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ROYAL EXCHANGE ASSURANCE V. BENTWORTH FINANCE (NIG.) LTD

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ROYAL EXCHANGE ASSURANCE V. BENTWORTH FINANCE (NIG.) LTD

Legalpedia Citation: (1976) Legalpedia (SC) 11110

In the Supreme Court of Nigeria

Fri Nov 26, 1976

Suit Number: SC. 252/1969

CORAM


UDOMA, JUSTICE, SUPREME COURT

OKAY ACHIKE JUSTICE, SUPREME COURT

IDIGBE, JUSTICE, SUPREME COURT


PARTIES


ROYAL EXCHANGE ASSURANCE APPELLANTS


RESPONDENTS


AREA(S) OF LAW



SUMMARY OF FACTS

The respondents contract with the appellant contained an arbitration clause. Differences arose and the appellant ignored the respondents request to appoint an arbitrator within time. The respondents applied to the court and an arbitrator was appointed.


HELD


The court held that the learned trial judge was right in law to have exercised his powers and jurisdiction under section 6 of the Arbitration Act.


ISSUES


Whether a judge has the jurisdiction to appoint a named arbitrator to go into the matter in difference between parties where one party to the proceedings alone has applied to the court to exercise such powers on the default of the other party in the proceedings.


RATIONES DECIDENDI


JUDGES RIGHT TO APPOINT AN ARBITRATOR


The true nature and function of an arbitration clause in an agreement does not appear to be fully appreciated. Arbitration merely embodies the agreement of both parties that if any dispute should occur with regard to the obligations which the other party has undertaken to the other, such dispute should be settled by a tribunal of their own constitution and choice. The appropriate remedy therefore for a breach of a submission is not damages but its enforcement. So where a party refuses within given time after due notice to have an arbitrator appointed, the court has full power and jurisdiction to appoint an arbitrator on an application properly made by the party who has served such notice” PER UDO UDOMA JSC


CASES CITED



STATUTES REFERRED TO


ARBITRATION ACT (CAP 13) 1914

ENGLISH ARBITRATION ACT 1889(52 & 53 VICT.C 49)


CLICK HERE TO READ FULL JUDGMENT

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