IN THE COURT OF APPEAL FOR EAST AFRICA
AT NAIROBI
(Coram: Wambuzi P, Law L-P and Mustafa JA)
CIVIL APPEAL NO 33 OF 1975
NAKURU OIL MILLS LTD................. PLAINTIFF
VERSUS
DK LAKHANI ........................... DEFENDANT
JUDGMENT
The appellant (to whom I shall refer as “the plaintiff”) filed a suit against the respondent (“the defendant”) in the High Court, for damages representing the loss suffered by the plaintiff on the resale by him of a quantity of cottonseed oil cake which the defendant had contracted to buy but allegedly failed to take delivery of or pay for.
The defendant entered an appearance, and before taking any steps in the suit, applied under section 6 of the Arbitration Act to the High Court to stay the proceedings as the two contracts between the parties for the sale of the cake contained an arbitration clause. Nyarangi J, who heard the application, granted the application with costs, ordered that the proceedings be stayed and that the plaintiff should pay to the defendant h…