Kavuma & 2 Ors v Nantamu & 2 Ors (HCT-00-CC-MA 572 of 2011)
Observed later treatment
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Holding
The court held that applicants cannot be joined to a time-barred application to set aside an arbitral award, as such an application is incompetent and a nullity. The court further held that only parties to an arbitration agreement, or those claiming through or under them, have standing to enforce or challenge an arbitral award under the Arbitration and Conciliation Act.
Outcome
Application dismissed on preliminary objection
Facts
An arbitral award was delivered on 7 September 2009 in an arbitration between Harriet Nantamu and others against Fountain Publishers Ltd. The applicants, who were not parties to the arbitration but had separate contracts with Fountain Publishers, sought to be joined to Misc. Application No. 135 of 2011, which was Fountain Publishers' application to set aside the arbitral award. The applicants contended that the award affected their contractual rights because it annulled contracts between them and Fountain Publishers, and that they only became aware of the award on 3 March 2011. M.A. No. 135 of 2011 was filed on 11 March 2011, more than 18 months after the award was made. The respondents raised a preliminary objection that the application to which the applicants sought to be joined was time barred under section 34(3) of the Arbitration and Conciliation Act.
Issues
- Whether the applicants can be joined to M.A. No. 135 of 2011 which is time barred and incompetent.
- Whether the applicants have locus standi to challenge or enforce the arbitral award as non-parties to the arbitration agreement.
Orders
- The preliminary objection is upheld.
- The application is dismissed.
- Costs awarded to the respondents.
Rules and key headnotes
Legislation cited (2)
Cases cited (3)
- East African Development Bank v Blue Line Enterprises Ltd (M.A. 134 of 2006)
- Roko Construction Ltd v Mohammed Mohammed Hamid (Civil Appeal No. 51 of 2011)
- Union of India V Dalmiya engineering [P] Ltd AIR 1990 SC 70
Full judgment
The original judgment as reported. Read the original PDF before relying on any passage.