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Musimba Investments Limited v. Nokia Corporation

(2019) JELR 98779 (CA)

Court of Appeal  •  Civil Appeal 138 of 2013  •  22 Feb 2019  •  Kenya

Coram
William Ouko, Sankale ole Kantai, Fatuma sichale

Judgement

JUDGMENT OF THE COURT

At the heart of this appeal is the construction of a term of a contract that provides for the settlement of all disputes arising from the contract by arbitration. In a terse three (3) page ruling delivered on 8th June 2010, Khaminwa, J dismissed with costs the appellant’s notice of motion brought pursuant to section 6 of the Arbitration Act, section 59 of the Civil Procedure Act and Order 45 rule 1 Civil Procedure Rules in which it had prayed for an order to stay the proceedings pending a reference to arbitration.

The background first. By a supply agreement executed by the parties on 21st January, 2006, the appellant was appointed by the respondent to be their purchaser and reseller of Nokia-branded mobile phones and accessories in Kenya. Pursuant to this agreement, the respondent contends that it supplied to the appellant various types of Nokia branded phones and accessories for sale; and that by 29th May, 2008 US$3,755,686.51 was outstanding on account of goods s…

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