ISLAMABAD – The Supreme Court of Pakistan has suspended a recent Islamabad High Court (IHC) order that had halted interim relief in a major arbitration enforcement case involving foreign awards. This move reinstates the earlier restraining order, keeping it in effect until the matter is fully heard.
A two-judge bench, comprising Justice Syed Mansoor Ali Shah and Justice Aqeel Ahmed Abbasi, issued the suspension order on Saturday. The case involves Frontier Holdings Limited and Petroleum Exploration Pvt Ltd (PEPL), who are locked in a commercial dispute stemming from two arbitral awards issued by the International Chamber of Commerce (ICC), London.
The initial restraining order, granted by a single IHC judge in April 2025, had barred PEPL from transferring its interests in the Badin Fields or creating any financial liabilities on the asset. However, a Division Bench of the IHC later suspended this relief in May. The Supreme Court has now overruled that suspension, restoring the original relief until the case is taken up by a three-judge bench in two weeks.
Frontier Holdings argued that interim relief is essential to protect the integrity of the enforcement process under the New York Convention, which Pakistan has ratified. The company also said the IHC Division Bench acted prematurely by interfering in enforcement proceedings without properly addressing legal exceptions.
Citing past Supreme Court rulings, the petitioner’s legal team emphasized that Pakistani courts must follow a pro-enforcement approach for foreign arbitral awards. They further stated that the appeal filed by PEPL was not legally maintainable under the Law Reforms Ordinance, 1972, since the 2011 Arbitration Act has its own built-in appellate structure.
The outcome of this case could have far-reaching implications for how Pakistan handles foreign arbitration cases and may influence international investor confidence in the country’s legal system.