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Roughton International Ltd and Others v Uganda Investment Authority and Another (Miscellaneous Cause No. 87 of 2022)

High Court · [2022] UGCOMMC 199 · 2022 Application Dismissed AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Application for interim measures of protection pending arbitration proceedings
Decision
Application for interim measures dismissed; parties directed to arbitral proceedings

Observed later treatment

Cited — treatment unverified cited in 1 (treatment unverified) Sequitur — Uganda’s citator · Derived from citing cases in the Wakilii corpus — not an assertion that this case is good law.

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.

No adverse treatment recorded Cited 1 time with no adverse treatment recorded; not yet tested on the merits. Derived from citing cases in the Wakilii corpus — a deterministic signal, not legal advice.

AI-generated summary. This summary was generated by AI from the full text of the judgment. It may contain errors or omissions—always read the source judgment before relying on it.

Holding

Held that interim measures of protection under section 6 of the Arbitration and Conciliation Act cannot be granted where the contract has already been terminated before the arbitration proceedings commenced, as there is no status quo to preserve. The application for a temporary injunction to restrain the 1st Respondent from terminating the consultancy services agreement and to restrain both Respondents from taking further actions was dismissed as untenable, premature, and inconsequential.

Outcome

Application for interim measures dismissed; parties directed to arbitral proceedings

Facts

The Applicants, a consortium of consultancy firms including two international firms and two local firms, entered into a consultancy services agreement with the 1st Respondent to supervise infrastructure development at Kampala Industrial and Business Park, Namanve. After providing services for almost three years, the Applicants claimed the 1st Respondent owed them Euros 1,788,933.32. On 29th August 2022, the 1st Respondent issued a 60-day termination notice under the contract. The 2nd Respondent recommended suspension of the Applicants from public procurement following a contract audit that identified failures to perform contractual obligations and misrepresentation of material facts. On 17th November 2022, after the termination notice period had lapsed, the Applicants referred the dispute to arbitration and filed this application seeking interim measures to restrain termination, suspension, and further procurement processes.

Issues

  1. Whether the Applicants have raised grounds that merit the grant of an interim measure of protection pending the conclusion of the arbitral proceedings?
  2. What remedies are available?

Orders

  • Application dismissed.
  • Costs to abide the outcome of the arbitral proceedings.

Rules and key headnotes

Arbitration and Conciliation Act s.6 — Interim Measures of Protection — Requirement of Existing Status Quo
Under section 6 of the Arbitration and Conciliation Act Cap 4, the court may grant interim measures of protection before or during arbitral proceedings, but there must be in existence a status quo to be preserved by the order sought so as not to render the order for interim protection nugatory.
Arbitration and Conciliation Act s.6 — Interim Measures — Termination of Contract Before Arbitration
Where a contract has been validly terminated and the termination notice period has lapsed before arbitration proceedings are commenced, an application for interim measures to restrain the termination is untenable as the status quo which the applicant seeks to maintain has already changed.
Temporary Injunctions — Prima Facie Case Requirement
To establish a prima facie case meriting a temporary injunction, an applicant must demonstrate a claim that is not frivolous or vexatious and presents serious questions to be tried. Where the factual foundation for the injunction no longer exists, the applicant has not demonstrated a serious question to be tried.
Interim Measures — Matters Within Arbitral Tribunal's Jurisdiction
The grant of interim measures of protection under section 6 of the Arbitration and Conciliation Act does not resolve issues to be addressed by the arbitral tribunal. Matters such as payment of sums due under the contract and alleged breaches of contract terms are properly determinable by the arbitral tribunal and not by way of interim measures.
Temporary Injunctions — Irreparable Injury — Reputational Damage
Irreparable injury means substantial or material injury that cannot be adequately compensated in damages, not that there is no physical possibility of repairing the injury. Alleged reputational damage to consultancy firms is a matter that can be determined by an arbitral tribunal and does not constitute irreparable injury warranting interim injunctive relief where the underlying contractual status quo no longer exists.

Legislation cited (7)

Cases cited (5)

  • E.L.T Kiyimba Kaggwa v Haji Abdu Nasser Katende (High Court 1985)
  • American Cyanamid v Ethicon [1975] 1 All ER 504
  • John Sekaziga and Another v Church Commissioners Holding Company Ltd (Miscellaneous Cause No. 15 of 2013)
  • Sunstone Limited v Nakamya Robinah and Another (Miscellaneous Application No. 1674 of 2017)
  • Rem Publishers and Another v Uganda National Bureau of Standards (Miscellaneous Cause No. 171 of 2019)

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.

Full judgment

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

Roughton International Ltd and Others v Uganda Investment Authority and Another (Miscellaneous Cause No. 87 of 2022) [2022] UGCommC 199 (12 December 2022)
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.