Wakilii

Mbabazi v Equity Bank Uganda Limited (Miscellaneous Application 1599 of 2021)

High Court · [2023] UGCOMMC 237 · 2023 Matter Referred to Arbitration AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Application arising from civil suit, hearing preliminary objection based on arbitration clause
Decision
Civil suit lapsed and matter referred to arbitration in accordance with the contractual arbitration clause

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

The court held that where parties have agreed to an arbitration clause in their contract, disputes arising from that agreement must be referred to arbitration. Civil Suit 499 of 2021 lapsed as the entire dispute was referred for resolution through arbitration in accordance with the Merchant Services Agreement endorsed by the parties in 2014. The matter can only return to court for appellate or supervisory interventions as provided under the Arbitration and Conciliation Act.

Outcome

Civil suit lapsed and matter referred to arbitration in accordance with the contractual arbitration clause

Facts

The applicant Ivan Mbabazi Batuma trading as Rushaga Golilla Camp and the respondent Equity Bank Uganda Limited had entered into a Merchant Services Agreement in 2014. Both parties brought to the court's attention the existence of an arbitration clause in that agreement which provided that any dispute arising from the agreement should be referred for final determination to one arbitrator appointed by agreement of the parties in accordance with the Arbitration Act. A civil suit (No. 499 of 2021) had been commenced between the parties, which gave rise to this miscellaneous application.

Issues

  1. Whether the court should refer the dispute to arbitration given the existence of an arbitration clause in the Merchant Services Agreement between the parties.

Orders

  • The matter is referred for arbitration proceedings to ensue.
  • Civil Suit 499 of 2021 lapses.
  • Costs occasioned by commencing the suit in this Court shall be determined by the arbitral tribunal.
  • The file shall be closed.

Rules and key headnotes

Arbitration & ADR — Arbitration Clauses — Effect of Valid Arbitration Agreement
Where parties have agreed to an arbitration clause in their contract, disputes arising from that agreement must be referred to arbitration and the civil suit commenced in court will lapse.
Arbitration & ADR — Court's Jurisdiction — Matters Referred to Arbitration
Once a dispute is referred to arbitration in accordance with a contractual arbitration agreement, the matter can only return to court for appellate or supervisory interventions as provided for under the Arbitration and Conciliation Act.
Civil Procedure — Costs — Arbitration Proceedings
Where a matter is referred to arbitration, costs occasioned by commencing the suit in court shall be determined by the arbitral tribunal appointed to handle the arbitration proceedings.

Legislation cited (2)

Cases cited (2)

  • Lira Tobacco Stores HCMA 310/2073
  • Daniel Delestre & Others v HiB Telecom (HCMA No. 310 of 2013)

Full judgment

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

Mbabazi v Equity Bank Uganda Limited (Miscellaneous Application 1599 of 2021) [2023] UGCommC 237 (11 January 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.