Wakilii

Access Mobility International Limited and Others v Dcoin Branch of Danat Gulf Company for General Trading Limited and Others [2026] UGCOMMC 196

High Court · 2026 Application Granted — Matter Referred to Arbitration AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Application to refer dispute to arbitration and dismiss civil suit for breach of arbitration clause
Decision
Civil suit dismissed and matter referred to arbitration; jurisdictional questions regarding non-signatories to be determined by arbitral tribunal

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

The High Court held that where parties have entered into a valid arbitration agreement, the court must refer the dispute to arbitration unless the agreement is null and void, inoperative, or incapable of being performed. Questions regarding whether non-signatories are bound by the arbitration clause are jurisdictional matters to be determined by the arbitral tribunal itself. The application was allowed, the civil suit dismissed, and the matter referred to arbitration.

Outcome

Civil suit dismissed and matter referred to arbitration; jurisdictional questions regarding non-signatories to be determined by arbitral tribunal

Facts

The 1st applicant and 1st respondent entered into a Sales and Purchase Agreement dated 9 October 2023 and executed on 24 November 2023 for the supply of 5kg of gold. The agreement contained an arbitration clause at clause 11. On 1 April 2025, the respondents filed Civil Suit No. 0379 of 2025 in the High Court against the applicants, seeking declarations for breach of contract and damages. The respondents alleged that the applicants failed to meet their obligations under the agreement, including relinquishing 1kg of gold to the custody of the 3rd applicant and making further payments. The applicants filed a defence and then brought this application seeking referral of the dispute to arbitration and dismissal of the suit on the ground that it violated the arbitration clause. The respondents opposed, arguing that some parties to the suit were not signatories to the arbitration agreement and that the arbitration clause was entered into under a fundamental mistake.

Issues

  1. Whether the dispute arising from Civil Suit No. 0379 of 2025 should be referred to arbitration in accordance with the arbitration clause agreed between the parties.
  2. Whether Civil Suit No. 0379 of 2025 should be dismissed as it violates the arbitration clause.

Orders

  • Application allowed.
  • Civil Suit No. 0379 of 2025 dismissed.
  • Dispute in Civil Suit No. 0379 of 2025 referred to arbitration.
  • Costs to be in the decision of the arbitral tribunal.

Rules and key headnotes

Arbitration Agreements — Mandatory Referral to Arbitration — Section 5 Arbitration and Conciliation Act
Where proceedings are brought in a matter which is the subject of an arbitration agreement, the court is mandatorily required to refer the matter to arbitration unless the arbitration agreement is null and void, inoperative, or incapable of being performed.
Arbitration Agreements — Party Autonomy — Binding Nature of Arbitration Clauses
Parties who voluntarily agree on arbitration as their chosen dispute resolution mechanism are bound by that agreement and cannot abandon it without justification. Arbitration clauses are an expression of freedom of contract and, in the absence of illegality, courts ought not to interfere with or alter the parties' intentions.
Arbitration Agreements — Non-Signatories — Jurisdictional Questions for Arbitral Tribunal
Questions regarding whether non-signatories to an arbitration agreement are bound by it, including theories of incorporation by reference, assignment, agency, alter ego, or estoppel, are jurisdictional matters to be determined by the arbitral tribunal itself, not by the court at the referral stage.
Jurisdiction — High Court Jurisdiction Subject to Arbitration Agreements
The unlimited original jurisdiction of the High Court under Article 139(1) of the Constitution is not unfettered and may be circumscribed by statutory provisions, including those created by arbitration agreements under the Arbitration and Conciliation Act. The unlimited jurisdiction of the High Court cannot override the Arbitration and Conciliation Act.
Arbitration Agreements — Scope of Arbitration Clause — Related Agreements
An arbitration clause providing that disputes arising out of or in connection with the main agreement, or related to any agreement concluded as a result of the main agreement, shall be settled by arbitration is sufficiently broad to cover disputes arising from related transactions and agreements flowing from the principal contract.

Legislation cited (7)

Cases cited (12)

Full judgment

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Access Mobility International Limited and Others v Dcoin Branch of Danat Gulf Company for General Trading Limited and Others 2026 UGCommC 196 (12 February 2026)
Source: this page presents Wakilii’s issue analysis and metadata for a publicly reported Ugandan judgment. Any AI-generated summary is marked as such. Judgment text is sourced from the Uganda Legal Information Institute (ulii.org). Wakilii is not affiliated with ULII.