Tibeingana v Vijay Reddy & Anor
Tibeingana v Vijay Reddy & Anor (Miscellaneous Cause No. 10 of 2016) [2016] UGCommC 221 (21 December 2016)
The court found that the arbitral award of US$357,592 was based on the parties' agreement and the Applicant's admission of indebtedness. The sum included agreed interest and represented the contractual consideration for the Respondent's withdrawal from the partnership. The award of interest at 24% per annum was excessive, unconscionable, and not supported by the agreement, which provided for 11% per annum. The arbitrator's omission to consider the Applicant's financial hardship and market rates constituted an error of principle. The court substituted the interest rate with 11% per annum from…
Source excerpt
- Arbitral Award Challenge
- Interest Rate Disputes
- Contractual Indebtedness
- Public Policy Review