Vishnu Builders & Developers Limited v Maow Holdings Limited [2020] eKLR Case Summary

Court
High Court of Kenya at Nairobi
Category
Civil
Judge(s)
L. Njuguna
Judgment Date
October 15, 2020
Country
Kenya
Document Type
PDF
Number of Pages
2
Explore the case summary of Vishnu Builders & Developers Limited v Maow Holdings Limited [2020] eKLR, detailing key legal principles and outcomes relevant to construction and contract law.

Case Brief: Vishnu Builders & Developers Limited v Maow Holdings Limited [2020] eKLR

1. Case Information:
- Name of the Case: Vishnu Builders & Developers Limited v. Maow Holdings Limited
- Case Number: Misc. Civil Application No. 671 of 2019
- Court: High Court of Kenya at Nairobi
- Date Delivered: 15th October 2020
- Category of Law: Civil
- Judge(s): L. Njuguna
- Country: Kenya

2. Questions Presented:
The central legal issue in this case is whether the application dated 17th October 2019 satisfies the grounds for setting aside the arbitral award under Section 35 of the Arbitration Act 1995.

3. Facts of the Case:
The parties involved in this case are Vishnu Builders & Developers Limited (Claimant/Respondent) and Maow Holdings Limited (Respondent/Applicant). The dispute arose from a construction agreement concerning the completion of building works on specified land. The applicant, Maow Holdings, terminated the contract on 12th June 2018, citing breaches of performance terms by the respondent. The respondent contested the termination, leading to arbitration that concluded with an award on 2nd October 2019, which included financial compensation to the respondent for work completed and lost profits.

4. Procedural History:
The applicant filed an application on 17th October 2019 seeking to set aside the arbitration award, arguing that it was unjust and contrary to public policy. The respondent opposed this application, asserting that the arbitrator's decision was valid and supported by the evidence presented during arbitration. Subsequently, a second application was filed by the claimant on 24th June 2020, seeking to adopt and enforce the arbitration award as a decree. The court directed that both applications be heard together.

5. Analysis:
- Rules: The court considered Section 35 of the Arbitration Act, which outlines the grounds for setting aside an arbitral award, particularly focusing on public policy implications as described in previous case law.
- Case Law: The court referenced several cases, including *Set and Sit Contractors v. Mare Nostrum Limited* [2020] eKLR and *Christ for All Nations v. Apollo Insurance Company Limited* (2002) EA 366, which discussed the concept of public policy in relation to arbitral awards. The court noted that an award could be set aside if it was inconsistent with the Constitution, other laws of Kenya, or contrary to justice and morality.
- Application: The court analyzed the claims made by the applicant regarding the lack of evidence supporting the awarded sums for work done and lost profits. It found that the arbitrator’s decision lacked sufficient legal and evidential backing, thus conflicting with public policy. The court concluded that the award was based on speculation and did not adhere to the legal requirement for proving special damages.

6. Conclusion:
The court ruled in favor of the applicant, allowing the application to set aside the arbitration award due to its inconsistency with public policy. The chamber summons filed by the claimant to enforce the award was dismissed, and each party was ordered to bear its own costs.

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

8. Summary:
The High Court of Kenya set aside the arbitration award in the case of Vishnu Builders & Developers Limited v. Maow Holdings Limited, concluding that the award was unjust, lacking in evidentiary support, and contrary to public policy. This decision underscores the importance of adhering to legal standards and evidentiary requirements in arbitration proceedings, reinforcing the principle of finality in arbitral awards while also allowing for judicial review when public policy is at stake.

Document Summary

Below is the summary preview of this document.

  • Vishnu-Builders--Developers-Limited-v-Maow-Holdings-Limited-[2020]-eKLR-Case-Summary_2368_0.jpg

This is the end of the summary preview.

Related Documents

View all summaries