[2024] UGCommC 40

[2024] UGCommC 40

The court found that the contract contained both an arbitration clause (clause 16) and a general jurisdiction clause (clause 14), but held that the arbitration clause was specific and mandatory regarding dispute resolution. The court determined that clause 16 was not hopelessly defective, inoperative, or incapable...

Source-derived case information.

Citation
[2024] UGCommC 40
Parties
Plaintiff: Security Group Uganda Limited; Defendant: Finasi-Ishu Construction SPV – Ltd (SMC)
Court
Commercial Court of Uganda
Jurisdiction
Uganda
Case Number
Civil Suit 829 of 2023
Procedural Posture
Civil Suit / Ruling on Preliminary Objection
Outcome
preliminary objection upheld; suit dismissed and referred to arbitration
Judges
Tumusiime Rubagumya, J
Legal Topics
Arbitration Agreement, Contractual Dispute Resolution, Preliminary Objection, Jurisdictional Challenge
Source Language
en
Commercial and Corporate Alternative Dispute Resolution Arbitration Agreement Contractual Dispute Resolution Preliminary Objection Jurisdictional Challenge

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Parties

Security Group Uganda Limited

Plaintiff

Finasi-Ishu Construction SPV – Ltd (SMC)

Defendant

Procedural Posture

Civil Suit / Ruling on Preliminary Objection

  1. 1 Whether the suit should be dismissed for violation of the arbitration clause in the parties' Agreement.
  2. 2 What remedies are available to the parties.

Ratio Decidendi

The court found that the contract contained both an arbitration clause (clause 16) and a general jurisdiction clause (clause 14), but held that the arbitration clause was specific and mandatory regarding dispute resolution. The court determined that clause 16 was not hopelessly defective, inoperative, or incapable of being performed, and that the parties had not abandoned their right to arbitrate. The Arbitration and Conciliation Act restricts court intervention and mandates referral to arbitration where a valid agreement exists. The court emphasized the principle of party autonomy and public policy favoring arbitration as a faster dispute resolution mechanism. Accordingly, the...

Court Disposition

preliminary objection upheld; suit dismissed and referred to arbitration

Orders

  • The dispute between the parties is referred to arbitration in accordance with the provisions of the Arbitration and Conciliation Act, Cap. 4.
  • High Court Civil Suit No.829 of 2023 is hereby dismissed.