[2013] KEHC 4091 (KLR)

[2013] KEHC 4091 (KLR)

The High Court found that its jurisdiction to set aside arbitral awards is strictly limited to the grounds set out in Section 35 of the Arbitration Act, 1995. The applicant failed to demonstrate that the arbitral tribunal exceeded its mandate or that the award was contrary to public policy as defined by Kenyan law...

Source-derived case information.

Citation
[2013] KEHC 4091 (KLR)
Parties
Applicant: Kenya Sugar Research Foundation; Respondent: Kenchuan Architects Ltd
Court
High Court
Court Station
High Court at Nairobi (Milimani Law Courts)
Jurisdiction
Kenya
Case Number
Civil Case 695 of 2012
Procedural Posture
Miscellaneous Application / Ruling on Application to Set Aside Arbitral Award and Preliminary Objection
Outcome
application dismissed; preliminary objection allowed
Judges
JB Havelock
Legal Topics
Arbitration Award Challenge, Public Policy Exception, Contract Variation, Consultancy Fees Dispute, Jurisdiction of High Court, Costs of Arbitration
Source Language
en
Commercial and Corporate Civil Procedure Alternative Dispute Resolution Arbitration Award Challenge Public Policy Exception Contract Variation Consultancy Fees Dispute Jurisdiction of High Court +1 more

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Parties

Kenya Sugar Research Foundation

Applicant

Kenchuan Architects Ltd

Respondent

Procedural Posture

Miscellaneous Application / Ruling on Application to Set Aside Arbitral Award and Preliminary Objection

  1. 1 Whether the High Court has jurisdiction to set aside the arbitral award under Section 35 of the Arbitration Act, 1995.
  2. 2 Whether the arbitral award exceeded the lawful maximum limit of variation under the Public Procurement and Disposal Act, 2005.
  3. 3 Whether the award was contrary to public policy and thus liable to be set aside.

Ratio Decidendi

The High Court found that its jurisdiction to set aside arbitral awards is strictly limited to the grounds set out in Section 35 of the Arbitration Act, 1995. The applicant failed to demonstrate that the arbitral tribunal exceeded its mandate or that the award was contrary to public policy as defined by Kenyan law and judicial precedent. The tribunal acted within the scope of the contract, and the computation of fees for additional services was consistent with the contract terms and the law. The applicant's arguments regarding the 10% variation cap under the Public Procurement and Disposal Act were considered and rejected by the tribunal, and the court found no basis to interfere. The...

Court Disposition

application dismissed; preliminary objection allowed

Orders

  • The applicant's application dated 5th November, 2012 is dismissed.
  • The respondent's preliminary objection dated 21st November, 2012 is allowed.