Inyangat v Oligo (Misc. Appl. No. 280 of 2000) [2002] UGHC 41 (9 March 2002)

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\tqc\tx4153\tqr\tx8306\pvpara\phmrg\posxr\posy0\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid270283 \fs24\lang2057\langfe2057\cgrid\langnp2057\langfenp2057 {\field{\*\fldinst {\cs17\insrsid404677 PAGE }}{\fldrslt { \cs17\lang1024\langfe1024\noproof\insrsid8277201 1}}}{\cs17\insrsid404677 \par }\pard \s16\ql \li0\ri360\widctlpar\tqc\tx4153\tqr\tx8306\aspalpha\aspnum\faauto\adjustright\rin360\lin0\itap0\pararsid404677 {\insrsid404677 \par }}{\*\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 \s15\qc \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1 \widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid404677 \fs24\lang2057\langfe2057\cgrid\langnp2057\langfenp2057 {\b\lang1033\langfe2057\langnp1033\insrsid350760\charrsid208356 THE REPUBLIC OF UGANDA \line IN THE HIGH COURT OF UGANDA AT KAMPALA \line MISCELLANEOUS APPLICATION NO. 280}{\b\lang1033\langfe2057\langnp1033\insrsid404677 O}{\b\lang1033\langfe2057\langnp1033\insrsid350760\charrsid208356 F 2000 \line (Ari}{ \b\lang1033\langfe2057\langnp1033\insrsid8277201 sing out of Civil Suit No. 72 OF}{\b\lang1033\langfe2057\langnp1033\insrsid350760\charrsid208356 2000) \line CYPRIAN }{\b\lang1033\langfe2057\langnp1033\insrsid404677\charrsid208356 INYANGAT:}{ \b\lang1033\langfe2057\langnp1033\insrsid350760\charrsid208356 ::::::::}{\b\lang1033\langfe2057\langnp1033\insrsid404677 :::::::::::::::::}{\b\lang1033\langfe2057\langnp1033\insrsid350760\charrsid208356 ::::::::: APPLICANT/DEFENDANT \line VERSUS \line ANDREW BOB OLIGO::::::::}{\b\lang1033\langfe2057\langnp1033\insrsid404677 :::::::::::::::::::}{\b\lang1033\langfe2057\langnp1033\insrsid350760\charrsid208356 :::::::RESPONDENT/PLAINTIFF \line }{\b\lang1033\langfe2057\langnp1033\insrsid4220367 \par }\pard \s15\ql \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid4220367 {\b\lang1033\langfe2057\langnp1033\insrsid350760\charrsid208356 BEFORE: }{ \b\ul\lang1033\langfe2057\langnp1033\insrsid350760\charrsid208356 THE HON. LADY JUSTICE C. K. BYAMUGISHA \line RULING }{\b\lang1033\langfe2057\langnp1033\insrsid350760\charrsid208356 \line }{\lang1033\langfe2057\langnp1033\insrsid350760\charrsid208356 The applicant/defenda}{\lang1033\langfe2057\langnp1033\insrsid4220367 nt filed this motion under the }{\lang1033\langfe2057\langnp1033\insrsid350760\charrsid208356 provisions of section 17 of t}{\lang1033\langfe2057\langnp1033\insrsid4220367 he Arbitration Act, section 61 }{\lang1033\langfe2057\langnp1033\insrsid350760\charrsid208356 of the Civil Procedure Act and Orders 43 rules 5 and 48 \line rule 1 of the Civil Procedu}{\lang1033\langfe2057\langnp1033\insrsid4220367 re Rules seeking the following }{\lang1033\langfe2057\langnp1033\insrsid350760\charrsid208356 orders: - \line }{\lang1033\langfe2057\langnp1033\insrsid4220367 \par }\pard \s15\ql \fi-720\li720\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\ipgp1\pararsid4220367 {\lang1033\langfe2057\langnp1033\insrsid350760\charrsid208356 1. }{ \lang1033\langfe2057\langnp1033\insrsid4220367 \tab }{\lang1033\langfe2057\langnp1033\insrsid350760\charrsid208356 Civil Suit No. 72/2000 be stayed and the matter }{\lang1033\langfe2057\langnp1033\insrsid4220367\charrsid208356 in dispute}{ \lang1033\langfe2057\langnp1033\insrsid350760\charrsid208356 be referred to arbitration. \line }{\lang1033\langfe2057\langnp1033\insrsid4220367 \par }{\lang1033\langfe2057\langnp1033\insrsid350760\charrsid208356 2. }{\lang1033\langfe2057\langnp1033\insrsid4220367 \tab }{\lang1033\langfe2057\langnp1033\insrsid350760\charrsid208356 The parties hereto be directed Co appoint an arbitrator in a time prescribed by court. \line }{\lang1033\langfe2057\langnp1033\insrsid4220367 \par }{\lang1033\langfe2057\langnp1033\insrsid350760\charrsid208356 3. }{\lang1033\langfe2057\langnp1033\insrsid4220367 \tab }{\lang1033\langfe2057\langnp1033\insrsid350760\charrsid208356 Costs of the application be provided for. \line \par }\pard \s15\qj \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid4220367 {\lang1033\langfe2057\langnp1033\insrsid350760\charrsid208356 The basic of the application as set out in the motio }{\lang1033\langfe2057\langnp1033\insrsid4220367 n is that by a Partnership Deed }{\lang1033\langfe2057\langnp1033\insrsid350760\charrsid208356 created on the 26}{\lang1033\langfe2057\super\langnp1033\insrsid350760\charrsid4220367 th}{ \lang1033\langfe2057\langnp1033\insrsid350760\charrsid208356 day of April 1984 between the applicant and respondent, the two partners made a submission to refer any dispute arising out of the partnership to arbitration. It is also contended by the applicant that the respondent has breached the terms of the Partnership Deed by filing civil suit No. 72/2000 before referring the matter to arbitration. It is further contended that the applica nt has at all times been ready to resolve any disputes arising out of th}{\lang1033\langfe2057\langnp1033\insrsid4220367 e partnership business with the }{\lang1033\langfe2057\langnp1033\insrsid350760\charrsid208356 respondent either between themselves alone or at the instance of third parties. \line The above contentions were supported by the affidavit of the applicant o ne Cyprian Inyangant but were opposed by the affidavit of Andrew Bob Oligo the respondent/plaintiff who stated in paragraph six thereof that he verily believes what his lawyers told him that since a written statement of defence was filed in the matter by the applicant/defendant, it is now too late for the suit to be stayed for a referral to arbitration. \line }{\lang1033\langfe2057\langnp1033\insrsid4220367 \par }{\lang1033\langfe2057\langnp1033\insrsid350760\charrsid208356 When the matter came before me both counsel made submissions to support their case. From the submissions made and the supporting affidavits and documents t he following matters are not being seriously contested. On the 26}{\lang1033\langfe2057\super\langnp1033\insrsid350760\charrsid4220367 th}{\lang1033\langfe2057\langnp1033\insrsid350760\charrsid208356 April, 1984, a partnership under the name and style of Invo Consult Uganda w}{\lang1033\langfe2057\langnp1033\insrsid4220367 as created by the parties to }{\lang1033\langfe2057\langnp1033\insrsid350760\charrsid208356 these proceedings. On or about the 6} {\lang1033\langfe2057\super\langnp1033\insrsid350760\charrsid4220367 th}{\lang1033\langfe2057\langnp1033\insrsid350760\charrsid208356 August, 1995 the partnership ended. Howe ver, it seems the defendant continued to do business under the firm names and has since received payments for work done before the partnership ended. It was provided under }{\ul\lang1033\langfe2057\langnp1033\insrsid350760\charrsid208356 clause 19 }{ \lang1033\langfe2057\langnp1033\insrsid350760\charrsid208356 of the Partnership Deed that:}{\lang1033\langfe2057\langnp1033\insrsid4220367 - \par }\pard \s15\qj \li720\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\ipgp1\pararsid4220367 {\lang1033\langfe2057\langnp1033\insrsid4220367 \'93any }{ \lang1033\langfe2057\langnp1033\insrsid350760\charrsid208356 dispute, question in con}{\lang1033\langfe2057\langnp1033\insrsid4220367 ne}{\lang1033\langfe2057\langnp1033\insrsid350760\charrsid208356 ction with part}{ \lang1033\langfe2057\langnp1033\insrsid4220367 nership }{\lang1033\langfe2057\langnp1033\insrsid350760\charrsid208356 or this deed shall in the first instance be decided upon by the partners and in the event of failure to settle the dispute the same shall be referred to the Arbitration under the provisions of the Arbitration Act Cap 55 or any statutory modificati on or reenactment thereof for the firms being in force\'94. \line }{\lang1033\langfe2057\langnp1033\insrsid4220367 \par }\pard \s15\ql \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid4220367 {\lang1033\langfe2057\langnp1033\insrsid350760\charrsid208356 A dispute has risen not between partners but about the partnership deed since the partners separated in 1995 or thereabouts. \line }{\lang1033\langfe2057\langnp1033\insrsid4220367 \par }\pard \s15\qj \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid4220367 {\lang1033\langfe2057\langnp1033\insrsid350760\charrsid208356 However the contention in this matter is whether the parties have complied with the provisions of the Arbitration Act and the clause I have referred to above. }{\ul\lang1033\langfe2057\langnp1033\insrsid350760\charrsid208356 Section 2 }{ \lang1033\langfe2057\langnp1033\insrsid350760\charrsid208356 of the Arbitration Act, defines \'93submission\'94 to mean a written agreement to submit present or future differences to arbitration whether an arbitration is named therein or not. The Partnership Deed which the parties are relying on fits the definition I have referred to although no arbitrator was appointed. }{\ul\lang1033\langfe2057\langnp1033\insrsid350760\charrsid208356 Section 3 }{ \lang1033\langfe2057\langnp1033\insrsid350760\charrsid208356 of the same Act provides that \line }{\lang1033\langfe2057\langnp1033\insrsid4220367 \par }\pard \s15\ql \li720\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\ipgp1\pararsid4220367 {\lang1033\langfe2057\langnp1033\insrsid350760\charrsid208356 \'93 a submission unless a different intention is expressed therein, shall be irrevocable, except by leave of the court\'94. \line }{\lang1033\langfe2057\langnp1033\insrsid4220367 \par }\pard \s15\qj \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid4220367 {\lang1033\langfe2057\langnp1033\insrsid350760\charrsid208356 The partnership deed and clause 19 in particular is clear in itself, it does not express a different intention in my view other than to refer any dispute to arbi}{\lang1033\langfe2057\langnp1033\insrsid4220367 tration. The provisions of the Act seem}{ \lang1033\langfe2057\langnp1033\insrsid350760\charrsid208356 to be mandatory in that a submission or an agreement to refer a dispute to arbitration is irrevocable except with the leave of court. The plaintiff did not seek the leave of this court to revoke the submission and yet he is seeking court\rquote s intervention in the dispute. It would seem that the revocation of the arbitration clause is a necessary step before a}{\lang1033\langfe2057\langnp1033\insrsid4220367 ny action is filed. To quote Hal}{ \lang1033\langfe2057\langnp1033\insrsid350760\charrsid208356 sbury Vol. 15 page \line 215 \line }{\lang1033\langfe2057\langnp1033\insrsid4220367 \par }\pard \s15\qj \li720\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\ipgp1\pararsid4220367 {\lang1033\langfe2057\langnp1033\insrsid350760\charrsid208356 \'93 a person is bound by the recitals in a deed to which he is a party whenever they refer to specific facts which are certain, precise, and unambiguous\'94. \line }{\lang1033\langfe2057\langnp1033\insrsid4220367 \par }\pard \s15\qj \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid4220367 {\lang1033\langfe2057\langnp1033\insrsid350760\charrsid208356 The plaintiff is alleging that the defendant has committed certain breaches in the partnership deed and yet he is silent about the breach he has }{\lang1033\langfe2057\langnp1033\insrsid4220367 committed by filing the suit }{ \lang1033\langfe2057\langnp1033\insrsid350760\charrsid208356 without referring the all eged breaches to arbitration and without seeking leave of this court to revoke the arbitration clause. There are also no reasons to show why the matter was not referred to arbitration. \line }{\lang1033\langfe2057\langnp1033\insrsid4220367 \par }{\lang1033\langfe2057\langnp1033\insrsid350760\charrsid208356 This brings me to the instant application. Section 17 which is the subject of contention provides that:}{\lang1033\langfe2057\langnp1033\insrsid4220367 \par }\pard \s15\qj \li720\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\ipgp1\pararsid4220367 {\lang1033\langfe2057\langnp1033\insrsid350760\charrsid208356 \'93 where any party to a submission to which this part \line applies or any person claiming under him commences any legal proceedings against any other party to the submission or any person claiming under him in respect of any matt er to such legal proceeding may at any time after appearance and before filing a written statement of defence, or taking any other steps in the proceedings apply to the court to stay proceedings and the court if satisfied that there is no sufficient reaso n why the matter should not be referred in accordance with submission and that the applicant was at the time when the proceedings were commenced and still remains and willing to do all things necessary to the proper conduct of the arbitration, may make an order staying the proceedings\'94. \line }{\lang1033\langfe2057\langnp1033\insrsid4220367 \par }\pard \s15\qj \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid4220367 {\lang1033\langfe2057\langnp1033\insrsid350760\charrsid208356 The advocates who appeared before me did not cite any authority in which the provisions of the section have been judiciary considered. However, in the case of }{\ul\lang1033\langfe2057\langnp1033\insrsid350760\charrsid208356 Muluki Vs Oriental Fire and General }{\lang1033\langfe2057\langnp1033\insrsid350760\charrsid208356 Insurance [1973) E. A 162 the defunct court of Appeal for East Africa had occasion to consider similar provisions of the Kenya Arbitration Act. The brief facts of the case were that the appellant sued the respondent under an agreement which contained an arbitration clause. The resp ondent filed an application for the stay of the suit. Before the application was heard the respondent filed a defence joining issue with the plaint on the merits. The Judge made the order for stay and the appellant appealed. In allowing the appeal the cou rt considered the import and effect of the operative words in the section which are \'93apply to that court\'94 . According to the leading judgement of Lutta J. A (as he then was) the words involve not only the filing of the motion and the giving of notice to the o ther party but the oral hearing in court as well. The court went on to state that it is only when all these matters take place that an application is made. \line }{\lang1033\langfe2057\langnp1033\insrsid8277201 \par }\pard \s15\ql \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid8277201 {\lang1033\langfe2057\langnp1033\insrsid350760\charrsid208356 In the matter now before court, there is no dispute that the defendant filed his defence on 24/02/2 000 before making an application for stay of the proceedings. This according to counsel for the plaintiff/respondent disentitles him to the orders he is seeking. According to counsel the applicant has filed a defence and has also taken another step in the proceedings by filing}{\lang1033\langfe2057\langnp1033\insrsid8277201 Miscellaneous Application \line No.}{\lang1033\langfe2057\langnp1033\insrsid350760\charrsid208356 281/200}{\lang1033\langfe2057\langnp1033\insrsid8277201 0. \line Counsel referred to Halsbury}{\lang1033\langfe2057\langnp1033\insrsid350760\charrsid208356 \rquote s Vol. 2 page 24 where the learned author sets out the c}{\lang1033\langfe2057\langnp1033\insrsid8277201 onditions to be fulfilled in }{ \lang1033\langfe2057\langnp1033\insrsid350760\charrsid208356 an application of this nature. One of the conditions is that the arbitrati on agreement must be in writing must be valid and subsisting. Counsel for the applicant on his part submitted that the amendments introduced by statutory instrument No. 26/98 - The Civil Procedure (Amendment) Rules 1998 abolished the entry of appearance and therefore the defendant had to take the steps laid down in the new rules. \line }{\lang1033\langfe2057\langnp1033\insrsid8277201 \par }\pard \s15\qj \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid8277201 {\lang1033\langfe2057\langnp1033\insrsid350760\charrsid208356 The question which has arisen in this matter is whether the applicant has fulfilled the legal requirements set out in the section? Whereas I agree that the amendments brought abou t by statutory instrument No. 26/98 amendment order 9 in that instead of entering appearance, the defendant is required to file a defence, the same instrument introduced }{\ul\lang1033\langfe2057\langnp1033\insrsid350760\charrsid208356 Order 51 B }{ \lang1033\langfe2057\langnp1033\insrsid350760\charrsid208356 which gives power to a defendant who wishes to dispute the jurisdiction of the court by reason of any irregularity or on any other ground to give notice of intention to defend the proceedings and to apply to court within the time limited for service of a defence for orders which are specified. In my view the introduction of this

provision was meant to take care of situations like the one at hand. Be that as it may, the matter now before court involves a partnership deed which is no longer subsisting, the partners having parted ways in 1995. Therefore there are no terms to enforce or to refer to arbitration. I take it that before the separation, the partners must have taken stock of what they had and shared out whatever was available at the time. For that reason alone, the orders being sought cannot be granted and the applicatio n is dismissed with costs. }{\lang1033\langfe2057\langnp1033\insrsid8277201 \par }\pard \s15\ql \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid8277201 {\lang1033\langfe2057\langnp1033\insrsid8277201 March 9, 2002 }{\lang1033\langfe2057\langnp1033\insrsid350760\charrsid208356 C. K. Byamugisha \line }{ \b\lang1033\langfe2057\langnp1033\insrsid350760\charrsid208356 JUDGE }{\b\lang1033\langfe2057\langnp1033\insrsid8277201 \par \par \par \par }{\b\i\lang1033\langfe2057\langnp1033\insrsid8277201 Uploaded by kivumbi Sheila.}{\b\lang1033\langfe2057\langnp1033\insrsid350760\charrsid208356 \line }{\lang1033\langfe2057\langnp1033\insrsid350760\charrsid208356 \par }\pard\plain \ql \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid208356 \fs24\lang2057\langfe2057\cgrid\langnp2057\langfenp2057 {\lang1033\langfe2057\langnp1033\insrsid350760\charrsid208356 \par }}