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Uganda Judgment

Commercial Court of Uganda

Dhanani v Moez (Civil Suit 416 of 2001) [2002] UGCommC 33 (11 October 2002)

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01

Holding and result

The court held that where a summary suit contains both liquidated and unliquidated claims, the proper approach is to sever the claims. The liquidated claim may proceed under summary procedure, while the unliquidated claim must proceed under ordinary procedure. The court found no injustice in this approach, referencing established case law. Furthermore, the court clarified that a defendant does not waive the right to object to the suit by failing to raise the objection at the time of applying for leave to defend, as the determination of whether to strike out a proceeding is a matter of law reserved for the court. Since leave to defend had already been granted, the suit was transformed into an ordinary suit for all practical purposes.

Court disposition

liquidated claim to proceed under summary procedure; unliquidated claim to proceed under ordinary procedure; costs in the cause

Orders

  • The liquidated claim of Shs. 12,750,000/- shall proceed under summary procedure.
  • The unliquidated claim for interest shall proceed under ordinary procedure.
  • Costs of the application are to be in the cause.

02

Material facts

Parties

Dhanani Moezali

Plaintiff Counsel: Augustus Sewankambo

Moez Ramani

Defendant

Amounts and remedies

  • Liquidated Claim (rent): UGX 12,750,000

03

Procedural history

  1. Posture

    Civil Suit / Ruling on Procedure

04

Questions and positions

Legal issues

Party arguments

Applicant
Counsel for the Plaintiff argued for the principle of severability, allowing the liquidated claim to proceed under summary procedure and the unliquidated claim under ordinary procedure. He also contended that the Defendant waived his right to object to the suit by not raising the objection when applying for leave to defend.
Respondent
Counsel for the Defendant challenged both assertions, emphasizing that summary procedure is specialized and should not be abused. He argued that the Court has no discretion to allow claims outside the strict terms of Order 33 Rule 2 of the Civil Procedure Rules, relying on case law to support this position.

05

Court’s reasoning

  1. 01

    Order 33 Rule 2, Civil Procedure Rules

    Summary procedure applies strictly to claims that are liquidated and within the terms of Order 33 Rule 2 of the Civil Procedure Rules.

  2. 02

    UTC v Conte Dela Pasture (1954) 21 EACA 61

    The principle of severability allows the court to proceed with liquidated claims under summary procedure and unliquidated claims under ordinary procedure.

  3. 03

    General legal doctrine

    A party cannot waive a matter of law; only the court has the authority to determine legal questions such as striking out proceedings.

06

Ratio, limits and disposition

Ratio decidendi

The court held that where a summary suit contains both liquidated and unliquidated claims, the proper approach is to sever the claims. The liquidated claim may proceed under summary procedure, while the unliquidated claim must proceed under ordinary procedure. The court found no injustice in this approach, referencing established case law. Furthermore, the court clarified that a defendant does not waive the right to object to the suit by failing to raise the objection at the time of applying for leave to defend, as the determination of whether to strike out a proceeding is a matter of law reserved for the court. Since leave to defend had already been granted, the suit was transformed into an ordinary suit for all practical purposes.

Obiter and limits

  • Once a defendant is given leave to file a defence in a summary suit, the suit is transformed into an ordinary suit.
  • The summary procedure is valid only as long as the defendant is denied leave to file a defence.

Court disposition

liquidated claim to proceed under summary procedure; unliquidated claim to proceed under ordinary procedure; costs in the cause

  • The liquidated claim of Shs. 12,750,000/- shall proceed under summary procedure.
  • The unliquidated claim for interest shall proceed under ordinary procedure.
  • Costs of the application are to be in the cause.

Source and reliance status

Commercial Court of Uganda

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Judgment text

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Source document

Commercial Court of Uganda

Judgment

[2002] UGCommC 33

THE REPUBLIC OF UGANDA IN THE HIGH COURT OF UGANDA AT KAMPALA DHANANI MOEZALI PLAINTIFF VERSUS (COMMERCIAL COURT) CIVIL SUIT NO. 416 OF 2001

MOEZ RAMANI DEFENDANT BEFORE: THE HONOURABLE MR. JUSTICE JAMES OGOOLA

RULING

The issue in this instant suit is whether and how a summary suit, that includes both liquidated claims and unliquidated claims, may proceed. In particular, must such a suit be struck out altogether, or can the liquidated claims be severed from the unliquidated ones? Subsidiarily, does a Defendant to such a suit waive his right to have the suit struck out by not raising an objection to the suit at the time when he applies for leave to defend?

The contentions of learned counsel for the Plaintiff are clear. He supports both the principle of severability and of waiver. On the other hand learned counsel for the Defendant vigorously challenged all these assertions. He emphasised that the summary procedure is a very specialised procedure which must not be allowed to be abused. Therefore, the Court has no discretion to allow a claim to be brought by summary procedure if the claim is not precisely within the terms of 0.33 r.2 of the Civil Procedure Rules (CPR) - see Uddham Singh <sup>v</sup> Ambalal, (1959) EA 67, and UTC v Conte Dela Pasture (1954) 21 Eaca 61.

1

In the instant case, there is no dispute at all as to the unliquidated nature of the amount of interest that is now claimed. Indeed, learned counsel for the Plaintiff specifically and categorically conceded that the amount of interest, otherwise claimed in the plaint, was and could not be properly claimed under the summary procedure of 0.33 of the CPR. Having considered the written submissions of both counsel, <sup>I</sup> am of the view that the better course is to judiciously apply the principle of severability as established in the Dela Pasture case. <sup>I</sup> can see no injustice or unfairness whatsoever where the Court proceeds in a summary manner with respect to the liquidated claims of a Plaintiff, while leaving the ordinary procedure to apply to the unliquidated claim. Accordingly, in the instant case, the amount of rent claimed should be proceeded upon under the summary procedure, while the unliquidated amount of interest could be proceeded upon under the ordinary procedure.

The Plaintiff contended that the Defendant waived his right to have the suit struck out since he did not object to the suit at the time of his own application for leave to defend. That contention is absolutely misconceived. Whether or not the Court can or should strike out a proceeding, is essentially a question of law. No party to the suit has any right to waive a matter of law. Only the Court, exercising its judicial function, has the right to act in that behalf.

In the premises, the Court hereby allows the liquidated claim of Shs. 12,750,000/- to proceed under the summary procedure; while

2

the unliquidated claim for interest is to proceed under the ordinary procedure.

anyway. In so holding, the Court is wholly cognisant of the fact that once a Defendant is given leave to file a defence in a summary suit, the suit thereupon is, *ipso facto,* transformed into an ordinary suit

In other words, the summary procedure is valid only as long as the Defendant is denied leave to file a defence to the suit. In the instant case, leave to defend has already been granted by the Court. For all practical purposes therefore, the suit which started as a summary suit, has now become an ordinary suit.

The costs of this application are to be in the cause.

Ordered accordingly.

11/10/02 James Ogoola JUDGE

DELIVERED IN OPEN COURT, BEFORE:

Augustus Sewankambo, Esq - Counsel for the Plaintiff

J. M. Egetu - Court Clerk

James Ogoola JUDGE 11/10/02

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Authorities

Authorities used by the court

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

Uddham Singh v Ambalal (1959) EA 67

Case cited

UTC v Conte Dela Pasture (1954) 21 EACA 61

Case cited

Order 33 Rule 2, Civil Procedure Rules

Legislation

Legislation referenced in the available case record.

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