Wakilii

Ambitious Construction Company Limited v Uganda National Culture Center (Miscellaneous Application No. 441 of 2020)

High Court · [2022] UGCOMMC 83 · 2022 Application Granted AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Application to stay court proceedings and refer dispute to arbitration arising from civil suit for breach of contract
Decision
Dispute referred to arbitration; underlying civil suit closed

Observed later treatment

Cited — treatment unverified cited in 2 (treatment unverified) Sequitur — Uganda’s citator · Derived from citing cases in the Wakilii corpus — not an assertion that this case is good law.

Citator coverage is limited to judgments in the Wakilii corpus and source-matched treatment records. Absence of a signal is not an assertion that the case remains good law.

No adverse treatment recorded Cited 2 times with no adverse treatment recorded; not yet tested on the merits. Citations fading — 3 citing cases on record, 3 in the most recent three data years. Derived from citing cases in the Wakilii corpus — a deterministic signal, not legal advice.

AI-generated summary. This summary was generated by AI from the full text of the judgment. It may contain errors or omissions—always read the source judgment before relying on it.

Holding

The court granted the application to refer the dispute to arbitration under Section 5 of the Arbitration and Conciliation Act. The applicant was justified in filing the suit because the respondent had ignored attempts to agree on an adjudicator and no appointing authority under CADER was functional at the time. The court appointed Praxis Conflict Centre to assign an arbitrator. Rather than staying the suit, the court closed it as having served its purpose, with costs to abide the arbitration outcome.

Outcome

Dispute referred to arbitration; underlying civil suit closed

Facts

The parties entered into a contract on 7 August 2017 for renovation of the National Theatre premises. The contract contained a dispute resolution clause requiring reference to an adjudicator agreed by the parties, failing which the matter would be referred to arbitration. When a dispute arose over contract performance, the applicant wrote to the respondent to agree on an adjudicator but received no response. The applicant then obtained an adjudicator from the Uganda Institute of Professional Engineers (Engineer Hans Mwesigwa) and communicated the appointment to the respondent, who again ignored it. The applicant filed Civil Suit No. 914 of 2019 and this application seeking referral to arbitration and appointment of an arbitrator. The respondent opposed the application, arguing the suit was wrongfully filed given the arbitration clause and should be dismissed with costs.

Issues

  1. Whether the court should stay the suit and refer the matter to arbitration under Section 5 of the Arbitration and Conciliation Act.
  2. Whether the applicant was justified in filing the suit given the existence of an arbitration clause in the contract.
  3. Whether the court should appoint an arbitrator where parties have failed to agree on one.
  4. Whether the suit should be stayed or dismissed after referring the matter to arbitration.

Orders

  • The dispute between the parties is referred to arbitration.
  • High Court Civil Suit No. 914 of 2019 is closed as it has served its purpose.
  • The Court appoints the Firm of Praxis Conflict Centre who shall assign a suitable Arbitrator of the dispute between the parties.
  • The costs of this application and of the suit shall abide the order of arbitration as to costs.

Rules and key headnotes

Arbitration — Stay of Legal Proceedings — Preconditions under Section 5 of Arbitration and Conciliation Act
A party seeking reference of a matter to arbitration under Section 5 of the Arbitration and Conciliation Act must show that there is a binding and enforceable arbitration agreement between the parties; that an arbitrable dispute exists between the parties before the court; that the application is made after a defence has been filed; and both parties have been given a hearing.
Arbitration — Appointment of Arbitrator — Recourse to Court When Appointing Authority Not Functional
Where parties fail to agree on appointment of an arbitrator and the statutory appointing authority (CADER) is not functional or its Governing Council is not in place, a party may properly approach the court to seek appointment of an arbitrator.
Arbitration — Filing Suit Seeking Referral to Arbitration — When Justified
Where one party to an arbitration agreement has consistently ignored attempts to agree on an adjudicator or arbitrator as required by the contract, the other party is justified in approaching the court to seek referral of the dispute to arbitration and appointment of an arbitrator, and such filing does not constitute an abuse of process.
Arbitration — Stay of Proceedings — Closure of Suit After Referral to Arbitration
After referring a dispute to arbitration under Section 5 of the Arbitration and Conciliation Act, it is unnecessary to stay the underlying suit as no useful purpose is served by keeping it alive; the suit should instead be closed as having served its purpose, with costs to abide the arbitration outcome.
Civil Procedure — Jurisdiction — Court's Power to Stay Proceedings Where Arbitration Agreement Exists
The fact that a matter involving an arbitrable dispute has been brought before the court does not deprive the court of jurisdiction; Section 5 of the Arbitration and Conciliation Act expressly provides the court with power to stay proceedings and refer the matter to arbitration where the statutory conditions are satisfied.

Legislation cited (7)

Cases cited (3)

  • Yan Jian Uganda Company Ltd v Siwa Builders and Engineers (Miscellaneous Application No. 1147 of 2014)
  • Sobetra (U) Ltd v West Nile Electrification Company Ltd (Miscellaneous Application No. 10 of 2010)
  • International Development Consultants Ltd v Jimmy Muyanja and others (Miscellaneous Application No. 133 of 2018)

Cases citing this judgment (2)

How later Ugandan judgments in the Wakilii corpus have cited this case. Treatment labels come from Sequitur — Uganda’s citator — each backed by a verbatim span from the citing judgment, and are not an assertion that this case is, or is not, good law.

Full judgment

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The original judgment as reported. Read the original PDF before relying on any passage.

Ambitious Construction Company Limited v Uganda National Culture Center (Miscellaneous Application No. 441 of 2020) [2022] UGCommC 83 (26 September 2022)
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.