Wakilii

Roko Construction Ltd v Aya Bakery (U) Ltd (Misc. Cause No. 138 of 2007)

High Court · [2007] UGHC 31 · 2007 Application Granted AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Ex parte application for interim relief under arbitration agreement following respondent's non-appearance
Decision
Respondents ordered to release applicant's construction materials, plant and equipment immediately

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

The court granted ex parte relief ordering the respondents to release the applicant's construction materials, plant and equipment. Where parties have an arbitration agreement, a court may grant interim measures of protection under section 6 of the Arbitration and Conciliation Act. The respondents failed to respond to the arbitration notice or court summons and established no right of lien over the applicant's property following contract termination.

Outcome

Respondents ordered to release applicant's construction materials, plant and equipment immediately

Facts

Roko Construction Ltd entered into two building contracts in July 2005: one with Mohamed Mohamed Hamid for construction of a residential house at Plot 43B Windsor Close, Kololo, and another with Aya Bakery (U) Ltd for construction of a factory at Plot 16A Kawempe. After substantial work had been done, the respondents defaulted in payment when demanded. The applicant claimed UGX 552,050,000 under the first contract (dated 15 January 2005) and UGX 710,689,130 under the second contract. Following non-payment, the agreements were terminated. When the applicant attempted to remove its materials, equipment and plant from the construction sites, the respondents denied access and chased the applicant away. The respondents failed to respond to the arbitration notice or obey the court's chamber summons. The applications sought court orders to access and retrieve the applicant's property from the respondents.

Issues

  1. Whether the court may grant interim measures to a party to an arbitration agreement before or during arbitral proceedings.
  2. Whether the respondents have any right of lien on the applicant's construction materials, plant and equipment after termination of the building contracts.

Orders

  • Applications granted.
  • Respondents ordered to release the applicant's properties forthwith.
  • Costs awarded to the applicant.

Rules and key headnotes

Arbitration & ADR — Interim Measures — Court's Power Under Section 6 of Arbitration and Conciliation Act
A party to an arbitration agreement may apply to the court, before or during arbitral proceedings, for an interim measure of protection, and the court may grant that measure under section 6(1) of the Arbitration and Conciliation Act.
Contract Law — Building Contracts — Right of Lien After Termination
Where a building contract containing an arbitration clause is terminated for non-payment, a party seeking to establish a right of lien over the contractor's materials, plant and equipment must appear and establish such right; failure to do so entitles the contractor to recovery of its property.
Civil Procedure — Ex Parte Proceedings — Non-Appearance of Respondent
Where a respondent fails to respond to an arbitration notice and disobeys court chamber summons, the court may permit the applicant to proceed ex parte.

Legislation cited (4)

Full judgment

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Roko Construction Ltd v Aya Bakery (U) Ltd (Misc. Cause No. 138 of 2007) [2007] UGHC 31 (3 October 2007)
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.