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The existence of a valid arbitration agreement in the sale contract obliges the court to stay proceedings and refer the parties to arbitration, as per statutory mandate and established case law. The court retains jurisdiction to make such referral but must respect the parties' contractual dispute resolution mechanism.
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The High Court held it lacked jurisdiction because the parties had agreed to resolve their dispute through arbitration and had not yet done so.
The court found that the respondent's objections to Mr. Charles Rwechungura were unsubstantiated but, given the importance of impartiality and qualifications in arbitration and the parties' consensus, appointed the National Construction Council (NCC) as arbitrator under the NCC Rules.
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