The Supreme Court on Tuesday directed the federal and the Balochistan governments to make a request to the International Centre for Settlement of Investment Disputes (ICSID), Washington and International Chamber of Commerce (ICC) not to take further steps and extend the period for nomination of the arbitrator in the Reko Diq matter until it was finally disposed of by the Supreme Court of Pakistan, where it was under adjudication since 2007.
A three-member bench comprising Chief Justice Iftikhar Muhammad Chaudhry, Justice Khilji Arif Hussain and Justice Tariq Parvez passed this order while hearing an application, requesting the court to direct the respondent companies of Reko Diq case to withdraw from the international arbitration. Tethyan Copper Company Australia (TCCA) has moved an application in the ICC and ICSID against the Pakistan’s federal and Balochistan governments for rejecting its application seeking award of mining licence of Reko Diq project.
During the hearing, Khalid Anwar, counsel for Tethyan Copper Company Pakistan (Pvt) Limited (TCCP) informed the court that not only had the TCCP approached the international arbitrator but also the TCCA. Referring to Pak-Australia Bilateral Investment Treaty (BIT), he contended that there was an agreement between the two states to protect the interest of businessmen of both the states and if the SXC passed a restraining order in the Reko Diq case, there would be huge loss to Pakistan. He said it would be better for the country to participate in the proceedings of international court of arbitration on the Reko Diq matter, otherwise heavy fine would be imposed on Pakistan. He cited various cases, in which the court had stopped the government from participating in the proceedings of international arbitrations, but later the country had to pay a heavy price due to the restraining orders of those courts. He opposed the grant of stay by the SC and contended that whatever status both the companies – TCCP and TCCA – might enjoy, the TCCA had not been represented by any one and any order passed by the court to this effect would likely to cause further legal complications domestically and internationally. He said the TCCP was the subsidiary company of the TCCA.
