OLMT compensation dispute LHC annuls plea against civil court’s verdict



Staff Reporter


The Lahore High Court (LHC) on Thursday upheld the civil court’s verdict for arbitration in Orange Line Metro Train (OLMT) compensation dispute and dismissed the Lahore Development Authority (LDA) appeal against the lower court’s verdict.

The Lahore Development Authority (LDA) had challenged the civil court’s order for allowing arbitration in compensation dispute between the authority and the contractor for demanding additional compensatory payments following a delay in the Orange Line Metro Train (OLMT) project due to litigation.

A private construction company had demanded the payment of additional compensation worth Rs1.98 billion after a delay of 22 months and 11 days in the execution of the OLMT project.

The civil court gave the verdict in favour of the contractor and issued directives to resolve the dispute by filing an arbitration agreement between the parties besides appointing an arbitrator.

Later, the LDA challenged the order by arguing that there was no violation of the agreement as the delay was caused due to litigation.

The LDA said that there was no dispute between the parties, hence, the civil court’s order to resolve the matter through arbitration was illegal.

The LHC’s Justice Abid Hussain remarked that the controversies have clearly stipulated the existence of a dispute between the parties in accordance with the records. The existence of a dispute could not be ruled out on the basis of LDA’s argument.

He observed that the matter shall be referred to the arbitrator to ascertain whether the contractor’s demand for additional compensatory payment was legal or not.

Dismissing the LDA’s appeal, Justice Abid Hussain upheld the civil court’s order for arbitration on a dispute regarding compensation payments demanded by the contractor for a delay in the execution of the OLMT project.

Meanwhile, a two-member women robbers gang was busted by police and looted cash was recovered from their possession here on Thursday.

The spokesperson for the Dophin Force informed that the women gang used to snatch cash from women in Akbar Chowk in Township area.

The police on complaint of affectee, conducted operation and held the culprits at Mochipur Stop.

The Dolphin Force also recovered looted cash from detainees who were being investigation after registering a case against them.

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