Oil Seeds Ltd v U.D Bank Ltd (Miscellaneous Application 249 of 2001)

Observed later treatment

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.

Holding

The court dismissed the application to enforce an arbitration award where the parties had previously entered into a settlement agreement on the disputed figures. The court held that the settlement remained binding and constituted full and final settlement of the claim. The applicant could not enforce the award without first setting aside the settlement and returning the monies received under it.

Outcome

Application dismissed with costs to the Respondent

Facts

Oil Seeds Ltd sought to enforce an arbitration award filed in court on 29 June 1999 by arbitrator Mr Remmy Kasule. The applicant claimed the award had never been set aside or remitted and could be executed as a decree. However, both parties had filed objections and cross-objections to the award in Miscellaneous Application No. 1355/99 which had not been determined. On 25 July 2000, the parties entered into a settlement agreement concerning the figures in dispute and the respondent bank paid the applicant the agreed sum. The applicant now sought to enforce the original award, arguing that parties had no power to settle without allowing the court to determine the objections. The respondent contended that the settlement constituted full and final settlement of the claim.

Issues

1. Whether an arbitration award that has not been set aside or remitted can be executed as a decree of court when objections and cross-objections remain undetermined.
2. Whether a settlement agreement entered into by parties pending determination of objections to an arbitration award operates as full and final settlement of the dispute.
3. Whether parties can settle aspects of an arbitration award while leaving other aspects to be determined by the court.

Orders

• Application dismissed.
• Costs awarded to the Respondent.

Rules and key headnotes

Legislation cited (1)

• Civil Procedure Act s.35

Cases citing this judgment (1)

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.

• Oil Seeds (U) Ltd v Uganda Development Bank (Civil Appeal No. 43 of 2003)

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