Tullow Kenya B.V. has been ordered to pay a construction firm Sh56.6 million arising from a contract for building works entered between the parties in 2015.
High Court judge Joseph Sergon allowed the application as prayed by Shabaa Civil Engineering Construction Ltd, despite an objection by the oil company that the award had been set aside.
The construction firm informed the court that the case was meant to recover amounts Tullow owed it from a contract the parties had entered.
The company further told the court that it is more than nine months since the decision was made by the High Court and Tullow Kenya had not appealed against the judgment, setting aside the award.
“To this extent, this is a proper and fit case for this court to enter summary judgment as prayed in the instant application,” said the judge.
The construction firm informed the court that Tullow Kenya failed to pay the full contract amount, prompting it to file proceedings in court.
The court then directed the matter to be determined through an arbitration process, which was conducted and an award was rendered on May 27, 2019.
However, the firm was dissatisfied with the arbitral award and filed an application for review at the High Court. The decision was set aside by Justice James Wakiaga in October 2021.
Shabaa Civil Engineering Construction Ltd argued that with the setting aside of the award, its claim as presented before the arbitrator stands.
Tullow, however, opposed the case arguing that having been set aside, the matter remains unresolved and there is no judgment capable of being entered from a negative order.
The oil company maintained that the dispute has not been determined and the matter should, therefore, be resolved as per the agreement by fresh arbitration proceedings.
“Having considered the rival arguments, I am persuaded by the arguments put forward by the Plaintiff that to maintain the suit as it is would militate against the Plaintiff enjoying the fruits of its successful litigation,” the judge said.
