Wakilii

Great Lakes Energy Company NV v MSS XSABO Power Limited and 4 Others (Miscellaneous Cause No. 17 of 2021)

High Court · [2021] UGCOMMC 37 · 2021 Application Partly Allowed AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Application for interim measures of protection under the Arbitration and Conciliation Act pending LCIA arbitration proceedings
Decision
Temporary injunction granted restraining respondents from accessing project funds except for USD 60,000 monthly operational expenses pending LCIA arbitration

Observed later treatment

Cited — treatment unverified cited in 5 (treatment unverified) Sequitur — Uganda’s citator · Derived from citing cases in the Wakilii corpus — not an assertion that this case is good law.

Citator coverage is limited to judgments in the Wakilii corpus and source-matched treatment records. Absence of a signal is not an assertion that the case remains good law.

No adverse treatment recorded Cited 5 times with no adverse treatment recorded; not yet tested on the merits. Citations rising — 5 citing cases on record, 4 in the most recent three data years. Derived from citing cases in the Wakilii corpus — a deterministic signal, not legal advice.

AI-generated summary. This summary was generated by AI from the full text of the judgment. It may contain errors or omissions—always read the source judgment before relying on it.

Holding

The High Court held that a foreign company incorporated outside Uganda but party to an arbitration agreement has locus standi to apply for interim measures under Section 6 of the Arbitration and Conciliation Act without needing to register under the Companies Act. The court has jurisdiction to grant interim relief not covered by LCIA Rules Article 25.1, particularly where the subject matter, parties, and business are in Uganda. The court granted a temporary injunction restraining respondents from accessing funds remitted by UETCL except for USD 60,000 monthly operational expenses pending LCIA arbitration.

Outcome

Temporary injunction granted restraining respondents from accessing project funds except for USD 60,000 monthly operational expenses pending LCIA arbitration

Facts

The applicant, a foreign company, entered into an investment agreement with the first respondent on 30 April 2017 to finance a solar power project. The first respondent contracted with UETCL to generate and sell solar power. The applicant was to carry out engineering, procurement and construction work. The applicant sourced IMMODO Power Africa Ltd to do the work and invoiced the first respondent USD 24,500,000, though IMMODO was to do the work for USD 18,050,000. The first respondent alleged fraud and suspended and revoked the investment agreement. The applicant filed consolidated arbitration claims at LCIA challenging the suspension and revocation. UETCL continues to pay approximately USD 300,000 monthly to the first respondent for power generated. The applicant sought interim measures to preserve these funds and gain visibility and control of the accounts pending arbitration.

Issues

  1. Whether the applicant, a foreign company not registered in Uganda, has locus standi to bring this application.
  2. Whether the High Court has jurisdiction to entertain an application for interim reliefs that can be granted by the LCIA arbitral tribunal.
  3. Whether the application is barred by the lis pendens rule.
  4. Whether the affidavit in support offends Order 19 rule 3 of the Civil Procedure Rules by containing averments based on belief.
  5. Whether interim measures of protection should be granted to restrain the respondents from accessing and utilizing funds remitted by UETCL pending final determination of the LCIA arbitration.

Orders

  • The respondents and their agents are restrained from accessing and utilizing funds remitted by UETCL into any bank account of the first respondent including UGX Account No. 01063626448460 and USD Account No. 02063616455284 in the name of MSS Xsabo Power Limited held at DFCU Bank Limited without the consent of the applicant until final determination of LCIA Consolidated Arbitration No. 204602.
  • The first respondent may access and utilize an amount not exceeding USD 60,000 only in each calendar month to meet its necessary operational expenses.
  • Each party shall bear its own costs.
  • Prayers 1(a), (b) and (c) of the application are dismissed for lack of jurisdiction.

Rules and key headnotes

Foreign Companies — Locus Standi — Registration Requirements
A company incorporated outside Uganda has legal personality and capacity to sue and be sued in Ugandan courts without registering under Part VI of the Companies Act 2012. Registration under sections 251-260 of the Companies Act is required only where a foreign company wishes to establish a place of business in Uganda, not for the purpose of creating legal personality or capacity to transact business or maintain court proceedings.
Interim Measures — Jurisdiction of National Courts — LCIA Rules
Where parties have agreed to LCIA arbitration, a national court retains jurisdiction to grant interim measures that fall outside the scope of Article 25.1 of the LCIA Rules, particularly where the subject matter, business, and parties are located within the court's territorial jurisdiction and the relief sought is not substantially similar to relief available from the arbitral tribunal.
Interim Measures — Practical Considerations — Seat of Arbitration
Where the subject matter, business, and parties to an arbitration are located in Uganda and contracts were executed and continue to be implemented under Ugandan law, it is more prudent and convenient for interim or preservatory remedies to be sought and obtained from local courts which can easily monitor and implement orders, leaving only the main questions to be handled by the international tribunal seated abroad.
Lis Pendens — Substantially Similar Matters
The lis pendens rule does not bar proceedings where the matters in issue are not directly and substantially similar. An application for interim protective measures of project funds pending arbitration is not substantially similar to proceedings concerning rectification of a company register or to the main arbitration proceedings determining the validity of an investment agreement.
Interim Measures — Balance of Convenience — Preservation of Funds
In determining whether to grant a temporary injunction pending arbitration, the balance of convenience favours preservation of project funds where the applicant capitalized the business with substantial sums not yet refunded, there is a risk the funds may be dissipated before the arbitral award is rendered, and the applicant would suffer irreparable loss if successful in arbitration but unable to recover the award.

Legislation cited (12)

Cases cited (11)

  • Abdulrahman Elamin v Dhabi Group and Others (Court of Appeal Civil Appeal No. 215 of 2013)
  • [1959] 1 EA 474
  • Krone Investments (U) Ltd v Kerilee Investments Limited (Miscellaneous Application No. 306 of 2019)
  • [2013] EWHC 260 (Comm)
  • Springs International Hotel v Hotel Diplomate Ltd and Another (Civil Suit No. 227 of 2011)
  • Rashida Abdul Hanali and Another v Suleiman Adirisi (Miscellaneous Application No. 0011 of 2017)
  • [1975] AC 396
  • Zam Nambi v Bujingo Ayub and 32 Others (Miscellaneous Application No. 1013 of 2015)
  • (1985) HCB
  • (1953) 20 EACA 8
  • [1969] EA 6

Cases citing this judgment (5)

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

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

Great Lakes Energy Company NV v MSS XSABO Power Limited and 4 Others (Miscellaneous Cause No. 17 of 2021) [2021] UGCommC 37 (16 August 2021)
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.