[2019] KEHC 4251 (KLR)

[2019] KEHC 4251 (KLR)

The court held that the arbitration clause in the Sugarcane Growing and Supply Contract remains operative despite the repeal of the Sugar Act, 2001 and the enactment of the Crops Act, 2013. The court found that the Arbitration Committee can still be validly constituted by substituting defunct offices and bodies with their statutory successors or equivalents under the new legal regime. The absence of the Sugar Arbitration Tribunal does not render the arbitration process inoperative, as parties retain recourse to the Arbitration Act for enforcement and appeals. The court further held that the arbitration clause is broadly worded to cover all disputes arising from the contract, and the...

Citation
[2019] KEHC 4251 (KLR)
Parties
Appellant: Richard Thomas; Respondent: Trans Mara Sugar Co. Ltd
Court
High Court
Court Station
High Court at Migori
Jurisdiction
Kenya
Judgment Date
19 September 2019
Case Number
Civil Appeal 91 of 2018
Procedural Posture
Civil Appeal / Judgment
Outcome
appeal dismissed
Judges
AC Mrima
Legal Topics
Arbitration Clauses, Contractual Disputes, Statutory Repeal Effects, Alternative Dispute Resolution, Appeals Process, Agricultural Contracts
Source Language
English
Commercial and Corporate Civil Procedure Arbitration Clauses Contractual Disputes Statutory Repeal Effects Alternative Dispute Resolution Appeals Process Agricultural Contracts

Case Brief

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Parties

Richard Thomas

Appellant

Trans Mara Sugar Co. Ltd

Respondent

Procedural Posture

Civil Appeal / Judgment

Legal Issues

  1. 1 Whether the arbitration clause in the Sugarcane Growing and Supply Contract remains operative after the repeal of the Sugar Act, 2001 and enactment of the Crops Act, 2013.
  2. 2 Whether the Arbitration Committee as constituted under the contract can still be validly formed given changes in statutory bodies and government structure.
  3. 3 Whether the absence of the Sugar Arbitration Tribunal renders the arbitration process inoperative and prejudices the parties' rights of appeal.

Ratio Decidendi

The court held that the arbitration clause in the Sugarcane Growing and Supply Contract remains operative despite the repeal of the Sugar Act, 2001 and the enactment of the Crops Act, 2013. The court found that the Arbitration Committee can still be validly constituted by substituting defunct offices and bodies with their statutory successors or equivalents under the new legal regime. The absence of the Sugar Arbitration Tribunal does not render the arbitration process inoperative, as parties retain recourse to the Arbitration Act for enforcement and appeals. The court further held that the arbitration clause is broadly worded to cover all disputes arising from the contract, and the...

Court Disposition

appeal dismissed

Orders

  • The appeal is dismissed with costs to the respondent.
  • The ruling rendered on 06/06/2018 by the Learned Magistrate is affirmed.