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Uganda Judgment

HC: Civil Division (Uganda)

Gafabusa Muhumuza Vs Sunday & Anor (MISCELLANEOUS APPLICATION NO. 0097 OF 2019) [2019] UGHCCD 275 (2 October 2019)

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01

Holding and result

The applicant, Hon. Gafabusa Richard Muhumuza, was not a party to the contract or the civil suit between Sunday Robert and Kenneth Arinaitwe. The principle of res judicata does not apply as the applicant was not involved in the original proceedings. The applicant's role as guarantor was limited to ensuring the presence and payment by the judgment debtor, not to assume liability for the debt itself. Since the judgment debtor is available and not absconding, the applicant should be discharged from any further liability as guarantor. The warrant of arrest was erroneously issued against the applicant, who was not a party to the suit, and must be set aside. The applicant is entitled to be released from civil prison and discharged from any liability arising from the guarantee.

Court disposition

application allowed; applicant discharged as guarantor; warrant of arrest set aside; applicant released from civil prison; costs awarded to applicant

Orders

  • The applicant is discharged from being a guarantor for the 1st respondent in Civil Suit No. 17 of 2016.
  • The warrant of arrest against the applicant is set aside.
  • The applicant is released from civil prison and discharged from any liability.
  • Costs of the application are awarded to the applicant.

02

Material facts

Parties

Hon. Gafabusa Richard Muhumuza

Applicant Counsel: Mr. Mutalya Ronald

Sunday Robert

Respondent

Kenneth Arinaitwe

Respondent Counsel: Mr. James Ahabwe

03

Procedural history

  1. Posture

    Miscellaneous Application / Ruling on Application for Discharge of Guarantor and Setting Aside Warrant of Arrest

04

Questions and positions

Legal issues

Party arguments

Applicant
The applicant was not a party to the contract or suit between the 1st and 2nd respondents and only acted as a guarantor to ensure payment. The consent was signed through misrepresentation, and since the judgment debtor is available, the applicant should be discharged as guarantor.
Respondent
The application is an abuse of court process and res judicata. The applicant guaranteed payment by signing the consent, thus assuming liability under Section 71 of the Contracts Act. The warrant of arrest was properly executed, and the applicant stands in the shoes of the judgment debtor.

05

Court’s reasoning

  1. 01

    Section 71, Contracts Act, 2010

    A guarantor is only liable when the principal debtor defaults, and the guarantor's duty is to ensure the debtor is available to pay, not to pay for obligations they were not party to.

  2. 02

    General principle of res judicata; Civil Procedure Act

    The doctrine of res judicata does not apply where the applicant was not a party to the original suit or contract giving rise to the cause of action.

  3. 03

    Order 52 Rule 1, Civil Procedure Rules; Section 98, Civil Procedure Act

    A warrant of arrest issued against a non-party to the suit or contract is erroneous and liable to be set aside.

06

Ratio, limits and disposition

Ratio decidendi

The applicant, Hon. Gafabusa Richard Muhumuza, was not a party to the contract or the civil suit between Sunday Robert and Kenneth Arinaitwe. The principle of res judicata does not apply as the applicant was not involved in the original proceedings. The applicant's role as guarantor was limited to ensuring the presence and payment by the judgment debtor, not to assume liability for the debt itself. Since the judgment debtor is available and not absconding, the applicant should be discharged from any further liability as guarantor. The warrant of arrest was erroneously issued against the applicant, who was not a party to the suit, and must be set aside. The applicant is entitled to be released from civil prison and discharged from any liability arising from the guarantee.

Obiter and limits

  • The duty of the guarantor is to ensure the judgment debtor is available to pay, not to pay for obligations they were not involved in.
  • The property of the judgment debtor can be attached and sold to satisfy the decree.

Court disposition

application allowed; applicant discharged as guarantor; warrant of arrest set aside; applicant released from civil prison; costs awarded to applicant

  • The applicant is discharged from being a guarantor for the 1st respondent in Civil Suit No. 17 of 2016.
  • The warrant of arrest against the applicant is set aside.
  • The applicant is released from civil prison and discharged from any liability.
  • Costs of the application are awarded to the applicant.

Source and reliance status

HC: Civil Division (Uganda)

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Source document

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Judgment text

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Source document

HC: Civil Division (Uganda)

Judgment

[2019] UGHCCD 275

THE REPUBLIC OF UGANDA

IN THE HIGH COURT OF UGANDA AT FORT PORTAL

MISCELLANEOUS APPLICATION NO. 0097 OF 2019

(Arising from Civil Suit No. 17 of 2016)

HON. GAFABUSA RICHARD MUHUMUZA.......................................... APPLICANT

VERSUS

1. SUNDAY ROBERT

2. KENNETH ARINAITWE ................................................................ RESPONDENT

BEFORE: HIS LORDSHIP HON. MR. WILSON MASALU MUSENE

Ruling

This is an application brought by Notice of Motion under Order 52 Rule 1 of the Civil Procedure Rules and Section 98 of the Civil Procedure Act for the following orders; an order releasing the Applicant from being a guarantor for the 1st Respondent in Civil Suit No. 17 of 2016; an order setting aside the warrant of arrest against the Applicant and release of the Applicant from Civil Prison; and costs of the Application.

The Application is supported an the affidavit sworn by the Applicant and the grounds briefly are as follows;

1. That the Applicant is not a party to Civil Suit No. 017 of 2016.

2. That the Applicant is not party to any contract or arrangement between the 1st and 2nd Respondents that led to the filing of Civil Suit No. 017 of 2016.

3. That the Applicant only acted as a guarantor to the 1st Respondent to ensure that the 1st Respondent pays the decretal sum to the 2nd Respondent.

4. That the Application has merit with high chances of success.

5. That this Application has been brought without undue delay.

6. That it is only fair, just and equitable and in the interest of justice that this application be allowed.

The Application is opposed by the affidavit in reply sworn by the 2nd Respondent. The 1st Respondent did not oppose the Application.

Mr. Mutalya Ronald for the Applicant submitted that the Applicant was not a party to any contract or agreement between the 1st and the 2nd Respondents and neither is he a party to the case. That the consent was signed through misrepresentation and since the 1st the Respondent is not on the run let the Applicant be discharged as the guarantor.

Mr. James Ahabwe for the 2nd Respondent on the other hand submitted that the Application is an abuse of Court process and is Res-Judicata. That there was a consent and the Applicant signed where he guaranteed payment and that was how the judgment debtor was released hence he cannot run away from responsibility. Reference was made to Section 71 of the Contracts Act of 2010 and that the Applicant stands in the shoes of the judgment debtor, where when the principal debtor, defaulted, then guarantor assumed liability.

Secondly, that a warrant of arrest was executed, the guarantor was arrested and imprisoned. There is a difference between a guarantor and a surety. He added that the judgment debtor did not oppose the application and is willing to give property as security.

In rejoinder Mr. Mutalya Ronald submitted that the matter is not Res-judicata and the Applicant has never been a party to a suit that was concluded and the consent was void under Section 83 of the Contracts Act.

I have considered the submissions on both sides in this Application. Mr. James Ahabwe for the 2nd Respondent argued that this matter is Res Judicata because the warrant of arrest was executed and guarantor already arrested and imprisoned. With due respect, I reject this line of thought because the Applicant Hon. Gafabusa Richard Muhumuza was neither a party to the contract giving rise to the cause of action between Sunday Robert and Kenneth. He was not even a party to the Civil Suit No. 17 of 2016 and so the principle of Res Judicata cannot come in at all. The other consideration is that Sunday Robert, who was the Defendant and judgment debtor is around. He is not on the run and so let him carry his own cross. His property for example can be attached and sold. The duty of the guarantor is to be on the bumper of the Judgment debtor so that he is around and pays. It is not his duty to pay for what he was not involved in.

In the premises, and without further ado, I do hereby allow this application and discharge the Applicant from being a guarantor. The warrant of arrest against the Applicant was erroneously issued by the Assistant Registrar. The same is accordingly set aside and the Applicant can not only be released from prison, but also discharged from any liability.

......................................

WILSON MASALU MUSENE

JUDGE

02/10/2019

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Authorities

Authorities used by the court

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

Order 52 Rule 1, 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 71, Contracts Act, 2010

Legislation

Legislation referenced in the available case record.

Section 83, Contracts Act, 2010

Legislation

Legislation referenced in the available case record.

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