[2012] KEHC 2982 (KLR)
The court found that the parties had validly submitted their dispute to arbitration by consent, and that an award was duly made in favour of the applicant. There was no opposition to the application for enforcement, and all procedural requirements were satisfied. The court therefore adopted the arbitral award as its...
Source-derived case information.
- Citation
- [2012] KEHC 2982 (KLR)
- Parties
- Applicant: John Karanja; Respondent: Africa Regional Bureau of Zinhua News Agency; Respondent: Tang Shaifu
- Court
- High Court
- Court Station
- High Court at Nairobi (Milimani Commercial Courts)
- Jurisdiction
- Kenya
- Case Number
- Civil Case 288 of 2012
- Procedural Posture
- Miscellaneous Application / Ruling on Application to Enforce Arbitral Award
- Outcome
- application allowed
- Judges
- DO Ogembo
- Legal Topics
- Arbitral Award Enforcement, Conversion of Award to Decree, Civil Procedure Rules, Interest on Award
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
John Karanja
Applicant
Africa Regional Bureau of Zinhua News Agency
Respondent
Tang Shaifu
Respondent
Procedural Posture
Miscellaneous Application / Ruling on Application to Enforce Arbitral Award
Legal Issues
- 1 Whether the arbitral award dated 12th July 2010 should be adopted as a judgment of the court.
- 2 Whether the applicant is entitled to enforcement of the award, including recovery of the specified sums and interest.
- 3 Whether the applicable exchange rate should be the rate at the date of payment.
Ratio Decidendi
The court found that the parties had validly submitted their dispute to arbitration by consent, and that an award was duly made in favour of the applicant. There was no opposition to the application for enforcement, and all procedural requirements were satisfied. The court therefore adopted the arbitral award as its judgment and granted the orders sought, subject to the clarification that the applicable exchange rate for the USD/KES conversion would be the ruling rate on the date of payment. The court also awarded interest at court rates from the date of the award and ordered the respondents to pay the costs of the application.
Court Disposition
application allowed
Orders
- The arbitral award dated 12th July 2010 is adopted as a judgment of the court.
- The award is converted into a decree for recovery of USD 2,250 at the prevailing exchange rate on the date of payment, plus arbitration costs taxed at KES 731,207 until full recovery.
Full Case Text
Judgment text and source record
32 paragraphs
REPUBLIC OF KENYA
IN THE HIGH COURT OF KENYA ATNAIROBI
CIVIL CASE 288 OF 2012
IN THE MATTER OF ARBITRATION BETWEEN
JOHN KARANJA::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::CLAIMANT/APPLICANT
- VERSUS -
AFRICA REGIONAL BUREAUOF ZINHUA NEWS AGENCY:::::::::::::::::::::1ST RESPONDENT
TANG SHAIFU:::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::2ND RESPONDENT
R U L I N G
1. Before the court is a Notice of Motion application dated 8th May 2012. The application is brought under Order 22 of the Civil Procedure Rules, and Sections 36,and 39 of the Arbitration Act 1995and Rule 9 and Section 3A of the Civil Procedure Act. The application seeks the following orders:
(1)The Arbitration Award dated 12th day of July 2010 be hereby converted into Decree of this Honourable Court.
(2)That the said Decree be for recovery of US. D $2250 at the current exchange rate of shilling ninety five (Kshs.95/=) per dollar plus arbitration costs taxed at Kshs.731,207. 00 until recovery in full. Such an execution be an enforcement of the award as the provision of Order 22 of the Civil Procedure Rules and Section 36 of the Arbitration aforesaid.
(3)The costs of this application and subsequent and incidental thereto be paid by the Respondent Judgement Debtor in any event.
(4)Interest at court rates be paid to the Decree holder, form the date of the Award on 12th day of July 2010.
2. The application is grounded on the grounds stated in the application namely:-
1)By consent the Plaintiff and the Defendant on 22/6/2009 agreed to resolve the dispute through Arbitration.
2)On 1st December 2009 the parties’ advocates entered into arbitration agreement to have the matter resolved by JAMES MANG’ERERE (Arbitrator).
3)On 12th July 2010 the Arbitrator entered the Award in favour of the Plaintiff.
3. The application is supported by an affidavit sworn by SAMUEL KIHARA NDIBA dated 8th May 2012 and supported by annextures attached thereto.
4. The application is not opposed as there is no records or grounds of opposition on file. Neither is there a replying affidavit on record. When the matter came up for hearing on 5th June 2012, Mr. Maloba held brief for Mr. Masire for the Respondent. Mr. Maloba applied for adjournment of the matter. The application was dismissed and the matter proceeded.
5. I have considered the application and the supporting affidavit and annextures attached thereto. I have considered the Ad Hoc Arbitration Agreement dated 1st December 2009 and attached to the affidavit in support as “SKN 1”.
I have also considered the Award dated 12th July 2010 and the proceedings leading to the same.
I herewith adopt the Arbitral Award dated 12th July 2010 as a Judgement of this court. I further allow prayers 2, 3 and 4 of the Notice of Motion dated 8th May 2012 except that applicable dollar/shilling exchange rate shall be the ruling rate on the date of payment of the award.
It is so ordered.
DATED, READ AND DELIVERED AT NAIROBI
THIS 19TH DAY OF JULY 2012
E. K. O. OGOLA
JUDGE
PRESENT:
Kihara for the Applicant
N/A for the Respondent
Teresia – Court Clerk