Fun Cities Limited v Mung'au & 2 others (Civil Case E451 of 2020) [2021] KEHC 36 (KLR) (Commercial and Tax) (16 September 2021) (Ruling)
- Court
- High Court of Kenya
- Case number
- 36
- Citation
- [2021] KEHC 36 (KLR)
- Decided
- 16 September 2021
AI Summary
Beta
Machine-generated — may contain errors. Not legal advice.
TypeArbitration ApplicationPostureApplication for stay of proceedings and referral to arbitrationCoramWA OKWANY
Holding
The application is allowed, and the dispute between the parties is referred to arbitration in the terms of the Credit Agreement. Proceedings are stayed pending the outcome of the arbitration.
Facts
Fun Cities Limited filed a suit against Katherine Mung’au and Vitt Capital Kenya Limited alleging breach of the Credit Agreement. Mung’au filed an application seeking to stay the proceedings and refer the dispute to arbitration.
Issues
- Whether the applicant has made out a case for the granting of orders of stay of proceedings and referral of the matter to arbitration.
- Whether the suit arises from a breach of the Credit Agreement and is capable of being referred to arbitration.
Reasoning
The court found that there is a valid arbitration agreement and a dispute capable of being referred to arbitration. The court declined to order a stay of proceedings as the applicant failed to demonstrate a dispute.
Outcome
Application allowed
Orders
- Dispute between the parties be referred to arbitration in the terms of the Credit Agreement.
- Stay of proceedings in the instant suit pending the outcome of the arbitration proceedings.
Remedies
- Costs of the application shall abide the outcome of the arbitral proceedings.
Authorities cited
Legislation (2)
- Arbitration Act, 1995
- Constitution of Kenya
Cases cited (2)
- Nanchang Foreign Engineering Company (K) Limited v Easy Properties Kenya Limited
- John Juma & 2 others v Patrick Lihanda & another; Zedekiah Orera & 4 others
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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