HYDROBATEL Ltd v. KAREKEZI

HYDROBATEL Ltd v. KAREKEZI

HYDROBATEL Ltd, by participating in the arbitral proceedings and signing the minutes without objecting to the expiry of the terms of reference, tacitly agreed to extend the arbitration period. Therefore, its appeal to set aside the arbitral award for lack of jurisdiction is baseless. Damages for being involved in court proceedings are not payable where the other party exercised a legitimate right of appeal.

Citation
RLR V.3 - 2015
Parties
Appellant: HYDROBATEL Ltd; Respondent: Karekezi François Xavier
Court
Supreme Court
Jurisdiction
Rwanda
Judgment Date
6 February 2015
Case Number
RCOMA 0007/13/CS
Procedural Posture
Commercial Appeal / Supreme Court Final Judgment
Outcome
Appeal dismissed; arbitral award sustained; partial cross-appeal allowed
Legal Topics
Arbitral Award Setting Aside, Tacit Extension of Arbitration Terms, Jurisdiction of Commercial Courts, Moral Damages, Court Fees
Source Language
en
Arbitration Commercial Law Civil Procedure Arbitral Award Setting Aside Tacit Extension of Arbitration Terms Jurisdiction of Commercial Courts Moral Damages Court Fees

Case Brief

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Parties

HYDROBATEL Ltd

Appellant

Karekezi François Xavier

Respondent

Procedural Posture

Commercial Appeal / Supreme Court Final Judgment

Legal Issues

  1. 1 Whether the arbitral award can be set aside for being rendered after expiry of the time-limit set in the terms of reference
  2. 2 Whether tacit extension of the arbitration terms of reference occurred
  3. 3 Whether damages for being involved in court proceedings are payable when the other party had a right to appeal

Ratio Decidendi

HYDROBATEL Ltd, by participating in the arbitral proceedings and signing the minutes without objecting to the expiry of the terms of reference, tacitly agreed to extend the arbitration period. Therefore, its appeal to set aside the arbitral award for lack of jurisdiction is baseless. Damages for being involved in court proceedings are not payable where the other party exercised a legitimate right of appeal.

Court Disposition

Appeal dismissed; arbitral award sustained; partial cross-appeal allowed

Orders

  • HYDROBATEL Ltd to pay Karekezi François Xavier 500,000 Frw for lawyer’s fees
  • Arbitral award of 10 April 2013 is sustained