AGL 23.81 Decreased By ▼ -0.54 (-2.22%)
AIRLINK 103.60 Increased By ▲ 0.60 (0.58%)
BOP 5.66 Decreased By ▼ -0.05 (-0.88%)
CNERGY 3.93 Decreased By ▼ -0.03 (-0.76%)
DCL 8.36 Decreased By ▼ -0.14 (-1.65%)
DFML 41.70 Decreased By ▼ -1.29 (-3%)
DGKC 88.30 Decreased By ▼ -0.60 (-0.67%)
FCCL 22.70 No Change ▼ 0.00 (0%)
FFBL 40.88 Increased By ▲ 2.68 (7.02%)
FFL 8.96 Decreased By ▼ -0.15 (-1.65%)
HUBC 160.49 Decreased By ▼ -3.21 (-1.96%)
HUMNL 11.46 Decreased By ▼ -0.34 (-2.88%)
KEL 4.82 Decreased By ▼ -0.03 (-0.62%)
KOSM 4.09 Decreased By ▼ -0.04 (-0.97%)
MLCF 38.60 Increased By ▲ 0.19 (0.49%)
NBP 53.60 Increased By ▲ 0.75 (1.42%)
OGDC 130.60 Decreased By ▼ -2.29 (-1.72%)
PAEL 25.36 Decreased By ▼ -0.29 (-1.13%)
PIBTL 6.25 Decreased By ▼ -0.13 (-2.04%)
PPL 118.90 Decreased By ▼ -0.60 (-0.5%)
PRL 23.95 Decreased By ▼ -0.65 (-2.64%)
PTC 12.92 Increased By ▲ 0.28 (2.22%)
SEARL 59.11 Decreased By ▼ -0.49 (-0.82%)
TELE 7.43 Decreased By ▼ -0.06 (-0.8%)
TOMCL 34.99 Decreased By ▼ -0.16 (-0.46%)
TPLP 8.72 Decreased By ▼ -0.13 (-1.47%)
TREET 15.90 Increased By ▲ 0.10 (0.63%)
TRG 55.95 Decreased By ▼ -1.95 (-3.37%)
UNITY 34.95 Increased By ▲ 0.06 (0.17%)
WTL 1.20 Decreased By ▼ -0.02 (-1.64%)
BR100 8,536 Decreased By -8.5 (-0.1%)
BR30 27,187 Decreased By -204 (-0.74%)
KSE100 79,944 Decreased By -48.3 (-0.06%)
KSE30 25,500 Decreased By -43.9 (-0.17%)

KARACHI: Blitz has responded to the PCB’s claim by insisting that legal proceedings have not ended. Blitz’s barrister, Ali Zafar, Blitz legal counsel from Mandviwalla & Zafar, stated that the “agreement between Blitz and PCB clearly specifies that the law applicable to arbitration will be Pakistan Law which is conceded by PCB.”

In a press release issued by the Blitz, Arbitration award made by the sole arbitrator by LCIA is to be made rule of court for the award to be final and implementable as an award under Arbitration Act, 1940.

The agreement between Blitz and PCB clearly specifies that law applicable to arbitration will be Pakistan Law which is conceded by PCB. It is pertinent to mention that though the award has been announced since December 22, 2021 but to date PCB has neither obtained the certified copies of the award nor filed for the award to be made rule of court under Arbitration Act 1940.

Until the award is made rule of court the arbitration award is not payable and cannot be implemented. As per Arbitration Act 1940 until the LCIA award is made rule of court it is not recognized or final or liable to be implemented or in any way any amounts become payable by Blitz.

It is hence shocking that PCB is declaring Blitz to be the defaulter when no amount is due to PCB until award is made rule of court and in fact blackmailing Blitz to force them not seek legal remedy under Pakistan law by filing objections to the award under Arbitration Act 1940. In fact Blitz intends to pursue case of Defamation and another case of harassment and black mail against PCB.

Arbitration Act 1940 permits Blitz to file objections to the award under section 14, 15, 16 which it intends to do and pursue and these objections which pertain to serious errors by the Arbitrator.

It is further clarified that the award includes amounts which are interest payments, gross up taxes and penalties not royalty payments which the award acknowledged have been paid in full and final. There are many serious objections and errors made by the Arbitrator like:

i) Enforcement of interest amounts under the sharia law principles,

ii) Late payment surcharges on gross tax payable.

iii) Arbitration fee and legal costs.

iv) Award amounts in foreign currency when Blitz is a local company and PCB is also governed under Pakistan law and Agreement is in local currency where all to date have been made only in local currency under the Agreements.

Further the process to make it rule of court and filing objections by Blitz includes right of appeals up to Supreme Court in making award the rule of court which will span over a long time period.

Copyright Business Recorder, 2022

Comments

Comments are closed.