[2020] KEHC 6689 (KLR)

[2020] KEHC 6689 (KLR)

The court held that the existence of an arbitration clause in the Sale Agreement required the dispute to be referred to arbitration unless the clause was null and void, inoperative, or incapable of being performed, or unless there was no dispute to refer. The court found that the Plaintiff's claim for recovery of...

Source-derived case information.

Citation
[2020] KEHC 6689 (KLR)
Parties
Plaintiff: YES Housing Co-operative Society Limited; Defendant: Kenneth Onsare Maina
Court
High Court
Court Station
High Court at Machakos
Jurisdiction
Kenya
Case Number
Civil Suit 18 of 2019
Procedural Posture
Civil Suit / Ruling on Application for Stay of Proceedings and Referral to Arbitration
Outcome
Application allowed; proceedings stayed and dispute referred to arbitration.
Judges
GV Odunga
Legal Topics
Arbitration Clauses, Breach of Contract, Fraudulent Title, Specific Performance, Contract Nullity, Alternative Dispute Resolution
Source Language
en
Commercial and Corporate Land and Property Arbitration Clauses Breach of Contract Fraudulent Title Specific Performance Contract Nullity Alternative Dispute Resolution

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Summary, issues, holding and outcome

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Parties

YES Housing Co-operative Society Limited

Plaintiff

Kenneth Onsare Maina

Defendant

Procedural Posture

Civil Suit / Ruling on Application for Stay of Proceedings and Referral to Arbitration

  1. 1 Whether the dispute between the parties is referable to arbitration under the agreement.
  2. 2 Whether the arbitration clause is null and void, inoperative or incapable of being performed due to fraud and nullity of the contract.
  3. 3 Whether there exists a dispute capable of being referred to arbitration.

Ratio Decidendi

The court held that the existence of an arbitration clause in the Sale Agreement required the dispute to be referred to arbitration unless the clause was null and void, inoperative, or incapable of being performed, or unless there was no dispute to refer. The court found that the Plaintiff's claim for recovery of monies paid under a contract rendered void by fraud still constituted a dispute arising from the agreement, and that the arbitration clause was not rendered inoperative merely by the finding of fraud or the contract's nullity. The court emphasized that allegations of fraud do not automatically oust the jurisdiction of an arbitrator, and that it is for the arbitrator to determine...

Court Disposition

Application allowed; proceedings stayed and dispute referred to arbitration.

Orders

  • All further proceedings in this case are stayed.
  • The dispute is referred to arbitration pursuant to the agreement.