Hotel Galaxy (Pvt) Ltd. and Others v. Mercantile Hotels Management Ltd. – sllr 1987 volume 1 page 005

In the case between Mercantile Hotels Management Ltd. (plaintiff) and Hotel Galaxy (Pvt) Ltd. with its Directors (defendants), the court addressed whether a Scott v. Avery arbitration clause in a management agreement constituted a bar to subsequent court action without prior arbitration, and the validity of interim enjoining orders granted in circumstances of alleged non-disclosure from related Primary Court proceedings. The findings established that initiation of legal action prior to pursuing arbitration contravened the mandatory contractual condition, limiting the remedy to damages and precluding injunctive or specific relief. The court relied on statutory arbitration provisions and case law, emphasizing that parties are bound by the agreed dispute resolution process, and affirmed that