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Uganda Judgment

Industrial Court of Uganda

Alliance One Tobacco v Yassin and 5 Others (Labour Dispute Miscellaneous Application 169 of 2020) [2021] UGIC 109 (21 September 2021)

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Professional case brief

Research organized from the available case record

Source document

01

Holding and result

The court held that the act of swearing an affidavit is not a management function reserved for company directors under the Companies Act. Any person with knowledge of the facts, such as a Human Resource Manager, may swear an affidavit on behalf of the company. The court further found that while all affidavits should be served, the presence of affidavits in rejoinder on the court record means they should not be ignored, and justice is served by ensuring they are served on the respondents. Regarding the timing of the application for leave to appeal on matters of fact, the court held that as long as the appeal was filed within the prescribed time under Regulation 45(1) of the Employment Regulations, there is no legal requirement that leave must be sought before the appeal is filed. The preliminary objection was therefore without merit and overruled.

Court disposition

preliminary objection overruled

Orders

  • The preliminary objection is overruled.

02

Material facts

Parties

Alliance One Tobacco

Applicant

Yassin & 5 Others

Respondent

03

Procedural history

  1. Posture

    Miscellaneous Application / Ruling on Preliminary Objection

04

Questions and positions

Legal issues

Party arguments

Applicant
Counsel for the applicant argued that under Order 19 rule 1 of the Civil Procedure Rules, any person knowledgeable about the facts of a case may swear an affidavit, regardless of directorship or shareholding. She maintained that affidavits in rejoinder were on the court record and could be served if necessary. She further contended that the Employment Act only requires the appeal to be filed within 30 days, and the timing of the application for leave does not render it illegal.
Respondent
Counsel for the respondent argued that only company directors can swear affidavits on behalf of the company unless a Power of Attorney is provided, relying on Article 80(1) of the Companies Act. He also contended that failure to serve affidavits in rejoinder amounts to admission of the respondents' evidence, citing Martha Vs Allen 1978 HCB 297. He further argued that the application was a nullity for being filed after the memorandum of appeal, contrary to Section 92(2) of the Employment Act.

05

Court’s reasoning

  1. 01

    Order 19 rule 1, Civil Procedure Rules

    Order 19 rule 1 of the Civil Procedure Rules allows any person knowledgeable about the facts to swear an affidavit.

  2. 02

    Companies Act

    Company business is managed by directors, but giving evidence in court is not a management act restricted to directors.

  3. 03

    Section 94(2), Employment Act

    Section 94(2) of the Employment Act requires leave of court to appeal on questions of fact.

  4. 04

    Regulation 45(1), Employment Regulations, 2011

    Regulation 45(1) of the Employment Regulations, 2011 provides for appeals against decisions of labour officers within 30 days.

  5. 05

    Martha Vs Allen 1978 HCB 297 (distinguished)

    Failure to serve affidavits in rejoinder does not render them inadmissible if they are on the court record.

06

Ratio, limits and disposition

Ratio decidendi

The court held that the act of swearing an affidavit is not a management function reserved for company directors under the Companies Act. Any person with knowledge of the facts, such as a Human Resource Manager, may swear an affidavit on behalf of the company. The court further found that while all affidavits should be served, the presence of affidavits in rejoinder on the court record means they should not be ignored, and justice is served by ensuring they are served on the respondents. Regarding the timing of the application for leave to appeal on matters of fact, the court held that as long as the appeal was filed within the prescribed time under Regulation 45(1) of the Employment Regulations, there is no legal requirement that leave must be sought before the appeal is filed. The preliminary objection was therefore without merit and overruled.

Obiter and limits

  • It serves the interest of justice if affidavits in rejoinder already on the record are served onto the respondents.
  • Giving evidence in court is not a management act required of a director under the Companies Act and regulations.

Court disposition

preliminary objection overruled

  • The preliminary objection is overruled.

Source and reliance status

Industrial Court of Uganda

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Source document

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Judgment text

The complete available source text.

Source document

Industrial Court of Uganda

Judgment

[2021] UGIC 109

THE REPUBLIC OF UGANDA IN THE INDUSTRIAL COURT OF UGANDA AT KAMPALA MISC. APPLICATION NO. 169 OF 2020 [ARISING FROM LABOUR DISPUTE APPEAL NO. 024/2020]

BETWEEN

ALLIANCE ONE TOBACCO CLAIMANT

VERSUS

YASSIN & 5 ORTHERS RESPONDENT

BEFORE

1. Hon. Head Judge Ruhinda Ntengye

PANELISTS

- 1. Mr. Bwire John Abraham - 2. Ms. Julian Nyachwo - 3. Mr. Patrick Katende

RULING ON PRELIMINARY LEGAL POINT

The above application was filed seeking leave of this court to appeal on matters of fact but before the applicant could proceed, the respondent raised a prelimary point touching the capacity of <sup>a</sup> Huma Resource Manager to swear an affidavit on behalf of the company. Counsel for respondents relied on Article 80(1) of the Company's Act which according to him provides for company business being ran by Directors. Counsel argued that without a Power of Attorney, one Patricia Tukahirwa had no authority to swear an affidavit and therefore the application was a nullity.

Counsel for the respondent also argued that, he had not been served with affidavits in rejoinder to affidavits of some of the respondents and that this in accordance with the authority of Martha Vs Allen 1978 HCB 297 was tantamount to admission of evidence of the said respondents.

J *a*

Counsel for the respondent contended that the application having been filed after filing the memorandum of Appeal, it was <sup>a</sup> nullity, disregarding Section 92(2) of the Employment Act. In his view the applicant ought to have first filed the application before the appeal.

In reply counsel for the applicant was emphatic that under 019rl of the CPR any person knowledgeable about the facts of a given case had a right to swear an affidavit. She-^ said she was only aware in court from the submission of counsel for the respondent that the respondent was not served with some affidavits which she contended were on the court record and that she could easily serve the respondent with the same.

She argued strongly that under the Employment Act an appellant was required to file the appeal within 30 days which was done by the appellant and that the application could not be illegal merely because it was filed after <sup>a</sup> memorandum of appeal.

Decision of Court

Order 19 rule 1 of the Civil Procedure Rules grants the court power to allow evidence to be adduced by affidavit. Although under the company's Act and regulations the business of the Company is ran by Directors, giving evidence in <sup>a</sup> court of law is not <sup>a</sup> management act required of <sup>a</sup> Director under the company's Act and regulations. W< agree with the applicant that evidence in <sup>a</sup> court of law is given by any person who is knowledgeable about the facts which he/she is adducing in court. The mere fact that PatrickTukahirwa was not <sup>a</sup> Director or <sup>a</sup> shareholder in the applicant company did not preclude her from adducing evidence in court.

We have perused the court file and we are satisfied that there are 5 affidavits in rejoinder. Granted that the applicant should have served the respondent with all the affidavits, we do not subscribe to the view that affidavits already on the record should be ignored totally. It serves the interest of justice if they are served onto the respondents especially so when they are affidavits in rejoinder. It would have been different if the affidavits were not on the record.

2

Lastly, Section 94(2) of the Employment Act provides for leave of the court once an appellant intends to appeal on questions of fact. Regulation 45(1) of the Employment Regulations, 2011 provides for an appeal against the decision of the labour officer within 30 days. This court in the recent case of KAMPALA PLAY HOUSE LIMITED & 20 OTHERS Vs Oligo James & 19 Others, Misc. Application 018/2021 (from LDA No. 04/2020) held that "there is no legal basis for the submission of counsel for the respondent that leave on matters of fact must be sought within the time specified for lodging the Appeal. An appeal having been lodged within the prescribed time in accordance with regulation 45(1) of the Employment Regulations 2011, no other time limit is provided for in the event of any other application related to the already filed Appeal."

With the above reasons, we consider the preliminary objection as having no merits and it is hereby overruled.

*L* <sup>r</sup>

Delivered & signed by:

1. Hon. Chief Judge Ruhinda Ntengye

PANELISTS

)

- 1. Mr. Bwire John Abraham*<sup>J</sup>* - 2. Ms. Julian Nyachwo - 3. Mr. Patrick Katende *&*

Dated: 21/09/2021

Source wording is retained. Consult the source document for its original formatting and pagination.

Authorities

Authorities used by the court

Cases, legislation, regulations, and constitutional provisions identified in the available record.

Martha Vs Allen 1978 HCB 297

Case cited

Kampala Play House Limited & 20 Others Vs Oligo James & 19 Others, Misc. Application 018/2021 (from LDA No. 04/2020)

Case cited

Order 19 rule 1, Civil Procedure Rules

Legislation

Legislation referenced in the available case record.

Companies Act

Legislation

Legislation referenced in the available case record.

Section 94(2), Employment Act

Legislation

Legislation referenced in the available case record.

Regulation 45(1), Employment Regulations, 2011

Legislation

Legislation referenced in the available case record.

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