The NWFP government had filed a petition to seek implementation of the award given by an Arbitral Tribunal, headed by former Chief Justice Ajmal Mian on 9.10.2006. According to the award Wapda was to make payment of Rs 22 billion to NWFP, on 09.01.2007 as the first tranche out of its net hydel profit share of Rs 110 billion. However, on 12.12.2006, Wapda took up the case in the court of Civil Judge Islamabad and served a notice upon the NWFP government pleading that the validity and affect of the award need to be determined by the court.
Presenting his argument in the Apex Court counsel for NWFP government Abdul Hafiz Pirzada maintained that the award rendered by the Arbitral Tribunal is final and binding on all three parities and that the proceedings initiated by Wapda in civil court Islamabad under Section 14 of the Arbitration Act are of no legal effect.
He said the Civil Court Islamabad has wrongfully assumed the jurisdiction and the dispute can only be resolved by the Supreme Court which has an exclusive original Constitution jurisdiction under Articles 184 (1) to adjudicate upon dispute between the Federal, Wapda and the provincial government.
He further pleaded that the Federal Government and Wapda are jointly liable to pay the Net Hydel profit as computed and determined in the mode and manner by the award on 09.10.2006.
He said the Constitution of Pakistan entitles the government of NWFP to receive the Net Hydel Profit, in entirety with the corresponding obligation of the Federal Government and Wapda to pay the same as per article 161 (2) of the Constitution. In the notices, the court directed the Federation and Wapda to submit their reply in two months time.