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Harare High Court

Jeft Marketing (Private) Limited v Redan Energy Petroleum (Private) Limited and Sakunda Petroleum (Private) Limited t/a Puma Energy

HH 201-18

Case Details

Court
Harare High Court
Date
11 April 2018
Citation
HH 201-18
Neutral Citation
[2018] ZWHH 201
Outcome
unknown
Case Type
Application

Bench

Presiding
Tsanga J
Full Bench
Tsanga J
Areas of Law
Commercial arbitrationContract lawPublic policy
Keywords
Arbitration awardPublic policyLicence agreementInterim arrangementSetting aside award
Tags
ArbitrationCommercial disputeFuel supply agreement
legislation
Statutes Cited
  • Arbitration Act [Chapter 7:15]
  • Arbitration Act [Chapter 7:15] (First Schedule – UNCITRAL Model Law)
  • Companies Act [Chapter 24:03]
ai analysis
Case Summary

Key Issues

  • {"issue_text":"Whether the arbitrator lacked jurisdiction to hear the matter as there was no arbitration clause in the interim arrangement","issue_type":"procedural","dispositive":"no","related_facts":"Existence of licence agreement with arbitration clause; interim arrangement without explicit arbitration clause"}
  • {"issue_text":"Whether the arbitrator was biased in his conduct and language used","issue_type":"procedural","dispositive":"no","related_facts":"Arbitrator's description of applicant's behaviour as disruptive; dismissal of version as semantics"}
  • {"issue_text":"Whether the arbitrator's decision offends public policy","issue_type":"law","dispositive":"yes","related_facts":"Arbitrator's findings on agreement unity; business loss findings; termination justification"}
  • {"issue_text":"Whether the directors should be held personally liable for company debts","issue_type":"law","dispositive":"yes","related_facts":"Applicant has no assets; unaccounted funds; negligent breach of agreement"}
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background
Facts of the Case

Background

The applicant, formed by former employees of the respondents, entered into a licence agreement for fuel business operations. When the applicant failed to provide a required US$100,000 bank guarantee, an interim consignment arrangement was made. The respondents terminated both agreements alleging unethical conduct and failure to account for proceeds. Arbitration ensued, with the arbitrator ruling in favour of the respondents and dismissing the applicant's counterclaim.
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