Judge orders arbitrator to refund Grain Bulk Sh2.9m fees

Judge orders arbitrator to refund Grain Bulk Sh2.9m fees. PHOTO | POOL

Arbitrator Philip Aliker has been ordered to refund Sh2.9 million to Grain Bulk Handlers Limited (GBH) arising from fees he was paid by the firm for a case he handled more than seven years ago.

High Court judge David Majanja said the arbitrator should refund half of the Sh5.9 million, which GBH paid as arbitration fees in a case pitting the cargo firm against Mistry Jadva Parbat & Co. Ltd, a matter he handled between 2008 and 2015.

The cargo handling firm moved to court, saying it ought to refund half of the fees it paid after successfully challenging him over his handling of the arbitration proceedings.

“Since it is not in dispute that the Applicant paid the respondent Sh5,928,827 then it means that the applicant is entitled to a refund of half or 50 percent of that amount, which is Sh2,964,413.50,” said the judge.

Mr Aliker was appointed to arbitrate a dispute that had arisen between Grain Bulk Handlers Limited and Mistry Jadva Parbat & Co. Ltd.

GBH later challenged Mr Aliker’s appointment and in a ruling in 2016, Justice Eric Ogola ordered him to refund one-half of the total fees and expenses paid to him by GBH in the arbitration.

The company later moved back to court claiming that the arbitrator had refused to settle the amount.

Mr Aliker challenged the court’s jurisdiction saying it amounted to rewriting the ruling made by judge Ogola.

Justice Majanja said he does not agree with the arbitrator who claimed it was not clear who was to be refunded the money.

“The refund was to be made to the applicant and, which is one-half of what it paid to the respondent,” the judge said noting that the matter has been pending in court since 2016.

“The duty of the court is to resolve disputes conclusively and with finality in line with the overriding objective and duty of the court to determine matters without undue regard to technicalities,” said the judge.

PAYE Tax Calculator

Note: The results are not exact but very close to the actual.