SCA 1/2019

This case involved a contract to set up a business in partnership which could not been undertaken as one of the parties was a public servant so unable to manage commercial projects. A key issue was whether the dispute should be subject to arbitration when a reconciliation had been agreed in a previous ruling.

Background

A claimant filed a case against a defendant before the court. He said that the defendant had agreed with him to open a kindergarten. He said that he later discovered that the defendant was working as a public servant and therefore he was not allowed to manage commercial projects. The claimant said that the contract he signed with the defendant included an arbitration condition. He said that he appointed an arbitrator but the defendant failed to do so. He requested the court to order the defendant to appoint an arbitrator.

Decision

The court refused to consider the case and ruled that the two parties should resort to arbitration as stipulated by the agreed contract.