Osano Associates Limited v ICT Authority [2020] eKLR Case Summary

Court
High Court of Kenya at Nairobi, Commercial & Tax Division
Category
Civil
Judge(s)
Justice Maureen A. Odero
Judgment Date
September 18, 2020
Country
Kenya
Document Type
PDF
Number of Pages
3
Explore the case summary of Osano Associates Limited v ICT Authority [2020] eKLR, detailing key legal insights, outcomes, and implications for stakeholders in the ICT sector.

Case Brief: Osano Associates Limited v ICT Authority [2020] eKLR

1. Case Information:
- Name of the Case: Osano Associates Limited v. ICT Authority
- Case Number: Civil Suit No. 23 of 2019
- Court: High Court of Kenya, Commercial & Tax Division
- Date Delivered: 18th September 2020
- Category of Law: Civil
- Judge(s): Justice Maureen A. Odero
- Country: Kenya

2. Questions Presented:
The central legal issues presented to the court included whether the High Court had jurisdiction to grant a stay of execution of the Final Award made by the Sole Arbitrator, and whether the Applicant had a right to appeal the arbitral award under the Arbitration Act.

3. Facts of the Case:
The parties involved in this case are Osano Associates Limited (the Applicant) and the ICT Authority (the Respondent). On 8th December 2014, they, along with the Nairobi City County, entered into a World Bank-funded consultancy agreement. A dispute emerged during the execution of this contract, which was declared on 16th March 2015 and subsequently referred to arbitration. The Sole Arbitrator, Hon Justice (Retired) Aaron Ringera, issued a Final Award on 24th April 2019, determining that the contract was voided due to fraud and that the Applicant had breached the contract. The Applicant sought to appeal this decision and requested a stay of execution of the award.

4. Procedural History:
The Applicant filed a Notice of Motion application on 10th October 2019 seeking to stay the execution of the Final Award pending the appeal. The Respondent opposed this application through a Preliminary Objection, arguing that the High Court lacked jurisdiction to entertain the application due to the provisions of the Arbitration Act. The application and the objections were submitted through written submissions, with the Applicant's submissions filed on 22nd January 2020 and the Respondent's on 12th February 2020.

5. Analysis:
- Rules: The court considered several statutes, including the Arbitration Act No. 4 of 1995, particularly Sections 39 and 35, which outline the conditions under which a party may appeal an arbitral award.
- Case Law: The court referenced the case of Anne Mumbi Hinga v. Victoria Njoki Gathara, emphasizing that the superior court had no jurisdiction to entertain appeals against arbitral awards unless the parties had expressly reserved the right to appeal.
- Application: The court determined that the Arbitration Act is a complete code governing arbitration proceedings, and without an agreement allowing for an appeal, it could not intervene in the arbitral process. The court found that the Applicant had not demonstrated any prior agreement to permit an appeal and thus ruled that the application for a stay of execution was without merit.

6. Conclusion:
The High Court dismissed the Applicant's Notice of Motion application, concluding that it lacked jurisdiction to grant the stay of execution sought. The court underscored that the right to appeal an arbitral award must be reserved by the parties, and since this was not done, the application was non-starter.

7. Dissent:
There were no dissenting opinions noted in the ruling.

8. Summary:
The High Court of Kenya ruled against Osano Associates Limited's application to stay the execution of the Final Award by the Sole Arbitrator, affirming that the court lacked jurisdiction to entertain the appeal due to the provisions of the Arbitration Act. This case underscores the importance of expressly reserving the right to appeal in arbitration agreements and highlights the limited grounds upon which courts may intervene in arbitration matters. The ruling reinforces the autonomy of the arbitration process as a dispute resolution mechanism.

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