BM Steel Ltd v Kilembe Mines Ltd Ruling 3 (HCT-CC-00-MA 579 of 2005) [2005] UGCommC 48 (31 August 2005)

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\rsid1078454\rsid1710166\rsid2777943\rsid2837405\rsid5206192\rsid6246460\rsid6575887\rsid6768435\rsid7156197\rsid7160559\rsid7495110\rsid8081414\rsid8540856\rsid8719697\rsid8986281\rsid9133774\rsid10646854\rsid11223521 \rsid11410630\rsid12976303\rsid13522127\rsid14292348\rsid14550659\rsid14555667\rsid15169374\rsid15536962\rsid15861250\rsid16015493}{\*\generator Microsoft Word 11.0.6568;}{\info{\title REPUBLIC OF UGANDA}{\author Fredrick Egonda-Ntende} {\operator Harry Mak}{\creatim\yr2006\mo2\dy7\hr10\min14}{\revtim\yr2006\mo2\dy7\hr10\min14}{\printim\yr2005\mo8\dy18\hr17\min8}{\version2}{\edmins0}{\nofpages3}{\nofwords1108}{\nofchars6320}{\*\company }{\nofcharsws7414}{\vern24579}} \widowctrl\ftnbj\aenddoc\noxlattoyen\expshrtn\noultrlspc\dntblnsbdb\nospaceforul\formshade\horzdoc\dgmargin\dghspace180\dgvspace180\dghorigin1800\dgvorigin1440\dghshow1\dgvshow1 \jexpand\viewkind1\viewscale115\pgbrdrhead\pgbrdrfoot\splytwnine\ftnlytwnine\htmautsp\nolnhtadjtbl\useltbaln\alntblind\lytcalctblwd\lyttblrtgr\lnbrkrule\nobrkwrptbl\snaptogridincell\allowfieldendsel\wrppunct \asianbrkrule\rsidroot16015493\newtblstyruls\nogrowautofit \fet0\sectd \linex0\headery708\footery708\colsx708\endnhere\sectlinegrid360\sectdefaultcl\sftnbj {\*\pnseclvl1\pnucrm\pnstart1\pnindent720\pnhang {\pntxta .}}{\*\pnseclvl2 \pnucltr\pnstart1\pnindent720\pnhang {\pntxta

.}}{\*\pnseclvl3\pndec\pnstart1\pnindent720\pnhang {\pntxta .}}{\*\pnseclvl4\pnlcltr\pnstart1\pnindent720\pnhang {\pntxta )}}{\*\pnseclvl5\pndec\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}{\*\pnseclvl6 \pnlcltr\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}{\*\pnseclvl7\pnlcrm\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}{\*\pnseclvl8\pnlcltr\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}{\*\pnseclvl9\pnlcrm\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}\pard\plain \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0 \fs24\lang2057\langfe1033\cgrid\langnp2057\langfenp1033 {\insrsid15861250 \par }{\insrsid16015493 REPUBLIC OF UGANDA \par \par IN THE HIGH COURT OF UGANDA HOLDEN AT KAMPALA \par \par (COMMERCIAL COURT DIVISION) \par \par HCT-CC-00-MA-0579 OF 2005 \par (Arising from HCT-CC-00-MC-0002-2005) \par \par B. M. STEEL LIMITED APPLICANT \par \par VERSUS \par \par KILEMBE MINES LIMITED RESPONDENT \par \par \par }{\b\ul\insrsid16015493\charrsid2837405 BEFORE: THE HON. MR. JUSTICE FMS EGONDA-NTENDE \par \par RULING \par }{\insrsid16015493 \par {\listtext\pard\plain\lang2057\langfe1033\langnp2057\insrsid16015493 \hich\af0\dbch\af0\loch\f0 1.\tab}}\pard \ql \fi-360\li720\ri0\sl360\slmult1\widctlpar\jclisttab\tx720\aspalpha\aspnum\faauto\ls1\adjustright\rin0\lin720\itap0\pararsid2837405 { \insrsid16015493 The applicant, B. M.

Steel Ltd, is seeking leave of this court to appeal to the Court of Appeal, against }{\insrsid5206192 an order}{\insrsid16015493 of this court dated 14}{\super\insrsid16015493\charrsid16015493 th}{\insrsid16015493 July 2005, setting aside a}{\insrsid11410630 n}{\insrsid16015493 arbitral award between the parties hereto. The applicant further seeks that costs of this application be provided. The respondent, Kilembe Mines Ltd, opposed this application. \par {\listtext\pard\plain\lang2057\langfe1033\langnp2057\insrsid16015493 \hich\af0\dbch\af0\loch\f0 2.\tab}At the hearing of the application, I pointed out to the parties that I needed to be satisfied that the applicant had a right of appeal in respect of the }{\insrsid5206192 order}{\insrsid16015493 that he wished to appeal against either as of right or with leave of court.}{\insrsid6575887 Mr. Nangwala, appearing for the respondent blew hot and cold. Initially he t ook the view that the applicant had a right of appeal, and therefore this application was misconceived. Subsequently he argued that the applicant in fact had no right of appeal, and therefore this application was misconceived.}{\insrsid16015493 \par {\listtext\pard\plain\lang2057\langfe1033\langnp2057\insrsid6575887 \hich\af0\dbch\af0\loch\f0 3.\tab}}{\insrsid6575887 Mr. Kabega appearing for the applicant submitted that the applicant had a right of appeal based on

Section 68 of the Civil Procedure Act. And that this application could therefore be presented under Order XL Rule 1 and 2 of the Civil Procedure Rules. \par {\listtext\pard\plain\lang2057\langfe1033\langnp2057\insrsid6575887 \hich\af0\dbch\af0\loch\f0 4.\tab}I shall first deal with this matter. Section 68 of the}{\insrsid2837405 Civil Procedure Act, provides, \par }\pard \ql \li1440\ri1440\widctlpar\aspalpha\aspnum\faauto\adjustright\rin1440\lin1440\itap0\pararsid2837405 {\fs20\insrsid6575887\charrsid2837405 \'93 Unless otherwise expressly provided in this Act, an appeal shall lie from the decrees or any part of decrees and from the orders of the High Court to the Supreme Court.\'94 \par {\listtext\pard\plain\lang2057\langfe1033\langnp2057\insrsid6575887 \hich\af0\dbch\af0\loch\f0 5.\tab}}\pard \ql \fi-360\li720\ri0\sl360\slmult1\widctlpar\jclisttab\tx720\aspalpha\aspnum\faauto\ls1\adjustright\rin0\lin720\itap0\pararsid2837405 { \insrsid6575887 Section 77 deals more specifically with orders of the High Court and appeals therefrom. It states, }{\insrsid5206192 \par }\pard \ql \li1440\ri1440\widctlpar\aspalpha\aspnum\faauto\adjustright\rin1440\lin1440\itap0\pararsid2837405 {\fs20\insrsid6575887\charrsid2837405 \'93(1) An appeal shall lie from the following orders, }{\b\i\fs20\ul\insrsid6575887\charrsid2837405 and save as otherwise expressly provided in this Act or by any law for

the time being in force from no other orders}{\fs20\insrsid6575887\charrsid2837405 \emdash }{\fs20\insrsid6246460\charrsid2837405 }{\fs20\insrsid2837405 }{\fs20\insrsid6575887\charrsid2837405 (a) an order superseding an arbitration where the award has not been completed with the period allowed by the court; }{\fs20\insrsid2837405 }{\fs20\insrsid6575887\charrsid2837405 (b) an order on an award stated in the form of a special case; }{\fs20\insrsid6246460\charrsid2837405 }{\fs20\insrsid6575887\charrsid2837405 (}{\fs20\insrsid5206192\charrsid2837405 c) an order modifying or correcting an award; }{ \fs20\insrsid6246460\charrsid2837405 }{\fs20\insrsid2837405 }{\fs20\insrsid5206192\charrsid2837405 (d) an order staying or refusing to stay a suit where there is an agreement to refer to arbitration; }{ \fs20\insrsid6246460\charrsid2837405 }{\fs20\insrsid5206192\charrsid2837405 (e) an order filing or refusing to file an award in an arbitration without the intervention of the court; }{ \fs20\insrsid6246460\charrsid2837405 }{\fs20\insrsid2837405 }{\fs20\insrsid5206192\charrsid2837405 (f)an order under Section 66 of this Act; }{\fs20\insrsid6246460\charrsid2837405 }{\fs20\insrsid2837405 }{\fs20\insrsid5206192\charrsid2837405 (g) an order under any of the provisions of this Act imposing a fine or directing the arrest or detention in prison of any person except where such arrest or detention

is in execution of a decree; }{\fs20\insrsid6246460\charrsid2837405 }{\fs20\insrsid5206192\charrsid2837405 (h) any order made under rules from which an appeal is expressly allowed by rules. }{\fs20\insrsid6246460\charrsid2837405 }{\fs20\insrsid2837405 }{ \fs20\insrsid5206192\charrsid2837405 (2) No appeal shall lie from any order passed in appeal under this section.}{\fs20\insrsid2837405 (Emphasis is mine.)}{\fs20\insrsid6575887\charrsid2837405 \par {\listtext\pard\plain\lang2057\langfe1033\langnp2057\insrsid5206192 \hich\af0\dbch\af0\loch\f0 6.\tab}}\pard \ql \fi-360\li720\ri0\sl360\slmult1\widctlpar\jclisttab\tx720\aspalpha\aspnum\faauto\ls1\adjustright\rin0\lin720\itap0\pararsid2837405 { \insrsid5206192 Section 68 of the Civil Procedure Act generally allows appeals from orders of the High Court to the Cour t of Appeal as it does with decrees of the High Court unless an appeal is barred by any other law. Section 77 in effect bars all appeals against orders save those listed from (a) to (h) in respect of which appeals are allowed as of right.}{ \insrsid6246460 The provisions of Section 77 (1) of the Civil Procedure Act prohibit appeals from any other orders made by the High Court. As can be noted the provisions thereof do allow appeals from certain orders made in arbitration proceedings but do not include an order setting aside an award made in arbitral

proceedings.}{\insrsid5206192 \par {\listtext\pard\plain\lang2057\langfe1033\langnp2057\insrsid12976303 \hich\af0\dbch\af0\loch\f0 7.\tab}}{\insrsid12976303 I am fortified in this view by the decision in B. D. Bilmoria & Another v T. D. Bilmoria [1962] EA 198 made by the Court of Appeal for East Africa}{\insrsid14555667 on appeal from Uganda. Gould, J. A., page 202, stated, (and}{ \insrsid14555667\charrsid12976303 }{\insrsid14555667 Sir Ronald Sinclair, P., and Sir Alastair Forbes, V-P., agreed), \par }\pard \ql \li1440\ri1440\widctlpar\aspalpha\aspnum\faauto\adjustright\rin1440\lin1440\itap0\pararsid2837405 {\fs20\insrsid14555667\charrsid2837405 \'93 On the other hand, orders made in relation to an arbitration under the Arbitration Ordinance and Rules, unless they fall within the specific categories mentioned in s.77 of the Civil Procedure Ordinance, are not appealable even with leave of a court.\'94 }{\fs20\insrsid12976303\charrsid2837405 \par {\listtext\pard\plain\lang2057\langfe1033\langnp2057\insrsid6246460 \hich\af0\dbch\af0\loch\f0 8.\tab}}\pard \ql \fi-360\li720\ri0\sl360\slmult1\widctlpar\jclisttab\tx720\aspalpha\aspnum\faauto\ls1\adjustright\rin0\lin720\itap0\pararsid2837405 { \insrsid6246460 Section 77 (h) of the Civil Procedure Act permits appeals from any order made under rules from which an appeal is expressly allowed by the rules. Order 40 }{\insrsid1710166 Rule

1 }{\insrsid6246460 (1)}{\insrsid1710166 of the Civil Procedure Rules sets out the orders made under the Civil Procedure Rules in respect of which an appeal may lie as of right. Obviously an order setting aside an arbitral award is not one of the orders mentioned. Setting aside arbitral awards is not }{\insrsid8081414 governed by the Civil Procedure }{\insrsid1710166 Act, and its rules but by the Arbitration and Conciliation Act. Therefore no appeal would be contemplated under Order 40 Rule 1 of the Civil Procedure Rules. }{\insrsid6246460 \par {\listtext\pard\plain\lang2057\langfe1033\langnp2057\insrsid1710166 \hich\af0\dbch\af0\loch\f0 9.\tab}}{\insrsid1710166 Order 40 Rule 2 of the Civil Procedure Rules permits with leave of the court appeals against order s of the High Court made under those rules. It states, }{\insrsid12976303 \par }\pard \ql \li1440\ri1440\widctlpar\aspalpha\aspnum\faauto\adjustright\rin1440\lin1440\itap0\pararsid2837405 {\fs20\insrsid1710166\charrsid2837405 \'93 An Appeal under these rules shall not lie from any other order save with leave of the court making the order or of the court to which an appeal would lie if leave were given.\'94 \par {\listtext\pard\plain\lang2057\langfe1033\langnp2057\insrsid8081414 \hich\af0\dbch\af0\loch\f0 10.\tab}}\pard \ql

\fi-360\li720\ri0\sl360\slmult1\widctlpar\jclisttab\tx720\aspalpha\aspnum\faauto\ls1\adjustright\rin0\lin720\itap0\pararsid2837405 { \insrsid8081414 What \'93under these rules\'94 means received judicial consideration in Rene Dol v The Official Receiver of Uganda (1951) 21 EACA 116, a decision of the Court of Appeal for Eastern Africa on appeal from Uganda. Briggs, J. A. stated}{ \insrsid12976303 , and the other judges concurred in this view,}{\insrsid8081414 th}{\insrsid12976303 at}{\insrsid8081414 ,}{\insrsid12976303 \par }\pard \ql \li1440\ri1440\widctlpar\aspalpha\aspnum\faauto\adjustright\rin1440\lin1440\itap0\pararsid2837405 {\fs20\insrsid8081414\charrsid2837405 \'93Order XL, ru}{\fs20\insrsid12976303\charrsid2837405 le 1, sub-rule (2), refers only}{ \fs20\insrsid8081414\charrsid2837405 to appeals \'93appeals under these rules\'94, which must, I think, mean either \'93appeals authorized by these rules\'94 or \'93appeals from orders made under these rules\'94. }{\fs20\insrsid12976303\charrsid2837405 }{\fs20\insrsid1710166\charrsid2837405 \par {\listtext\pard\plain\lang2057\langfe1033\langnp2057\insrsid9133774 \hich\af0\dbch\af0\loch\f0 11.\tab}}\pard \ql \fi-360\li720\ri0\sl360\slmult1\widctlpar\jclisttab\tx720\aspalpha\aspnum\faauto\ls1\adjustright\rin0\lin720\itap0\pararsid2837405 { \insrsid9133774 This view was cited with approval in B. D. Bilmoria & Another v T. D.

Bilmoria [1962] EA 198, a decision of the Court of Appeal for East Africa. Gould, J. A. stated}{\insrsid12976303 and}{\insrsid12976303\charrsid12976303 }{ \insrsid12976303 Sir Ronald Sinclair, P., and Sir Alastair Forbes, V-P., agreed. \par }\pard \ql \li1440\ri1440\widctlpar\aspalpha\aspnum\faauto\adjustright\rin1440\lin1440\itap0\pararsid2837405 {\fs20\insrsid9133774\charrsid2837405 \'93When this rule is read together with S.77 (1) (h) of the Ordinance it is clear (and it was so held in Rene Dol v. The official Receiver of Uganda}{\fs20\insrsid12976303\charrsid2837405 (4)) that O. 40, r.2, cannot operate to confer a right of appeal, even with leave, in the case of an order not made under the Civil Procedure Rules.\'94 \par {\listtext\pard\plain\lang2057\langfe1033\langnp2057\insrsid8081414 \hich\af0\dbch\af0\loch\f0 12.\tab}}\pard \ql \fi-360\li720\ri0\sl360\slmult1\widctlpar\jclisttab\tx720\aspalpha\aspnum\faauto\ls1\adjustright\rin0\lin720\itap0\pararsid2837405 { \insrsid8081414 I am satisfied that an order setting aside an arbitral award is not an order made under the Civil Procedure Rules and would not come within the }{\insrsid9133774 purview}{\insrsid8081414 of Order }{\insrsid9133774 40 Rules 1(2) and 2 of the Civil Procedure Rules. Appeals contemplated under the said provisions are appeals that arise from orders made under the Civil Procedure Rules, which clearly the

order sought to be appealed}{\insrsid12976303 from}{ \insrsid9133774 in this case is not.}{\insrsid8081414 \par {\listtext\pard\plain\lang2057\langfe1033\langnp2057\insrsid14555667 \hich\af0\dbch\af0\loch\f0 13.\tab}}{\insrsid14555667 In the result I find that this application for leave to appeal against the order of this court setti ng aside an arbitral award is misconceived. The order cannot be appealed as of right or with leave of the court for the reasons set out above. It is dismissed accordingly with costs. \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid14555667 {\insrsid14555667 \par Dated in Kampala this 31}{\super\insrsid14555667\charrsid14555667 st}{\insrsid14555667 day of August 2005. \par \par \par \par \par \par FMS Egonda-Ntende \par Judge \par }}