Arusha, 15 January 2013: The First Instance Division today entertained evidence/ witnesses in Court for the first time on the matter between Alcon International against Standard Chartered Bank Uganda Limited for not paying them for the construction of a building known as Workers House in Kampala, Uganda.
The witness for Alcon International Kenya Mr. Davinder Singh Hanspal the Managing Director of the Company argued that the Bank stopped paying and its contract with the Government of Uganda was terminated without any reason given to the contractor.
He said tthe matter was brought this case under article 29 (2) and Article 54 (2) (b) of the protocol on the establishment of the East African Community Common Market of the on protection of Investors across the border. He also emphasized that the alleged sister construction company Alcon International Uganda does not exist.
The Standard Chartered Bank witness, Mr. Chris Engola Otyek, and Country Legal Counsel submitted that the Bank held the payment for Alcon following an order of the High Court of Uganda to hold the payment an account to Alcon International Ltd (K) until an appeal pending before the Court of Appeal of Uganda was determined.
The subject matter is an award of $8,858,469, with interest and costs, made in favor of Alcon International by an arbitrator and adopted by the High Court of Uganda.
The award arose from a contract between National Social Security Fund (NSSF), Uganda and Alcon International Limited (Kenya) who later sub-contracted Alcon International Limited (Uganda) to finish the construction of the Workers House building, leading to a dispute about which Alcon company should be paid for the work done.
EACJ First Instance Division had previously dismissed the case by Kenyan construction company, Alcon International (K) Limited, on grounds that the matter was improperly before the Court. However the Appellate Division noted that the First Instance Division did not in its ruling consider whether it had jurisdiction to entertain the matter, which was a fundamental issue which the Court had to decide on.
Appearing before Justices Hon. Justice Busingye (Principal Judge), Hon. Jean Bosco Butasi (Judge) and Hon. Isaac Lenaola (Judge), was Mr. Muthomi Thiankolu, Advocate for the Applicant Alcon International (K) and Mr. Barnabas Tumusingize Counsel for the 2nd Respondent Registrar of the High Court of Uganda and Ms. Patricia Mutesi Principal Attorney representing the Attorney General of the Republic of Uganda.
The Court will notify the parties on the next hearing.
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The East African Court of Justice (EACJ or the Court), is one of the organs of the East African Community established under Article 9 of the Treaty for the Establishment of the East African Community. Established in November 2001, the Court’s major responsibility is to ensure the adherence to law in the interpretation and application of and compliance with the EAC Treaty.
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