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  "title": "Recognition and Enforcement (Arbitration Agreement and Foreign Arbitral) Act, 2011",
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  "text": "Page 1 of 8 \r\n \r\n \r\n \r\nTHE RECOGNITION AND ENFORCEMENT (ARBITRATION \r\nAGREEMENTS AND FOREIGN ARBITRAL AWARDS) ACT, \r\n2011 \r\n \r\n \r\n \r\n \r\nCONTENTS \r\n                                                                                              \r\n1. Short title, extent, application and commencement \r\n2. Definitions \r\n3. Jurisdiction of Court \r\n4. Enforcement of arbitration agreements \r\n5. Furnishing of documents \r\n6. Enforcement of foreign arbitral award \r\n7. Unenforceable foreign arbitral awards \r\n8. Inconsistency \r\n9. Powers to make Rules \r\n10. Repeal and saving \r\nSCHEDULE \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n\r\nPage 2 of 8 \r\n \r\nTHE RECOGNITION AND ENFORCEMENT (ARBITRATION \r\nAGREEMENTS AND FOREIGN ARBITRAL AWARDS) ACT, 2011 \r\n \r\nACT NO. XVII of 2011 \r\n[15th July, 2011] \r\n \r\nAn Act to provide for the recognition and enforcement of arbitration agreements and foreign \r\narbitral awards \r\n \r\n WHEREAS, Pakistan is a signatory to the United Nations Convention on the Recognition and  \r\nEnforcement of Foreign Arbitral Awards, 1958; \r\n \r\n WHEREAS, it is expedient to provide for the recognition and enforcement of arbitration \r\nagreements and foreign arbitral awards pursuant to  the said Convention and for matters connected \r\ntherewith; \r\n \r\nIt is hereby enacted as follows:⸻ \r\n \r\n 1.  Short title, extent, application and commencement.⸻(1) This Act may be  called  the \r\nRecognition and Enforcement (Arbitration Agreements and Foreign Arbitral Awards) Act, 2011. \r\n (2)   It extends to the whole of Pakistan. \r\n (3)   It shall apply to arbitration agreements made before, on or after the date of commencement \r\nof this Act. \r\n (4)   It shall not apply to foreign arbitral awards made before the 14th day of July, 2005.  \r\n (5)  It shall come into force at once. \r\n \r\n2. Definitions.⸻ In this Act, unless there is anything repugnant in the subject or context,⸻ \r\n  (a) “Article” means an Article of Convention; \r\n \r\n  (b) “Contracting State” means a State which is a Party to the Convention; \r\n \r\n(c) “Convention” means the United Nations Convention on the Recognition and \r\nEnforcement of Foreign Arbitral Awards, done at New York on 10th June, \r\n1958, set forth in the Schedule to this Act; \r\n \r\n(d) “Court” means a High Court and such other superior court in Pakistan as may \r\nbe notified by the Federal Government in the official Gazette; and \r\n \r\n(e) “foreign arbitral award” means a foreign arbitral award made in a Contracting \r\nState and such other State as may be notified by the Federal Government, in the \r\nofficial Gazette. \r\n \r\n3. Jurisdiction of Court.⸻ (1) Notwithstanding anything contained in any other law for the \r\ntime being in force, the Court shall exercise exclusive jurisdiction to adjudicate and settle matters \r\nrelated to or arising from this Act. \r\nPage 3 of 8 \r\n \r\n (2) An application to stay legal proceedings pursuant to  the provisions  of Article II  of the  \r\nConvention may be filed in the Court, in which the legal proceedings are pending.  \r\n \r\n(3) In the exercise of its jurisdiction, the Court shall,⸻ \r\n \r\n(a) follow the procedure as nearly as may be provided for the Code of Civil \r\nProcedure, 1908 (Act V of 1908); and \r\n \r\n(b) have all the powers vested in a civil court under the Code of Civil Procedure, \r\n1908 (Act V of 1908).  \r\n \r\n 4. Enforcement of arbitration agreements.—(1) A party to an arbitration agreement \r\nagainst whom legal proceedings have been brought in respect of a matter which is covered by the \r\narbitration agreement may, upon notice to the other party to the proceedings, apply to the court in \r\nwhich the proceedings have been brought to stay the proceedings in so far as they concern that matter. \r\n \r\n (2) On an application under sub­section (1), the court shall refer the parties to arbitration, \r\nunless it finds that the arbitration agreement is null and void, in operative or incapable of being \r\nperformed.\r\n 5. Furnishing of documents.⸻(1) The party applying for recognition and enforcement of  \r\nforeign arbitral award under this Act shall, at the time of the application, furnish documents to the Court \r\nin accordance with Article IV of the Convention. \r\n \r\n 6. Enforcement of foreign arbitral award.⸻(1) Unless the Court pursuant to section 7, \r\nrefuses the application seeking recognition and enforcement of a foreign arbitral award, the Court \r\nshall recognise and enforce the award in the same manner as a judgment or order of a court in Pakistan. \r\n \r\n (2) A foreign arbitral award which is enforceable under this Act, shall be treated as binding \r\nfor all purposes on the persons as between whom it was made, and may accordingly be relied on by \r\nany of those persons by way of defence, set off or otherwise in any legal proceedings in Pakistan. \r\n7. Unenforceable foreign arbitral awards.⸻ The recognition and enforcement of a foreign \r\narbitral award shall not be refused except in accordance with Article V of the Convention. \r\n8. Inconsistency. ⸻ In the event of any inconsistency between this Act and the Convention, \r\nthe Convention shall prevail to the extent of the inconsistency. \r\n \r\n9. Powers to make Rules.  The Federal Government may, by notification in the official \r\nGazette, make rules to carry out the purposes of this Act. \r\n \r\n10. Repeal and s aving.⸻(1) The Arbitration (Protocol and Convention) Act, 1937 (VI of \r\n1937) (hereinafter in this section referred to as “the Act”) is hereby repealed. \r\n \r\n(2) Notwithstanding the repeal of the Act, it shall continue to have effect in relation to foreign \r\narbitral awards made⸻ \r\n (a) before the date of commencement of this Act; and \r\n \r\n  (b) within the meaning of section 2 of the Act which are not foreign arbitral \r\nawards within the meaning of section 2 of this Act. \r\nPage 4 of 8 \r\n \r\nSCHEDULE \r\n \r\n[See Section 2 (a)] \r\n \r\nCONVENTION ON THE RECOGNITION AND ENFORCEMENT OF \r\nFOREIGN ARBITRAL AWARDS \r\n \r\nDone at New York on 10 June, 1958 \r\nEntry into force: 7 June, 1959 \r\n \r\nARTICLE I \r\n \r\n1. This Convention shall apply to the recognition and enforcement of arbitral awards made in \r\nthe territory or a State other than the State where the recognition and enforcement of such awards are \r\nsought, and arising out of differences between persons, whether physical or legal. It shall also apply \r\nto arbitral awards not considered as domestic awards in the State where their recognition and \r\nenforcement are sought. \r\n \r\n2. The term “arbitral awards” shall include not only awards made by arbitrators appointed for \r\neach case but also those made by permanent arbitral bodies to which the parties have submitted. \r\n \r\n3. When signing, ratifying or acceding to this Convention, or notifying extension under article \r\nX hereof, any State may on the basis of reciprocity declare that it will apply the Convention to the \r\nrecognition and enforcement of awards made only in the territory of another Contracting State. It may  \r\nalso  declare  that  it  will  apply  the  Convention  only  to  differences  arising  out  of  legal \r\nrelationships, whether contractual or not, which are considered as commercial under the national law \r\nof the State making such declaration. \r\n \r\nARTICLE II \r\n \r\n1.  Each  Contracting State  shall recognize  an  agreement  in  writing under  which  the  parties \r\nundertake to submit to arbitration all or any differences which have arisen or which may arise between \r\nthem in respect of defined legal relationship, whether contractual or not, concerning a subject matter \r\ncapable of settlement by arbitration. \r\n \r\n \r\n2. The term “agreement in writing ” shall include an arbitral clause in a contract or an \r\narbitration agreement, signed by the parties or contained in an exchange of letters or telegrams. \r\n \r\n3. The court of a Contracting State, when seized of an action in a matter in respect of which \r\nthe parties have made an agreement within the meaning of this article shall, at the request of one of \r\nthe parties, refer the parties to arbitration, unless it finds that the said agreement is null and void, \r\ninoperative or incapable of being performed. \r\n \r\nARTICLE III \r\n \r\nEach Contracting State shall recognize arbitral awards as binding and enforce them in \r\naccordance with the rules of procedure of the territory where the award is relied upon, under the \r\nconditions laid down in the following articles. There shall not be imposed substantially more onerous \r\nPage 5 of 8 \r\n \r\nconditions or higher fees or charges on the recognition or enforcement of arbitral award to which this \r\nConvention applies than are imposed on the recognition or enforcement of domestic arbitral awards. \r\n \r\nARTICLE IV \r\n \r\n1. To obtain the  recognition and enforcement  mentioned in the  preceding article, the  party \r\napplying for recognition and enforcement shall, at the time of the application, supply:⸻ \r\n \r\n(a) The duly authenticated original award or a duly certified copy thereof; \r\n \r\n(b) The original agreement referred to in article II or a duly certified copy thereof. \r\n \r\n2. If the said award or agreement is not made in an official language of the country in which \r\nthe award is relied upon, the party applying for recognition and enforcement of the award shall \r\nproduce a translation of these documents into such language. The translation shall be certified by an \r\nofficial or sworn translator or by a diplomatic or consular agent. \r\n \r\nARTICLE V \r\n \r\n1. Recognition and enforcement of the award may be refused, at the request of the party against \r\nwhom it is invoked, only if that party furnishes to the competent authority where the recognition and \r\nenforcement is sought, proof that: ⸻ \r\n \r\n(a) The parties to the agreement referred to in article II were, under the law \r\napplicable to them, under some incapacity, or the said agreement is not valid \r\nunder the law to which the parties have subjected it or, failing any indication \r\nthereon, under the law of the country where the award was made; or \r\n \r\n(b)  The party against whom the  award  is  invoked  was  not  given  proper  notice  \r\nof  the appointment of the arbitrator or of the arbitration proceedings or was \r\notherwise unable to present his case; or \r\n \r\n(c) The award deals with a difference not contemplated by or not falling within the \r\nterms of the submission to arbitration, or it contains decisions on matters  \r\nbeyond the scope of the submission to arbitration, provided that, if the decisions \r\non matters submitted to arbitration, can be separated f rom those not so \r\nsubmitted, that part of the award which contains decisions on matters submitted \r\nto arbitration may be recognized and enforced; or \r\n \r\n(d)  The composition of the arbitral authority or the arbitral procedure was not in \r\naccordance with the agreement of the parties, or, failing such agreement, was \r\nnot in accordance with the law of the country where the arbitration took place; \r\nor \r\n \r\n(e) The award has not yet become binding on the parties, or has been set aside or \r\nsuspended by a competent authority i f the country in which, or under the law \r\nof which, that award was made. \r\n \r\n2. Recognition and enforcement of an arbitral award may also be refused if the competent \r\nauthority in the country where recognition and enforcement is sought finds that:⸻ \r\nPage 6 of 8 \r\n \r\n \r\n(a) The subject matter of the difference is not capable of settlement by arbitration under the \r\nlaw of that country; or \r\n \r\n(b) The recognition or enforcement of the award would be contrary to the public policy of \r\nthat country. \r\n \r\nARTICLE VI \r\n \r\nIf an application for the setting, aside or suspension of the award has been made to a competent \r\nauthority referred to in article V (1) (e), the authority before which the award is sought to be relied \r\nupon may, if it considers it proper, adjourn the decision on the enforcement of the award and may \r\nalso, on the application of the party claiming enforcement of the award , order the other party to give \r\nsuitable security. \r\n \r\nARTICLE VII \r\n \r\n1. The provisions of the present Convention shall not affect the validity of multil ateral or \r\nbilateral agreements  concerning the  recognition  and  enforcement  of  arbitral awards  entered  into  \r\nby  the Contracting States nor deprive any interested party of any right he may have to avail himself \r\nof an arbitral award in the manner and to the extent allowed by the law or the treaties of the country \r\nwhere such award is sought to be relied upon. \r\n \r\n2. The Geneva Protocol on Arbitration Clauses of 1923 and the Geneva Convention on the \r\nExecution of Foreign Arbitral Awards of 1927 shall cease t o have effect between contracting States \r\non their becoming bound and to the extent that they become bound, by this Convention. \r\n \r\nARTICLE VIII \r\n \r\n1.  This  Convention  shall  be  open­until  31st  December  1958  for  signature  on  behalf  of \r\nany Member of the United Nations and also on behalf of any other State which is or hereafter becomes \r\na member of any specialized agency of the United Nations, or which is or hereafter becomes a party \r\nto the Statute of the International Court of Justice, or any other  State to which an invitation has been \r\naddressed by the General Assembly of the United Nations. \r\n \r\n2. This Convention shall be ratified and the instrument of ratification shall be deposited with \r\nthe Secretary­General of the United Nations. \r\n \r\nARTICLE IX \r\n \r\n 1. This Convention shall be open for accession to all States referred to in article VIII. \r\n \r\n 2. Accession shall be effected by the deposit of an instrument of accession with the Secretary­ \r\nGeneral of the United Nations. \r\nARTICLE X \r\n \r\n1. Any State may, at the time of signature, ratification or accession declare that this Convention \r\nshall extent to all or any of the territories for the international relations of which it is responsible. Such \r\na declaration shall take effect when the Convention enters into force for the State concerned. \r\n \r\nPage 7 of 8 \r\n \r\n2. At any time there after any such extension shall be made by notification addressed to the \r\nSecretary­General of the United Nations and shall take effect as from the ninetieth day after the day \r\nof receipt by the Secretary­General o f the United Nations of this notification, or as from the date of \r\nentry into force of the Convention for the State concerned, whichever is the later. \r\n \r\n3. With respect to those territories to which this Convention is not extended at the time of \r\nsignature, ratification or accession, each state concerned shall consider the possibility of taking the \r\nnecessary steps in order to extent the application of this Convention to such territories, subject, where \r\nnecessary for Constitutional reasons, to the consent of the Governments of such territories. \r\n \r\nARTICLE XI \r\n \r\n In the case of a federal or non­unitary State, the following provisions shall apply:⸻ \r\n \r\n(a) With respect to those articles of this Convention that come within the legislative \r\njurisdiction of the federal authority, the obligations of the federal Government \r\nshall to this extent be the same as those of Contracting States which are not \r\nfederal States; \r\n \r\n(b)  With respect to those articles of this Convention that come within the legislative \r\njurisdiction of constituent states or provinces which are not, under the \r\nconstitutional system of the federation, bound to take legislative action, the \r\nfederal Government shall bring such articles with a favourable \r\nrecommendation to the notice of the appropriate authorities of constituent states \r\nor provinces at the earliest possible moment; \r\n \r\n (c)  A Federal State Party to this Convention shall, at the request of any other \r\nContracting State transmitted through the Secretary­General of the United \r\nNations, supply a statement of the  law and practice  of the  federation and its \r\nconstituent  units in reg ard to any particular provision of this Convention, \r\nshowing the extent to which effect has been given to that provision by \r\nlegislative or other action. \r\n \r\nARTICLE XII \r\n \r\n1. This Convention shall come into force on the ninetieth day following the date of deposit of \r\nthe third instrument of ratification or accession. \r\n \r\n2. For each State ratifying or acceding to this Convention after the deposit of the third \r\ninstrument of ratification or accession, this Convention shall enter into force on the ninetieth day after \r\ndeposit by such State of its instrument of ratification or accession. \r\n \r\n \r\nARTICLE XIII \r\n \r\n1. Any Contracting State may denounce this Convention by a written notification to the \r\nSecretary­General of the United Nations Denunciation shall taken effect one year after the date of \r\nreceipt of the notification by the Secretary­General. \r\n \r\n2. Any State wh ich has made a declaration or notification under Article  X may, at any time \r\nthereafter, by  notification  to  the  Secretary­General  of  the  United  Nations,  declare  that  this \r\nPage 8 of 8 \r\n \r\nConvention shall cease to extend to the territory concerned one year after the date of the receipt of the \r\nnotification by the Secretary­General. \r\n \r\n3. This Convention shall continue to be applicable to arbitral awards in respect of which \r\nrecognition or enforcement proceedings have been instituted before the denunciation takes effect. \r\n \r\nARTICLE XIV \r\n \r\n A Contracting State shall not be entitled to avail itself of the present Convention against other \r\nContracting States except to the extent that it is itself bound to apply the denunciation take effect.  \r\n \r\nARTICLE XV \r\n The Secretary­General of the United Nations shall notify the States contemplated in Article  \r\nVIII of the following:— \r\n \r\n(a) signatures and ratifications in accordance with Article VIII; \r\n \r\n(b)  accessions in accordance with Article IX; \r\n \r\n(c)   declarations and notifications under Articles I, X and XI; \r\n \r\n(d)  the date upon which this Convention enters into force in accordance with Article \r\nXII; and \r\n \r\n(e)  denunciations and notifications in accordance with Article XIII. \r\nARTICLE XVI \r\n \r\n1. This Convention, of which the Chinese, English, French, Russian and Spanish texts shall \r\nbe equally authentic, shall be deposited in the archives of the United Nations. \r\n \r\n2. The Secretary­General  of the United Nations shall transmit a certified copy of the \r\nConvention to the States contemplated in Article VIII. \r\n \r\n                                                                 \r\n____________ \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n RGN Dated 27-02-2026",
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