Wakilii

Kimuli v Mbabali (CAD ARB 30 of 2015)

Tribunal · [2016] UGCADER 2 · 2016 Application Granted AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Application for compulsory appointment of an arbitrator under a land lease agreement dispute resolution clause
Decision
Application for compulsory appointment of arbitrator granted; arbitrator to be appointed pursuant to Section 10(2) of the Arbitration and Conciliation Act

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

Held that a party cannot prevent arbitration by asserting that no dispute exists. Under the Arbitration and Conciliation Act s.2(1)(c), an arbitration agreement covers disputes which have arisen or may arise. A dispute exists when one party makes a claim or demand and the other does not admit it, regardless of whether the claim is indisputable. The tribunal granted the application for compulsory appointment of an arbitrator.

Outcome

Application for compulsory appointment of arbitrator granted; arbitrator to be appointed pursuant to Section 10(2) of the Arbitration and Conciliation Act

Facts

The parties executed a land lease agreement on 25 September 2009. A disagreement arose between them concerning whether an access road formed part of the subject matter of the contract. The applicant invited the respondent to cooperate in the joint appointment of an arbitrator by sending five names for consideration. The respondent's advocates replied that they deemed the proposed arbitration premature. The respondent's affidavit extensively narrated land management issues and maintained that the arbitration was premature. The land lease agreement contained a dispute resolution clause providing for arbitration of any difference or dispute between the parties.

Issues

  1. Whether commencement of the arbitration process is dependent on the parties being agreed that there is indeed a difference or dispute.

Orders

  • Application granted.
  • Prayer for appointment of an arbitrator pursuant to Section 10(2) of the Arbitration and Conciliation Act granted.
  • Each party to bear its own costs.
  • Arbitrator to be listed in consequential ruling.

Rules and key headnotes

Arbitration — Existence of Dispute — Unilateral Denial
A party cannot prevent the commencement of arbitration proceedings by asserting that no dispute or difference exists between the parties.
Arbitration Agreement — Definition of Dispute — Arbitration and Conciliation Act
Under Section 2(1)(c) of the Arbitration and Conciliation Act Cap.4, an arbitration agreement covers disputes which have arisen or which may arise between the parties, rendering futile any investigation as to whether disputes or differences actually exist.
Arbitration — Existence of Dispute — Test
A dispute exists when one party makes a claim or demand and the other party does not admit that the sum is due and payable or does not reply, regardless of whether the claim is indisputable or can be easily demonstrated to be right or wrong.
Arbitration — Compulsory Appointment of Arbitrator — Section 10(2) Arbitration and Conciliation Act
Where parties have agreed to arbitration but fail to comply with the procedure for appointing an arbitrator set out in their dispute resolution clause, the tribunal may grant an application for compulsory appointment of an arbitrator pursuant to Section 10(2) of the Arbitration and Conciliation Act.

Legislation cited (2)

  • Arbitration and Conciliation Act Cap.4 s.2(1)(c)
  • Arbitration and Conciliation Act Cap.4 s.10(2)

Cases cited (5)

Full judgment

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Kimuli v Mbabali (CAD ARB 30 of 2015) [2016] UGCADER 2 (3 August 2016)
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.