ABS & Co successfully represented Nunchi Marine Pte Ltd before the High Court of Sindh, Karachi, in proceedings seeking recognition and enforcement of a foreign arbitral award rendered by the Singapore International Arbitration Centre (SIAC).
The award, dated 9 April 2024, arose out of a crude oil supply contract between Nunchi Marine and Cnergyico PK Limited (formerly Byco Petroleum) for a consignment of 55,000 metric tons of Senipah Blend Crude Oil valued at USD 38.5 million. After partial payment, Nunchi Marine initiated SIAC arbitration in Singapore under the contract’s arbitration clause governed by Singapore law.
During the arbitration, Cnergyico initially appeared and nominated its co-arbitrator but subsequently ceased participation. Despite being granted multiple extensions and opportunities to file a defence, the respondent failed to engage counsel or present its case. The SIAC tribunal therefore proceeded ex parte and issued a final award directing Cnergyico to pay USD 15,081,354.27 in principal, together with interest at 3-month LIBOR + 3% per annum, and costs amounting to USD 227,477.26 and SGD 469,865.69.
Before the High Court, Cnergyico resisted enforcement on the ground that the award violated Article 10A of the Constitution (right to fair trial) and was contrary to public policy under Article V(2)(b) of the New York Convention. The Court rejected these objections, holding that the respondent had been duly served, afforded several opportunities to present its case, and had failed to avail them. The plea of lack of natural justice was therefore misconceived and untenable.
In a detailed judgment dated 12 September 2025, the Chief Justice of the Sindh High Court recognized and enforced the SIAC award under Section 6 of the Recognition and Enforcement (Arbitration Agreements and Foreign Arbitral Awards) Act, 2011, read with the New York Convention (1958). The Court reaffirmed Pakistan’s pro-enforcement policy and emphasized that judicial interference in the enforcement of international arbitral awards must remain minimal—consistent with Supreme Court jurisprudence in Taisei Corporation v. A.M. Construction Company (Pvt.) Ltd. and Orient Power Company v. Sui Northern Gas Pipelines Ltd.
The judgment marks another significant precedent for the enforcement of foreign arbitral awards in Pakistan and underscores the judiciary’s commitment to upholding international arbitration standards.
ABS & Co’s dispute resolution team acted for Nunchi Marine in these proceedings.
The matter was handled by Partner Bakhtawar Bilal Soofi, with strategic support and execution by Waqar Ahmad and Abdullah Azaam Naqvi.
