Alliance Technical Services Ltd v Busitema University (Arbitration Cause 14 of 2023)
Observed later treatment
No later-treatment classification is recorded for this judgment.
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Holding
The court held that an Adjudicator's award issued under the Arbitration and Conciliation Act must be registered and enforced where the applicant has complied with procedural requirements and the time for setting aside the award has expired. The contract termination by Busitema University was wrongful as the contractor had not abandoned the site and had renewed the performance guarantee before expiry. The court registered the award as a decree, ordering reinstatement of the contract and payment of outstanding certified sums.
Outcome
Adjudicator's award registered and enforceable as a court decree; contract between Alliance Technical Services Limited and Busitema University reinstated
Facts
Alliance Technical Services Limited entered into a construction contract with Busitema University on 14 June 2021 for a Lecture and Laboratory Block at the Maritime Institute, Namasagali Campus. The contract sum was UGX 12,139,651,555, later increased to UGX 13,946,017,732. On 10 January 2023, the University terminated the contract citing alleged site abandonment for over 28 days and failure to maintain a valid performance guarantee. The contractor initiated adjudication proceedings through the Uganda Institution of Professional Engineers (UIPE), which appointed Eng. Serunjogi Steven. On 5 May 2023, the Adjudicator found in favour of the contractor, determining that site daily logs showed consistent staff presence throughout November 2022, disproving abandonment, and that the performance guarantee had been renewed on 29 November 2022 and received by the consultant on 30 November 2022, before the original security expired. The Adjudicator ordered contract reinstatement, an injunction against liquidation of bank guarantees, and payment of UGX 1,094,577,032 certified under Interim Payment Certificate No. 2. The University failed to comply, prompting this application for registration and enforcement of the award.
Issues
- Whether the Adjudicator's award should be registered and confirmed by court as binding for purposes of enforcement.
Orders
- The Adjudicator's Award dated 5th May 2023 is hereby registered as a decree of this Court for purposes of enforcement.
- The costs of this application shall follow the event and are awarded to the Applicant.
Rules and key headnotes
Legislation cited (11)
- Arbitration and Conciliation Act Cap 5 s.2(1)(b)
- Arbitration and Conciliation Act Cap 5 s.2(1)(d)
- Arbitration and Conciliation Act Cap 5 s.9
- Arbitration and Conciliation Act Cap 5 s.34
- Arbitration and Conciliation Act Cap 5 s.35
- Arbitration and Conciliation Act Cap 5 s.35(1)
- Arbitration and Conciliation Act Cap 5 s.35(2)
- Arbitration and Conciliation Act Cap 5 s.36
- Arbitration and Conciliation Act Cap 5 s.73
- Civil Procedure Rules S.I 71-1 Order 15 rule 3
- Judicature Act
Cases cited (2)
- Media Airtime Limited v Uganda Broadcasting Corporation (HCCS No. 752 of 2008)
- Kyarimpa v Nassozi (C/S No. 794 of 2016)
Full judgment
The original judgment as reported. Read the original PDF before relying on any passage.