Njeru Town Council V Nyanza Textiles Industries Ltd (Misc. Appl. No. 19 of 1992) [1992] UGHC 3 (2 April 1992)

{\rtf1\ansi\ansicpg1252\uc1\deff0\stshfdbch0\stshfloch0\stshfhich0\stshfbi0\deflang1033\deflangfe1033{\fonttbl{\f0\froman\fcharset0\fprq2{\*\panose 02020603050405020304}Times New Roman;}{\f209\froman\fcharset238\fprq2 Times New Roman CE;} {\f210\froman\fcharset204\fprq2 Times New Roman Cyr;}{\f212\froman\fcharset161\fprq2 Times New Roman Greek;}{\f213\froman\fcharset162\fprq2 Times New Roman Tur;}{\f214\froman\fcharset177\fprq2 Times New Roman (Hebrew);} {\f215\froman\fcharset178\fprq2 Times New Roman (Arabic);}{\f216\froman\fcharset186\fprq2 Times New Roman Baltic;}{\f217\froman\fcharset163\fprq2 Times New Roman (Vietnamese);}}{\colortbl;\red0\green0\blue0;\red0\green0\blue255;\red0\green255\blue255; \red0\green255\blue0;\red255\green0\blue255;\red255\green0\blue0;\red255\green255\blue0;\red255\green255\blue255;\red0\green0\blue128;\red0\green128\blue128;\red0\green128\blue0;\red128\green0\blue128;\red128\green0\blue0;\red128\green128\blue0; \red128\green128\blue128;\red192\green192\blue192;}{\stylesheet{\ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 \snext0 Normal;}{\*\cs10 \additive \ssemihidden Default Paragraph Font;}{\*\ts11\tsrowd\trftsWidthB3\trpaddl108\trpaddr108\trpaddfl3\trpaddft3\trpaddfb3\trpaddfr3\trcbpat1\trcfpat1\tscellwidthfts0\tsvertalt\tsbrdrt\tsbrdrl\tsbrdrb\tsbrdrr\tsbrdrdgl\tsbrdrdgr\tsbrdrh\tsbrdrv \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0 \fs20\lang1024\langfe1024\cgrid\langnp1024\langfenp1024 \snext11 \ssemihidden Normal Table;}{ \s15\ql \li0\ri0\sb100\sa100\sbauto1\saauto1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 \sbasedon0 \snext15 \styrsid8403317 Normal (Web);}} {\*\latentstyles\lsdstimax156\lsdlockeddef0}{\*\rsidtbl \rsid1221\rsid151771\rsid600642\rsid1183158\rsid1258761\rsid1729722\rsid1798109\rsid2107051\rsid3362367\rsid4020770\rsid4333635\rsid4349412\rsid5580100\rsid5655131\rsid7540460\rsid8403317\rsid8782584 \rsid8978798\rsid9244448\rsid11081898\rsid11367790\rsid11826459\rsid11947762\rsid12071261\rsid12212401\rsid12465760\rsid12780227\rsid13443276\rsid13642956\rsid14230490\rsid15480511\rsid15622691}{\*\generator Microsoft Word 11.0.5604;}{\info {\title 1tE RB rn}{\author DELL}{\operator DELL}{\creatim\yr2009\mo11\dy3\hr8\min55}{\revtim\yr2009\mo11\dy3\hr15\min37}{\version26}{\edmins217}{\nofpages6}{\nofwords1682}{\nofchars9592}{\nofcharsws11252}{\vern24689}} \widowctrl\ftnbj\aenddoc\noxlattoyen\expshrtn\noultrlspc\dntblnsbdb\nospaceforul\hyphcaps0\formshade\horzdoc\dgmargin\dghspace180\dgvspace180\dghorigin1800\dgvorigin1440\dghshow1\dgvshow1 \jexpand\viewkind1\viewscale100\pgbrdrhead\pgbrdrfoot\splytwnine\ftnlytwnine\htmautsp\nolnhtadjtbl\useltbaln\alntblind\lytcalctblwd\lyttblrtgr\lnbrkrule\nobrkwrptbl\snaptogridincell\allowfieldendsel\wrppunct \asianbrkrule\rsidroot8403317\newtblstyruls\nogrowautofit \fet0\sectd \linex0\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 \s15\qc \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4333635 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\b\ul\insrsid4333635\charrsid1729722 IN THE REPUBLIC OF UGANDA \par IN THE HIGH}{\b\ul\insrsid8403317\charrsid1729722 }{\b\ul\insrsid4333635\charrsid1729722 COUR}{\b\ul\insrsid8403317\charrsid1729722 T OF }{\b\ul\insrsid4333635\charrsid1729722 UGANDA AT KAMPALA \par }{\b\ul\insrsid8403317\charrsid1729722 MIS}{\b\ul\insrsid4333635\charrsid1729722 C}{\b\ul\insrsid8403317\charrsid1729722 }{\b\ul\insrsid4333635\charrsid1729722 .}{\b\ul\insrsid8403317\charrsid1729722 APPLICATION }{\b\ul\insrsid4333635\charrsid1729722 N} {\b\ul\insrsid8403317\charrsid1729722 O. 19 OF 1992}{\b\ul\insrsid4333635\charrsid1729722 \par }\pard \s15\qj \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid8403317 {\b\insrsid4333635\charrsid1729722 NJERU TOWN COUNCIL::::::::::::::::::::::::::::::::::::::::::::::APPLICANT \par }\pard \s15\qc \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4333635 {\b\insrsid8403317\charrsid1729722 V}{\b\insrsid4333635\charrsid1729722 E}{\b\insrsid8403317\charrsid1729722 R}{ \b\insrsid4333635\charrsid1729722 SUS \par }\pard \s15\qj \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid8403317 {\b\insrsid4333635\charrsid1729722 NYANZA TEXTILE INDUSTRIES LTD:::::::::::::::::::::::::::::}{ \b\insrsid8403317\charrsid1729722 R}{\b\insrsid4333635\charrsid1729722 E}{\b\insrsid8403317\charrsid1729722 SPONDENT}{\b\insrsid4333635\charrsid1729722 \par }\pard \s15\qj \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4333635 {\b\ul\insrsid4333635\charrsid1729722 BEFORE: THE HON. MR. JUSTICE G. M OKELLO}{\b\insrsid4333635\charrsid1729722 \par }{\b\ul\insrsid4333635\charrsid1729722 RU}{\b\ul\insrsid8403317\charrsid1729722 LING:}{\b\ul\insrsid4333635\charrsid1729722 \par }\pard \s15\qj \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid8403317 {\insrsid8403317\charrsid1729722 This application was taken wider }{\insrsid4333635\charrsid1729722 O.}{ \insrsid8403317\charrsid1729722 43 r. 5 of the CPR for an order of this court to appoint an arbitrator in terms }{\insrsid3362367\charrsid1729722 of the parties Agreement. \par The back }{\insrsid8403317\charrsid1729722 ground to th}{\insrsid3362367\charrsid1729722 is application is briefly as follows, t}{\insrsid8403317\charrsid1729722 he }{\insrsid3362367\charrsid1729722 parties h}{\insrsid8403317\charrsid1729722 ad entered into a lease agreement. Under that agreement, any dispute arising between the parties from the agreement was to be }{\insrsid3362367\charrsid1729722 referred}{\insrsid8403317\charrsid1729722 to an arbitrator agreed on by both parties. In the event of the parties failing to agree on the appointment of an arbitrator however, an arbitrator shall be appointed by a }{\insrsid3362367\charrsid1729722 Jud}{\insrsid8403317\charrsid1729722 ge of this }{\insrsid3362367\charrsid1729722 court. \par Dispu}{\insrsid8403317\charrsid1729722 tes infact arose between the parties over alleged }{\insrsid3362367\charrsid1729722 breache}{\insrsid8403317\charrsid1729722 s of the}{\insrsid3362367\charrsid1729722 conditions of the agreement an}{ \insrsid8403317\charrsid1729722 d the parties have failed to agree on the appointment of an arbitrator to whose }{\insrsid3362367\charrsid1729722 decision}{\insrsid8403317\charrsid1729722 the dis}{\insrsid3362367\charrsid1729722 putes should be referred, Hence }{\insrsid8403317\charrsid1729722 this application seeking an order of this court to appoint an arbitrator. The application was b}{\insrsid13443276\charrsid1729722 rought by a Notice of Motion an}{ \insrsid8403317\charrsid1729722 d was supported by an affidavit which was sworn on 3rd March }{\insrsid13443276\charrsid1729722 1}{\insrsid8403317\charrsid1729722 992 by Dr. }{\insrsid13443276\charrsid1729722 Byamugisha}{\insrsid8403317\charrsid1729722 as counsel duly instructed by the Applicant to conduct the prosec}{\insrsid13443276\charrsid1729722 ution of the case. \par }{\insrsid8403317\charrsid1729722 When the application came up for hearing }{\insrsid13443276\charrsid1729722 before me}{\insrsid8403317\charrsid1729722 on 25/03/9}{\insrsid13443276\charrsid1729722 2 Mr.}{\i\insrsid8403317\charrsid1729722 }{ \insrsid13443276\charrsid1729722 K}{\insrsid8403317\charrsid1729722 ania, Counsel for }{\insrsid13443276\charrsid1729722 the}{\insrsid8403317\charrsid1729722 Respondent took a preliminary objection in which he contended that the court was }{ \insrsid13443276\charrsid1729722 not properly moved. \par (1}{\insrsid8403317\charrsid1729722 ) }{\insrsid13443276\charrsid1729722 Because}{\insrsid8403317\charrsid1729722 the Procedure }{\insrsid13443276\charrsid1729722 adopted}{\insrsid8403317\charrsid1729722 }{\insrsid13443276\charrsid1729722 by the applicant }{\insrsid8403317\charrsid1729722 in bringing }{\insrsid13443276\charrsid1729722 this application }{\insrsid8403317\charrsid1729722 to court was }{\insrsid13443276\charrsid1729722 wrong. \par }{\insrsid8403317\charrsid1729722 (2) }{\insrsid13443276\charrsid1729722 That}{\insrsid8403317\charrsid1729722 the application was supported by a defective affidavit. \par Mr. Kania counsel for the Respondent argued that this application \line was wrongly brought }{\insrsid2107051\charrsid1729722 under }{\b\insrsid2107051\charrsid1729722 O.}{\b\insrsid8403317\charrsid1729722 43 r. 5 of the CPR}{ \insrsid2107051\charrsid1729722 and by a}{\insrsid8403317\charrsid1729722 Notice of Motion. That the law applicable in bringing application of this nature to co}{\insrsid2107051\charrsid1729722 urt is the Arbitration Act Cap.}{ \insrsid8403317\charrsid1729722 55}{\i\insrsid8403317\charrsid1729722 }{\insrsid2107051\charrsid1729722 L}{\insrsid8403317\charrsid1729722 aws }{\insrsid2107051\charrsid1729722 of}{\insrsid8403317\charrsid1729722 }{\insrsid2107051\charrsid1729722 Uganda }{\insrsid8403317\charrsid1729722 and the Rules made under section 19 of that Act. That rule 16 of the Arbitration Rules provides procedure of bringing to court application of this nature. That under this rule, such application must }{ \insrsid2107051\charrsid1729722 be brought}{\insrsid8403317\charrsid1729722 to court by chamber summons and supported by}{\insrsid2107051\charrsid1729722 an}{\i\insrsid8403317\charrsid1729722 }{\insrsid2107051\charrsid1729722 affidavit except }{ \insrsid8403317\charrsid1729722 where }{\insrsid2107051\charrsid1729722 the rules provide otherwise. \par He}{\insrsid8403317\charrsid1729722 submitted that the procedure adopted by the Applicant in this case is wrong and that on this ground the application should be struck out }{\insrsid2107051\charrsid1729722 with cost. \par }{\insrsid8403317\charrsid1729722 The learned counsel further attached the}{\insrsid2107051\charrsid1729722 }{\insrsid1798109\charrsid1729722 supporting}{\insrsid8403317\charrsid1729722 affidavit sworn }{\insrsid2107051\charrsid1729722 on 3}{ \super\insrsid2107051\charrsid1729722 rd}{\insrsid8403317\charrsid1729722 }{\insrsid2107051\charrsid1729722 Ma}{\insrsid8403317\charrsid1729722 rch 1992 by Dr. }{\insrsid2107051\charrsid1729722 Byamugish}{\insrsid8403317\charrsid1729722 a as being defective. That }{\insrsid2107051\charrsid1729722 the }{\insrsid13642956\charrsid1729722 affidavit contains}{\insrsid2107051\charrsid1729722 hear}{\insrsid8403317\charrsid1729722 say without disclosing the source of }{ \insrsid13642956\charrsid1729722 the information. He argue}{\insrsid8403317\charrsid1729722 d that }{\insrsid13642956\charrsid1729722 all those allegations of bre}{\insrsid8403317\charrsid1729722 aches of the agree}{\insrsid13642956\charrsid1729722 ment are matters which}{\insrsid8403317\charrsid1729722 are not within the personal knowledge of the deponent. For example that the alleged failure of the Respondent to pay rent; to develop the land and the allegation that }{ \insrsid1798109\charrsid1729722 the Responde}{\insrsid8403317\charrsid1729722 nt has }{\insrsid1798109\charrsid1729722 sub-let the said}{\insrsid8403317\charrsid1729722 land are matters which are }{\insrsid1798109\charrsid1729722 not in a}{ \insrsid8403317\charrsid1729722 position to be within the knowledge of }{\insrsid1798109\charrsid1729722 the deponent. He}{\insrsid8403317\charrsid1729722 submitted that an official of the council }{\insrsid1798109\charrsid1729722 would have been bette} {\insrsid8403317\charrsid1729722 r suited to depone to those facts. That as it is,}{\i\insrsid8403317\charrsid1729722 }{\insrsid8403317\charrsid1729722 the affidavit }{\insrsid1798109\charrsid1729722 contained hears}{\insrsid8403317\charrsid1729722 ay and urged me to reject }{\insrsid1183158\charrsid1729722 it. He}{\insrsid8403317\charrsid1729722 relied }{\insrsid1183158\charrsid1729722 o}{\insrsid8403317\charrsid1729722 n Misc. }{\insrsid1183158\charrsid1729722 C}{\insrsid8403317\charrsid1729722 r. Application No. 54/74}{\i\insrsid8403317\charrsid1729722 }{\insrsid8403317\charrsid1729722 reported in HCB (1974) }{\insrsid1183158\charrsid1729722 on page 201 whore N}{\insrsid8403317\charrsid1729722 yamuchoncho J as he then was held that }{ \insrsid1183158\charrsid1729722 the contents of the supporting }{\insrsid8403317\charrsid1729722 affidavit to that application having been sworn by the applicant\rquote s counsel and }{\insrsid1183158\charrsid1729722 not }{\insrsid8403317\charrsid1729722 by the applicant himself }{\insrsid1183158\charrsid1729722 were hearsay. \par }{\insrsid8403317\charrsid1729722 Dr. Byamugisha, counsel for the Applicant on his part conceded \line that rule 16 of the Arbitration Rules provides procedure }{\insrsid1183158\charrsid1729722 to commence a }{\insrsid8403317\charrsid1729722 proceeding in an arbitration. He pointed out }{\insrsid7540460\charrsid1729722 that O.}{\insrsid8403317\charrsid1729722 43 r. 5 of }{\insrsid7540460\charrsid1729722 the CPR}{\insrsid8403317\charrsid1729722 also provides a procedure to commence proceedings }{\insrsid7540460\charrsid1729722 in an Arbitration. He}{\insrsid8403317\charrsid1729722 }{\insrsid7540460\charrsid1729722 submitted that since}{\insrsid8403317\charrsid1729722 there }{ \insrsid7540460\charrsid1729722 are two altern}{\insrsid8403317\charrsid1729722 ative procedures to commence proceedings in the Arbitration, a party was free to }{\insrsid7540460\charrsid1729722 choose}{\insrsid8403317\charrsid1729722 any of those alternatives. That the procedure }{\insrsid7540460\charrsid1729722 he adopted has bee}{\insrsid8403317\charrsid1729722 n used }{\insrsid7540460\charrsid1729722 on several occasions and}{\insrsid8403317\charrsid1729722 was }{ \insrsid7540460\charrsid1729722 not condemned. \par }{\insrsid8403317\charrsid1729722 As regard to the defectiveness of his }{\insrsid7540460\charrsid1729722 supporting affidav}{\insrsid8403317\charrsid1729722 it, Dr. }{\insrsid7540460\charrsid1729722 Bya}{\insrsid8403317\charrsid1729722 mugisha contend}{ \insrsid7540460\charrsid1729722 ed that his affidavit does not c}{\insrsid8403317\charrsid1729722 ontain }{\insrsid7540460\charrsid1729722 hearsay. That he}{\insrsid8403317\charrsid1729722 had visited the land twice and }{\insrsid7540460\charrsid1729722 had ente}{\insrsid8403317\charrsid1729722 red into correspondence with the Respondent over the matter and that }{\insrsid11826459\charrsid1729722 he}{\insrsid8403317\charrsid1729722 w}{\insrsid11826459\charrsid1729722 as therefore in a position to kn}{ \insrsid8403317\charrsid1729722 ow abo}{\insrsid11826459\charrsid1729722 ut those bre}{\insrsid12212401\charrsid1729722 aches. That those ma}{\insrsid11826459\charrsid1729722 tte}{\insrsid8403317\charrsid1729722 rs}{\insrsid11826459\charrsid1729722 were within his personal knowledge. He}{\insrsid8403317\charrsid1729722 thus prayed that the }{\insrsid12212401\charrsid1729722 preliminary objection be overruled. \par In reply, Mr. Kania reiterate}{\insrsid8403317\charrsid1729722 d his earlier argument. He retorted that wrong }{\insrsid12212401\charrsid1729722 procedure s}{\insrsid8403317\charrsid1729722 hould not be }{\insrsid12212401\charrsid1729722 followed mere}{ \insrsid8403317\charrsid1729722 ly because it }{\insrsid12212401\charrsid1729722 had bee}{\insrsid8403317\charrsid1729722 n used before. }{\insrsid12212401\charrsid1729722 He }{\insrsid8403317\charrsid1729722 challenged that }{ \insrsid12212401\charrsid1729722 Dr. Byamugish}{\insrsid8403317\charrsid1729722 a would }{\insrsid12212401\charrsid1729722 have be}{\insrsid8403317\charrsid1729722 en of much assistance to court if }{\insrsid12212401\charrsid1729722 he}{ \insrsid8403317\charrsid1729722 }{\insrsid12212401\charrsid1729722 cite}{\insrsid8403317\charrsid1729722 d anyone of those cases in }{\insrsid12212401\charrsid1729722 which the procedure he}{\insrsid8403317\charrsid1729722 adopted }{ \insrsid15480511\charrsid1729722 was used. \par }{\insrsid8403317\charrsid1729722 I think it is not in dispute that rule 16 of the Arbitration Rules made under section 19 }{\insrsid15480511\charrsid1729722 of}{\insrsid8403317\charrsid1729722 }{\insrsid15480511\charrsid1729722 the}{ \insrsid8403317\charrsid1729722 Arbitration Act Cap }{\insrsid15480511\charrsid1729722 55}{\insrsid8403317\charrsid1729722 }{\insrsid15480511\charrsid1729722 L}{\insrsid8403317\charrsid1729722 aws of Uganda }{\insrsid15480511\charrsid1729722 and O.}{ \insrsid8403317\charrsid1729722 43 r. 5 of the CPR}{\insrsid15480511\charrsid1729722 ,}{\insrsid8403317\charrsid1729722 }{\insrsid15480511\charrsid1729722 ea}{\insrsid8403317\charrsid1729722 ch provides a procedure to commence proceedings in }{ \insrsid15480511\charrsid1729722 Arbitration}{\insrsid8403317\charrsid1729722 . But I do not agree with Dr. Byamugisha that the two rules provide two alternative procedures from which a party was }{\insrsid15480511\charrsid1729722 fre}{ \insrsid8403317\charrsid1729722 e to choose any. Each of}{\insrsid8782584\charrsid1729722 these rule}{\insrsid8403317\charrsid1729722 s provides a procedure }{\insrsid8782584\charrsid1729722 which applie}{\insrsid8403317\charrsid1729722 s to Arbitrati}{ \insrsid8782584\charrsid1729722 on under different circumstances}{\insrsid8403317\charrsid1729722 . Rule 16 of the Arbitration Rules regulates proceedings in arbitrations under the }{\insrsid8782584\charrsid1729722 Arbitration}{ \insrsid8403317\charrsid1729722 Act. It provides procedure to commence }{\insrsid4349412\charrsid1729722 procee}{\insrsid8403317\charrsid1729722 dings in arbitrations under the Arbitration Act. }{\b\insrsid4349412\charrsid1729722 O}{ \b\insrsid8403317\charrsid1729722 .43 r. 5}{\b\i\insrsid8403317\charrsid1729722 }{\b\insrsid8403317\charrsid1729722 of the CPR }{\insrsid4349412\charrsid1729722 on the othe}{\insrsid8403317\charrsid1729722 r hand regulates }{ \insrsid4349412\charrsid1729722 proceedings}{\insrsid8403317\charrsid1729722 in }{\insrsid4349412\charrsid1729722 ar}{\insrsid8403317\charrsid1729722 bitrations under a court order. It provides procedure to commence }{\insrsid4349412\charrsid1729722 proceeding in a}{\insrsid8403317\charrsid1729722 n Arbitration under order of a court. \par In }{\b\insrsid8403317\charrsid1729722 Bilimora Vs. Bilimora }{\b\insrsid8978798\charrsid1729722 (1962) EA 198}{\insrsid8978798\charrsid1729722 an award was made}{\insrsid8403317\charrsid1729722 by }{\insrsid8978798\charrsid1729722 an ar}{ \insrsid8403317\charrsid1729722 bitr}{\insrsid8978798\charrsid1729722 ator pursuant to a submission agre}{\insrsid8403317\charrsid1729722 ed between t}{\insrsid8978798\charrsid1729722 he three partners of a firm. The}{\insrsid8403317\charrsid1729722 award was duly filed in the High Court under the arbitration ordinance. Appell}{\insrsid5655131\charrsid1729722 ant applied to have the award set aside. The}{\insrsid8403317\charrsid1729722 Respondent filed }{\insrsid5655131\charrsid1729722 a cross obje }{\insrsid8403317\charrsid1729722 ction. }{\insrsid5655131\charrsid1729722 He}{\insrsid8403317\charrsid1729722 objected to the procedure of commencement of the proceedings. It was by Notice of motion. The award }{\insrsid1258761\charrsid1729722 was set aside}{\insrsid8403317\charrsid1729722 for}{\insrsid1258761\charrsid1729722 some}{\i\insrsid8403317\charrsid1729722 }{\insrsid8403317\charrsid1729722 other errors and an order was made that there should be no cost. The appellant appealed again st this order denying cost at the hearing of tha}{\insrsid1258761\charrsid1729722 t appeal, a \line preliminary objec}{\insrsid8403317\charrsid1729722 tion was ta}{\insrsid1258761\charrsid1729722 ken on behalf of the Respondent that}{ \i\insrsid8403317\charrsid1729722 }{\insrsid8403317\charrsid1729722 the order was interlocutory and not a decree }{\insrsid1258761\charrsid1729722 and}{\insrsid8403317\charrsid1729722 that }{\insrsid1258761\charrsid1729722 no }{ \insrsid8403317\charrsid1729722 appeal therefore lay against it without leave of the court. The matter turned on the question whether that order was made in a \'93suit\'94 to be a decree or it was made in any}{\i\insrsid8403317\charrsid1729722 }{ \insrsid8403317\charrsid1729722 other }{\insrsid1258761\charrsid1729722 proceedings and}{\insrsid8403317\charrsid1729722 was a more }{\insrsid1258761\charrsid1729722 \'93order\'94.}{\insrsid8403317\charrsid1729722 A suit was defined in }{ \ul\insrsid8403317\charrsid1729722 MANSION }{\ul\insrsid1258761\charrsid1729722 HO}{\ul\insrsid8403317\charrsid1729722 USE }{\ul\insrsid1258761\charrsid1729722 LTD}{\ul\insrsid8403317\charrsid1729722 }{\ul\insrsid1258761\charrsid1729722 .}{ \ul\insrsid8403317\charrsid1729722 VS. }{\ul\insrsid1258761\charrsid1729722 W}{\ul\insrsid8403317\charrsid1729722 ILKI}{\ul\insrsid1258761\charrsid1729722 NSO}{\ul\insrsid8403317\charrsid1729722 N (1954) 21 EACA at 101 to }{ \insrsid8403317\charrsid1729722 be }{\insrsid1258761\charrsid1729722 any civil proceedings commenced}{\insrsid8403317\charrsid1729722 in any manner }{\insrsid1258761\charrsid1729722 prescribed}{\insrsid8403317\charrsid1729722 by }{ \insrsid1258761\charrsid1729722 Rules and forms}{\insrsid8403317\charrsid1729722 }{\insrsid1258761\charrsid1729722 made}{\insrsid8403317\charrsid1729722 by the Rules Committee to Regulate the procedure of the court under section 81 of the ordinance. Following that definition Gould J. as he then }{\insrsid1258761\charrsid1729722 was said in Bilimora case thus equally}{\insrsid8403317\charrsid1729722 in the present cases it can not be said that the proceedings were commenced in any manner prescribed by the }{\insrsid1258761\charrsid1729722 rules committee. The civil proce}{\insrsid8403317\charrsid1729722 dure Rules made by that committee under section 85}{\i\insrsid8403317\charrsid1729722 }{\insrsid8403317\charrsid1729722 of the ordinance do contain in }{\ul\insrsid1258761\charrsid1729722 O.43 }{\ul\insrsid8403317\charrsid1729722 Provisions regulating arbitrations under orders of a cou}{\ul\insrsid1258761\charrsid1729722 rt}{\ul\insrsid8403317\charrsid1729722 , }{\insrsid1258761\charrsid1729722 The present arbitration wa}{\insrsid8403317\charrsid1729722 s not within }{ \insrsid1258761\charrsid1729722 that category and}{\insrsid8403317\charrsid1729722 the proceedings were taken under powers conferred by the Arbitration ordinance (Cap 21.) and under }{\insrsid1258761\charrsid1729722 the}{\insrsid8403317\charrsid1729722 procedure }{\insrsid1258761\charrsid1729722 laid}{\insrsid8403317\charrsid1729722 down by the Arbitration Rules\'94. \par It is clear from the quotation that }{\b\insrsid12071261\charrsid1729722 O.}{\b\insrsid8403317\charrsid1729722 43 r. 5}{\b\i\insrsid8403317\charrsid1729722 }{\b\insrsid8403317\charrsid1729722 CPR}{\insrsid8403317\charrsid1729722 regulates procedure to commence proceedings in arbitration under a court order. In an arbitration under the arbitration Acts proceedings are taken under power conferred by that }{\insrsid151771\charrsid1729722 Ac}{\insrsid8403317\charrsid1729722 t and under }{\insrsid151771\charrsid1729722 the procedure laid down by the Arbitration Rules. \par }{\insrsid8403317\charrsid1729722 In the instant case, the Arbitration was by agreement of the parties and was under the Arbitration Act. It was not an arbitration}{\insrsid1221\charrsid1729722 under a court order. In such}{ \insrsid8403317\charrsid1729722 arbitration proceedings are taken under the powered conferred by that Act and under procedure laid down by the Arbitration Rules. This procedure is provided under }{\b\insrsid8403317\charrsid1729722 rule 16 of the Arbitration Rules}{\insrsid8403317\charrsid1729722 . Under that Rule, the application of this nature }{\insrsid1221\charrsid1729722 must}{\insrsid8403317\charrsid1729722 be brought by chamber summons. To that ext}{ \insrsid5580100\charrsid1729722 ent, I respectfully agree with Mr. Kania that the instant application having been brought under O.}{\insrsid8403317\charrsid1729722 43 r.5}{\i\insrsid8403317\charrsid1729722 }{\insrsid8403317\charrsid1729722 of the CPR, and by Notice of motion in an arbitration which was not by order of a court, was wro}{\insrsid5580100\charrsid1729722 ngly brought. It violated the ma}{\insrsid8403317\charrsid1729722 ndatory provision of Rule 16 of the Arbitration Rules. O}{ \insrsid5580100\charrsid1729722 n this ground the preliminary objection is bound to succeed. \par }{\insrsid8403317\charrsid1729722 Further more, Mr. Kania attacked the support}{\insrsid5580100\charrsid1729722 ing }{\insrsid8403317\charrsid1729722 affidavit which was swo}{\insrsid5580100\charrsid1729722 rn on 3/3/92 by Dr. Byamugisha}{ \insrsid8403317\charrsid1729722 as }{\insrsid5580100\charrsid1729722 being defective because it contains hearsay. \par }{\insrsid8403317\charrsid1729722 It is pertinent to point out at this stage that the la}{\insrsid5580100\charrsid1729722 w }{\insrsid8403317\charrsid1729722 allows affidavit as evidence in }{\insrsid5580100\charrsid1729722 interlocutory}{ \insrsid8403317\charrsid1729722 proceedings to contain certain amount of bear\emdash say (statements of information). }{\insrsid11367790\charrsid1729722 It is however mandatory that where an affidavit is based on inf}{\insrsid8403317\charrsid1729722 ormation, the source of that information must be disclosed. There is a wealth of authorities on this point and I think this}{\i\insrsid8403317\charrsid1729722 }{\insrsid8403317\charrsid1729722 matter may rightly be regarded as settled. \par In }{\ul\insrsid8403317\charrsid1729722 Patrick Rw}{\ul\insrsid15622691\charrsid1729722 eki}{\ul\insrsid8403317\charrsid1729722 bire Vs Kama}{\ul\insrsid15622691\charrsid1729722 ya}{\ul\insrsid8403317\charrsid1729722 (1972) ULR 1 }{ \insrsid8403317\charrsid1729722 \line }{\ul\insrsid8403317\charrsid1729722 166}{\insrsid8403317\charrsid1729722 the remark of }{\ul\insrsid15622691\charrsid1729722 Spry JA in _P,Raichand Vs. Quary Services}{\ul\insrsid8403317\charrsid1729722 \line }{ \ul\insrsid15622691\charrsid1729722 (1}{\ul\insrsid8403317\charrsid1729722 969}{\ul\insrsid15622691\charrsid1729722 ) EA}{\ul\insrsid8403317\charrsid1729722 514}{\insrsid8403317\charrsid1729722 was quoted with approval. In }{ \insrsid15622691\charrsid1729722 tha}{\insrsid8403317\charrsid1729722 t case Spry \line }{\insrsid600642\charrsid1729722 J. A. as he than was said:- \par }\pard \s15\qj \li720\ri720\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin720\lin720\itap0\pararsid600642 {\i\insrsid8403317\charrsid1729722 \'93}{\i\insrsid600642\charrsid1729722 It}{\i\insrsid8403317\charrsid1729722 }{\i\insrsid600642\charrsid1729722 has repeatedl}{\i\insrsid8403317\charrsid1729722 y been said by this court that \line affidavit based on information must disclose}{\i\insrsid600642\charrsid1729722 the source of information\'94. It }{ \i\insrsid8403317\charrsid1729722 was fu}{\i\insrsid600642\charrsid1729722 rther said in that case thus:\emdash \par }{\i\insrsid8403317\charrsid1729722 \'93This is no}{\i\insrsid600642\charrsid1729722 t merely a matter of form but go}{\i\insrsid8403317\charrsid1729722 es to the \line essential value of an affidavit. It may have been sworn in all sincerity and the deponent may have been advised as he says, but since the source of the information may have been unreliable, the affidavit can have }{\i\insrsid600642\charrsid1729722 no evidential value\'94. \par }\pard \s15\qj \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid600642 {\insrsid8403317\charrsid1729722 In }{\insrsid600642\charrsid1729722 the }{\insrsid8403317\charrsid1729722 instant cases} {\insrsid600642\charrsid1729722 ,}{\insrsid8403317\charrsid1729722 from the face of it the supporting affidavit }{\insrsid600642\charrsid1729722 in que}{\insrsid8403317\charrsid1729722 stion was not based on information. All its contents are stated to have}{\insrsid600642\charrsid1729722 been based on the deponent\rquote s Knowledge. \par }{\insrsid8403317\charrsid1729722 Mr. }{\insrsid600642\charrsid1729722 Kani}{\insrsid8403317\charrsid1729722 a argued that the deponent as counsel for the applicant Town Counsel }{\insrsid600642\charrsid1729722 in a pos}{\insrsid8403317\charrsid1729722 ition to }{\insrsid600642\charrsid1729722 kn}{\insrsid8403317\charrsid1729722 ow those facts of alleged breaches of the covenant as contained, in paragraph 3 of the affidavit. That these facts should have }{\insrsid11947762\charrsid1729722 best}{ \insrsid8403317\charrsid1729722 been deponed to by an official of the applicant Town Council as}{\insrsid11947762\charrsid1729722 he would be in a position to know them. \par }{\insrsid9244448\charrsid1729722 I understand Mr. Ka}{\insrsid8403317\charrsid1729722 nia by his said argument to be insinuating that what is contained in paragraph 3 o}{\insrsid12465760\charrsid1729722 f the affidavit is false in }{ \insrsid8403317\charrsid1729722 the affidavit that it was based on the deponent\rquote }{\insrsid12465760\charrsid1729722 s }{\insrsid8403317\charrsid1729722 knowledge, it is}{\insrsid12465760\charrsid1729722 infact based on information. \par If my und}{\insrsid8403317\charrsid1729722 erstanding is correct, then this is a challenge to the truthfulness of the affidavit\rquote s contents. Clearly an affidavit which is shown }{\insrsid12465760\charrsid1729722 to contain false}{ \insrsid8403317\charrsid1729722 hood however minor is bound to fail. }{\b\insrsid12465760\charrsid1729722 (}{\b\insrsid8403317\charrsid1729722 See Bitaitano Vs. Kanaura }{\b\insrsid12465760\charrsid1729722 (1977 H}{\b\insrsid8403317\charrsid1729722 CB 33). }{\insrsid8403317\charrsid1729722 \par }\pard \s15\qj \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid8403317 {\insrsid12465760\charrsid1729722 In }{\insrsid8403317\charrsid1729722 the instant cas e, there is need to establish that the affidavit contains falsehood. This requires }{\insrsid12465760\charrsid1729722 e}{\insrsid8403317\charrsid1729722 vidence to rebut }{\insrsid12465760\charrsid1729722 the}{\insrsid8403317\charrsid1729722 deponent \rquote s claim that whatever is contained in }{\insrsid12465760\charrsid1729722 that }{\insrsid8403317\charrsid1729722 affidavit was based on his knowledge. }{\insrsid12465760\charrsid1729722 There was}{\insrsid8403317\charrsid1729722 no such evidence to rebut that of the Deponent. In the circumstances I am }{\insrsid12465760\charrsid1729722 unable}{\insrsid8403317\charrsid1729722 to }{\insrsid12465760\charrsid1729722 take}{\insrsid8403317\charrsid1729722 }{ \insrsid12465760\charrsid1729722 Mr. Kania\rquote }{\insrsid8403317\charrsid1729722 s argument at the Bar as being sufficient to rebut and disprove a sworn affidavit. The challenge to }{\insrsid12465760\charrsid1729722 the}{ \insrsid8403317\charrsid1729722 affidavit must }{\insrsid12465760\charrsid1729722 therefore fail. \par }{\insrsid8403317\charrsid1729722 In the whole however, the }{\insrsid12465760\charrsid1729722 preliminary objection is upheld f}{\insrsid8403317\charrsid1729722 o}{\insrsid14230490\charrsid1729722 r reasons given above. In consequ}{ \insrsid8403317\charrsid1729722 ence, the application is struck out with cost to the Respon}{\insrsid14230490\charrsid1729722 dent. \par }\pard \s15\qj \li6480\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin6480\itap0\pararsid14230490 {\insrsid4020770 \'85\'85\'85\'85\'85\'85\'85\'85 }{\insrsid14230490\charrsid1729722 G. M}{ \insrsid8403317\charrsid1729722 . }{\insrsid14230490\charrsid1729722 OKELLO \par J}{\insrsid11081898\charrsid1729722 UDGE}{\insrsid4020770 \line 2/4/92}{\insrsid8403317\charrsid1729722 \par }\pard \s15\qj \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid8403317 {\insrsid8403317\charrsid1729722 \par }\pard\plain \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid8403317 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\insrsid8403317\charrsid1729722 \par }}