Pakistan saves $100 million by winning case in London court: Daily Times

* Case the result of a 1995 agreement for the construction of housing facilities for Pakistani pilgrims in Makkah 
* Judgement says govt wasn’t party to agreement

ISLAMABAD: Pakistan has saved an amount of $100 million – including an award of $70 million, costs and interest – by winning a case in the Queen's Court of London against a Saudi company, Dallah Real Estate and Tourism Holding Company, a Religious Affairs Ministry official here said.

According to a judgement announced by the Queen's Court, the court accepted the request of the government of Pakistan by setting aside an ex parte order issued by Mr Justice Christopher Clarke earlier. The Commercial Court of Queen's Bench Division of the High Court of Justice, London, had announced on August 1 a reserved judgement in the case of Dallah Real Estate and Tourism Holding Company, a Saudi Arabian company of the Al Baraka Group, and the Ministry of Religious Affairs, Government of Pakistan.

According to details given by a senior official of the Ministry of Religious Affairs, the matter was heard in London from July 8 to 10, 2008. The case was the result of a proposal made in 1995 by Mr. Shezi Naqvi, a director of one of the Al-Baraka companies to the government of Pakistan that Dallah be permitted to provide a housing complex in Makkah/Medina on term lease for use of Pakistani pilgrims.

Agreement: In July 1995, an agreement was executed whereby Dallah was to acquire land within Makkah for construction of housing facilities for Pakistanis to perform Haj and Umra. 

In January 1996, an Ordinance was promulgated to establish the Awami Haj Trust (AHT). The AHT entered into an agreement with Dallah. When the then president Farooq Ahmed Khan Laghari dismissed the government of the day, the ordinance was not re-promulgated. As a result, AHT ceased to exist.

The agreement between Dallah and AHT had an arbitration clause. Dallah commenced arbitration proceedings against the government claiming $70 million in damages. A three-member arbitration tribunal consisting of Dr Ghalib Mahmasssani, Lord Mustill and former Chief Justice of Pakistan Justice Dr Naseem Hassan Shah heard the case. 

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