Reko Diq case: SC seeks delay in int'l arbitration proceedings
08 February, 2012
ISLAMABAD: The Supreme Court (SC) on Tuesday directed the federal and Balochistan governments to file an application in the International Chamber of Commerce (ICC) and International Centre for Settlement of Investment Disputes (ICSID) for extending the period for nominating arbitrators in the Reko Diq case until the court disposes of the matter. A three-member bench, headed by Chief Justice Iftikhar Muhammad Chaudhry, heard the application filed by the chief of Jamaat-e-Islami's Balochistan chapter, Maulana Abdul Haq Baloch. The petitioner requested the SC to ask the respondents in the case to withdraw from international arbitration over the issue. He said the Tethyan Copper Company Pakistan (TCCP) had committed contempt of court by invoking the international arbitration without intimating the Supreme Court when the case was in court and the TCCP was a beneficiary of its interim order. The Tethyan Copper Company Australia (TCCA) has moved an application in the International Chamber of Commerce (ICC) against federal and provincial governments for rejecting its application to award it a mining licence for the Reko Diq project. Khalid Awner, the counsel for TCCP, told the SC that TCCA, and not TCCP, had sought international arbitration. He added that TCCP is a subsidiary company of TCCA. Referring to the Pak-Australia Bilateral Investment Treaty (BIT), he contended that there was an agreement between the two states to protect the interests of businessmen in both countries. And, he added, if the court passed any restraining order, it would cause a "huge loss" to Pakistan. He said that it would be better for the country to participate in international arbitration proceedings "otherwise, a heavy fine could be imposed on Pakistan". Ahmer Bilal Sufi, counsel for the Balochistan government, suggested the court direct the parties to write to ICC, requesting not to take any further step in international arbitration proceedings since the matter was pending before the SC. Under the international law, he said, only a domestic court was well positioned to rule on the illegality and unlawfulness of any agreement. After hearing the arguments, the court directed federal and Balochistan governments to request ICC and ICSID for not taking further steps in the arbitration process. The court said it would also dispose of the case "as early as possible". The case has been adjourned for two weeks. End.
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