db shapriya and co limited vs yara tanzania limited 2021 tzhccomd 3457 2 december 2021

db shapriya and co limited vs yara tanzania limited 2021 tzhccomd 3457 2 december 2021

The ICC arbitral award cannot co-exist with the default decree in Commercial Case No. 37 of 2016 as both emanate from the same contract and parties, and this is contrary to public policy. Unless the default decree is set aside, the arbitral award has no legal force in this court. The court lacks jurisdiction to set aside the award under Sections 69 and 70 of the Arbitration Act, 2020, but Section 13(5) applies, rendering the arbitral award ineffective unless the court decree is set aside.

Citation
db shapriya and co limited vs yara tanzania limited 2021 tzhccomd 3457 2 december 2021
Parties
Petitioner: DB Shapriya & Co. Limited; Respondent: Yara Tanzania Limited
Court
TZHCCOMD
Jurisdiction
Tanzania
Judgment Date
2 December 2021
Procedural Posture
Petition to Set Aside Foreign Arbitral Award / Final Judgment
Outcome
petition allowed in part
Legal Topics
Setting Aside Arbitral Awards, Public Policy, Jurisdiction, Functus Officio, Conflicting Decrees
Source Language
English
Arbitration Commercial Law Setting Aside Arbitral Awards Public Policy Jurisdiction Functus Officio Conflicting Decrees

Case Brief

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Parties

DB Shapriya & Co. Limited

Petitioner

Yara Tanzania Limited

Respondent

Procedural Posture

Petition to Set Aside Foreign Arbitral Award / Final Judgment

Legal Issues

  1. 1 Whether the arbitral award can co-exist with the default decree in Commercial Case No. 37 of 2016
  2. 2 Whether the arbitral award is contrary to public policy
  3. 3 Whether the High Court has jurisdiction to set aside the ICC arbitral award

Ratio Decidendi

The ICC arbitral award cannot co-exist with the default decree in Commercial Case No. 37 of 2016 as both emanate from the same contract and parties, and this is contrary to public policy. Unless the default decree is set aside, the arbitral award has no legal force in this court. The court lacks jurisdiction to set aside the award under Sections 69 and 70 of the Arbitration Act, 2020, but Section 13(5) applies, rendering the arbitral award ineffective unless the court decree is set aside.

Court Disposition

petition allowed in part

Orders

  • Arbitral award in ICC Arbitration Case No. 22118/TO shall not have legal force unless the decree in Commercial Case No. 37 of 2016 is set aside.
  • Petitioner awarded costs.