LILONGWE-(MaraviPost)-The High Court’s Commercial Division in Lilongwe has dismissed Total Malawi Limited’s bid to challenge the court’s jurisdiction in a long-running commercial dispute with Prima Fuels Limited and Attorney General (AG).
The court ruled that the matter will proceed to full trial in Malawi, putting an end to Total Malawi’s attempts to take the case to arbitration.
The dispute stems from a 2001 supply agreement between Prima Fuels and Total Malawi, which includes an arbitration clause.
However, the agreement also stipulates that if arbitration fails, parties can refer the matter to the High Court of Malawi.
Justice Trouble Kalua dismissed Total Malawi’s application, citing that the company had already taken substantive steps in the High Court proceedings, including attending scheduling conferences and filing amended pleadings.
The court also issued an injunction restraining Total Malawi from pursuing fresh arbitration proceedings and parallel litigation in South Africa.
This decision comes after the Malawi Supreme Court of Appeal upheld a previous ruling that the matter should proceed to trial in Malawi.
The dispute centers around a K824 billion ($480 million) claim by Prima Fuels and the government against Total Malawi for alleged breach of contract.
The government claims Total Malawi stopped paying rebates on fuel sales in 2006, violating the terms of the agreement.
With this ruling, the case will now proceed to full trial in the High Court of Malawi, marking a significant development in the long-running dispute.