[2016] KEHC 8612 (KLR)

[2016] KEHC 8612 (KLR)

The court found that the Plaintiff had established the existence of an arbitration agreement and demonstrated that the subject matter of the arbitration—the supplied and installed conference communication equipment—was under threat due to the Defendant's continued use without payment. The Defendant had not conceded liability or paid the contract sum, yet continued to benefit from the equipment. The court held that, in such circumstances, it was necessary to preserve the subject matter pending arbitration. The court determined that the appropriate interim measure was to order the Defendant to deposit the outstanding sum in a joint interest earning account within 30 days, failing which a...

Citation
[2016] KEHC 8612 (KLR)
Parties
Plaintiff: Dimension Data Solutions Limited; Defendant: Kenyatta International Convention Centre
Court
High Court
Court Station
High Court at Nairobi (Milimani Commercial Courts)
Jurisdiction
Kenya
Judgment Date
9 September 2016
Case Number
Civil Case 271 of 2016
Procedural Posture
Civil Case / Ruling on Application for Interim Measures of Protection Pending Arbitration
Outcome
Plaintiff's application for interim measures of protection granted in part.
Judges
OA Sewe
Legal Topics
Arbitration Interim Measures, Breach of Contract, Public Procurement Irregularity, Injunctive Relief, Security for Claim, Contractual Disputes
Source Language
English
Commercial and Corporate Civil Procedure Arbitration Interim Measures Breach of Contract Public Procurement Irregularity Injunctive Relief Security for Claim Contractual Disputes

Case Brief

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Parties

Dimension Data Solutions Limited

Plaintiff

Kenyatta International Convention Centre

Defendant

Procedural Posture

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

Legal Issues

  1. 1 Whether the Plaintiff is entitled to interim measures of protection under Section 7 of the Arbitration Act pending arbitration.
  2. 2 Whether the Defendant should be compelled to deposit the undisputed contract sum in a joint interest earning account or be restrained from using the equipment.
  3. 3 Whether the Plaintiff has demonstrated that the subject matter of arbitration is under threat warranting court intervention.

Ratio Decidendi

The court found that the Plaintiff had established the existence of an arbitration agreement and demonstrated that the subject matter of the arbitration—the supplied and installed conference communication equipment—was under threat due to the Defendant's continued use without payment. The Defendant had not conceded liability or paid the contract sum, yet continued to benefit from the equipment. The court held that, in such circumstances, it was necessary to preserve the subject matter pending arbitration. The court determined that the appropriate interim measure was to order the Defendant to deposit the outstanding sum in a joint interest earning account within 30 days, failing which a...

Court Disposition

Plaintiff's application for interim measures of protection granted in part.

Orders

  • The Defendant shall deposit Kshs. 157,238,524.69 into an interest earning account in the joint names of the parties or their counsel within 30 days of the order.
  • If the Defendant fails to deposit the sum as ordered, a temporary injunction shall issue restraining the Defendant from further use of the conference communication and instrumentation infrastructure equipment installed by the Plaintiff pending arbitration.