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The High Court held that the arbitration clause did not cover the dispute because it excluded specific performance, so the preliminary objections failed.
The suit is not time barred because the period during which the plaintiffs were diligently prosecuting related proceedings is excluded from the limitation period. The court retains jurisdiction because the arbitration clause could not be implemented due to the defendants' refusal to cooperate, making arbitration impossible.
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The parties' agreement contains a binding arbitration clause requiring disputes to be referred to the Commissioner for Mines & Geology. The Plaintiff failed to exhaust this agreed dispute resolution mechanism before approaching the court. As such, the suit is premature and incompetent before the High Court, which lacks jurisdiction at this stage.
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The preliminary objection does not qualify as a pure point of law because it is based on contested facts regarding which agreement governs the parties' relationship. Since evidence is required to determine whether the Distribution Agreements superseded the sale on credit agreement, the objection cannot be disposed of at this stage. The preliminary objection is therefore dismissed with costs.
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The suit is not time barred because the period during which the plaintiffs were diligently prosecuting other proceedings on the same cause of action is to be excluded from the limitation period. The court has jurisdiction because the arbitration clause could not be implemented due to the defendants' lack of cooperation, and the defendants did not seek a stay of proceedings to pursue arbitration.
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A contract not pleaded in the plaint cannot be relied upon to determine a claim, even if admitted in evidence. Interest on commercial debts may be awarded at the court rate if not otherwise proved. The trial court was correct in refusing to rely on exhibit PI but erred in not awarding interest at the court rate on the undisputed debt.
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Since the respondent does not dispute the debt and admits indebtedness, there is no arbitrable dispute, and the presence of an arbitration clause does not oust the court's jurisdiction in this winding up petition. The preliminary objections are without merit and are dismissed.
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The East African Court of Justice dismissed a workers’ salary claim on a preliminary point, holding that the employment dispute fell within a binding arbitration clause.
The trial court had jurisdiction to entertain the repossession application under the Financial Leasing Act despite the arbitration clause, as the agreement and statute expressly provided for repossession in case of default, and the application did not require a main suit. The previous ruling involved different reliefs and was not contradictory.
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The application for stay of winding up proceedings did not breach section 275 of the Companies Act, as it did not seek to surrender winding up jurisdiction to arbitration but to temporarily halt proceedings for arbitration of a specific disputed issue. The cited statutory provisions do not prohibit the High Court from entertaining an application for stay pending arbitration of an underlying dispute. The High Court erred in dismissing the application for stay based on a misconstruction of section 275 and reliance on distinguishable precedent.
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