ABS & Co is pleased to announce that it has successfully secured an award of Pakistan Rupees 721 million for Mughals Pakistan (Pvt.) Ltd. against Pakistan Real Estate Investment & Management Company (PRIMACO), a state-owned company operating under the administrative control of the Employees Old-Age Benefits Institution (EOBI). The arbitration arose out of a FIDIC based construction contract executed between the parties for EOBI mall / mixed use development project.
The arbitral proceedings, conducted under the Arbitration Act, 1940 before a three-member tribunal, involved complex questions of contractual performance, delay attribution, and financial entitlements under interim payment certificates. The Claimant, represented by ABS & Co, sought relief in relation to extension of time, wrongful deduction of liquidated damages, non-payment of certified and uncertified amounts, release of guarantees and retention money, and interest on delayed payments.
Following detailed pleadings and hearings, the tribunal issued its Final Award in January 2025 in favour of the Claimant. The tribunal accepted that delays in project execution were attributable to the Respondent’s conduct and that the Claimant was entitled to a full extension of time. As a result, the imposition and recovery of liquidated damages by PRIMACO was declared unlawful and without contractual justification. The tribunal directed that all deducted LDs be refunded.
The tribunal further ordered PRIMACO to make payment of amounts previously certified under Interim Payment Certificates but withheld, as well as additional sums relating to variation works and other amounts that had not been certified. The release of retention money and performance security was also directed, following recognition of the Claimant’s completion of contractual obligations. The tribunal found that interest was payable on delayed payments and amounts wrongfully withheld, and awarded the same accordingly. PRIMACO’s counterclaims were rejected in their entirety, and the tribunal ruled that each party would bear its own costs.
A critical feature of the case was the application of the prevention principle and the doctrine of time at large, which the tribunal accepted in light of employer-driven disruptions and failure to provide timely access and instructions. ABS & Co’s team demonstrated that the contractual machinery for enforcing time for completion had broken down due to the Respondent’s own conduct, and that the Claimant’s performance was in line with what was reasonably expected under the circumstances.
The matter was led by Bakhtawar Bilal Soofi. Barrister Hasan Nawaz from Hasan Law Chambers acted as co-counsel. The legal team drew on ABS & Co’s deep expertise in construction disputes and infrastructure contracts, integrating both procedural and technical arguments to advance the Claimant’s case.
ABS & Co is consistently ranked in Band 1 for Construction Disputes by The Legal 500, and this result adds to the firm’s growing portfolio of successful outcomes in large-scale public sector and infrastructure arbitrations across Pakistan.
