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GM Tumpeco Uganda Limited v Attorney General and Another (Misc Cause 17 of 2023)

High Court · [2023] UGCOMMC 109 · 2023 Application Dismissed AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Application for interim measure of protection pending arbitration under Section 6(1) of the Arbitration and Conciliation Act Cap. 4
Decision
Application for interim measure of protection dismissed with costs to the 2nd Respondent

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

An application for interim measures of protection pending arbitration was dismissed. The court held that while the applicant established a prima facie case by showing a valid arbitration agreement and ongoing arbitration proceedings, it failed to establish irreparable injury as any loss could be compensated in monetary terms. The balance of convenience favoured the respondent because granting the injunction would prevent the implementation of the Traffic and Road Safety (Registration Plates) Regulations 2022 and prejudice public security interests.

Outcome

Application for interim measure of protection dismissed with costs to the 2nd Respondent

Facts

GM Tumpeco (U) Limited entered into a contract with the Government of Uganda in August 2004 for the manufacture of motor vehicle registration number plates. An addendum was executed in 2013 adding the Uganda Revenue Authority as a party. In December 2022, the Government purported to terminate the contract and proceeded to award the contract to a Russian company, Joint Stock Company Global Security, to provide digitized number plates with an Intelligent Transport Monitoring System (ITMS). The applicant contested the termination, initiated arbitration proceedings at ICAMEK, and sought interim measures to restrain the Government from terminating the existing contract and awarding a new contract until the arbitration was concluded. The Government contended that the contract was not in perpetuity, that the new Traffic and Road Safety Regulations required ITMS capabilities outside the scope of the 2004 contract, and that it had already committed to the new supplier. The court was asked to consider whether to grant interim protection pending arbitration.

Issues

  1. Whether the 2nd Respondent was properly joined as a party to the application
  2. Whether the Applicant is entitled to an interim measure of protection pending arbitration

Orders

  • Preliminary objection by the 2nd Respondent upheld — 2nd Respondent found not to be a party to the contract and wrongly sued
  • Application for interim measure of protection dismissed
  • Costs awarded to the 2nd Respondent
  • Costs in respect of the 1st Respondent to be costs in the cause

Rules and key headnotes

Interim Measures of Protection — Test for Grant — Prima Facie Case
To establish a prima facie case that merits the grant of an interim measure of protection pending arbitration, the question to be considered is whether there is a valid agreement to submit a dispute to arbitration and whether a dispute has arisen between the parties. The existence of an enforceable arbitration agreement constitutes a prima facie case.
Interim Measures of Protection — Irreparable Injury
Irreparable injury for purposes of granting an interim measure of protection means a substantial or material injury that cannot adequately be compensated for in monetary damages. An applicant must furnish evidence of the magnitude of investment and the uniqueness of the injury; general assertions of 'colossal sums' invested without supporting evidence are insufficient to establish irreparable injury where the loss can be compensated in monetary terms.
Interim Measures of Protection — Balance of Convenience — Public Interest
In determining the balance of convenience for granting interim measures of protection pending arbitration, public interest is a paramount and relevant consideration. Where granting an interim measure would have the effect of suspending the operation of legislation or prejudicing public security interests, the balance of convenience lies with the respondent even if the applicant might suffer financial loss.
Injunctions Against Enforcement of Legislation
Courts cannot grant an injunction which will have the effect of suspending the operation of legislation. An interim measure of protection will be refused where its effect would be to prevent the implementation of statutory regulations set to come into force.
Privity of Contract — Joinder of Non-Parties
A party cannot be held bound by a contract it did not sign. Where an addendum purports to add a party but that party has not executed the agreement, that party is not bound by the contract and is wrongly sued in proceedings arising from that contract.

Legislation cited (5)

Cases cited (13)

  • Multiplex Limited v Ditaco Uluslararasi Ticaret VE Muteahhit Lik Limited Sirketi (Miscellaneous Cause No. 78 of 2022)
  • Kiyimba Kaggwa v Katende Abdu Nasser (1988) HCB 43
  • Daniel Mukwaga v Administrator General (High Court Civil Suit No. 630 of 1993)
  • Francis Babumba and Others v Erusa Bunju (Civil Suit No. 679 of 1990)
  • Gapco Uganda Limited v Kaweesa Badru and Another (Miscellaneous Application No. 259 of 2013)
  • Uganda National Bureau of Standards v Ren Publishers Limited and Another (Miscellaneous Application No. 635 of 2019)
  • International Investment House LLC and Another v Amos Nzeyi and Others (Miscellaneous Cause No. 11 of 2012)
  • Sekaziga and Another v Church Commissioners Holding Company Ltd (Miscellaneous Cause No. 15 of 2013)
  • American Cyanamid Co v Ethicon Limited [1975] AC 396
  • Swabri Ali Abubaker Mukungu v Kobil Uganda Ltd (Miscellaneous Cause No. 41 of 2015)
  • BABS Security Limited V Geothermal Development Limited [2014] eKLR
  • American Cyanamid Co v Ethicon Limited [1975] 2 WLR 316
  • Legal Brains Trust (LBT) Ltd v Attorney General (Civil Application No. 56 of 2023)

Full judgment

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

GM Tumpeco Uganda Limited v Attorney General and Another (Misc Cause 17 of 2023) [2023] UGCommC 109 (20 October 2023)
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.