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Dhanani v Moez (Civil Suit 416 of 2001) [2002] UGCommC 33 (11 October 2002)
- Citation
- [2002] UGCommC 33
- Status
- Judgment
- Jurisdiction
- Uganda
- Court
- Commercial Court of Uganda
- Panel
- Ogoola James, j
- Case number
- Civil Suit 416 of 2001
- Language
- English
More details
- Court
- Commercial Court of Uganda
- Panel
- Ogoola James, j
- Case number
- Civil Suit 416 of 2001
- Language
- English
On this page
Professional case brief
Research organized from the available case record
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 SewankamboMoez Ramani
DefendantAmounts and remedies
- Liquidated Claim (rent): UGX 12,750,000
03
Procedural history
Posture
Civil Suit / Ruling on Procedure
04
Questions and positions
Legal issues
- 01
Whether a summary suit containing both liquidated and unliquidated claims can proceed in its entirety or must be struck out.
- 02
Whether the liquidated claims can be severed from the unliquidated claims and proceed separately.
- 03
Whether a defendant waives the right to object to the suit by not raising the objection at the time of applying for leave to defend.
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
Legal principles
- 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.
- 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.
- 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
This page organises the available record for research. Confirm quotations, current status, and subsequent treatment against the official source before relying on the case.
Judgment reading view
Judgment text
The complete available source text.
Commercial Court of Uganda
Judgment
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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