1. Eckhardt & Co., vs. Mohammed Hanif, PLD 1993 SC 42 (Towards the end of Justice Ajmal Mian’s opinion)
“that unless there are compelling reasons, arbitration clause should be honoured as generally the other party to such an arbitration clause is a foreign party. Section 34 of the Arbitration while dealing with an application in relation to a foreign arbitration clause the Court’s approach should be dynamic. With the development and growth of International Trade and Commerce and due to modernization of communication transport system in the world, the contracts containing such an arbitration clause are very common now a days. The rule that the Court should not lightly release the parties from their bargains, that follows form the sanctity which the Court attaches to contracts must be applied with more vigor to the contract containing a foreign arbitration clause. We should not over look the fact that any breach of a terms of such a contract to which a foreign company or person is a party, will tarnish the image of Pakistan in the comity of nations…”
