19860604 TZCA Dar es Salaam

19860604 TZCA Dar es Salaam

The Court of Appeal held that the notice of default and termination were validly issued in accordance with the contract, and that the arbitrator had adequately considered the extension of time issue. However, the arbitrator's assessment of the monetary award was flawed and required a fresh hearing. The High Court's setting aside of the arbitral award was reversed except for the order remitting the monetary award for reassessment.

Citation
19860604 TZCA Dar es Salaam
Parties
Appellant: Sugar Development Corporation; Respondent: Construction Engineers and Builders Limited
Court
TZCA
Jurisdiction
Tanzania
Judgment Date
4 June 1986
Procedural Posture
Civil Appeal / Judgment on Appeal From High Court Ruling on Arbitral Award
Outcome
Appeal allowed in part
Legal Topics
Breach of Contract, Termination of Contract, Arbitration Award, Extension of Time, Construction Contracts
Source Language
English
Contract Law Arbitration Breach of Contract Termination of Contract Arbitration Award Extension of Time Construction Contracts

Case Brief

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Parties

Sugar Development Corporation

Appellant

Construction Engineers and Builders Limited

Respondent

Procedural Posture

Civil Appeal / Judgment on Appeal From High Court Ruling on Arbitral Award

Legal Issues

  1. 1 Whether the notice of termination issued by the appellant was valid under the contract
  2. 2 Whether the arbitrator adequately considered the respondent's application for extension of time
  3. 3 Whether the arbitrator's monetary award was properly assessed

Ratio Decidendi

The Court of Appeal held that the notice of default and termination were validly issued in accordance with the contract, and that the arbitrator had adequately considered the extension of time issue. However, the arbitrator's assessment of the monetary award was flawed and required a fresh hearing. The High Court's setting aside of the arbitral award was reversed except for the order remitting the monetary award for reassessment.

Court Disposition

Appeal allowed in part

Orders

  • Order and ruling of the High Court set aside except for remitting the monetary award for fresh hearing by the same arbitrator
  • Findings of the arbitrator on validity of notices restored