KAMPALA, Uganda| The High Court has ruled that the Chief Magistrate’s court lacks jurisdiction in matters arising from arbitral awards. Justice Ssemogerere Karoli Lwanga held that under Section 34 of the Arbitration and Conciliation Act, only the High Court has jurisdiction to entertain matters challenging or enforcing arbitral awards.

This came after the applicants, Kehooda Immaculate (on behalf of her husband) and Rwabuhe Johnson, sought a revision of execution proceedings conducted by the Chief Magistrate’s Court of Kabale arising from an arbitral award, arguing that the magistrate acted without jurisdiction.

The issue before the court came after Kehooda borrowed money from the first respondent, Lyamujungu Cooperative Financial Services, on behalf of her husband, Rwabuhe Johnson, who owns an auctioneer firm.

The applicants, Kehooda Immaculate Rwabuhe Johnson, were represented by M/S Kaloli Advocates, while the respondents, Lyamujungu Cooperative Financial Services Ltd, were represented by M/S Elgon Advocates, both of which are prominent law firms in Kabale.

The applicants, Kehooda and Rwabuhe, wanted the court to set aside the execution orders and set aside the arbitral award, which they admit had been sworn to in the affidavits entered by Kehonda in application No. 1 of 22, which was dismissed by the Chief Magistrate because it had been overtaken by events.

The applicants argued that the affidavits sworn in by the Lyamujungu Cooperative Financial Services and Niwahabyoona Tomson Adadero Auctioners were done by the wrong parties because Kehooda only had powers of attorney (signed the agreement on behalf of her husband).

On the 8th of April, they appeared before Justice Ssemogerere Karoli Lwanga, who directed the chief magistrates’ court to forward the record proceedings because no decision could be made without them, which were forwarded on the 22nd of April 2024, where he directed the parties to bring written submissions. The parties were requested to find common ground on which to settle the dispute, which was in vain; hence, the decision of the judge.

Justice Ssemogerere Karoli Lwanga ruled that any court proceedings to challenge an arbitral award under the Arbitral and Conciliation Act Cap 5 are in Section 35; the court is defined in Section 2. The interpretation of court” is high court.

” In this case I find that the chief magistrate, grade one, exercised a jurisdiction that is not vested in him. This renders all proceedings in the magistrate’s court a nullity.” Justice Semwogerere ruled

The judge quashed the impugned proceedings and ordered that any fresh execution or applications be filed in the High Court. The application was allowed with costs awarded to the applicant, Kehoonda Immaculate and Rwabuhe, against Lyamujungu Cooperative Financial Services Ltd.