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Mbabazi v Equity Bank Uganda Limited (Miscellaneous Application 1599 of 2021) [2023] UGCommC 237 (11 January 2023)
- Citation
- [2023] UGCommC 237
- Status
- Judgment
- Jurisdiction
- Uganda
- Court
- Commercial Court of Uganda
- Panel
- Anna B. Mugenyi, J
- Case number
- Miscellaneous Application 1599 of 2021
- Language
- English
More details
- Court
- Commercial Court of Uganda
- Panel
- Anna B. Mugenyi, J
- Case number
- Miscellaneous Application 1599 of 2021
- Language
- English
On this page
Professional case brief
Research organized from the available case record
01
Holding and result
The existence of a clear arbitration clause in the Merchant Services Agreement between the parties requires that any dispute arising from the agreement be referred to arbitration. The court is bound to respect the parties' contractual choice of dispute resolution mechanism and, as such, the present suit lapses and the dispute is referred to arbitration. The court will only intervene in appellate or supervisory capacity as provided under the Arbitration and Conciliation Act. Costs incurred by commencing the suit in court will be determined by the arbitral tribunal.
Court disposition
Referred to arbitration; suit closed.
Orders
- Civil Suit No. 499 of 2021 is referred to arbitration in accordance with the Merchant Services Agreement and the Arbitration and Conciliation Act.
- The issue of costs occasioned by commencing the suit in court is referred to the arbitral tribunal.
- The file is closed.
02
Material facts
Parties
Ivan Mbabazi Batuma T/A Rushaga Gorilla Camp
ApplicantEquity Bank Uganda Limited
Respondent03
Procedural history
Posture
Miscellaneous Application / Ruling
04
Questions and positions
Legal issues
- 01
Whether the existence of an arbitration clause in the Merchant Services Agreement requires the dispute to be referred to arbitration.
- 02
Whether the High Court should entertain the suit or refer the matter to arbitration as per the agreement.
Party arguments
- Applicant
- The applicant relied on the arbitration clause in the Merchant Services Agreement, arguing that any dispute arising from the agreement should be referred to arbitration as stipulated. The applicant cited relevant authorities supporting referral to arbitration where such a clause exists.
- Respondent
- The respondent concurred with the applicant regarding the existence of the arbitration clause and agreed that the dispute should be resolved through arbitration in accordance with the agreement and the Arbitration and Conciliation Act.
05
Court’s reasoning
Legal principles
- 01
Arbitration and Conciliation Act (No. 5 of 1995)
Where parties have agreed to resolve disputes through arbitration, courts must give effect to the arbitration agreement and refer the matter to arbitration.
- 02
Merchant Services Agreement; Lira Tobacco Stores HCMA 310/2073; Daniel Delestre & Others v. HiB Telecom HCMA 310/2013
The court's jurisdiction is ousted in matters where a valid arbitration agreement exists, except for appellate or supervisory interventions.
06
Ratio, limits and disposition
Ratio decidendi
The existence of a clear arbitration clause in the Merchant Services Agreement between the parties requires that any dispute arising from the agreement be referred to arbitration. The court is bound to respect the parties' contractual choice of dispute resolution mechanism and, as such, the present suit lapses and the dispute is referred to arbitration. The court will only intervene in appellate or supervisory capacity as provided under the Arbitration and Conciliation Act. Costs incurred by commencing the suit in court will be determined by the arbitral tribunal.
Court disposition
Referred to arbitration; suit closed.
- Civil Suit No. 499 of 2021 is referred to arbitration in accordance with the Merchant Services Agreement and the Arbitration and Conciliation Act.
- The issue of costs occasioned by commencing the suit in court is referred to the arbitral tribunal.
- The file is closed.
Source and reliance status
Commercial Court of Uganda
This page organises the available record for research. Confirm quotations, current status, and subsequent treatment against the official source before relying on the case.
Judgment reading view
Judgment text
The complete available source text.
Commercial Court of Uganda
Judgment
THE REPUBLIC OF UGANDA
IN THE HIGH COURT OF UGANDA AT KAMPALA (COMMERCIAL DIVISION)
MISC. APPLICATION NO. 1599 OF 2021 (ARISING FROM CIVIL SUIT NO. 499 OF 2021)
IVAN MBABAZI BATUMA
$\iota$
T/A RUSHAGA GOLILLA CAMP ::::::::::::::::::::::::::::::::::::
VERSUS
EQUITY BANK UGANDA LIMITED ::::::::::::::::::::::::::::::::::::
BEFORE: HON. LADY JUSTICE ANNA . B. MUGENYI
RULING
I have read the pleadings and the written submissions of the Applicant in this matter.
Both parties brought to the attention of this court the existence of an arbitral agreement /clause between the parties i.e. in the Merchant Services Agreement endorsed by both parties in 2014.
The Arbitration clause states:
"This Agreement shall be governed in all respects by Uganda law and card scheme rules and regulations under which the bank and merchant operates. The parties agree that any dispute arising from this agreement shall be referred for final determination to one arbitrator appointed by Agreement of the parties in accordance to the provisions of the Arbitration Act (No.5 of 1995) or such other statutory modification or enactment in place thereof.
versus Lira Tobacco Stores HCMA 310/2073; Daniel Delestre & Others ve,sus HiB Telecom HCMA 310/2013 inter alia).
In the premises; and given the existence of a clear arbitration clause or agreement between the parties as seen above; the present matter is referred for Arbitration proceedings to ensue.
As guided by the aforementioned authorities; Civil Suit 499 of 2O2t lapses as the entire dispute is referred for resolution through arbitration in accordance with the Agreement/Contract between the parties the subject of which can only return to this Court for appellate or supervisory interventions as provided for under the Arbitration and Conciliation Act.
Further, costs occasioned by commencing the suit in this Court shall be determined by the arbitral tribunal appointed to handle the arbitration proceedings and the said issue of costs is accordingly referred to it.
I do not find it necessary to address the other preliminary objections raised by the Applicant having held as I have above.
This file shall be closed accordingly.
I
Ultu'0^
DATED :....... L t. I t l. m.u 1.. HON, LADY JUSTICE ANNA ,8, MUGENYI
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