Mohammed v Roko Construction Ltd [2014] UGSC 2
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Holding
On a second appeal, the Supreme Court considered whether the Court of Appeal denied the appellant a fair hearing. It held that the Court of Appeal breached natural justice and rule 33(10) of its Rules because Justice Nshimye, who never participated in hearing the appeal, formed part of the panel that signed the ruling, while the justice who presided over the hearing did not sign. It further held that the Court of Appeal contravened the mandatory rule 102(c) by deciding the appeal on a ground of illegality not set out in the memorandum without affording the parties an opportunity to be heard. The appeal was allowed, the Court of Appeal's orders set aside, and the matter remitted for rehearing by a differently constituted coram.
Facts
The appellant engaged the respondent to construct a residential house at Kololo, Kampala, for an agreed sum, with completion due by 28 February 2006. The respondent contended a standard building agreement and a Bill of Quantities were executed; the appellant admitted signing the Bill of Quantities but denied signing the main agreement. The appellant defaulted in payments, and after a notice and resumption, the respondent terminated the contract on 16 July 2007 and referred the dispute to arbitration. After the appellant did not respond to proposals, CADER compulsorily appointed an arbitrator under section 11(4)(c) of the Arbitration and Conciliation Act. The arbitrator ordered the appellant to pay the respondent for work done plus general damages with interest. The High Court (Commercial Division) set aside the award, finding the parties had excluded the arbitration clause so the arbitrator lacked jurisdiction. The Court of Appeal reversed that decision. The ruling delivered on 20 September 2012 was signed by Justice Nshimye, who had not participated in the hearing on 15 May 2012, while the presiding Deputy Chief Justice who heard it did not sign.
Issues
- Whether the appellant was denied a fair hearing by the Court of Appeal.
- Whether the Court of Appeal's ruling was vitiated because a justice who did not participate in the hearing formed part of the panel that decided and signed it.
- Whether the Court of Appeal could decide the appeal on a ground of illegality not raised in the memorandum without first hearing the parties on it.
Orders
- Grounds one and three of the appeal succeed.
- The appeal is allowed.
- The orders of the Court of Appeal are set aside.
- The matter is returned to the Court of Appeal to constitute a suitable different coram to hear and decide the appeal in accordance with the established procedures.
- Each party to bear their own costs.
Key headnotes
Legislation cited (7)
- Arbitration and Conciliation Act s.11(4)(c)
- Arbitration and Conciliation Act, First Schedule rule 13
- Constitution of Uganda art.28(1)
- Constitution of Uganda art.135
- Rules of the Court of Appeal rule 33
- Rules of the Court of Appeal rule 33(10)
- Rules of the Court of Appeal rule 102(c)
Cases cited (6)
- Makula International Ltd v H.E. Cardinal Nsubuga & Another (Civil Appeal No. 4 of 1981)
- Komakech Geoffrey & Another v Rose Akol Okullo & 2 Others (Civil Appeal No. 21 of 2010)
- Re Election For Stann Greek West Electrical Divisions (1991) 1 LRC (Const.) 119
- Kamurasi vs. Accord Properties (2000) 1 EA9
- In Re Pinochet Urgate II (1999) I ALLER 577
- H. Singh vs. S. S. Dhiman (1951) 18 EALA 75