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Agip (K) Ltd v Kibutu [1981] KECA 48 (KLR)

[1981] KECA 48 (KLR) Court of Appeal
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Court
Court of Appeal
Case number
48
Citation
[1981] KECA 48 (KLR)
Decided
21 December 1981
AI Summary Beta Machine-generated — may contain errors. Not legal advice.
TypeCivil AppealPostureAppeal from a ruling dismissing a temporary injunction applicationCoramE.J., K.D. Potter, A.H. Simpson
Holding

The appeal is allowed, with costs, and the temporary injunction application is remitted to the High Court for further hearing.

Facts

Agip (Kenya) Ltd sued Kibutu for possession, mesne profits, general damages for loss of goodwill, and an injunction. Kibutu raised a counterclaim and clause 14 of the Operator Agreement, which requires disputes to be referred to arbitration.

Issues

  1. Whether the defendant waived the right to arbitration by filing a counterclaim.
  2. Whether the judge erred in dismissing the application for a temporary injunction without hearing the merits of the application.

Reasoning

The judge erred in finding that the dispute should be referred to arbitration because there was no application for a stay of proceedings pending arbitration, and the defendant had not demonstrated readiness and willingness to arbitrate.

Outcome

Appeal allowed

Orders

  • Remitted the plaintiff's application for a temporary injunction to the High Court for further hearing.

Authorities cited

Cases cited (3)
  • Maluki v Oriental Fire and General Insurance (1973) EA 162
  • Purshottam v Keshavlal (21 EACA) 111
  • Halsbury’s Laws of England, 4th Ed, Vol II, paragraph 564
Experimental AI summary generated by a language model, not a lawyer. It may contain errors or omissions and must not be relied on for legal decisions — the full judgment below is the authoritative source.
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