Wakilii

True African (U) Limited v Flutterwave, Inc. (Miscellaneous Application 706 of 2024)

High Court · [2024] UGCOMMC 349 · 2024 Application Dismissed; Suit Struck Off AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Application to strike out summary suit for want of jurisdiction on grounds that dispute subject to arbitration clause
Decision
Summary suit struck off for want of jurisdiction; matter must proceed to arbitration under the contractual arbitration clause

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

Held that the High Court lacked jurisdiction to entertain the summary suit because the underlying contractual dispute arose from agreements containing an arbitration clause. A subsequent email proposing a payment plan did not constitute a separate agreement severable from the arbitration clause. Under section 9 of the Arbitration and Conciliation Act, the court cannot intervene in matters governed by that Act. The summary suit was struck off for want of jurisdiction.

Outcome

Summary suit struck off for want of jurisdiction; matter must proceed to arbitration under the contractual arbitration clause

Facts

On 10 October 2018, Flutterwave and True African executed a Bulk Collection and Payment Agreement under which True African would disburse payments to Flutterwave's customers using its PAYLEO mobile platform. In March 2023, Flutterwave experienced delays in settlements from True African. After correspondence, True African began processing payments in installments in breach of agreed terms. On 5 June 2023, True African's managing director sent an email admitting the debt and proposing a payment plan to settle UGX 517,781,538.69. True African paid only one installment and failed to remit further payments. Flutterwave instituted Civil Suit No. 0422 of 2023 to recover the debt. True African applied to strike out the suit on grounds that the underlying agreements contained an arbitration clause requiring disputes to be referred to arbitration.

Issues

  1. Whether this Court has jurisdiction to hear and determine the summary suit.
  2. Whether there is a bonafide defence to, or any triable issue in, the summary suit.

Orders

  • Civil Suit No. 0290 of 2024 is struck off the record for want of jurisdiction.
  • This application is overtaken by events and it is, accordingly, dismissed.
  • Costs of this application and of the summary suit, if any, are awarded to the Applicant.

Rules and key headnotes

Arbitration & ADR — Effect of Arbitration Clause — Court Jurisdiction Ousted by Valid Arbitration Agreement
Section 9 of the Arbitration and Conciliation Act Cap 5 ousts the jurisdiction of courts to intervene in matters governed by that Act; where parties have agreed to an arbitration clause that is valid, binding, operative and enforceable, the court lacks jurisdiction to entertain disputes arising from the agreement.
Contract Law — Payment Plans — Payment Plan in Furtherance of Earlier Agreement Subject to Arbitration Clause
A proposal for a payment plan to settle outstanding sums under an earlier agreement containing an arbitration clause does not constitute a separate agreement severable from the arbitration clause; such a proposal remains inchoate until accepted and, even if accepted, would be in furtherance of the earlier agreement and therefore subject to the same arbitration clause.
Civil Procedure — Jurisdiction — Summary Suit Struck Off Where Dispute Subject to Arbitration
Where a summary suit concerns enforcement of payment obligations arising from agreements containing an arbitration clause, the court lacks jurisdiction and the suit must be struck off; the dispute must be resolved through the contractually agreed arbitration mechanism.

Legislation cited (2)

Cases cited (1)

  • Desai v Warsama (1967) EA 351

Full judgment

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

True African (U) Limited v Flutterwave, Inc. (Miscellaneous Application 706 of 2024) [2024] UGCommC 349 (31 December 2024)
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.