Court name
Court of Appeal of Uganda
Judgment date
10 November 2008

Appliance World Ltd v M.H. Jagani & 5 Ors (Arbitration Cause-2008/19) [2008] UGCA 2 (10 November 2008);

Cite this case
[2008] UGCA 2

 

 THE CENTRE FOR ARBITRATION AND DISPUTE

RESOLUTION

ARBITRATION CAUSE NO.19 OF 2008

APPLIANCE WORLD LIMITED................. APPLICANT

VERSUS

M.H. JAGANI J.V. CHANDRIA M.R. LADAK

RESPONDENTS

PROPERTY SERVICES LTD K.H. KARANI K. KARIA

RULING

This Application was lodged by Appliance World Limited on 6th November 2008. The Application was set for hearing at 2.00p.m., 11th November 2008.

At the hearing date, the Applicant was present, represented by Mr. Bharat Chandarana together with their Counsel Mr. Enos Tumusiime. The Respondents were not present neither were they represented.

Mr. Enos Tumusiime prayed to proceed ex parte, which prayer was granted.

Mr. Enos Tumusiime also prayed under Section 2(i) Arbitration and Conciliation Act (ACA), to add the names of K.H. Karani and K. Karia

as necessary parties, in light of new information which had come to his attention. I granted this prayer too.

Mr. Enos Tumusiime then submitted that a dispute had arisen between the parties from a sub-lease agreement dated 15 th February 2005. The parties to this Agreement which is attached as Annex A to the Affidavit sworn in support by Mr. Amar Chandarana, are Mohamedraza Husein Jagani, Vallabdas Chandarana and Mohamedraza Gulamali Ladak (as landlord) and Appliance World Limited (as the tenant).

It was further submitted that on 29th September 2008, the Applicant issued the Respondents a Notice of Arbitration. This notice is attached as Annex F to the Affidavit sworn by Mr. Amar Chandarana. The penultimate paragraph of this notice states as follows,

“This is therefore to inform you that a dispute has arisen under paragraph 4(e) of the sublease Agreement and Appliance World Ltd hereby refers this matter to Arbitration and you are hereby invited to concur to the appointment of Mr. Charles Kabugo, an Advocate, as the Arbitrator to resolve this dispute. If we don’t hear from you within 7 days from the date of this letter (above), we shall take the necessary legal action to protect our Client’s interests.”

The arbitration clause in this agreement reads as follows,

“4. PROVIDE ALWAYS AND IT IS HEREBY EXPRESSLY AGREED BETWEEN THE LANDLKORD (sic) AND TENANT THAT: (e) If there is any dispute in respect of any matter touching this sub-lease the same will be referred to a single Arbitrator appointed by both the parties and his award will be final and binding to both the parties. The Arbitration shall be conducted under the Arbitration Act of Uganda and any amendments made under that Act.”

Mr. Enos Tumusiime then referred to Paragraph 7 of Mr. Amara