THE REPUBLIC OF UGANDA

THE CENTRE FOR ARBITRATION AND DISPUTE RESOLUTION

CAD-ARB-02-2011

AJANTA PHARMACY LTD …………………………………….…………………………………. CLAIMANT

v.

THE ATTORNEY GENERAL OF UGANDA …………………………………………..… RESPONDENT

RULING

When the hearing commenced Respondent counsel Mr. Farouq Lubega, notified me that they would not oppose the Application.

The clause in issue is set out in the General Conditions of Contract.

It reads as follows,

“10. Settlement of Disputes.

10.1         The Procuring and Disposing Entity and the Provider shall make every effort to resolve amicably by direct informal negotiation any disagreement or dispute arising between them under or in connection with the Contract.

10.2         If the parties fail to resolve such a dispute or difference by mutual consultation within twenty-eight (28) days from the commencement of such consultation, either party may require that the dispute be referred for resolution under the Arbitration law of Uganda or such other formal mechanism specified in the SCC.”

“SCC” means the Special Conditions of Contract under Clause 1(k) of the definition section.

The Special Conditions reads as follows,

Applicant counsel submitted that the dispute in issue relates to the breach of contract arising from the supply of medical products by the Applicant to the Respondent.

The arbitration clause is silent on the number of arbitrators.  I am therefore bound by S.10(2) Arbitration and Conciliation Act, Cap.4, to appoint only one arbitrator.

I hereby appoint Mr. James Nangwala as the arbitrator over this matter.

Should Mr. James Nangwala not take up the appointment, for unforeseen reasons, I then appoint Lydia Ochieng Obbo or Godfrey Lule as the alternative arbitrators; they can only be approached in the sequential order listed.

Dated at Kampala on the 18^th day of July 2011.

……………………………………………………

Jimmy M Muyanja

Executive Director, CADER.