Access Mobility International Limited and Others v Dcoin Branch of Danat Gulf Company for General Trading Limited and Others (Miscellaneous Application 2109 of 2025)
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, disputes falling within its scope must be referred to arbitration under section 5 of the Arbitration and Conciliation Act. Questions of whether non-signatory parties are bound by the arbitration agreement can be determined by the arbitral tribunal. The court referred the entire dispute to arbitration and dismissed the civil suit, leaving jurisdictional claims to be decided by the arbitral tribunal.
Outcome
Civil suit dismissed and dispute referred to arbitration; jurisdictional claims concerning non-signatory parties 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 24 November 2023 for the supply of 5 kg 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, special and general damages. According to the plaint, the 4th applicant introduced the parties, the respondents paid USD 15,000, and the 1st and 2nd applicants were to relinquish 1 kg of the 5 kg of gold to the custody of the 3rd applicant. The 3rd respondent witnessed the transaction. The respondents alleged the applicants failed to meet their obligations under the agreement. The applicants filed a defence and this application seeking to refer the dispute to arbitration under the arbitration clause in the agreement.
Issues
- 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.
- 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 shall be in the decision of the arbitral tribunal.
Rules and key headnotes
Legislation cited (7)
Cases cited (12)
- Network Civil Engineering Contractors Ltd & Paul Mwirumubi v Francis Mujjuni (Miscellaneous Application No. 3093 of 2023)
- National Social Security Fund v Alcon International Ltd (Civil Appeal No. 02 of 2008)
- Francis Xavier Muhoozi t/a Kabale Kobil Station v National Bank of Commerce (U) Ltd [2007] UGCommC 37
- Sumadhura Technologies Ltd v Advan Mbabazi (Miscellaneous Application No. 2399 of 2024)
- Ndife v Kampala University [2024] UGHCCD 172
- Koboko District Local Government v Okujjo Swali (Miscellaneous Application No. 0001 of 2016)
- Babcon (U) Ltd v Mbale Resort Hotel (Civil Appeal No. 87 of 2011)
- Fulgensius Mungereza v Africa Central (Civil Appeal No. 34 of 2001)
- Smile Communications Uganda Ltd v ATC Uganda Ltd & Anor (High Court Appeal Civil No. 0004 of 2022)
- Heyam and Another Vs Darwins Ltd [1942] 1 All ER 337
- Premium Nafta Products Ltd and Others Vs Fili Shipping Company Ltd and 30 Others [2007] UKHL 40
- Thomson-CSF SA vs American Arbitration Association and Evans & Sutherland Computer Corporation (64 F 3d 773, 776 (2d Cir 1995)
Full judgment
The original judgment as reported. Read the original PDF before relying on any passage.