Buildmast Engineering Limited v Board Of Governors Of St. Mary’s Ediofe Girls Secondary School (Miscellaneous Cause 101 of 2025)
Observed later treatment
No later-treatment classification is recorded for this judgment.
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Holding
The court found that a dispute existed between the parties arising from a construction contract. The contractual adjudication clause was declared inoperative because the Centre for Arbitration and Dispute Resolution (CADER), designated as the appointing authority, had been abolished and re-established as a department under the Arbitration and Conciliation (Amendment) Act 2024 and was not yet fully constituted. The court appointed ICAMEK as the appointing authority to appoint an arbitrator and referred the dispute to arbitration in accordance with the parties' contractual arbitration agreement.
Outcome
Dispute referred to arbitration with ICAMEK appointed as appointing authority for the arbitrator
Facts
On 6th September 2023, the applicant and respondent entered into a construction contract for a storeyed girls' dormitory at St. Mary's Ediofe Girls Secondary School in Arua District. The contract provided that disputes would be referred to an adjudicator appointed by CADER. The applicant mobilized resources and commenced construction. A dispute arose when the applicant alleged the respondent unlawfully denied site access and re-advertised the project without terminating the contract or compensating the applicant. The respondent contended the applicant failed to perform its obligations during the 12-month contract period, absented itself from the site for over 6 months, and the contract expired naturally. The applicant sought court intervention to appoint an adjudicator or declare the adjudication clause inoperative because CADER had been abolished and re-established under the Arbitration and Conciliation (Amendment) Act 2024 and was not yet fully constituted.
Issues
- Whether there exists a dispute between the parties arising from the construction contract dated 6th September, 2023?
- Whether the Applicant is entitled to the Court's intervention to appoint an Adjudicator, or declare the Adjudication clause inoperative, and pursue its claim by way of arbitration or civil proceedings?
- What remedies are available to the parties?
Orders
- The dispute between the parties is referred to arbitration.
- The Court hereby appoints ICAMEK as an appointing authority under the Arbitration and Conciliation Act to appoint an arbitrator.
- Costs of this application shall abide by the outcome of the arbitration.
Rules and key headnotes
Legislation cited (12)
- Constitution of the Republic of Uganda 1995 Article 126(2)(e)
- Arbitration and Conciliation Act Cap. 5 s.11
- Arbitration and Conciliation Act Cap. 5 s.9
- Arbitration and Conciliation Act Cap. 5 s.11(2)
- Arbitration and Conciliation Act Cap. 5 s.11(4)(a)
- Arbitration and Conciliation Act Cap. 5 s.2(1)
- Arbitration and Conciliation Act Cap. 5 s.40
- Arbitration and Conciliation Act Cap. 5 s.39
- Arbitration and Conciliation (Amendment) Act 2024
- Civil Procedure Act Cap. 282 s.98
- Civil Procedure Rules SI 71-1 Order 52 rules 1 and 3
- Civil Procedure Rules Order 6 rule 28
Cases cited (5)
- Uganda Telecom Ltd v ZTE Corporation (Supreme Court Civil Appeal No. 3 of 2017)
- Col. (Rtd) Besigye Kizza v Museveni Yoweri Kaguta & the Electoral Commission (Election Petition No. 1 of 2001)
- Mukisa Biscuit Manufacturing Co. v West End [1969] EA 696
- International Development Consultants Ltd v Jimmy Muyanja & Others (Miscellaneous Cause No. 133 of 2018)
- AC Yafeng Construction Company Ltd v The Living World Assembly Ltd & 2 Others (Civil Suit No. 739 of 2021)
Full judgment
The original judgment as reported. Read the original PDF before relying on any passage.