Answer ... (a) Procedure, including evidence?
The arbitral tribunal is not bound by any strict rules of evidence. The Code of Civil Procedure, 1908 and the Qanun-e-Shahadat Order, 1984 (Law of Evidence) do not apply to arbitral proceedings. (As the arbitral tribunal is a domestic tribunal, it is not bound by the technical rules of procedure of, and strict compliance with, the Evidence Act: Messrs Gul Ahmed Textile Mills Limited, Karachi v Messrs Starko Limited, Karachi – 1981 CLC 1667 Karachi.) The tribunal must act fairly between the parties and fully consider the relevant evidence presented before it. The tribunal has power to administer an oath to the parties and witnesses, and to any party interrogatories if deemed necessary (Section 13 of the Arbitration Act). The tribunal has the power to order the production of documents within the possession or power of the parties, and to do all other things that are deemed necessary (First Schedule of the act).
(b) Interim relief?
Unless the arbitration agreement provides otherwise, Section 27 of the Arbitration Act empowers the arbitrators and umpire to make an interim award if they deem this necessary. In Messrs Burjorjee Cowasjee & Co v New Hampshire Insurance Company (1992 CLC 1269 Karachi), the high court held that arbitrators are not barred from making an interim award.
(c) Parties which do not comply with its orders?
As the Arbitration Act is silent on this, it follows that the tribunal is to seek court assistance in such circumstances.
(d) Issuing partial final awards?
The Arbitration Act uses the term ‘interim award’ at Section 27, and the arbitrator or umpire is empowered to issue such awards. In an earlier referred case (1992 CLC 1269 Karachi), the high court treated the interim award as not only binding, but also enforceable to the extent of the decided issue.
(e) The remedies it can grant in a final award?
There are no limits on the types of damages that are available in arbitration, as long as these are in accordance with the substantive law of the contract.
(f) Interest?
As held by the Supreme Court of Pakistan in A Qutubuddin Khan v Chec Millwala (2014 SCMR 1268), pre-award interest can be awarded by an arbitral tribunal only:
- if there is an express or implied agreement in this regard between the parties;
- on the basis of mercantile usage or statutory provisions; or
- on equitable grounds.
Post-award interest cannot be granted by an arbitral tribunal; only the court has the power to grant such interest under Section 29 of the Arbitration Act.