Wakilii

China Jiangxi International Ltd v Kwalnet Technology Ltd (CAD ARB 18 of 2013)

Tribunal · [2013] UGCADER 4 · 2013 Application Granted AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Application for appointment of arbitrator under arbitration clause in subcontracts
Decision
Arbitrator appointed to resolve dispute between parties

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

Held that where parties to a subcontract with an arbitration clause fail to agree on the appointment of an arbitrator and have no procedural agreement for such appointment, Section 11(2)(b) of the Arbitration and Conciliation Act governs. The tribunal appointed an arbitrator after finding that both counsel failed to guide their clients through the normative process of agreeing on an arbitrator appointment. Each party to bear own costs due to oversight by both counsel.

Outcome

Arbitrator appointed to resolve dispute between parties

Facts

The Respondent sub-contracted the Applicant for fiber civil works and installation services on the MTN Uganda Optical Fiber Tx Project 2013 under three contracts executed on 25 May 2013. The contracts covered different geographical terrains: 3.16km between Mubende Town and Mubende Hill; 32.77km between Mubende Hill and Nabingora; and 40.1km between Kakabala and Kyenjojo. All contracts contained a common arbitration clause requiring disputes to be submitted to an arbitrator before court referral. A dispute arose regarding the amount paid or payable to the Applicant, quality of works finalized, and which party abandoned contractual obligations. On 25 July 2013, Respondent's counsel expressed preference for arbitration. On 22 August 2013, Applicant's counsel indicated intention to apply to CADER for appointment of an arbitrator. The Respondent later proposed that an MTN Uganda Ltd representative be appointed as arbitrator. The Applicant applied to CADER for appointment of an arbitrator after the Respondent failed to respond to the 22 August 2013 request.

Issues

  1. Whether the parties had agreed on a procedure for appointing an arbitrator.
  2. Whether the application was properly brought under Section 11(4)(a) of the Arbitration and Conciliation Act.
  3. Whether CADER should appoint an arbitrator where the parties failed to agree on the appointment.

Orders

  • Application granted.
  • Mr. Victor Odongo appointed as arbitrator.
  • Should Mr. Victor Odongo decline appointment under Section 12(1) ACA on grounds of impartiality, Dr. Anania Mbabazi or Patricia Basaza Wasswa shall be the replacement arbitrator.
  • Each party to bear its own costs.

Rules and key headnotes

Arbitration — Appointment of Arbitrator — Commencement of Arbitral Proceedings
Unless the parties agree otherwise, arbitral proceedings in respect of a particular dispute commence on the date on which a request for the dispute to be referred to arbitration is received by the respondent.
Arbitration — Appointment of Arbitrator — Procedure Where No Agreement
Where parties have not agreed on a procedure for appointing an arbitrator, Section 11(2)(b) of the Arbitration and Conciliation Act governs the appointment process when the parties fail to agree on the arbitrator.
Arbitration — Appointment of Arbitrator — Duty of Counsel
It falls as a duty upon respective counsel to guide the parties on realization of the appointment of an arbitrator, including submitting lists of nominees for consideration, inviting joint application to an arbitration institution for nominee arbitrators, or inviting delegation of the appointment to an arbitration institution.
Arbitration — Appointment of Arbitrator — Neutrality Requirement
An arbitration institution's task is to ensure that only neutral arbitrators are appointed, not beneficiaries of the works or project in dispute, to preside over the dispute.

Legislation cited (5)

Cases cited (1)

  • B.M. Steels v Kilembe Mines (CAD ARB 10 of 2004)

Full judgment

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

China Jiangxi International Ltd v Kwalnet Technology Ltd (CAD ARB 18 of 2013) [2013] UGCADER 4 (28 October 2013)
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.