[2024] KEHC 5121 (KLR)
The court held that since the contract between the parties expressly provided for arbitration as the mode of dispute resolution, there was no justification for filing the suit in court. The court further noted that there were no interim measures sought under Section 10 of the Arbitration Act, making the filing of...
Source-derived case information.
- Citation
- [2024] KEHC 5121 (KLR)
- Parties
- Plaintiff: Ima Trading Co. Ltd; Defendant: Tamuwa Limited
- Court
- High Court
- Court Station
- High Court at Kisumu
- Jurisdiction
- Kenya
- Case Number
- Civil Case E004 of 2023
- Procedural Posture
- Civil Case / Ruling on Withdrawal of Suit Due to Arbitration Clause
- Outcome
- Suit withdrawn by consent to allow arbitration; each party to bear own costs.
- Judges
- RE Aburili
- Legal Topics
- Arbitration Agreements, Contractual Dispute Resolution, Withdrawal of Suit
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
Ima Trading Co. Ltd
Plaintiff
Tamuwa Limited
Defendant
Procedural Posture
Civil Case / Ruling on Withdrawal of Suit Due to Arbitration Clause
Legal Issues
- 1 Whether the court should entertain the suit where the contract provides for arbitration as the dispute resolution mechanism.
- 2 Whether the suit should be withdrawn to allow parties to proceed with arbitration as per their agreement.
- 3 Whether costs should be awarded or each party should bear their own costs upon withdrawal of the suit.
Ratio Decidendi
The court held that since the contract between the parties expressly provided for arbitration as the mode of dispute resolution, there was no justification for filing the suit in court. The court further noted that there were no interim measures sought under Section 10 of the Arbitration Act, making the filing of the suit and subsequent consent to arbitration through court proceedings unnecessary. Upon concession by the plaintiff's advocate and agreement by both parties, the court allowed the oral application to withdraw the suit and ordered that each party bear their own costs. The court emphasized that arbitration is a separate legal process and that the court's intervention was...
Court Disposition
Suit withdrawn by consent to allow arbitration; each party to bear own costs.
Orders
- The suit is wholly marked as withdrawn.
- Each party shall bear their own costs of the suit as withdrawn.
Full Case Text
Judgment text and source record
22 paragraphs
Ima Trading Co. Ltd v Tamuwa Limited (Civil Case E004 of 2023) [2024] KEHC 5121 (KLR) (9 May 2024) (Ruling)
Neutral citation: [2024] KEHC 5121 (KLR)
Republic of Kenya
In the High Court at Kisumu
Civil Case E004 of 2023
RE Aburili, J
May 9, 2024
Between
Ima Trading Co. Ltd
Plaintiff
and
Tamuwa Limited
Defendant
Ruling
1. As the contract between the parties provides for arbitration, there is no reason why this matter was filed in court then the parties start talking of an arbitration.
2. This court does not supervise initiation of arbitration proceedings where the contract between the parties provide for that alternative mode of resolution of the dispute.
3. As there is no interim measures sought in this file pursuant to Section 10 of the Arbitration Act, it was superfluous for the parties to consent to arbitration process through these court proceedings as the Agreement between the parties clearly provides for arbitration.
4. As the Plaintiff’s advocate concedes that there was no need of filing this suit and refer the matter for arbitration which is a separate legal process, and is willing to have the suit withdrawn, I hereby allow the oral application and order that this suit is wholly marked as withdrawn.
5. As parties had agreed to have the consent recorded referring the dispute to arbitration, which consent was necessary, I order that each party bear their own costs of the suit as withdrawn.
6. This Ruling to be typed.
7. File closed.
DATED, SIGNED AND DELIVERED AT KISUMU THIS 9TH DAY OF MAY, 2024R. E. ABURILIJUDGE