INDORAMA ELEME PETROCHEMICALS LTD v. CUTRA INT’L LTD.

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Facts:

The appellant and the respondent entered into a one-year renewable Consultancy Agreement on the 1st of April 2014 for the provision of government relations services by the respondent to the appellant. The agreement had an arbitration clause for reference to arbitration in the event of any dispute arising out of the agreement conducted by a sole arbitrator in Abuja in accordance with the rules of the Arbitration and Conciliation Act, Cap. A18, Laws of the Federation of Nigeria, 2004.

Dispute arose between the parties in relation to the agreement and on respondent’s application, the Chartered Institute of Arbitrators of Nigeria appointed a sole arbitrator. At the preliminary meetings of the arbitrator and the parties, the appellant challenged the competence of the arbitral proceedings and the jurisdiction of the arbitrator on the ground that the respondent failed to serve notice of arbitration on the appellant as required by the Arbitration and Conciliation Act. The arbitrator ruled that such hearing notice could be dispensed with by the parties under section 17 of the Arbitration and Conciliation Act.

Aggrieved, the appellant filed an originating summons against the arbitrator and respondent. It sought for a declaration that the condition precedent to the arbitral proceedings had not been complied with to warrant the commencement of the arbitration between the parties. It also sought an order setting aside the ruling of the arbitrator as well as an order removing the same arbitrator. Additionally, the appellant filed a motion for stay of the arbitral proceedings pending the determination of the suit filed against both the arbitrator and respondent. Both processes were served on the parties.

After filing the suit and the motion, the appellant notified the arbitrator by an email that it would no longer attend the arbitral proceedings because of its suit at the High Court. The arbitrator acknowledged the appellant’s email but ruled that the arbitral proceedings would continue because the appellant had filed its cross-claim, and had participated in the proceedings by examining the respondent’s witness. The arbitrator subsequently proceeded to publish her award.

Dissatisfied, the appellant filed an action at the High Court seeking to set aside tribunal’s award. After hearing parties, the trial court granted judgment in favour of the respondent.

Further dissatisfied, the appellant appealed to the Court of Appeal.

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