[2014] KEHC 5294 (KLR)

[2014] KEHC 5294 (KLR)

The High Court lacks jurisdiction under the Arbitration Act to set aside or review an interlocutory ruling of an arbitrator, as only arbitral awards—decisions that finally determine the issues—are subject to recourse under Section 35. The ruling in question, which ordered the applicant to provide security for costs,...

Source-derived case information.

Citation
[2014] KEHC 5294 (KLR)
Parties
Applicant: National Agricultural Export Development Board; Respondent: Cargill Kenya Limited
Court
High Court
Court Station
High Court at Mombasa
Jurisdiction
Kenya
Case Number
Miscellaneous Civil Application 390 of 2012
Procedural Posture
Miscellaneous Application / Judgment
Outcome
application dismissed with costs to the respondent
Judges
MM Kasango
Legal Topics
Arbitration Awards, Jurisdiction of High Court, Security for Costs, Public Policy Challenge, Constitutional Review, Interim Orders
Source Language
english
Alternative Dispute Resolution Civil Procedure Arbitration Awards Jurisdiction of High Court Security for Costs Public Policy Challenge Constitutional Review Interim Orders

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Parties

National Agricultural Export Development Board

Applicant

Cargill Kenya Limited

Respondent

Procedural Posture

Miscellaneous Application / Judgment

  1. 1 Whether the High Court has jurisdiction to set aside an arbitral ruling (not an award) under the Arbitration Act.
  2. 2 Whether the Arbitrator's ruling on security for costs violated the public policy of Kenya or constitutional rights of the applicant.
  3. 3 Whether the Arbitrator failed to consider relevant evidence and submissions, particularly regarding reciprocal enforcement of judgments.

Ratio Decidendi

The High Court lacks jurisdiction under the Arbitration Act to set aside or review an interlocutory ruling of an arbitrator, as only arbitral awards—decisions that finally determine the issues—are subject to recourse under Section 35. The ruling in question, which ordered the applicant to provide security for costs, was not an award but an interlocutory decision made under Section 18 of the Act. The applicant failed to demonstrate any constitutional violation or that the Arbitrator acted outside the law. The Arbitrator exercised his discretion appropriately, considering the applicant's failure to show assets to meet a potential costs award, and provided sufficient reasons for his...

Court Disposition

application dismissed with costs to the respondent

Orders

  • The Notice of Motion dated 20th November 2012 is dismissed with costs to the Respondent.