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Uganda Judgment

Industrial Court of Uganda

Aronda v Uganda Revenue Authority (Labour Dispute Miscellaneous Application 140 of 2023) [2023] UGIC 85 (30 November 2023)

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01

Holding and result

The court found that the applicant's request to amend the memorandum of claim was justified, as the proposed amendments merely clarified existing claims and corrected calculation errors without introducing a new cause of action or prejudicing the respondent. The respondent's failure to file a reply was construed as acceptance of the applicant's averments. The court applied established principles that amendments should be freely allowed to resolve the real controversy, provided they do not cause injustice or introduce new causes of action. The respondent's lack of opposition and failure to follow court directions justified awarding costs to the applicant. Accordingly, leave to amend was granted, timelines for filing responses were set, and costs were awarded to the applicant.

Court disposition

Application granted with costs to the applicant.

Orders

  • The applicant is granted leave to file an amended memorandum of claim within seven days of the ruling, by 7th December 2023.
  • The respondent shall file a reply within seven days from the date of service of the amended memorandum of claim.
  • The applicant shall have taxed costs of the application.

02

Material facts

Parties

Aronda Barnabas

Applicant Counsel: Ms. Charity Masiko of M/s. Enoth Mugabi & Co. Advocates

Uganda Revenue Authority

Respondent Counsel: Ms. Rita Nabunya

Amounts and remedies

  • Erroneous Computation Corrected From UGX 406,368,000 to UGX 1,166,688,000: UGX 1,166,688,000
  • Erroneous Computation Corrected From UGX 73,166,329 to UGX 170,849,094: UGX 170,849,094

03

Procedural history

  1. Posture

    Miscellaneous Application / Ruling on Application for Leave to Amend Memorandum of Claim

04

Questions and positions

Legal issues

Party arguments

Applicant
The applicant argued that the omission of elaborative facts and erroneous calculations in the original memorandum of claim was inadvertent. The amendment would avoid multiplicity of actions, cause no prejudice to the respondent, and is necessary to clarify the claim. The applicant relied on principles governing amendment of pleadings, emphasizing that the amendments do not introduce a new cause of action or injustice.
Respondent
The respondent did not file an affidavit in reply and did not appear in court to oppose the application. No arguments were presented on record.

05

Court’s reasoning

  1. 01

    Wasswa v Achen [1978] HCB 297

    Where a party does not file any reply, it is taken to have accepted the averments as true.

  2. 02

    Okello Wilbert v Obel Ronald, High Court Civil Miscellaneous Application No. 97 of 2020 [2021] UGCommC 9

    Principles governing amendment of pleadings include attending to the real matter in controversy, not working injustice to the other side, avoiding multiplicity of proceedings, absence of malafides, and not allowing amendments expressly prohibited by law.

  3. 03

    Mulowoza Brothers Ltd v N. Shah & Co Ltd, SCCA No. 26 of 2020

    Amendments should be freely allowed to determine the real question in controversy without undue regard to technicalities, except if it causes injustice that cannot be compensated by costs or introduces a new cause of action.

  4. 04

    Joseph Kalule v GIZ, LDR 109 of 2020

    Costs in employment disputes are the exception rather than the rule and may be awarded for misconduct.

06

Ratio, limits and disposition

Ratio decidendi

The court found that the applicant's request to amend the memorandum of claim was justified, as the proposed amendments merely clarified existing claims and corrected calculation errors without introducing a new cause of action or prejudicing the respondent. The respondent's failure to file a reply was construed as acceptance of the applicant's averments. The court applied established principles that amendments should be freely allowed to resolve the real controversy, provided they do not cause injustice or introduce new causes of action. The respondent's lack of opposition and failure to follow court directions justified awarding costs to the applicant. Accordingly, leave to amend was granted, timelines for filing responses were set, and costs were awarded to the applicant.

Obiter and limits

  • If the respondent did not intend to oppose the application, an express indication would have served judicial economy by filing a no-contest.
  • Costs in employment disputes are the exception rather than the rule, and may be awarded for misconduct.

Court disposition

Application granted with costs to the applicant.

  • The applicant is granted leave to file an amended memorandum of claim within seven days of the ruling, by 7th December 2023.
  • The respondent shall file a reply within seven days from the date of service of the amended memorandum of claim.
  • The applicant shall have taxed costs of the application.

Source and reliance status

Industrial Court of Uganda

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Judgment text

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Source document

Industrial Court of Uganda

Judgment

[2023] UGIC 85

![](_page_0_Picture_0.jpeg)

THE REPUBLIC OF UGANDA

IN THE INDUSTRIAL COURT OF UGANDA AT KAMPALA,

MISCELLANEOUS APPLICATION NO. 140 of 2023

*(Arising From Labour Dispute Reference No. <sup>78</sup> of202.3)*

ARONDA BARNABAS APPLICANT

VERSUS

RESPONDENT UGANDA REVENUE AUTHORITY

Before:

The Hon. Mr. Justice Anthony Wabwire Musana

Panelists:

- i 1. Hon. Adrine Narnara, - 2. Hon. Suzan Nabirye & - 3. Hon. Michael Matovu.

Representation: ,

*1. Ms. Charity Masiko of M/s. Enoth Mugabi & Co. Advocatesfor the Applicant 2. Ms. Rita Nabunya for the Respondent* >

RULING

Introduction

- [1] By summons in chamber under Order 6 Rules 19 and 31 cf the Civil Procedure Rules S.l *71-l(from now CPR),* the Applicant sought leave to amend his memorandum of claim to implead elaborative facts and rectify erroneously calculated claims. In the supporting affidavit sworn on the 29th of August 2023, the Applicant was deposed to the inadvertent omission of the elaborative facts, the absence of prejudice, and an intended amendment that would avoid <sup>a</sup> multiplicity of actions. - [2] Despite directions to file <sup>a</sup> reply by 15th September 2023, the Respondent did not file an affidavit in reply. None is on record as of the date of rendering this ruling.

Analysis and decision of the Court

[4] Ms. Masiko invited us to construe the failure of the Respondent to file an affidavit in reply as <sup>a</sup> no objection to the application. This proposition is agreeable to the Court.

J

*r (*

cr

The law as it stands is that where <sup>a</sup> party does not file any reply, it will be taken to have accepted the averments as true.<sup>1</sup> The Applicant's uncontroverted averments are accepted; for this reason, this application would succeed.

- [5] On consideration of the merits of the application, the principles governing amendment of pleadings as set out by Wamala J. in Okello Wilbert v Obel Ronald,<sup>2</sup> include attending to the real matter in controversy, not working injustice to the other side, avoiding multiplicity of proceedings, absence of malafides and an amendment ought not to be allowed where any law expressly prohibits it.<sup>3</sup> Our perusal of the draft amended memorandum of claim demonstrates intended amendments of an elaborative fact of denial of offences at the disciplinary hearing of the 22nd of June 2022 and correcting erroneous computations of (i) UGX 406,368,000 instead of UGX 1,166,688,000 and,(ii) UGX 73, 166,329 instead of including UGX 97,682,765 to make <sup>a</sup> total of UGX 170,849,094. It is our view that these are not new facts and are intended to amplify the Applicant's cause. We find that the proposed amendments do not introduce a new cause of action or work an injustice or prejudice to the Respondent. They clarify the Claimant's claim. - [6] In Mulowoza Brothers Ltd v N. Shah & Co Ltd,<sup>4</sup> it was held that amendments should be freely allowed to determine the real question in controversy without undue regard to technicalities except if it causes an injustice that cannot be compensated by costs or introduces <sup>a</sup> new cause of action. It is

our view that the Applicant meets the threshold in the present case as he does not introduce a new cause of action. - [7] We were asked to make provision for costs. In Joseph Kalule v G1Z5, our persuasion was that costs in employment disputes are the exception rather than the rule, and may be awarded for misconduct. The Respondent appeared in Court and took filing directions but did not adhere to them. If it were the Respondent's inclination not to oppose the application, an express indication would have served the judicial economy by simply filing <sup>a</sup> no-contest. For this reason, we think it appropriate to grant the Applicant costs of this application.

Directions

- [7] Therefore, we make the following directions: - (i) The Applicant is granted leave to file an amended memorandum of claim within seven days of this ruling, that is, by the 7th of December, 2023. <sup>k</sup>

<sup>4</sup> SCCA No. 26 of 2020

<sup>1</sup> See Wasswa v Achen [1978] HCB 297.

<sup>2</sup> High Court Civil Miscellaneous Application No. 97 of 2020 [2021] UGCommC 9 (26 March 2021)

<sup>3</sup> See also Sarope Petroleum Ltd v Orient Bank & 2 Ors H. C. MA 72 of 2011, Gaso Transport Ltd v Obene [1990-1994] EA 88

<sup>5</sup> LDR 109 of 2020

- (ii) The Respondent shall file <sup>a</sup> reply within seven days from the date of service of the amended memorandum of claim. - (iii) The Applicant shall have taxed costs of the application.

day of 2023. Pay Signed ip chambers at Kampala this 3ft

Anthony Wab\J/ Judge, Industr re Musana, aVCourt

**The Panelists Agree:.

1. Hon.** Adrine Namara,

2. Hon. Susan Nabirye &

3. Hon. Michael Matovu.

30th November 2023 10.00 a.m.

Appearances

1. For the Applicant: Ms. Charity Masiko Applicant in Court.

ii' *'i:.* ' % X

2. For the Respondent:

Ms. Eseza Victoria Ssendege No representative of Respondent in Court.

Court Clerk: Mr. Samuel Mukiza.

Ms. Masiko : Ms. Ssendege : Court ;

Matter for ruling, and we are ready to receive it. That is the position. Ruling delivered in open Court.

Anthony Wab\| Judge, Industri Musana, ourt.

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.

Wasswa v Achen [1978] HCB 297

Case cited

Okello Wilbert v Obel Ronald, High Court Civil Miscellaneous Application No. 97 of 2020 [2021] UGCommC 9

Case cited

Sarope Petroleum Ltd v Orient Bank & 2 Ors H.C. MA 72 of 2011

Case cited

Gaso Transport Ltd v Obene [1990-1994] EA 88

Case cited

Mulowoza Brothers Ltd v N. Shah & Co Ltd, SCCA No. 26 of 2020

Case cited

Joseph Kalule v GIZ, LDR 109 of 2020

Case cited

Order 6 Rules 19 and 31 of the Civil Procedure Rules S.I. 71-1

Legislation

Legislation referenced in the available case record.

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