PHC nullifies single-arbitrator appointment

PESHAWAR:

The Peshawar High Court (PHC) has overturned a lower court's decision regarding the appointment of a single arbitrator to review construction and renovation work at the University of Engineering and Technology (UET) Jalozai Campus.

In a written verdict, the bench, headed by Justice Dr Khurshid Iqbal, directed that two arbitrators must be appointed through formal consultation between the parties.

The case was heard on an appeal filed by UET against a decision of the session court, which had allowed the construction company involved to continue arbitration proceedings for payments exceeding Rs440 million. The company had submitted a petition seeking payment adjustments for the work it had completed at the university.

During the proceedings, UET's lawyer, Asadullah Khan Yousafzai, argued that the construction work had been delayed, taking 42 months to complete instead of the originally planned 18 months. He added that the claim for payments was now time-barred.

The court was informed that Dr Shahid Mahmood had been appointed to review the construction costs and work, but his appointment had been made without consultation between the parties, which was deemed improper. Orders had previously been issued on November 14, allowing the arbitrator to continue, prompting UET's appeal in the High Court.