We recently achieved a significant win for our client, South Asia Pakistan Terminals Limited (SAPT), Pakistan’s largest container terminal operator, by obtaining a restraining injunction against Karachi Port Trust (KPT) in an ongoing dispute.
SAPT is the country’s first deep-water container terminal, designed to accommodate super post panamax ships. The US$1.4 billion terminal operates as a partnership between Hutchison Ports Pakistan, a member of the Hutchison Ports network, and Karachi Port Trust.
SAPT and KPT had entered into an agreement for SAPT to construct and operate Pakistan’s first deep-water container terminal at Kemari, Karachi. Under the agreement, both parties took on obligations tied to an implementation schedule. As security for meeting its obligations, SAPT provided a $2 million performance guarantee to KPT.
The parties’ obligations were interdependent under the agreement – delays by one party inevitably delayed the other. However, despite this interdependency, KPT claimed SAPT failed to meet agreed completion dates. Due to the alleged delays, KPT threatened to draw down on SAPT’s $2 million guarantee funds.
As counsel for SAPT, we filed suit in the Sindh High Court seeking an injunction to prevent KPT from taking the guarantee funds. The Court granted an ad-interim order restraining KPT from calling on SAPT’s guarantee.
This was an important result for SAPT, as courts rarely restrict parties from drawing on guarantees and set a high bar for granting such relief. Our Dispute Resolution Partner, Omer Soomro, called the order “a significant victory protecting our client’s rights while it continues to work to resolve a complex, high-value dispute with a state entity.”
The team acting for SAPT was led by Pakistan partner Omer Soomro.
Contact Omer Soomro today if you require our assistance on a complex commercial dispute or to seek a restraining injunction.
This article is not legal advice; it provides information of general interest about current legal issues.
RIAA Barker Gillette is Pakistan’s premier law firm, with an on-the-ground presence in four major cities in Pakistan: Karachi, Islamabad, Lahore, and Peshawar, and affiliated offices in Dubai (DIFC) and London.
The firm practices in all areas of corporate, commercial and dispute resolution law. Leading international legal directories consistently recognize the firm as a top-tier law firm in Pakistan.
RIAA Barker Gillette is the exclusive member firm in Pakistan for Lex Mundi, the world’s leading network of independent law firms with in-depth experience in over 125 countries worldwide.
Read more
