transnet ltd ta spoonet vs comazar proprietary ltd another 2006 tzhccomd 63 30 october 2006

transnet ltd ta spoonet vs comazar proprietary ltd another 2006 tzhccomd 63 30 october 2006

The application for stay fails because the 1st Respondent is not a party to the arbitration submission and the applicant has taken steps in the proceedings by applying for variation and review of interim orders, which amounts to a step in the proceedings under s.6 of the Arbitration Act. The court also cannot invoke its inherent jurisdiction to refer the matter to arbitration in the absence of agreement between the parties.

Citation
transnet ltd ta spoonet vs comazar proprietary ltd another 2006 tzhccomd 63 30 october 2006
Parties
Applicant: Transnet Ltd t/a Spoonet; 1st Respondent: Comazar (Proprietary) Ltd; 2nd Respondent: Trans Africa Railway Corporation (Tanzania) Limited
Court
TZHCCOMD
Jurisdiction
Tanzania
Judgment Date
30 October 2006
Procedural Posture
Application for Stay of Proceedings / Ruling on Application for Stay Pending Arbitration
Outcome
Petition dismissed with costs.
Legal Topics
Stay of Proceedings, Arbitration Agreement, Taking Steps in Proceedings, Jurisdiction to Refer to Arbitration
Source Language
English
Arbitration Civil Procedure Contract Stay of Proceedings Arbitration Agreement Taking Steps in Proceedings Jurisdiction to Refer to Arbitration

Case Brief

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Parties

Transnet Ltd t/a Spoonet

Applicant

Comazar (Proprietary) Ltd

1st Respondent

Trans Africa Railway Corporation (Tanzania) Limited

2nd Respondent

Procedural Posture

Application for Stay of Proceedings / Ruling on Application for Stay Pending Arbitration

Legal Issues

  1. 1 Whether the 1st Respondent is a party to the arbitration submission
  2. 2 Whether the applicant has taken a step in the proceedings precluding stay under s.6 of the Arbitration Act

Ratio Decidendi

The application for stay fails because the 1st Respondent is not a party to the arbitration submission and the applicant has taken steps in the proceedings by applying for variation and review of interim orders, which amounts to a step in the proceedings under s.6 of the Arbitration Act. The court also cannot invoke its inherent jurisdiction to refer the matter to arbitration in the absence of agreement between the parties.

Court Disposition

Petition dismissed with costs.

Orders

  • Petition for stay of proceedings is dismissed.
  • Applicant to pay costs.