[2024] KEHC 2689 (KLR)
The court found that the applicant had fully complied with the requirements of section 36 of the Arbitration Act by providing the necessary documents, including the authenticated arbitral award and the arbitration agreement. There was no application to set aside the award, and the respondent's opposition was vague,...
Source-derived case information.
- Citation
- [2024] KEHC 2689 (KLR)
- Parties
- Applicant: Cubic Solution Limited; Respondent: Spectre International Ltd
- Court
- High Court
- Court Station
- High Court at Nairobi (Milimani Commercial Courts)
- Jurisdiction
- Kenya
- Case Number
- Miscellaneous Civil Application E262 of 2023
- Procedural Posture
- Miscellaneous Application / Ruling on Application for Recognition and Enforcement of Arbitral Award
- Outcome
- application allowed
- Judges
- FG Mugambi
- Legal Topics
- Arbitral Award Enforcement, Recognition of Awards, Arbitration Agreements, Costs of Application
- Source Language
- english
Source-derived case record
Summary, issues, holding and outcome
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Parties
Cubic Solution Limited
Applicant
Spectre International Ltd
Respondent
Procedural Posture
Miscellaneous Application / Ruling on Application for Recognition and Enforcement of Arbitral Award
Legal Issues
- 1 Whether the applicant has satisfied the legal requirements for recognition and enforcement of an arbitral award under section 36 of the Arbitration Act.
- 2 Whether there are any valid grounds to oppose the recognition and enforcement of the arbitral award.
Ratio Decidendi
The court found that the applicant had fully complied with the requirements of section 36 of the Arbitration Act by providing the necessary documents, including the authenticated arbitral award and the arbitration agreement. There was no application to set aside the award, and the respondent's opposition was vague, unsubstantiated, and failed to demonstrate any valid legal grounds under section 37 for refusing recognition or enforcement. Consequently, the court recognized and adopted the arbitral award as a judgment of the court and granted the applicant leave to enforce it as a decree, with costs awarded to the applicant.
Court Disposition
application allowed
Orders
- The final award prepared by Mr. Paul Lilan dated 3rd March 2023 is recognized and adopted as a judgment of this court.
- The applicant is granted leave to enforce the award as a decree of this court.
Full Case Text
Judgment text and source record
24 paragraphs
Cubic Solution Limited v Spectre International Ltd (Miscellaneous Civil Application E262 of 2023) [2024] KEHC 2689 (KLR) (Commercial and Tax) (15 March 2024) (Ruling)
Neutral citation: [2024] KEHC 2689 (KLR)
Republic of Kenya
In the High Court at Nairobi (Milimani Commercial Courts)
Commercial and Tax
Miscellaneous Civil Application E262 of 2023
FG Mugambi, J
March 15, 2024
Between
Cubic Solution Limited
Applicant
and
Spectre International Ltd
Respondent
Ruling
Background 1. This ruling determines the application dated 28th March 2023 brought under section 3A of the Civil Procedure Act Cap. 21 of the Laws of Kenya, section 36 of the Arbitration Act 1995 and rule 9 of the Arbitration Ru/es, 1997. It seeks the adoption and recognition of the arbitral award as an order of this Court.
2. The application is premised on the grounds on the face of it and supported by the affidavit of William Omondi Otieno, the Chief Executive Officer of the applicant, sworn on 28th March 2023. The applicant also filed written submissions dated 14th November 2023.
3. The application is opposed by way of grounds of opposition dated 15th November 2023. The respondent did not file any submissions.
Analysis 4. The Court has carefully considered the pleadings, submissions and evidence on record. For the avoidance of doubt, there is no corresponding application to set aside the arbitral award before the Court. The grounds of opposition are vague and unsubstantiated. The respondent has not demonstrated in what way the application before the Court is defective neither has it been proved why it does not satisfy any of the grounds for granting of the orders sought.
5. The legal parameters for enforcement of an arbitral award are set out by section 36 of the Arbitration Act which requires that:“(1)An arbitral award, irrespective of the state in which it was made shall be recognized as binding and, upon application in writing to the High Court, shall be enforced subject to this section and section 37. (2)Unless the High Court otherwise orders, the party replying on an arbitral award or applying for its enforcement shall furnish—i.the duly authenticated original arbitral award or a duly certified copy of it; andii.the original arbitration agreement or a duly certified copy of it.”
6. In support of its application the applicant has attached a copy of the Transportation Agreement between the parties, dated 26th January 2015 containing the arbitration clause under which the arbitration proceedings were invoked. Clause X(ii) provides that:“Any dispute or controversy or agreement arising out of or in connection with this agreement which can not be settled amicably between the parties within thirty (30) days after the commencement of the amicable settlement negotiations shall be finally settled by arbitration.”
7. In addition, the claimant has also provided the Court with a certified copy of the final award, which is dated 3rd March 2023, and signed by the sole arbitrator, Paul Lilan.
Determination 8. It is therefore the finding of this Court that the applicant has complied with the requirements of section 36 of the Arbitration Act. The application dated 28th March 2023 is allowed as prayed, in the following terms:i.The final award prepared by Mr. Paul Lilan dated 3rd March 2023 is hereby recognized and adopted as a judgment of this court.ii.The applicant is granted leave to enforce the award as a decree of this court.iii.The respondent shall bear the costs of this application.
DATED, SIGNED AND DELIVERED IN NAIROBI THIS 15TH DAY OF MARCH 2024. ****F. MUGAMBI****JUDGE