News / National
NOIC loses US$164 000 suit
22 May 2024 at 04:38hrs | Views
The High Court has ordered the National Oil Infrastructure Company (NOIC) to pay US$164,631 to a company that repaired its Mabvuku ethanol plant, after rejecting NOIC's attempt to challenge the arbitral award and pay in Zimbabwe dollars at a 1:1 rate.
The dispute arose from an agreement between NOIC and AC Controls (Pvt) Limited in February 2018 for the supply, delivery, and installation of equipment at the Mabvuku ethanol storage tanks. When a payment dispute arose, it went to arbitration, resulting in an award in favor of AC Controls.
NOIC contested the award, citing statutory instruments and arguing for payment in local currency at a 1:1 rate. They claimed the arbitrator's decision was based on an incorrect interpretation of the law and was arbitrary.
However, the court ruled against NOIC, emphasizing the parties' agreement for payment in US dollars and finding no basis to set aside the award. The judge highlighted the court's support for arbitration agreements and the need for substantial injustice to justify interference with arbitral decisions.
Ultimately, the court dismissed NOIC's application and allowed AC Controls' counter-application to register the arbitral award for debt recovery. This decision underscores the court's pro-arbitration stance and reluctance to intervene in arbitration decisions unless there is a clear and significant error causing injustice to the parties involved.
The dispute arose from an agreement between NOIC and AC Controls (Pvt) Limited in February 2018 for the supply, delivery, and installation of equipment at the Mabvuku ethanol storage tanks. When a payment dispute arose, it went to arbitration, resulting in an award in favor of AC Controls.
NOIC contested the award, citing statutory instruments and arguing for payment in local currency at a 1:1 rate. They claimed the arbitrator's decision was based on an incorrect interpretation of the law and was arbitrary.
However, the court ruled against NOIC, emphasizing the parties' agreement for payment in US dollars and finding no basis to set aside the award. The judge highlighted the court's support for arbitration agreements and the need for substantial injustice to justify interference with arbitral decisions.
Ultimately, the court dismissed NOIC's application and allowed AC Controls' counter-application to register the arbitral award for debt recovery. This decision underscores the court's pro-arbitration stance and reluctance to intervene in arbitration decisions unless there is a clear and significant error causing injustice to the parties involved.
Source - The Herald
