20140610 TZHC Dar es Salaam

20140610 TZHC Dar es Salaam

The clause in the contract only required disputes to be resolved amicably and did not expressly or mandatorily refer disputes to arbitration. Therefore, there was no valid arbitration agreement to warrant a stay of proceedings under Section 6 of the Arbitration Act.

Citation
20140610 TZHC Dar es Salaam
Parties
Petitioner: M/S Team Africa Commodities Trading International FZE; Respondent: M/S Kahama Oil Mills Limited
Court
TZHC
Jurisdiction
Tanzania
Judgment Date
10 June 2014
Procedural Posture
Miscellaneous Civil Application (for Stay of Proceedings) / Ruling on Petition for Stay Pending Arbitration
Outcome
Petition dismissed with costs.
Legal Topics
Arbitration Clause Interpretation, Stay of Proceedings, Contra Proferentem, Jurisdiction of Arbitral Tribunal
Source Language
English
Arbitration Contract Law Civil Procedure Arbitration Clause Interpretation Stay of Proceedings Contra Proferentem Jurisdiction of Arbitral Tribunal

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Parties

M/S Team Africa Commodities Trading International FZE

Petitioner

M/S Kahama Oil Mills Limited

Respondent

Procedural Posture

Miscellaneous Civil Application (for Stay of Proceedings) / Ruling on Petition for Stay Pending Arbitration

Legal Issues

  1. 1 Whether the contract contains a valid arbitration clause warranting stay of proceedings
  2. 2 Whether ambiguity in the clause should be construed against the drafter

Ratio Decidendi

The clause in the contract only required disputes to be resolved amicably and did not expressly or mandatorily refer disputes to arbitration. Therefore, there was no valid arbitration agreement to warrant a stay of proceedings under Section 6 of the Arbitration Act.

Court Disposition

Petition dismissed with costs.

Orders

  • The petition for stay of proceedings pending reference to arbitration is dismissed.
  • The petitioner is to pay costs.