MTC Successfully Represents Qalandar’s Parent Company Before Lahore High Court

Mohsin Tayebaly & Co. acted on behalf of Qatar Lubricants W.L.L., the parent company of the Lahore Qalandars, a Pakistan Super League franchise, seeking rectification of register of the shareholding of the company, K.R.R., which it is alleged had been fraudulently transferred.

The Respondents filed an application seeking to refer the matter to arbitration and simultaneously stay the proceedings pending before the Hon’ble Lahore High Court. The Lahore High Court, after detailed hearing and submissions from all parties, has dismissed the Respondents’ application.

The Lahore High Court has held that those parties that are not signatories to the arbitration agreement cannot seek to benefit from the same and if an arbitration agreement has been signed by certain individuals on behalf of a corporate entity, then those individuals cannot claim benefit under the arbitration agreement in their individual capacity. The court has held that bifurcation of the judicial action cannot be permitted when the arbitration agreement does not bind all parties to the dispute.

Further, it was held that as per Section 6 of the Companies Act, 2017, the company court is competent to examine, lead evidence and adjudicate on any matter falling within the parameters of the Companies Act, 2017. Moreover, it has also been held that the exclusive jurisdiction of the Companies Act, 2017, has an overriding effect over the provisions of the Arbitration Act, 1940.

MTC’s team in this matter was led by Arshad M. Tayebaly, Senior Partner, and included Arshad Nazir Mirza, Partner, Saad Amir, Associate Partner, Talha Javed, Senior Associate, Shakoh Zulqarnain, Senior Associate and Amna Iqbal, Associate.