Dr. Kaijamurubi v Jeremy (Civil Suit 48 of 3021)
Observed later treatment
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Holding
The court held that a valid and enforceable arbitration clause in a lease agreement binds the parties and requires referral to arbitration under section 5(1) of the Arbitration and Conciliation Act. Where a party fails to respond to a notice of arbitration, the aggrieved party must apply to the appointing authority under section 11 rather than file suit in court. Section 9 does not oust court jurisdiction entirely but limits it to exceptions permitted by the Act. The suit was dismissed and the matter referred to arbitration.
Outcome
Suit dismissed and matter referred to arbitration before ICAMEK to be concluded within 90 days
Facts
The plaintiff sued the defendant for breach of a 99-year lease agreement dated 28 August 1967 over land in Kyenjojo District, claiming rent arrears for 31 years, repossession, interest, damages and costs. The lease was originally between the plaintiff's father (lessor) and the defendant's father (lessee). The defendant raised a preliminary objection that the suit was incompetent because the lease agreement contained an arbitration clause at clause 6. The plaintiff argued that in 2015 his former lawyers had invoked arbitration and appointed an arbitrator but the defendant ignored the process. The defendant denied the claim, stated rent had been paid to 2016, and counterclaimed for relief from forfeiture. The court was asked to determine whether the suit was competent in light of the arbitration clause.
Issues
- Whether Civil Suit No. 048 of 2021 is competent before this court in light of the arbitration clause in the lease agreement.
- Whether the arbitration agreement is null and void, inoperative or incapable of being performed.
- Whether there is in fact any dispute between the parties with regard to the matters agreed to be referred to arbitration.
Orders
- The parties are referred for arbitration in accordance with clause 6 of the lease agreement dated 28th August 1967.
- The dispute shall be arbitrated by ICAMEK (International Centre for Arbitration and Mediation) which is a body of professional arbitrators and concluded within 90 days from the date of delivery of this ruling.
- The costs of the suit shall abide the outcome of the arbitration.
- Civil Suit No. 048 of 2021 is dismissed.
Rules and key headnotes
Legislation cited (14)
- Arbitration and Conciliation Act s.3
- Arbitration and Conciliation Act s.5
- Arbitration and Conciliation Act s.5(1)
- Arbitration and Conciliation Act s.5(1)(a)
- Arbitration and Conciliation Act s.5(1)(b)
- Arbitration and Conciliation Act s.6
- Arbitration and Conciliation Act s.9
- Arbitration and Conciliation Act s.11(3)
- Arbitration and Conciliation Act s.11(4)
- Arbitration and Conciliation Act s.11(5)
- Arbitration and Conciliation Act s.27
- Arbitration and Conciliation Act s.34
- Arbitration and Conciliation Act s.38
- Civil Procedure Rules O.9 r.11(d)
Cases cited (4)
- Babcon Uganda Limited v Mbale Resort Hotel Limited (Civil Appeal No. 87 of 2011)
- Simba Properties Investment Co. Limited & Anor v Robert Kirunda and others (HCMA No. 671 of 2022)
- Ambitious Construction Co. Ltd v Uganda National Cultural Centre (Civil MA No. 441 of 2020)
- Simba & 4 others v Uganda Broadcasting Corporation (SCCA No. 3 of 2014)
Cases citing this judgment (1)
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
The original judgment as reported. Read the original PDF before relying on any passage.