travelport international ltd vs pricise system ltd 2019 tzhccomd 129 12 april 2019

travelport international ltd vs pricise system ltd 2019 tzhccomd 129 12 april 2019

Where there is an arbitration agreement and the applicant has not taken steps in the proceedings, the court must stay proceedings and refer the matter to arbitration, as the arbitration clause is severable and survives termination of the main contract. The presence of multiple defendants or third parties does not bar the right to stay. The petitioner is presumed ready and willing to arbitrate if no steps have been taken in the action.

Citation
travelport international ltd vs pricise system ltd 2019 tzhccomd 129 12 april 2019
Parties
Petitioner: Travelport International Limited; Respondent: Precise Systems Limited
Court
TZHCCOMD
Jurisdiction
Tanzania
Judgment Date
12 April 2019
Procedural Posture
Miscellaneous Commercial Application / Ruling on Petition for Stay of Proceedings Pending Reference to Arbitration
Outcome
Petition granted; proceedings stayed pending arbitration.
Legal Topics
Stay of Proceedings, Arbitration Agreement, Doctrine of Separability, Jurisdiction, Multiplicity of Proceedings
Source Language
English
Arbitration Commercial Law Stay of Proceedings Arbitration Agreement Doctrine of Separability Jurisdiction Multiplicity of Proceedings

Case Brief

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Parties

Travelport International Limited

Petitioner

Precise Systems Limited

Respondent

Procedural Posture

Miscellaneous Commercial Application / Ruling on Petition for Stay of Proceedings Pending Reference to Arbitration

Legal Issues

  1. 1 Whether proceedings in High Court Commercial Case No. 165 of 2017 should be stayed pending reference to arbitration under Clause 38 of the Operators Agreement
  2. 2 Whether the arbitration clause survives termination of the substantive agreement
  3. 3 Whether the petitioner has taken steps in the proceedings precluding stay

Ratio Decidendi

Where there is an arbitration agreement and the applicant has not taken steps in the proceedings, the court must stay proceedings and refer the matter to arbitration, as the arbitration clause is severable and survives termination of the main contract. The presence of multiple defendants or third parties does not bar the right to stay. The petitioner is presumed ready and willing to arbitrate if no steps have been taken in the action.

Court Disposition

Petition granted; proceedings stayed pending arbitration.

Orders

  • Matter referred to arbitration in accordance with Clause 38 of the Operators Agreement and Section 6 of the Arbitration Act.
  • Petitioner to initiate arbitration within two months from the date of the order.