Pakistan
On June 4, 2025, the Supreme Court of Pakistan upheld a Lahore High Court (LHC) ruling that barred civil courts from recording fresh evidence in arbitration-related disputes, dismissing Pakistan Railways’ petition challenging the verdict. A three-member bench headed by Chief Justice Yahya Afridi and comprising Justice Muhammad Shafi Siddiqui and Justice Miangul Hassan Aurangzeb affirmed the LHC’s March 4 judgment. The LHC had overturned a 2022 civil court order directing the framing of issues and the recording of evidence regarding an arbitral award issued on July 2, 2021.
The original dispute arose from a contract signed on November 1, 2017, which was referred to a two-member arbitral tribunal. After the tribunal issued its award, Pakistan Railways filed objections in September 2021, seeking its annulment and referral back to arbitration. The Supreme Court's decision reinforces the principle that arbitration awards should not be subject to extensive judicial intervention, thereby promoting the efficiency and finality of the arbitration process.
