[2021] KEHC 12765 (KLR)

[2021] KEHC 12765 (KLR)

The court found that while there was a valid arbitration agreement between the parties, the Plaintiff failed to satisfy the conditions necessary for the grant of interim measures of protection under Section 7 of the Arbitration Act. Specifically, the contract in question was not an asset or tangible subject matter...

Source-derived case information.

Citation
[2021] KEHC 12765 (KLR)
Parties
Applicant: Associated Construction Company (K) Limited; Respondent: Ministry of Transport, Infrastructure, Housing, Urban Development & Public Works; Respondent: The Attorney General
Court
High Court
Court Station
High Court at Nairobi (Milimani Law Courts)
Jurisdiction
Kenya
Case Number
Civil Suit 189 of 2019
Procedural Posture
Civil Suit / Ruling on Application for Interim Measures of Protection Pending Arbitration
Outcome
application dismissed
Legal Topics
Construction Contracts, Arbitration Clauses, Interim Measures, Termination of Contracts, Performance Guarantees
Source Language
en
Commercial and Corporate Alternative Dispute Resolution Construction Contracts Arbitration Clauses Interim Measures Termination of Contracts Performance Guarantees

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Parties

Associated Construction Company (K) Limited

Applicant

Ministry of Transport, Infrastructure, Housing, Urban Development & Public Works

Respondent

The Attorney General

Respondent

Procedural Posture

Civil Suit / Ruling on Application for Interim Measures of Protection Pending Arbitration

  1. 1 Whether the Plaintiff is entitled to interim measures of protection restraining the 1st Defendant from terminating the contract pending referral of the dispute to arbitration.
  2. 2 Whether the court should refer the dispute to arbitration pursuant to the contract's arbitration clause.

Ratio Decidendi

The court found that while there was a valid arbitration agreement between the parties, the Plaintiff failed to satisfy the conditions necessary for the grant of interim measures of protection under Section 7 of the Arbitration Act. Specifically, the contract in question was not an asset or tangible subject matter capable of preservation by interim orders. Granting the orders sought would prevent the 1st Defendant from exercising its contractual right to terminate, effectively rewriting the contract and preempting the arbitral process. The court held that damages would be an adequate remedy for any loss suffered by the Plaintiff, and that the legitimacy of the termination and related...

Court Disposition

application dismissed

Orders

  • The Plaintiff's application dated 13th August, 2019 is dismissed.
  • The costs of the application shall abide the outcome of the main suit.