbitra/on.
(5) Except for sub-sec/on (1) of sec/on 45, sec/on 46 and sec/on 49, this Act shall apply to
every arbitra/on under any other enactment for the /me being in force, as if the arbitra/on
were pursuant to an arbitra/on agreement and as if that other enactment were an
arbitra/on agreement, except in so far as the provisions of this Act are inconsistent with that
other enactment or with any rules made thereunder.
(6) Subject to the provisions of sub-sec/on (1) and sub-sec/on (4), and save in so far as is
otherwise provided by any law for the /me being in force or in any agreement in force
between Pakistan and any other country or countries, this Act shall apply to all arbitra/ons
and to all proceedings rela/ng thereto.
(7) With the excep/on of sec/on 30, where this Act leaves the par/es free to determine a
certain issue, that freedom shall include the right of the par/es to authorise any person
including an arbitral ins/tu/on, to determine that issue.
(8) Where this Act—
(a) refers to the fact that the par/es have agreed or that they may agree, or
(b) in any other way refers to an agreement of the par/es,
that agreement shall include any arbitra/on rules referred to in that agreement.
(9) With the excep/on of clause (a) of sub-sec/on (1) of sec/on 27 and clause (a) of sub-
sec/on (2) of sec/on 37, where this Act refers to a claim, it shall also apply to a counter-
claim, and where it refers to a defence, it shall also apply to a defence to that counter-claim.
(10) This Act shall be binding on the Federal Government, the Provincial Governments and
all local governments cons/tuted under any law for the /me being in force in Pakistan.
4. Receipt of wri8en communica4ons.
(1) Unless otherwise agreed by the par/es,—
(a) any wriYen communica/on is deemed to have been received if it is delivered to
the addressee personally or at their place of business, habitual residence or mailing
address, and
(b) if none of the places referred to in clause (a) can be found afer making a
reasonable inquiry, a wriYen communica/on is deemed to have been received if it is
sent to the addressee's last known place of business, habitual residence or mailing
address by registered leYer or by any other means which provides a record of the
aYempt to deliver it.
(2) Unless otherwise agreed by the par/es, a wriYen communica/on sent electronically shall
be deemed to have been received if sent to the electronic mailing address of the addressee,
provided that such electronic mailing address has been provided by a party to the arbitral
tribunal afer the commencement of arbitra/on proceedings.
(3) The communica/on is deemed to have been received on the day it is so delivered.
(4) This sec/on does not apply to wriYen communica/ons in respect of proceedings of any
court or judicial authority.
5. Waiver of right to object.
A party who knows that—
(a) any provision of this Act from which the par/es may derogate, or
(b) any requirement under the arbitra/on agreement,
has not been complied with and yet proceeds with the arbitra/on without sta/ng their
objec/on to such non-compliance without undue delay or, if a /me limit is provided for
sta/ng that objec/on, within that period of /me, shall be deemed to have waived their right
to so object.
6. Extent of judicial interven4on.
Notwithstanding anything contained in any other law for the /me being in force, in maYers
governed by this Act, no court or judicial authority shall intervene except where so provided
in this Act.
7. Administra4ve assistance.
In order to facilitate the conduct of the arbitral proceedings, the par/es, or the arbitral
tribunal with the consent of the par/es, may arrange for administra/ve assistance by a
suitable person or arbitral ins/tu/on.
 CHAPTER II
Arbitra0on agreement
8. Arbitra4on agreement.
(1) In this Act, “arbitra&on agreement” means an agreement by the par/es to submit to
arbitra/on all or certain disputes which have arisen or which may arise between them in
respect of a defined legal rela/onship, whether contractual or not.
(2) An arbitra/on agreement may be in the form of an arbitra/on clause in a contract or in
the form of a separate agreement.
(3) An arbitra/on agreement shall be in wri/ng.
(4) An arbitra/on agreement is in wri/ng if its content is recorded in any form, whether or
not the arbitra/on agreement or contract has been concluded orally, by conduct, or by other
means.
(5) The requirement that an arbitra/on agreement be in wri/ng is met by an electronic
communica/on if the informa/on contained therein is accessible so as to be usable for
subsequent reference.
Explana&on.— For the purposes of this sec/on, “electronic communica/on” means any
communica/on that the par/es make by means of data messages; and, “data message”
means informa/on generated, sent, received, or stored by electronic, magne/c, op/cal, or
similar means, including, but not limited to, electronic data interchange (EDI), electronic
mail, telegram, telex, or telecopy.

(6) An arbitra/on agreement is in wri/ng if it is contained in an exchange of statements of

claim and defence in which the existence of an agreement is alleged by one party and not
denied by the other.
(7) The reference in a contract to a document containing an arbitra/on clause cons/tutes an
arbitra/on agreement if the contract is in wri/ng and the reference is such as to make that
arbitra/on clause part of the contract.
(8) The par/es are free to enter into an arbitra/on agreement in respect of disputes which
are pending before a court or judicial authority.
(9) In the absence of any express agreement to the contrary, the arbitra/on agreement will
be governed by, and construed in accordance with, the substan/ve law of the contract.
9. Stay of legal proceedings.
(1) A party to an arbitra/on agreement against whom legal proceedings are brought
(whether by way of claim or counter-claim) in respect of a maYer which, under the
arbitra/on agreement, is to be referred to arbitra/on may apply to the court or judicial
authority in which the proceedings have been brought to stay the proceedings so far as they
concern that maYer.
(2) An applica/on under this sec/on may be made notwithstanding that the maYer is to be
referred to arbitra/on only afer the exhaus/on of other dispute resolu/on procedures.
(3) An applica/on under this sec/on shall not be made if a party has already submiYed their
first statement on the substance of the dispute (other than a pleading asser/ng that the
court or judicial authority does not have jurisdic/on in the proceedings).
(4) On an applica/on under this sec/on the court or judicial authority in which the legal
proceedings are pending shall grant a stay and refer the par/es to arbitra/on if it finds that
prima facie a valid arbitra/on agreement exists.
(5) If the court or judicial authority refuses to stay the legal proceedings, any provision
(whether in the arbitra/on agreement or otherwise) that an award is a condi/on precedent
to the bringing of legal proceedings in respect of any maYer is of no effect in rela/on to
those proceedings.
(6) Notwithstanding that an applica/on has been made under sub-sec/on (1) and that the
issue is pending before a court or judicial authority, an arbitra/on may be commenced or
con/nued and an arbitral award made.
10. Interim measures by Competent Court.
(1) A party may, before or during arbitral proceedings or at any /me afer the making of the
arbitral award but before an applica/on for enforcement is filed under sec/on 41, apply to
the Competent Court—
(a) for the appointment of a guardian for a minor or person of unsound mind for the
purposes of arbitral proceedings; or
(b) for an interim measure of protec/on in respect of any of the following maYers,
namely:—
(i) the preserva/on, interim custody or sale of any goods which are the
subject-maYer of the arbitra/on agreement;
(ii) securing the amount in dispute in the arbitra/on;
(iii) the deten/on, preserva/on or inspec/on of any property or thing which is
the subject-maYer of the dispute in arbitra/on, or as to which any ques/on
may arise therein and authorising for any of the aforesaid purposes any
person to enter upon any land or building in the possession of any party, or
authorising any samples to be taken or any observa/on to be made, or
experiment to be tried, which may be necessary or expedient for the purpose
of obtaining full informa/on or evidence;
(iv) interim injunc/on or the appointment of a receiver;
(v) interrogatories and discovery of documents;
(vi) maintaining or restoring the status quo pending determina/on of the
dispute;
 (vii) ensuring that any award which may be made in the arbitral proceedings
is not rendered ineffectual by the dissipa/on of assets by a party;
(viii) requiring a party to take ac/on that would prevent current or imminent
harm or prejudice to the arbitral process itself, or to refrain from taking ac/on
that is likely to cause such harm or prejudice;
(ix) enforcing any obliga/on of confiden/ality —
(A) that the par/es to an arbitra/on agreement have agreed to in
wri/ng, whether in the arbitra/on agreement or in any other
document;
(B) under any law or rule of law; or
(C) under the rules of arbitra/on (including the rules of an arbitral
ins/tu/on) agreed to or adopted by the par/es; or,
(c) such other interim measure of protec/on as may appear to the Competent Court
to be just and convenient,
and the Competent Court shall have the same power for making orders as it has for the
purpose of, and in rela/on to, any proceedings before it.
(2) Where, before the commencement of the arbitral proceedings, the Competent Court
passes an order for any interim measure of protec/on under sub-sec/on (1):
(a) the arbitral proceedings shall be commenced within a period of ninety days from
the date of such order or within such further /me as the Competent Court may
determine; and,
(b) unless the Competent Court provides to the contrary, an order made by it under
sub-sec/on (1) shall cease to have effect in whole or in part on the order of the
arbitral tribunal having power to act in rela/on to the subject-maYer of the order.
(3) Once the arbitral tribunal has been cons/tuted, the Competent Court shall not entertain
an applica/on under sub-sec/on (1), unless the Competent Court finds that the arbitral
tribunal cannot provide adequate interim relief.
(4) Where Admiralty proceedings are stayed on the ground that the dispute in ques/on
should be submiYed to arbitra/on, the court gran/ng the stay may, if in those proceedings
property has been arrested or bail or other security has been given to prevent or obtain
release from arrest—
(a) order that the property arrested be retained as security for the sa/sfac/on of any
arbitral award given in the arbitra/on in respect of that dispute, or
(b) order that the stay of those proceedings be condi/onal on the provision of
equivalent security for the sa/sfac/on of any such arbitral award.
11. Public policy and arbitrability.
(1) Any dispute which the par/es have agreed to submit to arbitra/on under an arbitra/on
agreement may be determined by arbitra/on unless it is contrary to public policy to do so.
(2) The fact that any law confers jurisdic/on in respect of any maYer on any court of law or
other judicial authority but does not refer to the determina/on of that maYer by arbitra/on
does not, of itself, indicate that a dispute about that maYer is not capable of determina/on
by arbitra/on.
 CHAPTER III
Composi0on of arbitral tribunal
12. Number of arbitrators.
(1) The par/es are free to determine the number of arbitrators, provided that such number
shall not be an even number.
(2) If the par/es have not determined the number of arbitrators, the arbitral tribunal shall
consist of a sole arbitrator.
(3) If the par/es have determined an even number of arbitrators, it shall be presumed that
the par/es have agreed that another arbitrator is to be appointed by the arbitrators
determined by them.
13. Appointment of arbitrators.
(1) Unless otherwise agreed by the par/es, a person of any na/onality may be an arbitrator.
(2) Subject to sub-sec/on (6), the par/es are free to agree on a procedure for appoin/ng the
arbitrator or arbitrators.
(3) Subject to any agreement between the par/es, in an arbitra/on with three arbitrators,
each party shall appoint one arbitrator, and the two appointed arbitrators shall appoint the
third arbitrator who shall act as the presiding arbitrator.
(4) If the appointment procedure in sub-sec/on (3) applies and—
(a) a party fails to appoint an arbitrator within thirty days from the receipt of a
request to do so from the other party; or
(b) the two appointed arbitrators fail to agree on the third arbitrator within thirty
days from the date of their appointment,
the appointment shall be made, upon request of a party, by the relevant High Court or any
person or ins/tu/on designated by such High Court.
Explana&on.— In an arbitra/on with five or more arbitrators, the provisions of sub-sec/ons
(3) and (4) shall apply muta&s mutandis.
(5) Subject to any agreement referred to in sub-sec/on (2), in an arbitra/on with a sole
arbitrator, if the par/es fail to agree on the arbitrator within thirty days from receipt of a
request by one party from the other party to so agree, the appointment shall be made, upon
request of a party, by the relevant High Court, or any person or ins/tu/on designated by
such High Court.
(6) Where, under an appointment procedure agreed upon by the par/es,—
(a) a party fails to act as required under that procedure; or
(b) the par/es, or the two appointed arbitrators, fail to reach an agreement expected
of them under that procedure; or
 (c) a person, including an ins/tu/on, fails to perform any func/on entrusted to him
or it under that procedure,
a party may request the relevant High Court, or any person or ins/tu/on designated by such
High Court, to take the necessary measure, unless the agreement on the appointment
procedure provides other means for securing the appointment.
(7) While considering any applica/on under sub-sec/on (4) or sub-sec/on (5) or sub-sec/on
(6), a High Court, or any person or ins/tu/on designated by a High Court, shall confine itself
to examina/on of the prima facie existence of an arbitra/on agreement.
(8) The designa/on of any person or ins/tu/on by a High Court, for the purposes of this
sec/on shall not be regarded as a delega/on of judicial power by that High Court.
(9) A decision on a maYer entrusted by sub-sec/on (5) or sub-sec/on (6) or sub-sec/on (7)
to a High Court or a person or ins/tu/on designated by a High Court is final and no appeal
shall lie against such decision.
(10) A High Court or a person or ins/tu/on designated by a High Court shall, before
appoin/ng an arbitrator, seek disclosure in wri/ng from the prospec/ve arbitrator in terms
of sub-sec/on (1) of sec/on 14, and have due regard to—
(a) any qualifica/ons required for the arbitrator by the agreement of the par/es; and
(b) the contents of the disclosure and other considera/ons as are likely to secure the
appointment of an independent and impar/al arbitrator.
(11) In the case of appointment of a sole or presiding arbitrator in an interna/onal
commercial arbitra/on, a High Court or a person or ins/tu/on designated by a High Court, if
so requested by one of the par/es, shall appoint an arbitrator of a na/onality other than the
na/onali/es of the par/es (where the par/es belong to different na/onali/es).
(12) A High Court may, in the exercise of its powers to make regula/ons under sec/on 52,
make such provision as it deems appropriate for dealing with maYers entrusted to it by sub-
sec/on (4) or sub-sec/on (5) or sub-sec/on (6).
(13) Where more than one request has been made under sub-sec/on (4) or sub-sec/on (5)
or sub-sec/on (6) to different High Courts or their designates, the High Court or its designate
to whom the request has been first made under the relevant sub-sec/on shall alone be
competent to decide on the request.
(14) An applica/on made under this sec/on for appointment of an arbitrator or arbitrators
shall be disposed of by a High Court or the person or ins/tu/on designated by a High Court,
as the case may be, within a period of sixty days from the date of service of no/ce on the
opposite party.
(15) Each High Court shall frame regula/ons for the purposes of determina/on of the fees of
the arbitral tribunal and the manner of its payment to the arbitral tribunal:
Provided that this sub-sec/on shall not apply to cases where the par/es have agreed to the
determina/on of fees as per the rules of an arbitral ins/tu/on or in rela/on to an
interna/onal commercial arbitra/on.
(16) For the purposes of this sec/on, the relevant High Court shall be the High Court having
jurisdic/on under sec/on 47.
14. Disclosure by arbitrator and grounds for challenge.
(1) When a person is approached in connec/on with their possible appointment as an
arbitrator, they shall disclose in wri/ng any circumstances,—
(a) which may, or are likely to, give rise to jus/fiable doubts as to their impar/ality or
independence; and
(b) which are likely to affect their ability to devote sufficient /me to the arbitra/on
and in par/cular their ability to complete the en/re arbitra/on within the periods
specified in Sec/on 32.
Explana&on.— The provisions of the First Schedule shall guide in determining
whether circumstances exist which give rise to jus/fiable doubts as to the
impar/ality or independence of an arbitrator.
(2) An arbitrator, from the /me of their appointment and throughout the arbitral
proceedings, shall without delay disclose any circumstances of the nature men/oned in sub-
sec/on (1) to the par/es unless they have already been informed of these circumstances by
the arbitrator.
(3) An arbitrator may be challenged only if—
(a) circumstances exist that give rise to jus/fiable doubts as to their independence or
impar/ality, or
(b) they do not possess the qualifica/ons agreed to by the par/es.
(4) A party may challenge an arbitrator appointed by them, or in whose appointment they
have par/cipated, only for reasons of which they became aware afer the appointment was
made.
15. Challenge procedure.
(1) Subject to sub-sec/on (4), the par/es are free to agree on a procedure for challenging an
arbitrator.
(2) In the absence of any agreement referred to in sub-sec/on (1), a party who intends to
challenge an arbitrator shall, within fifeen days afer becoming aware of the cons/tu/on of
the arbitral tribunal or afer becoming aware of any circumstances referred to in sub-sec/on
(3) of sec/on 14, send a wriYen statement of the reasons for the challenge to the arbitral
tribunal.
(3) Unless the arbitrator challenged under sub-sec/on (2) withdraws from their office or the
other party agrees to the challenge, the arbitral tribunal shall decide on the challenge.
(4) If a challenge under any procedure agreed upon by the par/es or under the procedure
provided in sub-sec/on (2) is not successful, the arbitral tribunal shall con/nue the arbitral
proceedings and make an arbitral award.
(5) A party making an unsuccessful challenge shall be free to raise the same grounds in an
applica/on to set aside the arbitral award under sec/on 39.
(6) Where an arbitral award is set aside on the same grounds as were earlier urged in an
unsuccessful challenge before the arbitral tribunal, the Competent Court may decide that
the arbitrator who was challenged shall not be en/tled to any fees or only to reduced fees.
16. Failure or impossibility to act.
(1) Subject to any procedure agreed by the par/es, the mandate of an arbitrator shall
terminate and they shall be subs/tuted by another arbitrator, if
(a) they become de jure or de facto unable to perform their func/ons or for other
reasons fails to act without undue delay; and
(b) they withdraw from their office or the par/es agree to the termina/on of the
arbitrator’s mandate.
(2) If a controversy arises concerning any of the grounds referred to in clause (a) of sub-
sec/on (1), a party may, unless otherwise agreed by the par/es, apply to the Competent
Court to decide on the termina/on of the mandate:
Provided that during the pendency of such applica/on, unless restrained by the Competent
Court, the arbitral tribunal shall con/nue the arbitral proceedings and make an arbitral
award.
(3) If, under this sec/on or sub-sec/on (3) of sec/on 15, an arbitrator withdraws from their
office or a party agrees to the termina/on of the mandate of an arbitrator, it shall not imply
acceptance of the validity of any ground referred to in this sec/on or sub-sec/on (3) of
sec/on 14.
17. Termina4on of mandate and subs4tu4on of arbitrator.
(1) In addi/on to the circumstances referred to in sec/on 15 or sec/on 16, the mandate of
an arbitrator shall terminate—
(a) where they withdraw from office for any reason; or
(b) by or pursuant to agreement of the par/es.
(2) Where the mandate of an arbitrator terminates, a subs/tute arbitrator shall be
appointed according to the procedure that was applicable to the appointment of the
arbitrator being replaced.
(3) Unless otherwise agreed by the par/es, where an arbitrator is replaced under sub-
sec/on (2), any hearings previously held may be repeated at the discre/on of the arbitral
tribunal.
(4) Unless otherwise agreed by the par/es, an order or ruling of the arbitral tribunal made
prior to the replacement of an arbitrator under this sec/on shall not be invalid solely
because there has been a change in the composi/on of the arbitral tribunal.
 CHAPTER IV
Jurisdic0on of arbitral tribunals
18. Competence of arbitral tribunal to rule on its jurisdic4on.
(1) The arbitral tribunal may rule on its own jurisdic/on, including ruling on any objec/ons
with respect to the existence or validity of the arbitra/on agreement, and for that
purpose,—
(a) an arbitra/on clause which forms part of a contract shall be treated as an
agreement independent of the other terms of the contract; and
(b) a decision by the arbitral tribunal that the contract is null and void shall not entail
ipso jure the invalidity of the arbitra/on clause.
(2) A plea that the arbitral tribunal does not have jurisdic/on, including any pleas with
respect to the existence or validity of the arbitra/on agreement, shall be raised not later
than the submission of the statement of defence:
Provided that a party shall not be precluded from raising such a plea merely because they
appointed, or par/cipated in the appointment of, an arbitrator.
(3) A plea that the arbitral tribunal is exceeding the scope of its authority shall be raised as
soon as the maYer alleged to be beyond the scope of its authority is raised during the
arbitral proceedings.
(4) The arbitral tribunal may, in either of the cases referred to in sub-sec/on (2) or sub-
sec/on (3), admit a later plea if it considers the delay jus/fied.
(5) The arbitral tribunal may decide on a plea referred to in sub-sec/on (2) or sub-sec/on (3)
either as a preliminary ques/on or in an award on the merits.
(6) If a plea referred to in sub-sec/on (2) or sub-sec/on (3) is treated as a preliminary
ques/on, and if such plea is rejected, the arbitral tribunal shall con/nue with the arbitral
proceedings and make an arbitral award.
(7) A party aggrieved by the rejec/on of a plea referred to in sub-sec/on (2) or sub-sec/on
(3) may rely on the grounds earlier urged by it while seeking to set aside any subsequent
award under sec/on 39.
19. Interim measures ordered by arbitral tribunal.
(1) A party may, during the arbitral proceedings, apply to the arbitral tribunal—
(a) for the appointment of a guardian for a minor or person of unsound mind for the
purposes of arbitral proceedings; or
(b) for an interim measure of protec/on in respect of any of the following maYers,
namely:—
 (i) the preserva/on, interim custody or sale of any goods which are the
subject-maYer of the arbitra/on agreement;
(ii) securing the amount in dispute in the arbitra/on;
(iii) the deten/on, preserva/on or inspec/on of any property or thing which is
the subject-maYer of the dispute in arbitra/on, or as to which any ques/on
may arise therein and authorising for any of the aforesaid purposes any
person to enter upon any land or building in the possession of any party, or
authorising any samples to be taken, or any observa/on to be made, or
experiment to be tried, which may be necessary or expedient for the purpose
of obtaining full informa/on or evidence;

(iv) interim injunc/on or the appointment of a receiver;

(v) interrogatories and discovery of documents;
(vi) maintaining or restoring status quo pending determina/on of the dispute;
(vii) ensuring that any award which may be made in the arbitral proceedings
is not rendered ineffectual by the dissipa/on of assets by a party;
(viii) requiring a party to take ac/on that would prevent current or imminent
harm or prejudice to the arbitral process itself, or to refrain from taking ac/on
that is likely to cause such harm or prejudice;
(ix) enforcing any obliga/on of confiden/ality —
(A) that the par/es to an arbitra/on agreement have agreed to in
wri/ng, whether in the arbitra/on agreement or in any other
document;
(B) under any law or rule of law; or
(C) under the rules of arbitra/on (including the rules of an arbitral
ins/tu/on) agreed to or adopted by the par/es
(c) such other interim measure of protec/on as may appear to the arbitral tribunal to
be just and convenient,
and the arbitral tribunal shall have the same power for making orders, as the Competent
Court has for the purpose of, and in rela/on to, any proceedings before it.
(2) Unless the arbitral tribunal considers that prior disclosure of the request for the interim
measure to the party against whom it is directed risks frustra/ng the purpose of the
measure, an order under sub-sec/on (1) may only be passed afer giving prior no/ce, and an
opportunity of being heard, to all par/es.
(3) Subject to any orders passed in an appeal under sec/on 42, any order issued by the
arbitral tribunal under this sec/on shall be deemed to be an order of the Competent Court
for all purposes and shall be enforceable under the Code of Civil Procedure, 1908 (V of
1908), in the same manner as if it were an order of the Competent Court.
(4) An order issued by the arbitral tribunal under this sec/on may be enforced through an
applica/on filed before any District Court having jurisdic/on over:
(a) the person of the party against whom the order is sought to be enforced; or
(b) the subject maYer of the order issued by the arbitral tribunal.
(5) In interna/onal commercial arbitra/ons, the arbitral tribunal may order a claimant to
provide security for the costs of the arbitra/on:
Provided that the power to provide security for costs shall not be exercised solely on the
ground that the claimant is —
(a) an individual ordinarily resident outside Pakistan, or
(b) a corpora/on or associa/on incorporated or formed under the law of a country
outside Pakistan, or whose central management and control is exercised outside
Pakistan.
 CHAPTER V
Conduct of arbitral proceedings
20. General duty of arbitral tribunal.
(1) The arbitral tribunal shall—
(a) act fairly and impar/ally as between the par/es, giving each party a reasonable
opportunity of puong their case and dealing with that of their opponent, and
(b) adopt procedures suitable to the circumstances of the par/cular case, avoiding
unnecessary delay or expense, so as to provide a fair means for the resolu/on of the
maYers falling to be determined.
(2) The arbitral tribunal shall comply with such general duty in conduc/ng the arbitral
proceedings, in its decisions on maYers of procedure and evidence and in the exercise of all
other powers conferred on it.
21. Determina4on of rules of procedure.
(1) The arbitral tribunal shall not be bound by the Code of Civil Procedure, 1908 (Act V of
1908), the Qanun e Shahadat Order, 1984 (PO 10 of 1984) or the Stamp Act, 1899 (Act II of
1899).
(2) Subject to the provisions of this Act, the par/es are free to agree on the procedure to be
followed by the arbitral tribunal in conduc/ng its proceedings.
(3) In the absence of any agreement referred to in sub-sec/on (2), the arbitral tribunal may,
subject to the provisions of this Act, conduct the proceedings in the manner it considers
appropriate.
(4) The power of the arbitral tribunal under sub-sec/on (3) includes the power to determine
–
(a) the admissibility, relevance, materiality, and weight of any evidence sought to be
tendered on any maYers of fact or opinion, and the /me, manner, and form in which
such evidence should be exchanged and presented;
(b) whether any and if so which documents or classes of documents should be
disclosed between and produced by the par/es and at what stage;
(c) whether any and if so what ques/ons should be put to and answered by the
respec/ve par/es and when and in what form this should be done; and,
(d) whether and to what extent the arbitral tribunal should itself take the ini/a/ve in
ascertaining the facts and the law.
(5) The arbitral tribunal may fix the /me within which any direc/ons given by it are to be
complied with, and may if it thinks fit extend the /me so fixed (whether or not it has
expired).
(6) Unless otherwise agreed by the par/es, an arbitral tribunal has power to administer
oaths to or take affirma/ons of the par/es and witnesses.
22. Seat and venue of arbitra4on.
(1) The par/es are free to agree on the seat of the arbitra/on.
(2) In the absence of any agreement between the par/es, the seat of the arbitra/on shall be
determined by the arbitral tribunal having regard to the circumstances of the case, including
the convenience of the par/es.
(3) Notwithstanding sub-sec/on (1) or sub-sec/on (2), the arbitral tribunal may, unless
otherwise agreed by the par/es, meet at any venue it considers appropriate for consulta/on
among its members, for hearing witnesses, experts, or the par/es, or for inspec/on of
documents, goods or other property.
(4) Unless the context otherwise requires, a reference in an arbitra/on agreement to a place
of arbitra/on shall be deemed to be a reference to the seat of the arbitra/on.
23. Commencement and consolida4on of arbitral proceedings.
(1) Unless otherwise agreed by the par/es, the arbitral proceedings in respect of a par/cular
dispute commence on the date on which a request for that dispute to be referred to
arbitra/on is received by the respondent.
(2) The par/es are free to agree—
(a) that the arbitral proceedings shall be consolidated with other arbitral
proceedings, or

(b) that concurrent hearings shall be held,

on such terms as may be agreed.
(3) Unless the par/es agree to confer such power on the arbitral tribunal, the arbitral
tribunal shall have no power to order consolida/on of arbitral proceedings or concurrent
hearings.
24. Language.
(1) The par/es are free to agree upon the language or languages to be used in the arbitral
proceedings.
(2) In the absence of any agreement between the par/es, the arbitral tribunal shall
determine the language or languages to be used in the arbitral proceedings.
(3) The agreement or determina/on, unless otherwise specified, shall apply to any wriYen
statement by a party, any hearing and any arbitral award, decision, or other communica/on
by the arbitral tribunal.
(4) The arbitral tribunal may order that any documentary evidence shall be accompanied by
a transla/on into the language or languages agreed upon by the par/es or determined by
the arbitral tribunal.
25. Statements of claim and defence.
(1) Within the period of /me agreed upon by the par/es or determined by the arbitral
tribunal, the claimant shall state –
(a) the facts suppor/ng their claim,
(b) the points at issue; and,
(c) the relief or remedy sought,
and the respondent shall state their defence in respect of these par/culars, unless the
par/es have otherwise agreed as to the required elements of those statements.
(2) Unless otherwise agreed by the par/es or determined by the arbitral tribunal, the par/es
may:
(a) submit with their statements all documents they consider to be relevant; or,
(b) add a reference to the documents or other evidence they will submit.
(3) The respondent, in support of their case, may also submit a counter-claim or plead a set-
off, which shall be adjudicated upon by the arbitral tribunal, if such counter-claim or set-off
falls within the scope of the arbitra/on agreement.
(4) Unless otherwise agreed by the par/es, either party may amend or supplement their
claim or defence during the course of the arbitral proceedings, unless the arbitral tribunal
considers it inappropriate to allow the amendment or supplement having regard to the
delay in making it.
(5) Unless otherwise agreed by the par/es or determined by the arbitral tribunal, the
statement of claim and defence under this sec/on shall be completed within a period of six
months from the date the arbitrator or all the arbitrators, as the case may be, received
no/ce, in wri/ng of their appointment.
26. Hearings and wri8en proceedings.
(1) Unless otherwise agreed by the par/es, the arbitral tribunal shall decide whether to hold
oral hearings for the presenta/on of evidence or for oral argument, or whether the
proceedings shall be conducted on the basis of documents and other materials:
Provided that the arbitral tribunal shall hold oral hearings, at an appropriate stage of the
proceedings, on a request by a party, unless the par/es have agreed that no oral hearing
shall be held:
Provided further that the arbitral tribunal shall, as far as possible, hold oral hearings for the
presenta/on of evidence or for oral argument on a day-to-day basis, and not grant any
adjournments unless sufficient cause is made out, and may impose costs including
exemplary costs on the party seeking adjournment without any sufficient cause.
(2) The par/es shall be given sufficient advance no/ce of any hearing and of any mee/ng of
the arbitral tribunal for the purposes of inspec/on of documents, goods, or other property.
(3) Except as may be expressly provided to the contrary in this Act, all statements,
documents or other informa/on supplied to, or applica/ons made to the arbitral tribunal by
one party shall be communicated at the same /me to the other party, and any expert report
or documentary evidence on which the arbitral tribunal may rely in making its decision shall
also be communicated by the arbitral tribunal to the par/es.
(4) Unless otherwise agreed by the par/es or determined by the arbitral tribunal, all witness
evidence shall be presented in the form of a witness statement which shall include:
(a) the full name and address of the witness, a statement regarding their present and
past rela/onship (if any) with any of the par/es, and a descrip/on of their
background, qualifica/ons, training, and experience, if such a descrip/on may be
relevant to the dispute or to the contents of the statement;
(b) a full and detailed descrip/on of the facts, and the source of the witness’
informa/on as to those facts, sufficient to serve as that witness’ evidence in the
maYer in dispute;
(c) all documents on which the witness relies that have not already been submiYed;
(d) a statement as to the language in which the witness statement was originally
prepared and the language in which the witness an/cipates giving tes/mony during
the arbitral proceedings;
(e) an affirma/on of the truth of the witness statement; and
(f) the signature of the witness and its date and place.
27. Default of a party.
(1) Unless otherwise agreed by the par/es, where, without showing sufficient cause,—
(a) the claimant fails to communicate their statement of claim in accordance with
sub-sec/on (1) of sec/on 25, the arbitral tribunal shall terminate the proceedings;
(b) the respondent fails to communicate their statement of defence in accordance
with sub-sec/on (1) of sec/on 25, the arbitral tribunal shall con/nue the proceedings
without trea/ng that failure in itself as an admission of the allega/ons by the
claimant and shall have the discre/on to treat the right of the respondent to file such
statement of defence as having been forfeited;
(c) a party fails to appear at an oral hearing or to produce documentary evidence, the
arbitral tribunal may con/nue the proceedings and make the arbitral award on the
evidence before it.
(2) Unless otherwise agreed by the par/es, if the arbitral tribunal is sa/sfied that there has
been inordinate and inexcusable delay on the part of the claimant in pursuing their claim
and that the delay—
(a) gives rise, or is likely to give rise, to a substan/al risk that it is not possible to have
a fair resolu/on of the issues in that claim, or
(b) has caused, or is likely to cause, serious prejudice to the respondent,
the arbitral tribunal may make an award dismissing the claim.
(3) Unless otherwise agreed by the par/es, where, without showing sufficient cause,—
(a) a party fails to comply with any order or direc/on of the arbitral tribunal, the
arbitral tribunal may make a peremptory order to the same effect, prescribing such
/me for compliance with it as the arbitral tribunal considers appropriate;
(b) a claimant in an interna/onal commercial arbitra/on fails to comply with a
peremptory order of the arbitral tribunal to provide security for costs, the arbitral
tribunal may make an award dismissing their claim; or
(c) a party fails to comply with any other kind of peremptory order, then, without
prejudice to sub-sec/on (3) of sec/on 19, the arbitral tribunal may do any of the
following—
(i) direct that the party in default shall not be en/tled to rely upon any
allega/on or material which was the subject maYer of the order;
(ii) draw such adverse inferences from the act of non-compliance as the
circumstances jus/fy;
(iii) proceed to an award on the basis of such materials as have been properly
provided to it;
(iv) make such order as it thinks fit as to the payment of costs of the
arbitra/on incurred in consequence of the non-compliance.
28. Expert appointed by arbitral tribunal.
(1) Unless otherwise agreed by the par/es, the arbitral tribunal may—
(a) appoint one or more experts to report to it on specific issues to be determined by
the arbitral tribunal, and
(b) require a party to give the expert any relevant informa/on or to produce, or to
provide access to, any relevant documents, goods, or other property for their
inspec/on.
(2) Unless otherwise agreed by the par/es, if a party so requests or if the arbitral tribunal
considers it necessary, the expert shall, afer delivery of their wriYen or oral report,
par/cipate in an oral hearing where the par/es shall have the opportunity to cross-examine
them and to present expert witnesses in order to tes/fy on the points at issue.
(3) Unless otherwise agreed by the par/es, the expert shall, on the request of a party, make
available to that party for examina/on all such documents, goods, or other property which
they were provided in order to prepare their report.
29. Court assistance in taking evidence.
(1) The arbitral tribunal, or a party with the approval of the arbitral tribunal, may apply to
the Competent Court for assistance in taking evidence and the Competent Court shall have
the same power for making orders as it has for the purpose of, and in rela/on to, any
proceedings before it.
(2) The applica/on shall specify—
(a) the names and addresses of the par/es and the arbitrators;
(b) the general nature of the claim and the relief sought;
(c) the evidence to be obtained, in par/cular,—
(i) the name and address of any person to be heard as witness or expert
witness and a statement of the subject-maYer of the tes/mony required;
(ii) the descrip/on of any document to be produced or property to be
inspected.
(3) The Competent Court may execute the request by ordering that the evidence be
provided directly to the arbitral tribunal.
(4) The Competent Court may, while making an order under sub-sec/on (3), issue the same
processes to witnesses as it may issue in suits tried before it.
(5) Persons failing to aYend in accordance with such process, or making any other default, or
refusing to give their evidence, or guilty of any contempt to the arbitral tribunal during the
conduct of arbitral proceedings, shall be subject to the like disadvantages, penal/es and
punishments by order of the Competent Court on the representa/on of the arbitral tribunal
as they would incur for the like offences in suits tried before the Competent Court.
Explana&on.— In this sec/on the expression “Processes” includes summons and
commissions for the examina/on of witnesses and summons to produce documents.
(6) A person shall not be compelled by virtue of this sec/on to produce any document or
other material evidence which they could not be compelled to produce in legal proceedings.
 CHAPTER VI
Making of arbitral award and termina0on of proceedings
30. Law applicable to substance of dispute.
(1) Except as provided below, the arbitral tribunal shall decide the dispute submiYed to
arbitra/on in accordance with the substan/ve law for the /me being in force in Pakistan.
(2) In interna/onal commercial arbitra/ons,—
(a) the arbitral tribunal shall decide the dispute in accordance with the law
designated by the par/es as applicable to the substance of the dispute;
(b) any designa/on by the par/es of the law or legal system of a given country shall
be construed, unless otherwise expressed, as directly referring to the substan/ve law
of that country and not to its conflict of laws rules; and,
(c) in the absence of any designa/on of the law under clause (a) by the par/es, the
arbitral tribunal shall apply the rules of law it considers to be appropriate given all
the circumstances surrounding the dispute.
(3) The arbitral tribunal shall decide ex aequo et bono or as amiable compositeur only if the
par/es have expressly authorised it to do so.
(4) In all cases, the arbitral tribunal shall decide in accordance with the terms of the contract
and shall, subject to those terms, take into account the usages of the trade applicable to the
transac/on.
31. Decision making by panel of arbitrators.
(1) Unless otherwise agreed by the par/es, in arbitral proceedings with more than one
arbitrator, any decision of the arbitral tribunal shall be made by a majority of all its
members.
(2) Notwithstanding sub-sec/on (1), if authorised by the par/es or all the members of the
arbitral tribunal, ques/ons of procedure may be decided by the presiding arbitrator.
32. Time limit for arbitral award.
(1) This sec/on will not apply to interna/onal commercial arbitra/ons.
(2) In maYers other than interna/onal commercial arbitra/ons:
(a) the award shall be made by the arbitral tribunal within a period of eighteen
months from the date of comple/on of pleadings under sub-sec/on (5) of sec/on 25.
(b) the par/es may, by consent, extend the period specified in clause (a) for making
an award by another period not exceeding twelve months.
(c) If the award is not made within the period specified in clause (a) or the extended
period specified in clause (b), the mandate of the arbitrator(s) shall terminate unless
 the Competent Court has, either prior to or afer the expiry of the period so
specified, extended the period on the applica/on of any party:
Provided that while extending the period under this sub-sec/on, if the Competent
Court finds that the proceedings have been delayed for reasons aYributable to the
arbitral tribunal, then, it may order reduc/on of the fees of the arbitrator(s) by an
amount not exceeding five per cent for each month of such delay:
Provided further that where an applica/on under this sub-sec/on is pending, the
mandate of the arbitrator(s) shall con/nue /ll the disposal of the said applica/on:
Provided also that the arbitrator(s) shall be given an opportunity of being heard
before their fees are reduced.
(3) An extension of the periods referred to in sub-sec/on (2) may be granted only for
sufficient cause and on such terms and condi/ons as may be imposed by the Competent
Court.
(4) While extending the period in pursuance of sub-sec/on (2), it shall be open to the
Competent Court to subs/tute any or all of the arbitrators and if any or all of the arbitrators
are subs/tuted, the arbitral proceedings shall con/nue from the stage already reached and
on the basis of the evidence and material already on record, and the arbitrator(s) appointed
under this sec/on shall be deemed to have received the said evidence and material.
(5) In the event of arbitrator(s) being appointed under this sec/on, the arbitral tribunal thus
recons/tuted shall be deemed to be in con/nua/on of the previously appointed arbitral
tribunal.

(6) The Competent Court may impose actual or exemplary costs upon a party if it determines
that the delay necessita/ng an extension of period referred to in sub-sec/on (4) was caused
by that party.
(7) An applica/on for extension filed under sub-sec/on (2) shall be disposed of by the
Competent Court within a period of sixty days from the date of service of no/ce on the
opposite party.
33. Se8lement.
(1) It is not incompa/ble with an arbitra/on agreement for an arbitral tribunal to encourage
seYlement of the dispute and, with the agreement of the par/es, the arbitral tribunal may
use media/on, concilia/on, or other procedures at any /me during the arbitral proceedings
to encourage seYlement.
(2) If, during arbitral proceedings, the par/es seYle the dispute, the arbitral tribunal shall
terminate the proceedings and, if requested by the par/es and not objected to by the
arbitral tribunal, record the seYlement in the form of an arbitral award on agreed terms.
(3) An arbitral award on agreed terms shall be made in accordance with sec/on 35 and shall
state that it is an arbitral award.
(4) An arbitral award on agreed terms shall have the same status and effect as any other
arbitral award on the substance of the dispute.
34. Final relief in award.
(1)The par/es are free to agree on the powers exercisable by the arbitral tribunal as regards
final relief.
(2) Unless otherwise agreed by the par/es, the arbitral tribunal has the following powers:
(a) To make a declara/on as to any maYer to be determined in the proceedings; and,
(b) To order the payment of a sum of money, in any currency.
(3) The arbitral tribunal has the same powers as the Competent Court—
(a) to order a party to do or refrain from doing anything;
(b) to order specific performance of a contract; and,
(c) to order the rec/fica/on, seong aside or cancella/on of a deed or other
document.
35. Form and contents of arbitral award.
(1) An arbitral award shall be made in wri/ng and shall be signed by the members of the
arbitral tribunal.
(2) For the purposes of sub-sec/on (1), in arbitral proceedings with more than one
arbitrator, the signatures of the majority of all the members of the arbitral tribunal shall be
sufficient so long as the reason for any omiYed signature is stated.
(3) The arbitral award shall state the reasons upon which it is based, unless—
(a) the par/es have agreed in wri/ng that no reasons are to be given, or
(b) the award is an arbitral award on agreed terms under sec/on 33.
(4) The arbitral award shall state the date when it was made and the seat of the arbitra/on
as determined in accordance with sec/on 22 (and the award shall be deemed to have been
made at the seat so stated).
(5) Afer the arbitral award is made, a signed copy shall be delivered to each party.
(6) The arbitral tribunal may, at any /me during the arbitral proceedings, make an interim
arbitral award on any maYer with respect to which it may make a final arbitral award.
(7) Unless otherwise agreed by the par/es, where and in so far as an arbitral award is for the
payment of money:
(a) the arbitral tribunal may include in the sum for which the arbitral award is made
compensa/on for the delay in payment for the period from the date of ins/tu/on of
the arbitral proceedings /ll the date of the arbitral award; and,
 (b) the arbitral tribunal may further direct that the beneficiary of the arbitral award
shall be en/tled to addi/onal compensa/on over and above the sum awarded in the
arbitral award /ll the realiza/on of all amounts due under or in rela/on to the
arbitral award.
(8) The costs of an arbitra/on shall be fixed by the arbitral tribunal in accordance with
sec/on 36.
36. Regime for costs.
(1) For the purpose of this sec/on, “costs” means reasonable costs rela/ng to—
(a) the fees and expenses of the arbitrators, courts, and witnesses;
(b) legal fees and expenses;
(c) any administra/on fees of the ins/tu/on supervising the arbitra/on; and
(d) any other expenses incurred in connec/on with the arbitral or court proceedings
and the arbitral award.
(2) Unless otherwise agreed by the par/es, in rela/on to interna/onal commercial
arbitra/ons the arbitral tribunal shall determine—
(a) the amount of costs payable by one party to another; and,
(b) when such costs are to be paid.
(3) In rela/on to maYers other than interna/onal commercial arbitra/ons, the arbitral
tribunal has discre/on to determine—
(a) whether each party should bear their own costs: or,
(b) whether costs are payable by one party to another, and if so;
(i) the amount of such costs; and
(ii) when such costs are to be paid.
(4) If an arbitral tribunal decides to award costs, then unless otherwise agreed by the
par/es:
(a) the arbitral tribunal shall follow the general principle that costs should follow
the event,
(b) except where it appears to the arbitral tribunal that in the circumstances the
applica/on of the general principle is not appropriate in rela/on to the whole
or part of the costs.
(5) In determining the costs, the arbitral tribunal shall take into considera/on all relevant
circumstances, including—
(a) the conduct of all the par/es;
 (b) the rela/ve success or failure of the par/es in the award or arbitra/on or under
different issues;
(c) whether a party had made a frivolous counter-claim leading to delay in the
disposal of the arbitral proceedings; and
(d) whether any reasonable offer to seYle the dispute was made by a party and
refused by the other party.
(6) The arbitral tribunal may make any order under this sec/on including the order that a
party shall pay—
(a) a propor/on of another party’s costs;
(b) a stated amount in respect of another party’s costs;
(c) costs from or un/l a certain date only;
(d) costs incurred before proceedings have begun;
(e) costs rela/ng to par/cular steps taken in the proceedings;
(f ) costs rela/ng only to a dis/nct part of the proceedings; and,
(g) compensa/on for the failure to pay costs within the s/pulated period.
(7) An agreement which has the effect that a party is to pay the whole or part of the costs of
the arbitra/on in any event shall only be valid if such agreement is made afer the dispute in
ques/on has arisen.
37. Termina4on of proceedings.
(1) The arbitral proceedings shall be terminated by the final arbitral award or by an order of
the arbitral tribunal under sub-sec/on (2).
(2) The arbitral tribunal shall issue an order for the termina/on of the arbitral proceedings
where—
(a) the claimant withdraws their claim, unless the respondent objects to the order
and the arbitral tribunal recognises a legi/mate interest on their part in obtaining a
final seYlement of the dispute,
(b) the par/es agree on the termina/on of the proceedings, or
(c) the arbitral tribunal finds that the con/nua/on of the proceedings has for any
other reason become unnecessary or impossible.
(3) Subject to sec/on 38 and sub-sec/on (4) of sec/on 39, the mandate of the arbitral
tribunal shall terminate with the termina/on of the arbitral proceedings.
38. Correc4on and interpreta4on of award; addi4onal award.
(1) Within thirty days from the receipt of the arbitral award, unless another period of /me
has been agreed upon by the par/es—
 (a) a party, with no/ce to the other party, may request the arbitral tribunal to correct
any computa/on errors, any clerical or typographical errors or any other errors of a
similar nature occurring in the award;
(b) if so agreed by the par/es, a party, with no/ce to the other party, may request
the arbitral tribunal to give an interpreta/on of a specific point or part of the award.
(2) If the arbitral tribunal considers the request made under sub-sec/on (1) to be jus/fied, it
shall make the correc/on or give the interpreta/on within thirty days from the receipt of the
request and the correc/on or the interpreta/on shall form part of the arbitral award.
(3) The arbitral tribunal may correct any error of the type referred to in clause (a) of sub-
sec/on (1), on its own ini/a/ve, within thirty days from the date of the arbitral award.
(4) Unless otherwise agreed by the par/es, a party with no/ce to the other party, may
within thirty days from the receipt of the arbitral award, request the arbitral tribunal to
make an addi/onal arbitral award as to claims presented in the arbitral proceedings but
omiYed from the arbitral award.
(5) If the arbitral tribunal considers the request made under sub-sec/on (4) to be jus/fied, it
shall make the addi/onal arbitral award within sixty days from the receipt of such request.
(6) The arbitral tribunal may extend, if necessary, the period of /me within which it shall
make a correc/on, give an interpreta/on, or make an addi/onal arbitral award under sub-
sec/on (2) or sub-sec/on (5).
(7) Sec/on 40 shall apply to a correc/on or interpreta/on of the arbitral award or to an
addi/onal arbitral award made under this sec/on.
 CHAPTER VII
Recourse against arbitral award
39. Applica4on for seang aside arbitral award.
(1) An arbitral award may only be challenged before the Competent Court through an
applica/on for seong aside such award on the grounds noted in sub-sec/on (2) and sub-
sec/on (3).
(2) An arbitral award may be set aside by the Competent Court only if—
(a) the party making the applica/on establishes on the basis of the record of the
arbitral tribunal that—
(i) a party to the arbitra/on agreement was under some incapacity, or
(ii) the arbitra/on agreement is not valid under the law to which the par/es
have subjected it or, in the absence of any indica/on thereon, under the laws
of Pakistan; or
(iii) the party making the applica/on was not given proper no/ce of the
appointment of an arbitrator or of the arbitral proceedings or was otherwise
unable to present their case; or
(iv) the arbitral award deals with a dispute not contemplated by or not falling
within the terms of the submission to arbitra/on, or it contains decisions on
maYers beyond the scope of the submission to arbitra/on:
Provided that if the decisions on maYers submiYed to arbitra/on can be
separated from those not so submiYed, only that part of the arbitral award
which contains decisions on maYers not submiYed to arbitra/on may be set
aside; or
(v) the composi/on of the arbitral tribunal or the arbitral procedure was not
in accordance with the agreement of the par/es, unless such agreement was
in conflict with a provision of this Act from which the par/es cannot derogate,
or, in the absence of such agreement, was not in accordance with this Act; or
(b) the Competent Court finds that—
(i) the subject-maYer of the dispute is not capable of seYlement by
arbitra/on under the laws of Pakistan, or
(ii) the arbitral award is in conflict with the public policy of Pakistan.
(3) An award is in conflict with the public policy of Pakistan only if—
(a) the making of the award was induced or affected by fraud or corrup/on; or
(b) a material breach of the rules of natural jus/ce occurred—
(i) during the arbitral proceedings; or
 (ii) in connec/on with the making of the award; or,
(c) it is in conflict with the most fundamental norms of morality and jus/ce.
Explana&on.— A determina/on as to whether an award is in conflict with the public
policy of Pakistan shall not entail a review on the merits of the dispute.
(4) An arbitral award arising out of arbitra/ons other than interna/onal commercial
arbitra/ons may also be set aside by the Competent Court if the Competent Court finds that
the award is vi/ated by patent illegality appearing on the face of the award:
Provided that an award shall not be set aside merely on the ground of an erroneous
applica/on of the law or by reapprecia/on of evidence.
(5) An applica/on for seong aside an arbitral award may only be made within ninety days
of:
(a) the date on which the party making that applica/on had received the arbitral
award; or,
(b) if a request had been made under sec/on 38, the date on which that request had
been disposed of by the arbitral tribunal.
(6) To the extent a party alleges that the making of an arbitral award was induced or affected
by fraud or corrup/on, an applica/on for seong aside such award may not be made afer
ninety days have elapsed since the party became aware of the fraud or corrup/on.
(7) If the Competent Court is sa/sfied that the applicant was prevented by sufficient cause
from making an applica/on within the /mes s/pulated in sub-sec/on (5) and sub-sec/on
(6), it may entertain such applica/on within a further period of thirty days, but not
thereafer.
(8) On receipt of an applica/on under sub-sec/on (1), the Competent Court may, where it is
appropriate and it is so requested by a party, adjourn the proceedings for a period of /me
determined by it in order to give the arbitral tribunal an opportunity to resume the arbitral
proceedings or to take such other ac/on as in the opinion of arbitral tribunal will eliminate
the grounds for seong aside the arbitral award.
(9) An applica/on under this sec/on shall be filed by a party only afer issuing prior no/ce to
the other party and such applica/on shall be accompanied by an affidavit by the applicant
confirming compliance with the said requirement.
(10) An applica/on under this sec/on shall be disposed of expedi/ously, and in any event,
within a period of one year from the date on which the no/ce referred to in sub-sec/on (9)
is served upon the other party.
 CHAPTER VIII
Finality and enforcement of arbitral awards
40. Finality of arbitral awards.
(1) Subject to this Act, an arbitral award shall be final and binding on the par/es and persons
claiming under them respec/vely and may accordingly be relied on by any of those par/es
and persons by way of defence, set off or otherwise in any legal proceedings in Pakistan.
(2) Unless otherwise agreed by the par/es, an arbitral tribunal shall not vary, amend,
correct, review, add to or revoke an award which has been made except as specifically
provided for in this Act.
(3) An arbitral award shall not be binding on persons that were not par/es to the arbitra/on
agreement.
41. Enforcement and stay of award.
(1) Where the /me for making an applica/on to set aside an arbitral award under sec/on 39
has expired, then, unless the Competent Court has:
(a) stayed the opera/on of that arbitral award in accordance with sub-sec/on (2); or,
(b) set aside that arbitral award under sec/on 39,
such award shall be enforced in accordance with the provisions of the Code of Civil
Procedure, 1908 (Act V of 1908) in the same manner as if it were a decree of a court.
Explana&on: the filing of an applica/on to set aside or to stay an arbitral award shall not by
itself render that award unenforceable unless the Competent Court stays the opera/on of
that arbitral award in accordance with sub-sec/on (2).
(2) Upon filing of a separate applica/on for stay of the opera/on of an arbitral award, the
Competent Court may, subject to such condi/ons as it may deem fit, stay the opera/on of
such award for reasons to be recorded in wri/ng:
Provided that in the absence of excep/onal circumstances, the Competent Court shall not
stay the opera/on of an arbitral award without requiring the applicant to deposit all
amounts determined to be payable by the arbitral tribunal.
(3) An applica/on for the enforcement of an award shall take the form of an applica/on for
execu/on of a decree and may be filed in any District Court having jurisdic/on over any
assets or the person of the party against whom the arbitral award is sought to be enforced.
(4) Notwithstanding anything contained elsewhere in this Act or in any other law for the
/me being in force, where an applica/on for the enforcement of an award has been filed in
a District Court, that District Court alone shall have jurisdic/on to conduct execu/on
proceedings, provided that precepts may be issued or execu/on proceedings may be
transferred to another District Court in accordance with the Code of Civil Procedure, 1908
(Act V of 1908).
 CHAPTER IX
Appeals
42. Appealable orders.
(1) Notwithstanding anything contained in any other law for the /me being in force, an
appeal shall lie from the following orders (and from no others) to the court authorised by
law to hear appeals from original decrees of the court passing the order, namely:—
(a) refusing to refer the par/es to arbitra/on under sec/on 9;
(b) gran/ng or refusing to grant any measure under sec/on 10;
(c) seong aside or refusing to set aside an arbitral award under sec/on 39.
Provided further that where the appealable order has been passed by a single judge of a
High Court, an appeal shall lie to a bench of two or more judges of that High Court.
(2) An appeal shall also lie to the Competent Court from an order of the arbitral tribunal—
(a) accep/ng the plea referred to in sub-sec/on (2) or sub-sec/on (3) of sec/on 18;
or
(b) gran/ng or refusing to grant an interim measure under sec/on 19.
(3) No second appeal or revision shall lie from an order passed in appeal under this sec/on,
but nothing in this sec/on shall affect or take away any right of appeal to the Supreme
Court.
 CHAPTER X
Miscellaneous
43. Deposits.
(1) The arbitral tribunal may fix the amount of the deposit or supplementary deposit, as the
case may be, as an advance for the costs referred to in clauses (a), (b) and (d) of sub-sec/on
(1) of sec/on 36, which it expects will be incurred in respect of the claim submiYed to it:
Provided that where, apart from the claim, a counter-claim has been submiYed to the
arbitral tribunal, it may fix separate amounts of deposit for the claim and counter-claim.
(2) The deposit referred to in sub-sec/on (1) shall be payable in equal shares by the par/es:
Provided that where one party fails to pay their share of the deposit, the other party may
pay that share:
Provided further that where the other party also does not pay the aforesaid share in respect
of the claim or the counter-claim, the arbitral tribunal may suspend or terminate the arbitral
proceedings in respect of such claim or counter-claim, as the case may be.
(3) Upon termina/on of the arbitral proceedings, the arbitral tribunal shall render an
accoun/ng to the par/es of the deposits received and shall return any unexpended balance
to the party or par/es, as the case may be.
44. Lien on arbitral award and deposits as to costs.
(1) Subject to the provisions of sub-sec/on (2) and to any provision to the contrary in the
arbitra/on agreement, the arbitral tribunal shall have a lien on the arbitral award for any
unpaid costs of the arbitra/on.
(2) If in any case an arbitral tribunal refuses to deliver its award except on payment of the
costs demanded by it, the Competent Court may, on an applica/on in this behalf, order that
the arbitral tribunal shall deliver the arbitral award to the applicant on payment into the
Competent Court by the applicant of the costs demanded, and shall, afer such inquiry, if
any, as it thinks fit, further order that out of the money so paid into the Competent Court
there shall be paid to the arbitral tribunal by way of costs such sum as the Competent Court
may consider reasonable and that the balance of the money, if any, shall be refunded to the
applicant.
(3) An applica/on under sub-sec/on (2) may be made by any party unless the fees
demanded have been fixed by wriYen agreement between them and the arbitral tribunal,
and the arbitral tribunal shall be en/tled to appear and be heard on any such applica/on.
(4) The Competent Court may make such orders as it thinks fit respec/ng the costs of the
arbitra/on where any ques/on arises respec/ng such costs and the arbitral award contains
no sufficient provision concerning them.
45. Arbitra4on agreement not to be discharged by death of party thereto.
(1) An arbitra/on agreement shall not be discharged by the death of any party thereto either
as respects the deceased or as respects any other party, but shall in such event be
enforceable by or against the legal representa/ve of the deceased.
(2) The mandate of an arbitrator shall not be terminated by the death of any party by whom
they were appointed.
(3) Nothing in this sec/on shall affect the opera/on of any law by virtue of which any right of
ac/on is ex/nguished by the death of a person.
46. Provisions in case of insolvency.
(1) Where a party to an arbitra/on agreement has been found to be insolvent and the
person having jurisdic/on to administer the property of the insolvent adopts the agreement,
the arbitra/on agreement shall be enforceable by or against that person.
(2) The Competent Court may direct any maYer in connec/on with or for the purpose of
insolvency proceedings to be referred to arbitra/on if—
(a) the maYer is one to which the arbitra/on agreement applies;
(b) the arbitra/on agreement was made before the commencement of the
insolvency proceedings by a person who has subsequently been adjudged insolvent;
and
(c) the person having jurisdic/on to administer the property does not adopt the
agreement.
(3) An applica/on under sub-sec/on (2) may be made by—
(a) any other party to the arbitra/on agreement; or
(b) any person having jurisdic/on to administer the property of the insolvent.
47. Jurisdic4on.
(1) Where the par/es have agreed to the seat of the arbitra/on, or where the arbitral
tribunal has determined the seat of the arbitra/on, the Competent Court shall be the
relevant High Court or District Court (as the case may be) within whose territorial
jurisdic/on the seat of the arbitra/on is located.
(2) Where the par/es have not agreed to the seat of the arbitra/on, or where the arbitral
tribunal has not determined the seat of the arbitra/on, the Competent Court shall be the
relevant High Court or District Court (as the case may be) within whose territorial
jurisdic/on:
(a) any of the par/es actually and voluntarily resides, or carries on business, or
personally works for gain; or
(b) the cause of ac/on, wholly or partly, arises.
(3) Notwithstanding anything contained elsewhere in this Act or in any other law for the
/me being in force, where with respect to an arbitra/on agreement any applica/on under
this Act has been made in a Competent Court, that Competent Court alone shall have
jurisdic/on over the arbitral proceedings and all subsequent applica/ons arising out of that
arbitra/on agreement and the arbitral proceedings shall be made in that Competent Court
and in no other court.
Provided that no court shall exercise any jurisdic/on under this Act in rela/on to arbitra/ons
seated outside Pakistan except as provided by sub-sec/on (2) of sec/on 3.
(4) To the extent sub-sec/on (2) of sec/on 3 allows any court to exercise any jurisdic/on in
rela/on to arbitra/ons seated outside Pakistan, the Competent Court shall be the relevant
High Court within whose territorial jurisdic/on:
(a) any of the par/es actually and voluntarily resides, or carries on business, or
personally works for gain; or

(b) any property or thing which is the subject-maYer of the dispute in arbitra/on, or
as to which any ques/on may arise therein, is located.
(5) Nothing in this sec/on shall apply to:
(a) applica/ons for stay of proceedings under sec/on 9, which shall be heard by the
court hearing the proceedings sought to be stayed;
(b) applica/ons for enforcement of an order under sec/on 19; or
(b) applica/ons for the enforcement of an award under sec/on 41.
48. Confiden4ality and protec4on for good faith ac4ons.
(1) Notwithstanding anything contained in any other law for the /me being in force, but
subject to any agreement between the par/es, the arbitrator, the arbitral ins/tu/on and the
par/es to the arbitra/on agreement shall keep confiden/al all awards in the arbitra/on,
together with all materials in the arbitra/on created for the purpose of the arbitra/on and
all other documents produced by another party in the proceedings not otherwise in the
public domain, save and to the extent that disclosure may be required of a party by legal
duty, to protect or pursue a legal right, or to enforce or challenge an award.
(2) The Competent Court, or any court before which enforcement proceedings are pending,
may pass an order regarding the maintenance of the confiden/ality of any documents or
informa/on in respect of any arbitra/on, including the iden/ty of the par/es.
(3) No suit or other legal proceedings shall lie against the arbitrator, an arbitral ins/tu/on,
or any person designated by a High Court under sec/on 13 for anything which is in good
faith done or intended to be done under this Act or the rules or regula/ons made
thereunder.
49. Limita4ons.
(1) The Limita/on Act, 1908 (Act IX of 1908), shall apply to arbitra/ons as it applies to
proceedings in court.
(2) For the purposes of this sec/on and the Limita/on Act, 1908 (Act IX of 1908), an
arbitra/on shall be deemed to have commenced on the date referred to in sec/on 23.
(3) Where an arbitra/on agreement to submit future disputes to arbitra/on provides that
any claim to which the arbitra/on agreement applies shall be barred unless some step to
commence arbitral proceedings is taken within a /me fixed by the agreement, and a dispute
arises to which the arbitra/on agreement applies, the Competent Court, if it is of opinion
that in the circumstances of the case undue hardship would otherwise be caused, and
notwithstanding that the /me so fixed has expired, may on such terms, if any, as the jus/ce
of the case may require, extend the /me for such period as it thinks proper.
(4) Where the Competent Court orders that an arbitral award be set aside, the period
between the commencement of the arbitra/on and the date of the order of the Competent
Court shall be excluded in compu/ng the /me prescribed by the Limita/on Act, 1908 (Act IX
of 1908), for the commencement of the proceedings (including arbitra/on) with respect to
the dispute so submiYed.
 CHAPTER XI
Supplementary provisions
50. Exclusion of stamp laws.
(1) Notwithstanding anything contained in any other law to the contrary, the following shall
not be subject to any du/es in the nature of stamp, including any duty under the Stamp
Act, 1899 (Act II of 1899):
(a) an arbitra/on agreement; and,
(b) an arbitral award issued under this Act.
51. Procedure and powers of court.
Subject to the provisions of this Act and of regula/ons made thereunder –
(1) In the exercise of its jurisdic/on under this Act, a Competent Court shall,–
(a) follow the procedure as nearly as may be provided for in the Code of Civil
Procedure, 1908 (Act V of 1908); and,
(b) have all the powers vested in a civil court under the Code of Civil Procedure, 1908
(Act V of 1908).
(2) A District Court before whom an applica/on either for enforcement of an order under
sec/on 19 or for enforcement of an arbitral award under sec/on 41 is filed shall have all the
powers vested in a civil court under the Code of Civil Procedure, 1908 (Act V of 1908).
52. Power of a High Court to make regula4ons.
(1) Each High Court may make regula/ons consistent with this Act as to all proceedings
within its jurisdic/on under this Act, and may by such regula/ons subs/tute, amend or add
to all or any of the model regula/ons in the Second Schedule.
(2) Without prejudice to the generality of sub-sec/on (1), the power of a High Court to make
regula/ons shall include the power to make regula/ons regarding:
(a) the appointment of arbitrators;
(b) the manner in which applica/ons for costs are to be filed and substan/ated;
(c) the procedures applicable to arbitral proceedings not governed by the rules of an
arbitral ins/tu/on;
(d) the forms to be used for the purposes of this Act;
(e) the administra/on of arbitral proceedings and fees rela/ng thereto;
(f) all such maYers as are covered by the model regula/ons in the Second Schedule;
and,
(f) generally, all proceedings in a court under this Act.
(3) The model regula/ons in the Second Schedule shall have effect un/l subs/tuted or
amended by the High Court.
53. Power to make rules.
(1) The Federal Government may, by no/fica/on in the Official GazeYe, make rules for
carrying out the provisions of this Act.
54. Repeal and savings.
(1) The Arbitra/on Act, 1940 (Act X of 1940) is hereby repealed.
(2) Notwithstanding such repeal,—
(a) the provisions of the Arbitra/on Act, 1940 (Act X of 1940) shall apply in rela/on to
arbitral proceedings which commenced under the said enactment before this Act
came into force, unless otherwise agreed by the par/es;
(b) all rules and no/fica/ons published, under the Arbitra/on Act, 1940 (Act X of
1940) shall, to the extent to which they are not repugnant to this Act, or to any rules
or regula/ons made thereunder, be deemed respec/vely to have been made or
issued under this Act.
(3) Notwithstanding any provision of any law or any agreement to the contrary, and except
as provided by this Act itself, this Act shall apply to all arbitral proceedings which commence
afer this Act comes into force.
 FIRST SCHEDULE
(See sec0on 14)
Guidelines on the impar4ality and independence of an arbitrator

1. General principles regarding the impar/ality and independence of an arbitrator:

a. Every arbitrator shall be impar/al and independent of the par/es at the /me of
accep/ng an appointment to serve and shall remain so un/l the final award has
been rendered or un/l the proceedings are otherwise finally terminated without
an award being rendered.

b. An arbitrator shall decline to accept an appointment or, if the arbitra/on has

already been commenced, refuse to con/nue to act as an arbitrator, if they have
any doubt as to their ability to be impar/al or independent.

c. The same principle applies if facts or circumstances exist, or have arisen since the
appointment, which, from the point of view of a reasonable third person having
knowledge of the relevant facts and circumstances, would give rise to jus/fiable
doubts as to the arbitrator’s impar/ality or independence, unless the par/es
have accepted the arbitrator.

d. Doubts are jus/fiable if a reasonable third person, having knowledge of the

relevant facts and circumstances, would reach the conclusion that there is a
likelihood that the arbitrator may be influenced by factors other than the merits
of the case as presented by the par/es in reaching their decision.

e. Jus/fiable doubts necessarily exist as to the arbitrator’s impar/ality or

independence in any of the situa/ons described in List 4 (Black List).

f. An arbitrator may assist the par/es in reaching a seYlement of the dispute,

through concilia/on, media/on or otherwise, at any stage of the proceedings.
However, the arbitrator shall resign if, as a consequence of their involvement in
the seYlement process, the arbitrator develops doubts as to their ability to
remain impar/al or independent in the future course of the arbitra/on.

2. Situa/ons commonly arising in prac/ce with respect to the impar/ality and

independence of an arbitrator:

a. List 1 (Green List) is a non-exhaus/ve list of specific situa/ons which are not
required to be disclosed because no appearance and no actual conflict of interest
exists from an objec/ve point of view.
 b. List 2 (Orange List) is a non-exhaus/ve list of specific situa/ons that, depending
on the facts of a given case, may, in the eyes of the par/es, give rise to doubts as
to the arbitrator’s impar/ality or independence.

c. List 3 (Red List) is a non-exhaus/ve list of specific situa/ons that, depending on

the facts of a given case, give rise to jus/fiable doubts as to the arbitrator’s
impar/ality and independence, and are hence required to be disclosed.

d. List 4 (Black List) is a non-exhaus/ve list of specific situa/ons that, depending on

the facts of a given case, necessarily give rise to jus/fiable doubts as to the
arbitrator’s impar/ality and independence, and cannot be waived in any
circumstances.

3. Guidance on disclosure:

a. An arbitrator’s duty to disclose is an ongoing duty.

b. An advance declara/on or waiver in rela/on to possible conflicts of interest

arising from facts and circumstances that may arise in the future does not
discharge the arbitrator’s ongoing duty of disclosure.

c. An arbitrator has a duty to disclose situa/ons falling in List 2 (Orange List) and List
3 (Red List).

i. The par/es are deemed to have accepted the arbitrator making a

disclosure falling within List 2 (Orange List) if, afer disclosure, no /mely
objec/on is made.

ii. The par/es are only deemed to have accepted an arbitrator making a
disclosure falling within List 3 (Red List) if, afer disclosure, the par/es
acknowledge the conflict of interest situa/on, but s/ll expressly state in
wri/ng their willingness to have such a person act as arbitrator.

d. An arbitrator has a duty not to accept an appointment or, if the arbitra/on has
already been commenced, refuse to con/nue to act as an arbitrator in situa/ons
falling in List 4 (Black List).

4. List 1 (Green List):

a. Previously expressed legal opinions

i. The arbitrator has previously expressed a legal opinion (such as in a law

review ar/cle or public lecture) concerning an issue that also arises in the
arbitra/on (but that legal opinion is not focused on the case).
b. Current services for one of the par/es

i. A firm, in associa/on or in alliance with the arbitrator’s law firm, but that
does not share significant fees or other revenues with the arbitrator’s law
firm, renders services to one of the par/es, or an affiliate of one of the
par/es, in an unrelated maYer.

c. Contacts with another arbitrator, or with counsel for one of the par/es

i. The arbitrator has a rela/onship with another arbitrator, or with the

counsel for one of the par/es, through membership in the same
professional associa/on, or social or charitable organisa/on, or through a
social media network.
ii. The arbitrator and counsel for one of the par/es have previously served
together as arbitrators.
iii. The arbitrator teaches in the same faculty or school as another arbitrator
or counsel to one of the par/es, or serves as an officer of a professional
associa/on or social or charitable organisa/on with another arbitrator or
counsel for one of the par/es.
iv. The arbitrator was a speaker, moderator or organizer in one or more
conferences, or par/cipated in seminars or working par/es of a
professional, social or charitable organisa/on, with another arbitrator or
counsel to the par/es.

d. Contacts between the arbitrator and one of the par/es

i. The arbitrator has had an ini/al contact with a party, or an affiliate of a

party (or their counsel) prior to appointment, if this contact is limited to
the arbitrator’s availability and qualifica/ons to serve, or to the names of
possible candidates for a chairperson, and did not address the merits or
procedural aspects of the dispute, other than to provide the arbitrator
with a basic understanding of the case.
ii. The arbitrator holds an insignificant amount of shares in one of the
par/es, or an affiliate of one of the par/es, which is publicly listed.
iii. The arbitrator and a manager, director or member of the supervisory
board, or any person having a controlling influence on one of the par/es,
or an affiliate of one of the par/es, have worked together as joint experts,
or in another professional capacity, including as arbitrators in the same
case.
iv. The arbitrator has a rela/onship with one of the par/es or its affiliates
through a social media network.
5. List 2 (Orange List):

a. Previous services for one of the par/es or other involvement in the case
i. The arbitrator has, within the past three years, served as counsel for one
of the par/es, or an affiliate of one of the par/es, or has previously
advised or been consulted by the party, or an affiliate of the party, making
the appointment in an unrelated maYer, but the arbitrator and the party,
or the affiliate of the party, have no ongoing rela/onship.
ii. The arbitrator has, within the past three years, served as counsel against
one of the par/es, or an affiliate of one of the par/es, in an unrelated
maYer.
iii. The arbitrator has, within the past three years, been appointed as
arbitrator on two or more occasions by one of the par/es, or an affiliate
of one of the par/es
iv. The arbitrator’s law firm has, within the past three years, acted for or
against one of the par/es, or an affiliate of one of the par/es, in an
unrelated maYer without the involvement of the arbitrator.
v. The arbitrator currently serves, or has served within the past three years,
as arbitrator in another arbitra/on on a related issue involving one of the
par/es, or an affiliate of one of the par/es.

b. Current services for one of the par/es

i. The arbitrator’s law firm is currently rendering services to one of the

par/es, or to an affiliate of one of the par/es, without crea/ng a
significant commercial rela/onship for the law firm and without the
involvement of the arbitrator.
ii. A law firm or other legal organisa/on that shares significant fees or other
revenues with the arbitrator’s law firm renders services to one of the
par/es, or an affiliate of one of the par/es, before the Arbitral Tribunal.
iii. The arbitrator or their firm represents a party, or an affiliate of one of the
par/es to the arbitra/on, on a regular basis, but such representa/on does
not concern the current dispute.

c. Rela/onship between an arbitrator and another arbitrator or counsel

i. The arbitrator and another arbitrator are lawyers in the same law firm.
ii. The arbitrator and another arbitrator, or the counsel for one of the
par/es, are members of the same law chambers (advocates or barristers).
iii. The arbitrator was, within the past three years, a partner of, or otherwise
affiliated with, another arbitrator or any of the counsel in the arbitra/on.
iv. A lawyer in the arbitrator’s law firm is an arbitrator in another dispute
involving the same party or par/es, or an affiliate of one of the par/es.
 v. A close family member of the arbitrator is a partner or employee of the
law firm represen/ng one of the par/es, but is not assis/ng with the
dispute.
vi. A close personal friendship exists between an arbitrator and a counsel of
a party.
vii. Enmity exists between an arbitrator and counsel appearing in the
arbitra/on.
viii. The arbitrator has, within the past three years, been appointed on more
than three occasions by the same counsel, or the same law firm.
ix. The arbitrator and another arbitrator, or counsel for one of the par/es in
the arbitra/on, currently act or have acted together within the past three
years as co-counsel.

d. Rela/onship between arbitrator and party and others involved in the arbitra/on
i. The arbitrator’s law firm is currently ac/ng adversely to one of the par/es,
or an affiliate of one of the par/es.
ii. The arbitrator has been associated with a party, or an affiliate of one of
the par/es, in a professional capacity, such as a former employee or
partner.
iii. A close personal friendship exists between an arbitrator and a manager or
director or a member of the supervisory board of: a party; an en/ty that
has a direct economic interest in the award to be rendered in the
arbitra/on; or any person having a controlling influence, such as a
controlling shareholder interest, on one of the par/es or an affiliate of
one of the par/es or a witness or expert.
iv. Enmity exists between an arbitrator and a manager or director or a
member of the supervisory board of: a party; an en/ty that has a direct
economic interest in the award; or any person having a controlling
influence in one of the par/es or an affiliate of one of the par/es or a
witness or expert.
v. If the arbitrator is a former judge, they have, within the past three years,
heard a significant case involving one of the par/es, or an affiliate of one
of the par/es.

e. Other circumstances

i. The arbitrator holds shares, either directly or indirectly, that by reason of

number or denomina/on cons/tute a material holding in one of the
par/es, or an affiliate of one of the par/es, this party or affiliate being
publicly listed.
ii. The arbitrator has publicly advocated a posi/on on the case, whether in a
published paper, or speech, or otherwise.
iii. The arbitrator holds a posi/on with the appoin/ng authority with respect
to the dispute.
 f. The arbitrator is a manager, director, or member of the supervisory board, or has
a controlling influence on an affiliate of one of the par/es, where the affiliate is
not directly involved in the maYers in dispute in the arbitra/on.

6. List 3 (Red List):

a. Rela/onship of the arbitrator to the dispute

i. The arbitrator has given legal advice, or provided an expert opinion, on

the dispute to a party or an affiliate of one of the par/es.
ii. The arbitrator had a prior involvement in the dispute.

b. Arbitrator’s direct or indirect interest in the dispute

i. The arbitrator holds shares, either directly or indirectly, in one of the

par/es, or an affiliate of one of the par/es, this party or an affiliate being
privately held.
ii. A close family member of the arbitrator has a significant financial interest
in the outcome of the dispute.
iii. The arbitrator, or a close family member of the arbitrator, has a close
rela/onship with a non-party who may be liable to recourse on the part of
the unsuccessful party in the dispute.

c. Arbitrator’s rela/onship with the par/es or counsel

i. The arbitrator currently represents or advises one of the par/es, or an

affiliate of one of the par/es.
ii. The arbitrator currently represents or advises the lawyer or law firm
ac/ng as counsel for one of the par/es.
iii. The arbitrator is a lawyer in the same law firm as the counsel to one of
the par/es.
iv. The arbitrator is a manager, director, or member of the supervisory board,
or has a controlling influence in an affiliate of one of the par/es, if the
affiliate is directly involved in the maYers in dispute in the arbitra/on.
v. The arbitrator’s law firm had a previous but terminated involvement in
the case without the arbitrator being involved himself or herself.
vi. The arbitrator’s law firm currently has a significant commercial
rela/onship with one of the par/es, or an affiliate of one of the par/es.
vii. The arbitrator has a close family rela/onship with one of the par/es, or
with a manager, director or member of the supervisory board, or any
person having a controlling influence in one of the par/es, or an affiliate
of one of the par/es, or with a counsel represen/ng a party.
 viii. A close family member of the arbitrator has a significant financial or
personal interest in one of the par/es, or an affiliate of one of the par/es.

7. List 4 (Black List):

a. There is an iden/ty between a party and the arbitrator.

Explana&on.— if one of the par/es is a legal en/ty, any legal or physical person
having a controlling influence on the legal en/ty, or a direct economic
interest in, or a duty to indemnify a party for, the award to be rendered in the
arbitra/on, may be considered to bear the iden/ty of such party.

b. The arbitrator is a legal representa/ve or employee of an en/ty that is a party in

the arbitra/on.
c. The arbitrator is a manager, director, or member of the supervisory board, or has
a controlling influence on one of the par/es or an en/ty that has a direct
economic interest in the award to be rendered in the arbitra/on.
d. The arbitrator has a significant financial or personal interest in one of the par/es,
or the outcome of the case.
e. The arbitrator or their firm regularly advises the party, or an affiliate of the party.
 SECOND SCHEDULE
(See sec0on 52)
Model Regula4ons

1. Short 4tle and commencement. –

(1) These regula/ons shall be called the [*] High Court Arbitra/on
Regula/ons, 2024.

(2) They shall come into force at once.

2. Defini4ons.—

(1) In these regula/ons, unless the context otherwise requires,–

(a) “Act” means the Arbitra/on Act, [*].

(b) “Chairperson” means the Chairperson of the Council.
(c) “Chief Jus4ce” means the Chief Jus/ce of the [*] High Court
(d) “Council” means the Arbitra/on Council to be no/fied under
Regula/on 3 and includes within its meaning any commiYee
performing any func/on assigned to it by the Council.
(e) “High Court” means the [*] High Court.
(f) “panel of arbitrators” means the panel of arbitrators maintained by
the Council in accordance with regula/on [*].
(g) "Procedural Regula4ons” means the regula/ons defined in
Regula/on 10.
(h) "Registrar" means the Registrar of the Council.

(2) All other words and expressions used herein but not defined shall have
the same meanings assigned to them in the Act.

3. Arbitra4on Council.—

(1) The Chief Jus/ce shall no/fy a council to be called the Arbitra/on Council
of the [*] High Court, which shall consist of the following:

(a) A re/red judge of the Supreme Court of Pakistan or the [*] High
Court or an eminent person, having special knowledge and
experience in the conduct or administra/on of arbitra/on, to be
nominated by the Chief Jus/ce of the High Court who shall serve as
Chairperson of the Council;
(b) One or more Advocates of the Supreme Court of Pakistan having
knowledge and experience in ins/tu/onal arbitra/on;
 (c) A representa/ve of the [*] High Court Bar Associa/on;
(d) The Advocate General of [*], or their nominee;
(e) One or more experienced arbitra/on prac//oners with knowledge
and experience of arbitra/on; and
(f) The Registrar.

(2) The Council shall not have less than seven members and not more than
21 members, of whom no less than one-third of the members shall be
female members.

(3) The members of the Council shall serve for a three-year term and shall be
eligible for reappointment. Provided that they shall not be re-appointed
for more than one consecu/ve term.

4. Registrar and Deputy Registrars.—

(1) There shall be a Registrar appointed by the Chief Jus/ce, who shall be a
duly qualified advocate of the High Courts of Pakistan.

(2) There may be one or more Deputy Registrars or Assistant Registrars

appointed by the Council depending on the needs of the Council in
carrying out its func/ons.

(3) The terms and condi/ons, salaries, and allowances payable to the
Registrar, Deputy Registrars and Assistant Registrars shall be no less
beneficial than that afforded to similar officers of the High Court.

5. Func4ons of the Council.—

(1) The Council shall have power to do anything consistent with the Act which
it is empowered to do by the High Court, in par/cular:

(a) to act as the appoin/ng authority designated by the High Court

under the Act;

(b) to administer arbitral proceedings governed by these regula/ons

and perform the func/ons conferred on it by such procedural
regula/ons as the High Court may make for such purpose;

(c) to charge fees and publish a schedule of fees and costs in respect of
any func/on performed by the Council;

(d) to keep these regula/ons and any associated schedules of fees and
costs, under review;
 (e) to make recommenda/ons to the Chief Jus/ce as appropriate
concerning the introduc/on of new regula/ons or amendments to
the exis/ng regula/ons; and

(f) to promote the objec/ves of the Council and of arbitra/on

generally.

(2) The Council may assign its func/ons to commiYees made up of three or
more of its members, provided that such members include:

(a) A re/red Judge of the Supreme Court or the High Court, or an

Advocate of the Supreme Court having substan/al knowledge and
experience in ins/tu/onal arbitra/on as its Chairperson; and
(b) The Registrar.

(3) The Registrar, Deputy Registrars or Assistant Registrars shall carry out in
the name of the Council such day to day opera/ons of the Council and
administra/ve func/ons as may be authorized by the Council.

(4) In the performance of its func/ons the Council, its members and its
officers shall at all /mes act independently and without being influenced.

(5) No member or former member of the Council who has a connec/on with
an arbitra/on in rela/on to which the Council exercises any func/ons of
any kind may par/cipate in or influence any decision of the Council
rela/ng to such arbitra/on.

6. Mee4ngs of the Council.—

(1) The Council may meet as ofen as may be considered necessary for
transac/on of its business but shall ordinarily meet at least once in every
quarter at such place, date and /me as may be decided by the Council.

Provided that where the Council receives an applica/on made to it under

the Act read with these regula/ons, it shall meet, or ensure that the
appropriate commiYee assigned with the relevant func/on meets, as
expedi/ously as possible to consider and dispose of such applica/on.

(2) Any member of the Council can choose to aYend a mee/ng of the Council
through videoconference or similar electronic means.

(3) All proceedings of the mee/ngs of the Council shall be entered in a

minute book to be maintained by the Council for such purpose and all the
 minutes shall be signed by the Council or the presiding authority of the
mee/ng, as the case may be, afer the same is duly confirmed.

(4) An extraordinary mee/ng of the Council shall be called on a wriYen no/ce

by at least three Members of the Council or by the Chairperson, as the
case may be.

(5) No/ce of every mee/ng of the Council shall be sent to the members of
the Council, in the case of an ordinary mee/ng preferably before seven
days, and in the case of an extraordinary mee/ng, three days before the
date of the mee/ng, by electronic mail or by courier, and the agenda of
the mee/ng shall be sent preferably five days and two days prior to an
ordinary mee/ng and an extraordinary mee/ng respec/vely.

(6) Three members of the Council are required to be present in person or any
other available mode to cons/tute the quorum for any mee/ng of the
Council:

Provided that if at the /me appointed for the mee/ng the quorum is not
present, the mee/ng shall stand adjourned to a later /me on the same
date or another date as decided by the Chairperson or the presiding
authority, as the case may be, and the mee/ng called afer the adjourned
mee/ng on the basis of the same agenda shall not be required to fulfil the
criteria of a quorum.

(7) Every mee/ng of the Council shall be presided over by the Chairperson
and in his absence, the members present in the mee/ng shall choose a
member from amongst themselves to preside over the mee/ng.

(8) All ques/ons at any mee/ng of the Council shall be determined by a

majority of votes.

(9) Every member of the Council shall have one vote, provided that in case of
a /e, the Chairperson or presiding authority, as the case may be, shall
have a cas/ng vote in addi/on to his ordinary vote.

(10) The Council may adopt any resolu/on by circula/on (including circula/on
through an electronic medium) among all its members and any resolu/on
so circulated and adopted by majority of the Members who have signified
their approval or disapproval of such resolu/on shall be binding as if such
resolu/on had been adopted at a mee/ng of the Council.

(11) Where the Council is of the opinion that it is necessary or expedient so to

do, it may, by resolu/on and for reasons to be recorded in wri/ng, relax
 any of the provisions of these regula/ons with respect to any class or
category of persons.

(12) The provisions of this regula/on shall apply muta&s mutandis to the
mee/ngs of any commiYee assigned with the func/ons of the Council.

(13) Any decision by a commiYee shall be deemed to be a decision by the

Council.

7. Appointment of arbitrators

(1) Upon no/fica/on by the Chief Jus/ce of the designa/on of the Council as
an ins/tu/on under sec/on 13 of the Act, the Council shall func/on as an
appoin/ng authority for the purpose of appointment of arbitrators.

(2) Every applica/on under Sec/on 13 of the Act for appointment of an

arbitrator intended to be made by a party shall be made in the form of a
request for appointment to the Registrar who shall forward the request to
the Council. The request shall include:

(a) the names, addresses, telephone numbers, facsimile numbers, and

electronic mail addresses, if known, of the par/es to the arbitra/on
and their representa/ves, if any;
(b) details of the par/es, including their na/onality where the par/es’
na/onali/es are different;
(c) a reference to the arbitra/on agreement invoked and a copy of the
arbitra/on agreement;
(d) a brief statement describing the nature and circumstances of the
dispute, specifying the relief claimed and, where possible, an ini/al
quan/fica/on of the claim amount;
(e) the relevant provisions of the Act on which the party relies;
(f) any comment regarding qualifica/ons required for the arbitrator as
per the agreement of the par/es or otherwise;
(g) any comment as to the language of the arbitra/on;
(h) payment of the requisite filing fee; and
(i) a confirma/on along with documentary proof that copies of the
request (along with all accompanying documents) have been or are
being delivered to all other par/es to the arbitra/on.

(3) Upon receipt of the request for appointment, the Registrar shall call upon
the responding par/es to submit a response to the request within 10 days
of actual delivery of the request (along with all accompanying documents)
to the responding par/es.
 (4) Afer considering the request for appointment and any response thereto,
the Council shall appoint an arbitrator or arbitrators as the case may be in
accordance with the requirements of sec/on 13 of the Act and with due
regard to the nature and circumstances of the dispute, its monetary value,
the loca/on and language of the par/es and other factors considered
relevant in the circumstances.

(5) In addi/on to requests under Sec/on 13 of the Act, the Council may also
appoint arbitrators on the basis of a joint request by all concerned par/es.

(6) Members of the Council shall not be eligible for appointment as an

arbitrator by the Council under these regula/ons, however, there shall be
no bar on the par/es expressly agreeing to appoint a member as an
arbitrator.

8. Panel of arbitrators. –

(1) The Council shall maintain a panel of arbitrators from amongst persons
who are proficient and willing to serve as arbitrators, for either
interna/onal commercial arbitra/on or non-interna/onal commercial
arbitra/on or both, as may be determined by the Council.

(2) Every member of the panel of arbitrators shall have appropriate exper/se
and experience either in interna/onal commercial arbitra/on or non-
interna/onal commercial arbitra/on or both and shall be of good standing
and character.

(3) An applica/on for empanelment as an arbitrator shall be made in a form

to be prescribed by the Council and shall be submiYed to the Registrar.

(4) An applica/on for empanelment shall be put up by the Registrar before

the Council for scru/ny and considera/on.

9. Empanelment of arbitrators.—

(1) Empanelment of a person on the panel of arbitrators shall either be by

invita/on of the Council, or upon an applica/on being made to the
Council.

(2) Applicants must demonstrate an appropriate level of exper/se and

experience in arbitra/on and be of good standing and character. In
general, applicants must meet the following minimum standards:

(a) at least 10 years post qualifica/on experience as a lawyer

 (b) experience as an arbitrator in five or more cases
(c) experience as a counsel in five or more arbitra/on-related maYers
(d) be aged between 30 and 75 years

(3) The Council shall have the right, in its absolute discre/on, to admit or to
refuse the admission of any person to the panel of arbitrators.

(4) Every applicant shall furnish a statement that they have not been found
guilty of any criminal offence, or of professional misconduct.

(5) The empanelment of an arbitrator with the Council shall be for a period
of five years.

(6) An arbitrator may make a fresh applica/on for re-empanelment along

with the no/fied fee on comple/on of their term, provided that /ll such
/me that the fresh applica/on is decided, the arbitrator shall be deemed
to be empanelled.

(7) The Council may at any /me add new names to the panel of arbitrators or
remove the name of any person from the panel of arbitrators as it deems
fit.

(8) An applica/on for empanelment as an arbitrator shall be accompanied by

the prescribed fee.

10. Administra4on of arbitral proceedings.—

(1) For the purpose of facilita/ng the conduct of arbitral proceedings and its
administra/on, the Council shall draf and recommend to the Chief
Jus/ce, regula/ons of procedure governing arbitral proceedings
(“Procedural Regula4ons”).

(2) Unless the par/es have expressly agreed otherwise, upon no/fica/on by
the Chief Jus/ce of Procedural Regula/ons, the Procedural Regula/ons
shall apply to an arbitra/on where:

(a) The par/es have requested the Council to make an appointment

under sec/on 13 of the Act; or

(b) The par/es have expressly adopted the Procedural Regula/ons for
the administra/on of the arbitral proceedings.

(3) Till such /me as the Procedural Regula/ons are no/fied, an arbitra/on in
connec/on with which the par/es have requested the Council to make an
 appointment under sec/on 13 of the Act shall be conducted on an ad hoc
basis and nothing in these regula/ons shall prevent the arbitral
proceedings from proceeding in accordance with the par/es’ arbitra/on
agreement.

11. Power to relax.—

(1) Where the Council is of the opinion that it is necessary or expedient so to

do, it may, by order and for reasons to be recorded in wri/ng, relax any of
the provisions of these regula/ons with respect to any class or category of
persons.