kbl enterprises ltd vs cdi cotton distributors inc 2012 tzhccomd 41 30 march 2012

kbl enterprises ltd vs cdi cotton distributors inc 2012 tzhccomd 41 30 march 2012

A subsequent compromise agreement or Memorandum of Understanding between the parties, made after the issuance of a foreign arbitral award but before its registration as a decree, does not extinguish or supersede the award for purposes of enforcement under Tanzanian law. The grounds advanced by the petitioner do not fall within the statutory grounds for refusing enforcement of a foreign award under section 30(3) of the Arbitration Act. The arbitral award remains final and binding and must be registered and enforced as a decree of the court.

Citation
kbl enterprises ltd vs cdi cotton distributors inc 2012 tzhccomd 41 30 march 2012
Parties
Petitioner: KBL Enterprises Limited; Respondent: CDI Cotton Distributors Inc.
Court
TZHCCOMD
Jurisdiction
Tanzania
Judgment Date
30 March 2012
Procedural Posture
Petition Challenging Enforcement of Foreign Arbitral Award / Judgment on Petition Under Section 30(3) of the Arbitration Act
Outcome
Petition dismissed with costs.
Legal Topics
Enforcement of Foreign Arbitral Awards, Effect of Compromise Agreements on Arbitral Awards, Recognition of Foreign Judgments, Jurisdiction of Courts in Arbitration Matters
Source Language
English
Arbitration Commercial Law Enforcement of Foreign Arbitral Awards Effect of Compromise Agreements on Arbitral Awards Recognition of Foreign Judgments Jurisdiction of Courts in Arbitration Matters

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Parties

KBL Enterprises Limited

Petitioner

CDI Cotton Distributors Inc.

Respondent

Procedural Posture

Petition Challenging Enforcement of Foreign Arbitral Award / Judgment on Petition Under Section 30(3) of the Arbitration Act

Legal Issues

  1. 1 Whether a subsequent compromise agreement extinguishes or supersedes a foreign arbitral award for purposes of enforcement in Tanzania
  2. 2 Whether the Memorandum of Understanding between the parties prevents registration and enforcement of the arbitral award as a decree of the court

Ratio Decidendi

A subsequent compromise agreement or Memorandum of Understanding between the parties, made after the issuance of a foreign arbitral award but before its registration as a decree, does not extinguish or supersede the award for purposes of enforcement under Tanzanian law. The grounds advanced by the petitioner do not fall within the statutory grounds for refusing enforcement of a foreign award under section 30(3) of the Arbitration Act. The arbitral award remains final and binding and must be registered and enforced as a decree of the court.

Court Disposition

Petition dismissed with costs.

Orders

  • The arbitral award filed in this Court on 23rd November 2011 is registered and shall be enforced as if it were a decree of this Court.