Wakilii

Bayeti Farm Enterprises & Anor v Transition Grant Services (CAD ARB 4 of 2009)

Tribunal · [2009] UGCADER 1 · 2009 Application Granted AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Application for compulsory appointment of a single arbitrator under the Arbitration and Conciliation Act
Decision
Arbitrator appointed to hear dispute between parties pursuant to arbitration clause in contract

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

Held that the existence of a pending court matter does not extinguish an arbitration clause. The Civil Procedure Act does not apply to Section 11 Arbitration and Conciliation Act applications, which fall outside the purview of the High Court and Magistrates Courts. Where an arbitration clause exists, counsel are obligated to bring it to the court's attention to allow referral to arbitration under Section 5 of the Arbitration and Conciliation Act. Application granted and arbitrator appointed.

Outcome

Arbitrator appointed to hear dispute between parties pursuant to arbitration clause in contract

Facts

The applicants and respondent entered into a contract on 28 June 2006 containing an arbitration clause requiring disputes to be submitted to arbitration under CADER. A dispute arose and the applicants' lawyers wrote to the respondent on 27 October 2008 proposing two nominee arbitrators. The respondent did not respond to the request for arbitration. The respondent opposed the application on grounds that it conflicted with a pending High Court suit (HCCS No. 147/2008) between related parties, would violate the sub judice rule, and created multiplicity of suits similar to another CADER matter (CAD/ARB No. 2/2009). The applicants sought compulsory appointment of an arbitrator under the Arbitration and Conciliation Act.

Issues

  1. Whether an order should be made for the compulsory appointment of an arbitrator.
  2. Whether the existence of a pending High Court suit between related parties extinguishes the subsistence of an arbitration clause.
  3. Whether the Civil Procedure Act applies to applications under Section 11 of the Arbitration and Conciliation Act.

Orders

  • Application granted.
  • Mr. Stephen Musisi appointed as arbitrator.
  • Should Mr. Stephen Musisi decline appointment under Section 12(1) ACA on grounds of impartiality, Mr. Samuel Mayanja or Rachel Kabala shall be deemed appointed in sequential order.
  • Arbitrator reminded to sign Declaration of Impartiality and Party Undertaking Agreement and file same with CADER upon assuming jurisdiction.
  • Arbitrator to return file to CADER for archiving upon completion of case.
  • All monies regarding arbitration to be submitted through CADER.
  • Costs of application to be borne by the Respondent.

Rules and key headnotes

Arbitration & ADR — Compulsory Appointment of Arbitrator — Effect of Pending Court Proceedings
The existence of a pending court matter does not extinguish the subsistence of an arbitration clause, and there is no provision stating that pending court proceedings prevent the compulsory appointment of an arbitrator under the Arbitration and Conciliation Act.
Arbitration & ADR — Relationship Between Court Proceedings and Arbitration — Counsel's Duty
Where an arbitration clause exists affecting a matter pending before the courts, counsel are obligated to bring the clause to the attention of the court to allow the court to refer affected matters to arbitration under Section 5 of the Arbitration and Conciliation Act.
Civil Procedure — Application of Civil Procedure Act — Arbitration Proceedings
The Civil Procedure Act has no application to Section 11 Arbitration and Conciliation Act applications because its purview under Section 1 applies only to the High Court and Magistrates Courts, not to arbitration tribunals.
Arbitration & ADR — Role of Courts — Judicial Oversight
The role of the court under the Arbitration and Conciliation Act is to support the arbitral process by exercising judicial oversight over the arbitral process.

Legislation cited (6)

  • Arbitration and Conciliation Act Cap.4 s.5
  • Arbitration and Conciliation Act Cap.4 s.11
  • Arbitration and Conciliation Act Cap.4 s.12(1)
  • Arbitration and Conciliation Act Cap.4 s.16(6)
  • Civil Procedure Act Cap.71 s.1
  • Civil Procedure Act Cap.71 s.6

Cases cited (3)

  • Bayeti Farm Enterprises Ltd v Transition Grant Technologies and Ark-Chick Ltd (CAD ARB No. 2 of 2009)
  • Ark-Chick Ltd v Joseph Muyeti Zema (HCCS No. 147 of 2008)
  • Comtel Integrators Africa Ltd v J & M Airport Road Hotel/Apartments and Leisure Centre Ltd (CAD ARB No. 1 of 2009)

Full judgment

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

Bayeti Farm Enterprises & Anor v Transition Grant Services (CAD ARB 4 of 2009) [2009] UGCADER 1 (5 April 2009)
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.