WHETHER THERE CAN BE A RESORT TO ARBITRATION IN THE ABSENCE OF DISPUTE

CASE TITLE:  ZAMFARA STATE GOVT & ORS v. N. C. G. INTEGRATED ENG. WORKS LTD & ANOR (2021) LPELR-55712(CA)

JUDGMENT DATE: 23RD SEPTEMBER, 2021

PRACTICE AREA: ARBITRATION LAW

LEAD JUDGMENT: MOHAMMED BABA IDRIS, J.C.A.

SUMMARY OF JUDGMENT:

INTRODUCTION

This appeal borders on Arbitration and Conciliation.

FACTS

This is an appeal against the judgment of the High Court of Zamfara delivered by Honourable Justice Bello Aliyu Gusau.

The Respondents’ case was that they entered into an agreement with the Appellants to drill three numbers motorized boreholes, totaling N37,539,625.25k.

​The Respondents claimed that they completed the job and handed over the projects to the Appellants for commissioning and the Chairman of Taskforce Ongoing Project Committee, Zamfara State wrote to the Appellants that the Respondents had completed the projects up to 100% and that the scheme was already being utilized.

The Appellants through the office of the 2nd Appellant raised payment vouchers for the Respondents but neglected to pay the Respondents even though the vouchers were issued.

Consequently. the Respondents instituted an action against the Appellants in the trial Court. They also filed a Motion on Notice praying the trial Court to grant them summary judgment. The Appellants on the other hand, filed a Notice of Preliminary Objection praying the Court to strike out the suit or stay further proceedings in the matter and refer the matter to arbitration in accordance with the agreement between the parties.

In its considered ruling, the trial Court held that there was no need for any arbitration between the parties; that the Notice of Preliminary Objection by the Appellants lacked merit and dismissed same accordingly. After considering the application of the Respondents, the trial Court entered judgment in favor of the Respondents against the Appellants and granted all the reliefs sought.

​Dissatisfied with the judgment of the trial Court, the Appellants has appealed.

ISSUES FOR DETERMINATION

The appeal was determined upon consideration of the following issues;

1. Whether or not the Court below was right in law to assume jurisdiction and to entertain the matter despite the fact that the parties agree in case of any dispute or differences shall arise between the parties with respect to any matter pertaining to the agreement may referred to arbitration.

2. Whether the decision of trial lower Court relying on inadmissible Exhibit H and H2 does not amount to serious miscarriage of justice.

DECISION/HELD

In the final analysis, the appeal failed for lacking in merit and was dismissed accordingly.

RATIOS:

• ARBITRATION AND CONCILIATION – ARBITRATION: Conditions for a resort to arbitration
• ARBITRATION AND CONCILIATION – ARBITRATION: Meaning of disputes and when a dispute does not arise
• CONTRACT – AGREEMENT: Whether parties are bound by the terms of their agreement
• CONTRACT – AGREEMENT: How an agreement is to be construed