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Uganda Judgment

Commercial Court of Uganda

Betty K. Kabachenga v Stanhope Finance Co. Ltd (HCT-00-CC-MA 48 of 2007) [2007] UGCommC 51 (24 May 2007)

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01

Holding and result

The court held that although the application was brought under the wrong provisions of the law, this procedural defect was not fatal since the application was by Notice of Motion, accompanied by an affidavit, and served on the respondent. The court cited authorities supporting a liberal approach to procedural rules in the interest of substantive justice. However, the application was only for setting aside the decree and staying execution, without seeking leave to appear and defend the suit. The court found this insufficient and indicative of an intention to delay justice. Upholding the preliminary objection, the court struck out the application with costs to the respondent.

Court disposition

application struck out with costs to the respondent

Orders

  • The application is struck out.
  • Costs awarded to the respondent.

02

Material facts

Parties

Betty K. Kabachenga

Applicant Counsel: Dalton Opwonya

Stanhope Finance Company Ltd

Respondent Counsel: Mathias Sekatawa

03

Procedural history

  1. Posture

    Miscellaneous Application / Ruling on Preliminary Objection

04

Questions and positions

Legal issues

Party arguments

Applicant
Counsel for the applicant conceded that the application was brought under the wrong provisions due to a typographical error but argued that the substance of the application was clear. He urged the court to invoke its inherent powers under section 98 of the Civil Procedure Act, section 33 of the Judicature Act, and Article 126 of the Constitution to administer substantive justice without undue regard to technicalities.
Respondent
Counsel for the respondent raised a preliminary objection that the application was brought under the wrong law, as it arose from a summary suit under Order 36 and should have been brought under Order 36 rule 11. He argued that the cited provisions (Order 9, Order 48) were inapplicable and that the application was incompetent.

05

Court’s reasoning

  1. 01

    Order 36 rule 11, Civil Procedure Rules

    Applications arising from summary suits must be brought under Order 36 rule 11 of the Civil Procedure Rules.

  2. 02

    Article 126(2)(e) Constitution of Uganda; Intraship (U) Ltd v G.N Combine (U) Ltd [1994] VI KALR 42; Col. (Rtd) Dr. Besigye Kiiza v Museveni Kaguta & Electoral Commission SC Electoral Petition No. 1 of 2001

    Procedural defects may be cured if they do not cause injustice and the substance of the application is clear.

  3. 03

    Article 126(2)(b) and (e), Constitution of Uganda

    Justice shall not be delayed and courts should not allow technicalities to defeat substantive justice.

06

Ratio, limits and disposition

Ratio decidendi

The court held that although the application was brought under the wrong provisions of the law, this procedural defect was not fatal since the application was by Notice of Motion, accompanied by an affidavit, and served on the respondent. The court cited authorities supporting a liberal approach to procedural rules in the interest of substantive justice. However, the application was only for setting aside the decree and staying execution, without seeking leave to appear and defend the suit. The court found this insufficient and indicative of an intention to delay justice. Upholding the preliminary objection, the court struck out the application with costs to the respondent.

Obiter and limits

  • Procedural rules are handmaids of justice and should not be used to defeat it.
  • A liberal approach to procedural defects is consistent with the constitutional mandate to administer substantive justice.
  • Justice shall not be delayed, and applications that do not seek substantive relief may be intended to delay proceedings.

Court disposition

application struck out with costs to the respondent

  • The application is struck out.
  • Costs awarded to the respondent.

Source and reliance status

Commercial Court of Uganda

This page organises the available record for research. Confirm quotations, current status, and subsequent treatment against the official source before relying on the case.

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Commercial Court of Uganda

Judgment

[2007] UGCommC 51

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{\b\lang2057\langfe1033\langnp2057\insrsid2230434\charrsid15419139 \par BETTY K. KABACHENGA=================}{\b\lang2057\langfe1033\langnp2057\insrsid13180394\charrsid15419139 ==APPLICANT}{\b\lang2057\langfe1033\langnp2057\insrsid2230434\charrsid15419139 \par }\pard \qc \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid15419139 {\b\lang2057\langfe1033\langnp2057\insrsid2230434\charrsid15419139 VERSUS \par }\pard \ql \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid15419139 {\b\lang2057\langfe1033\langnp2057\insrsid2230434\charrsid15419139 STANHOPE FINANCE COMPANY LTD======}{ \b\lang2057\langfe1033\langnp2057\insrsid13180394\charrsid15419139 = RESPONDENT}{\b\lang2057\langfe1033\langnp2057\insrsid2230434\charrsid15419139 \par \par }{\b\lang2057\langfe1033\langnp2057\insrsid10837067\charrsid15419139 BEFORE: }{\b\lang2057\langfe1033\langnp2057\insrsid2230434\charrsid15419139 }{\b\ul\lang2057\langfe1033\langnp2057\insrsid2230434\charrsid15419139 HON. JUSTICE LAMECK N. MUKASA \par \par RULING: \par }{\b\lang2057\langfe1033\langnp2057\insrsid2230434\charrsid15419139 \par }\pard \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid15419139 {\lang2057\langfe1033\langnp2057\insrsid2230434\charrsid15419139 This is an application by Notice of Motion for orders

that: \par {\listtext\pard\plain\lang2057\langfe1033\langfenp1033\insrsid2230434\charrsid15419139 \hich\af0\dbch\af0\loch\f0 (i)\tab}}\pard \qj \fi-720\li1080\ri0\sl360\slmult1\widctlpar \jclisttab\tx1080\aspalpha\aspnum\faauto\ls1\adjustright\rin0\lin1080\itap0\pararsid15419139 {\lang2057\langfe1033\langnp2057\insrsid2230434\charrsid15419139 The exparte decree in Civil Suit No. 751 of 2005 be set aside and that the consequential execution proceedings be stayed. \par {\listtext\pard\plain\lang2057\langfe1033\langfenp1033\insrsid2230434\charrsid15419139 \hich\af0\dbch\af0\loch\f0 (ii)\tab}Costs of the application be provided for. \par }\pard \ql \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid15419139 {\lang2057\langfe1033\langnp2057\insrsid2230434\charrsid15419139 \par }\pard \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid15419139 {\lang2057\langfe1033\langnp2057\insrsid2230434\charrsid15419139 The application was brought under Order 9 rules 9 and 25, Order 48 rules 1 and 2 of the Civil Procedure Rules and section 98 of the Civil Procedure Act. \par \par When the application was called for hearing Mr. Mathias Sakatawa}{\lang2057\langfe1033\langnp2057\insrsid14759560\charrsid15419139 ,}{\lang2057\langfe1033\langnp2057\insrsid2230434\charrsid15419139

}{ \lang2057\langfe1033\langnp2057\insrsid14759560\charrsid15419139 Counsel }{\lang2057\langfe1033\langnp2057\insrsid2230434\charrsid15419139 for the Respondent}{\lang2057\langfe1033\langnp2057\insrsid14759560\charrsid15419139 ,}{ \lang2057\langfe1033\langnp2057\insrsid2230434\charrsid15419139 raised a preliminary objection }{\lang2057\langfe1033\langnp2057\insrsid14759560\charrsid15419139 that the application was brought }{ \lang2057\langfe1033\langnp2057\insrsid2230434\charrsid15419139 under a wrong law. That the application arose from a summary suit filed under Order 36 of the Civil Procedure Rule}{\lang2057\langfe1033\langnp2057\insrsid11609265\charrsid15419139 . He agued, and rightly so, that the application shou}{\lang2057\langfe1033\langnp2057\insrsid14759560\charrsid15419139 ld have been brought under rule}{\lang2057\langfe1033\langnp2057\insrsid11609265\charrsid15419139 11 of Order 36 which provides:

\par \par }\pard \qj \li720\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid15419139 {\i\lang2057\langfe1033\langnp2057\insrsid11609265\charrsid15419139 \'93After the decree court may, if satisfied that the service of}{ \i\lang2057\langfe1033\langnp2057\insrsid14759560\charrsid15419139 the summons was not effective, or for any other good cause}{\i\lang2057\langfe1033\langnp2057\insrsid11609265\charrsid15419139 , which shall be recorded, set aside the decree, and if necessary stay or set aside execution, and may give leave to the defendant to appear to the summons and to defend the suit, if it seems reasonable to the court so to do, an}{ \i\lang2057\langfe1033\langnp2057\insrsid13180394\charrsid15419139 d on such terms as the court thi}{\i\lang2057\langfe1033\langnp2057\insrsid11609265\charrsid15419139 nks fit\'94.}{\i\lang2057\langfe1033\langnp2057\insrsid2230434\charrsid15419139

\par }{\i\lang2057\langfe1033\langnp2057\insrsid11609265\charrsid15419139 \par }\pard \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid15419139 {\lang2057\langfe1033\langnp2057\insrsid11609265\charrsid15419139 Counsel further pointed out that the application did not apply for any thing else other than setting aside the decree and staying the execution thereof. \par \par }{\lang2057\langfe1033\langnp2057\insrsid14759560\charrsid15419139 Order 9 rule}{\lang2057\langfe1033\langnp2057\insrsid11609265\charrsid15419139 9 of the Civil Procedure Rules refers to assessment where some defendants have filed a defence where there are several defendants, while rule 25 of the order re fers to procedure in case of non-attendance of one or more of several defendants. It has no application to the instant application. Also Order 48 C}{\lang2057\langfe1033\langnp2057\insrsid10489988\charrsid15419139 PR which concerns district registries has no application to this application. In his reply Mr. Dalton Opwonya, Counsel for the Applicant, did concede that the provisions under which the application was brought were not applicable.}{ \lang2057\langfe1033\langnp2057\insrsid14759560\charrsid15419139 }{\lang2057\langfe1033\langnp2057\insrsid10489988\charrsid15419139 He submitted that the insertion of the wrong orders and rules was what he termed a copy and

paste error in typing on the computer. Counsel argued that the body of the Notice of Motion and the affidavit i}{ \lang2057\langfe1033\langnp2057\insrsid14759560\charrsid15419139 n support did clearly show the g}{\lang2057\langfe1033\langnp2057\insrsid10489988\charrsid15419139 ist of the application that the exparte decree be set aside and that the consequential execution thereof be st}{\lang2057\langfe1033\langnp2057\insrsid14759560\charrsid15419139 ayed. He invited court to invoke the}{ \lang2057\langfe1033\langnp2057\insrsid10489988\charrsid15419139 provisions of section 98 of the Civil Procedure Act, section 33 of the Judicature }{\lang2057\langfe1033\langnp2057\insrsid14759560\charrsid15419139 Act }{ \lang2057\langfe1033\langnp2057\insrsid10489988\charrsid15419139 and Article 126 of the }{\lang2057\langfe1033\langnp2057\insrsid14759560\charrsid15419139 Constitution}{\lang2057\langfe1033\langnp2057\insrsid10489988\charrsid15419139 . \par \par Clearly this application was brought under the wrong provisions of the law. However in }{\b\ul\lang2057\langfe1033\langnp2057\insrsid10489988\charrsid15419139 Intraship (U) Ltd Vs- G. N Combine (U) Ltd [1994] VI KALR 42 }{ \lang2057\langfe1033\langnp2057\insrsid11602385\charrsid15419139 having established that the application therein had been brought under the wrong law Justice Sempa-Lugayizi ruled that the question should be

whet}{ \lang2057\langfe1033\langnp2057\insrsid14759560\charrsid15419139 her the irregularity is serious}{\lang2057\langfe1033\langnp2057\insrsid11602385\charrsid15419139 enough to prevent t}{\lang2057\langfe1033\langnp2057\insrsid14759560\charrsid15419139 he court from hearing and determining}{\lang2057\langfe1033\langnp2057\insrsid11602385\charrsid15419139 it on i ts our merit. That the answer would depend on whether non observance of the procedural rules in issue would lead to injustice. If it would not, then the Court should be willing to over-look it otherwise it should not. Chief Justice Benjamin Odoki in hi s judgment in }{\b\ul\lang2057\langfe1033\langnp2057\insrsid14829134\charrsid15419139 Col. (Rtd) Dr. Besigye Kiiza -Vs- Museveni Kaguta & Electoral Commission SC. Electoral Petition No. 1 of 2001.}{ \lang2057\langfe1033\langnp2057\insrsid14829134\charrsid15419139 }{\lang2057\langfe1033\langnp2057\insrsid15419139\charrsid15419139 Observed}{\lang2057\langfe1033\langnp2057\insrsid14829134\charrsid15419139 that a liberal approach is in line with the Constitutional enactment in Article 126 of the }{\lang2057\langfe1033\langnp2057\insrsid14759560\charrsid15419139 Constitution }{\lang2057\langfe1033\langnp2057\insrsid14829134\charrsid15419139 that courts should administer }{\lang2057\langfe1033\langnp2057\insrsid14759560\charrsid15419139 substantive justice without

undue}{\lang2057\langfe1033\langnp2057\insrsid14829134\charrsid15419139 regard to technicalities. That rules of procedure should be used as handmaids of justice but not to defeat it. In }{\b\ul\lang2057\langfe1033\langnp2057\insrsid14759560\charrsid15419139 Alc}{ \b\ul\lang2057\langfe1033\langnp2057\insrsid8200928\charrsid15419139 on }{\b\ul\lang2057\langfe1033\langnp2057\insrsid14759560\charrsid15419139 International \endash vs- Kasir}{\b\ul\lang2057\langfe1033\langnp2057\insrsid14829134\charrsid15419139 ye Bya}{ \b\ul\lang2057\langfe1033\langnp2057\insrsid14759560\charrsid15419139 ruhan}{\b\ul\lang2057\langfe1033\langnp2057\insrsid14829134\charrsid15419139 ga & Co Advocates [1995] 111 KALR 91}{\lang2057\langfe1033\langnp2057\insrsid14829134\charrsid15419139 Justice }{\lang2057\langfe1033\langnp2057\insrsid8200928\charrsid15419139 Musoke Kibuuka held that procedural defects can be cured by the invocation of Article 126 (2) (e) of the }{\lang2057\langfe1033\langnp2057\insrsid14759560\charrsid15419139 Constitution}{\lang2057\langfe1033\langnp2057\insrsid8200928\charrsid15419139 . See also }{\b\ul\lang2057\langfe1033\langnp2057\insrsid14759560\charrsid15419139 Allen Nsubuga Ntan}{\b\ul\lang2057\langfe1033\langnp2057\insrsid8200928\charrsid15419139 aga \endash vs- Uganda Microfinance Ltd & other

HCT-00-CC-MA-0426-2006.}{\lang2057\langfe1033\langnp2057\insrsid8200928\charrsid15419139 }{\lang2057\langfe1033\langnp2057\insrsid10489988\charrsid15419139 \par }{\lang2057\langfe1033\langnp2057\insrsid8200928\charrsid15419139 \par Mr. Sekatawa submitted that to enjoy the protection of the provision of section 33 of the Judicature Act the application must be properly brought before court. An application under Order 36 rule 11 of the Civil Procedure Rules must be by Notice of Motion accompanied by an affidavit. See }{ \b\ul\lang2057\langfe1033\langnp2057\insrsid8200928\charrsid15419139 Order 52 rules 1,2 and 3 of the CPR.}{\lang2057\langfe1033\langnp2057\insrsid8200928\charrsid15419139 The instant application is by Notice of Motion, accompanied by an affidavit and was served on the opposite party. It was therefore brought by the right procedure but under the wrong provisions of the law. It was responded to by the R espondent who filed an affidavit in reply sworn by Mr. David Mulumba. Therefore to disregard the error and hear the application on merit will not prejudice the Respondent or cause injustice to any party. \par }{\lang2057\langfe1033\langnp2057\insrsid13008356\charrsid15419139 \par Considering all the above I would have allowed this application to proceed on its merit. But if I were to hear and probably }{\lang2057\langfe1033\langnp2057\insrsid14759560\charrsid15419139

allow }{ \lang2057\langfe1033\langnp2057\insrsid13008356\charrsid15419139 the application then what next!!. As pointed out by Mr. Sekatawa the application is only for orders setting aside the decree and staying the execution. The applicant does not make any application beyond that. Particularly she makes no application for leave to appear and defend the suit. I get an impression that there is an intention to delay justice. It is a constitutional principal that justice shall not be delayed \endash see Article 126 (2) (b) of the }{\lang2057\langfe1033\langnp2057\insrsid14759560\charrsid15419139 Constitution}{\lang2057\langfe1033\langnp2057\insrsid13008356\charrsid15419139 . \par \par On a total evaluation of all the circumstances of this application the preliminary objection is upheld and the application struck out with costs to the Respondent. \par \par \par \'85\'85\'85\'85\'85\'85\'85\'85\'85... \par Lameck N. Mukasa \par }{\b\lang2057\langfe1033\langnp2057\insrsid13008356\charrsid15419139 JUDGE \par }{\lang2057\langfe1033\langnp2057\insrsid13008356\charrsid15419139 25/05/07 \par }}

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Authorities

Authorities used by the court

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

Intraship (U) Ltd v G.N Combine (U) Ltd [1994] VI KALR 42

Case cited

Col. (Rtd) Dr. Besigye Kiiza v Museveni Kaguta & Electoral Commission SC Electoral Petition No. 1 of 2001

Case cited

Alcon International v Kasirye Byaruhanga & Co Advocates [1995] 111 KALR 91

Case cited

Allen Nsubuga Ntanaga v Uganda Microfinance Ltd & other HCT-00-CC-MA-0426-2006

Case cited

Order 9 rules 9 and 25, Civil Procedure Rules

Legislation

Legislation referenced in the available case record.

Order 36 rule 11, Civil Procedure Rules

Legislation

Legislation referenced in the available case record.

Order 48 rules 1 and 2, Civil Procedure Rules

Legislation

Legislation referenced in the available case record.

Order 52 rules 1, 2 and 3, Civil Procedure Rules

Legislation

Legislation referenced in the available case record.

Section 98, Civil Procedure Act

Legislation

Legislation referenced in the available case record.

Section 33, Judicature Act

Legislation

Legislation referenced in the available case record.

Article 126, Constitution of Uganda

Legislation

Legislation referenced in the available case record.

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