Swabir Mukungu v Kobil Uganda Ltd (Miscellaneous Cause No. 41 of 2015)

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 granted a conditional interim measure of protection under section 6(1) of the Arbitration and Conciliation Act, restraining the respondent from terminating the licence agreement pending arbitration. The court held that where a valid arbitration agreement exists and a dispute has arisen, the court may grant interim protection to prevent arbitration from being rendered nugatory. The order was made conditional on the applicant commencing the arbitrator appointment process within 10 days.

Outcome

Interim measure of protection granted pending arbitration

Facts

The applicant and respondent entered into licence agreements dated 1 April 2014 and 24 July 2014 for the applicant to operate a K-Mart at Kagoma. The applicant applied to modify the K-Mart structure and design, sending proposed modifications by email to the respondent. The applicant contended the modifications were approved orally by the respondent's Country Manager and Operations Manager, though written approval was to follow. The applicant commenced the modifications. On 10 August 2015, the respondent wrote alleging unauthorised modifications in breach of the licence agreement, requiring the applicant to reinstate the original design within 14 days, failing which the tenancy agreement would be cancelled. The applicant received the letter on 17 August 2015. The licence agreement contained an arbitration clause requiring disputes to be resolved by a single arbitrator appointed by the parties. The applicant sought interim protection pending arbitration. The respondent was served but did not appear, and the application proceeded ex parte.

Issues

1. Whether the court has jurisdiction under section 6(1) of the Arbitration and Conciliation Act to grant an interim measure of protection pending arbitration.
2. Whether the applicant has demonstrated sufficient grounds for the grant of an interim measure of protection.
3. Whether the intended arbitration would be rendered nugatory absent the grant of interim relief.

Orders

• The applicant shall commence the process of appointing an arbitrator within 10 days from the date of this order, failure of which this interim order shall lapse.
• An interim order issues restraining the respondent and its agents, servants, employees, assignees or anyone else claiming or deriving authority from the respondent, from interfering with the applicant's rights under the agreement pending hearing and any further orders or directions by the arbitral tribunal.
• The issue of costs in this application is referred for consideration by the intended arbitral tribunal and shall be part of issues in the arbitration proceedings.

Rules and key headnotes

Legislation cited (11)

• Arbitration and Conciliation Act Cap 4 s.6
• Arbitration and Conciliation Act Cap 4 s.9
• Arbitration and Conciliation Act Cap 4 s.17
• Civil Procedure Act Cap 71 s.98
• Civil Procedure Rules Order 52 rule 1
• Civil Procedure Rules Order 52 rule 2
• Civil Procedure Rules Order 9 rule 23(1)
• Civil Procedure Rules Order 9 rule 20(1)
• Civil Procedure Rules Order 41 rule 1
• Civil Procedure Rules Order 41 rule 2
• Judicature Act Cap 13 s.38(1)

Cases cited (3)

• Wilson v Church (1879) 12 Ch D 454
• Somali Democratic Republic v Anoop Sunderial Trean (Civil Appeal No. 11 of 1988)
• Souna Cosmetics Ltd v Commissioner Customs URA and Commissioner General URA (Miscellaneous Application No. 424 of 2011)

Cases citing this judgment (2)

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.

• Zhonghao Overseas Construction Engineering Co. Limited v Attorney General and Others (Miscellaneous Application 1955 of 2023)
• GM Tumpeco Uganda Limited v Attorney General and Another (Misc Cause 17 of 2023)

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