Zimbabwe internet suppliers take dispute to Court

Published: 6 hours ago

Powertel Communications has successfully secured a court order to appoint an arbitrator in its ongoing dispute with Dandemutande Investments, following the termination of an Internet supply agreement between the two companies.

The matter, which spans more than a decade, dates back to a 2010 Internet Capacity Purchase Agreement. A dispute arose in 2017 after Powertel terminated the agreement. In 2018, the parties agreed to have retired judge Justice Vernanda Ziyambi serve as arbitrator, but the process stalled when Dandemutande failed to file its claim. Justice Ziyambi later withdrew due to other commitments.

In 2023, Powertel sought the appointment of a new arbitrator through the Commercial Arbitration Centre, which led to the appointment of Whatman. Dandemutande challenged the appointment, citing alleged violations of clause 27 of their agreement. Whatman upheld the objection, and the arbitration proceedings were terminated by consent.

Powertel then approached the High Court, arguing that the parties' failure to reach a consensus on an arbitrator necessitated judicial intervention under Article 11(4) of the Arbitration Act. Dandemutande countered that the claim had prescribed under the Prescription Act, as more than three years had elapsed since the dispute arose.

Justice Maxwell Takuva dismissed Dandemutande's preliminary objections, noting that the court was not seized with the underlying debt claim but with the specific matter of appointing an arbitrator. He said the court retains discretion to appoint a qualified, impartial, and independent arbitrator, and that the mention of the Commercial Arbitration Centre in Powertel's application was a recommendation rather than a directive.

"For a three-panel arbitration tribunal to ensue, both parties should co-operate in appointing the first two arbitrators. If they fail to agree on a third arbitrator, the chairman of the Commercial Arbitration Centre may make the appointment," Justice Takuva explained.

The court has now ordered the chairman of the Commercial Arbitration Centre in Harare to appoint a suitable arbitrator to preside over the dispute, paving the way for the arbitration process to move forward.
- Newsday