Kibuuka Musoke v Tour & Travel Centre Ltd (High Court Miscellaneous Application No. 603 of 2008) [2009] UGCommC 18 (4 February 2009)

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\li0\ri0\widctlpar\tqc\tx4320\tqr\tx8640\pvpara\phmrg\posxc\posy0\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid1861615 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\field{\*\fldinst {\cs16\insrsid14310498 PAGE }}{\fldrslt {\cs16\lang1024\langfe1024\noproof\insrsid16348632 - 1 -}}}{\cs16\insrsid14310498 \par }\pard \s15\ql \li0\ri0\widctlpar\tqc\tx4320\tqr\tx8640\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0 {\insrsid14310498 \par }}{\*\pnseclvl1\pnucrm\pnstart1\pnindent720\pnhang {\pntxta .}}{\*\pnseclvl2\pnucltr\pnstart1\pnindent720\pnhang {\pntxta .}}{\*\pnseclvl3\pndec\pnstart1\pnindent720\pnhang {\pntxta .}}{\*\pnseclvl4\pnlcltr\pnstart1\pnindent720\pnhang {\pntxta )}} {\*\pnseclvl5\pndec\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}{\*\pnseclvl6\pnlcltr\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}{\*\pnseclvl7\pnlcrm\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}{\*\pnseclvl8 \pnlcltr\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}{\*\pnseclvl9\pnlcrm\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}\pard\plain \qc \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid16348632 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\fs24\insrsid7036740\charrsid16348632 THE REPUBLIC OF UGANDA \par \par IN THE HIGH COURT OF UGANDA AT KAMPALA \par COMMERCIAL COURT DIVISION \par \par

HCT-00-CC-MA-0603-2008 \par }{\fs24\insrsid12917894\charrsid16348632 (Arising out of HCT-00-CC-CS-473-2003) \par }{\fs24\insrsid7036740\charrsid16348632 \par }\pard\plain \s1\qc \li0\ri0\sl360\slmult1\keepn\widctlpar\aspalpha\aspnum\faauto\outlinelevel0\adjustright\rin0\lin0\itap0\pararsid16348632 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\insrsid7036740\charrsid16348632 \par }\pard\plain \ql \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid16348632 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\b\fs24\insrsid7036740\charrsid16348632 KIBUUKA MUSOKE \'85\'85\'85\'85\'85\'85 .\'85\'85\'85\'85\'85\'85\'85\'85\'85}{\b\fs24\insrsid12917894\charrsid16348632 \'85}{\b\fs24\insrsid7036740\charrsid16348632 \'85\'85\'85 APPLICANT \par \par }\pard\plain \s1\qc \li0\ri0\sl360\slmult1\keepn\widctlpar\aspalpha\aspnum\faauto\outlinelevel0\adjustright\rin0\lin0\itap0\pararsid16348632 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\b\insrsid7036740\charrsid16348632 VERSUS \par }\pard\plain \ql \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid16348632 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\b\fs24\insrsid7036740\charrsid16348632 TOUR }{ \b\fs24\insrsid12917894\charrsid16348632 & }{\b\fs24\insrsid7036740\charrsid16348632 TRAVEL CENTRE LTD

\'85\'85\'85\'85\'85\'85\'85\'85\'85..\'85\'85\'85\'85RESPONDENT \par \par }{\fs24\insrsid7036740\charrsid16348632 \par \par }\pard\plain \s2\qc \li0\ri0\sl360\slmult1\keepn\widctlpar\aspalpha\aspnum\faauto\outlinelevel1\adjustright\rin0\lin0\itap0\pararsid16348632 \fs28\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\fs24\insrsid7036740\charrsid16348632 BEFORE: HON. JUSTICE LAMECK N. MUKASA \par }\pard\plain \ql \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid16348632 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\fs24\insrsid7036740\charrsid16348632 \par \par \par }\pard \qc \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid16348632 {\b\fs24\insrsid7036740\charrsid16348632 RULING \par }\pard \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid16348632 {\fs24\insrsid7036740\charrsid16348632 \par This }{\fs24\insrsid12917894\charrsid16348632 is }{\fs24\insrsid7036740\charrsid16348632 an application by Notice of Motion brought under Order 27 Rule 1, Order 52 R}{\fs24\insrsid12917894\charrsid16348632 ules 1, 2, a}{ \fs24\insrsid7036740\charrsid16348632 nd 3 of the Civil Procedure Rules and Section 98 of the Civil Procedure Act. The Applicant, Kibuuka Musoke A. S is one of the plaintiffs and one of the

defendant}{\fs24\insrsid12917894\charrsid16348632 s}{ \fs24\insrsid7036740\charrsid16348632 on the Counter Claim in HCT-}{\fs24\insrsid12917894\charrsid16348632 00}{\fs24\insrsid7036740\charrsid16348632 -CC-CS-0437 -2003. \par \par The Applicant is seeking leave to deposit security for the sum of USD47,780 }{\fs24\insrsid12917894\charrsid16348632 (}{\fs24\insrsid7036740\charrsid16348632 United States Dollars Forty seven thousa}{\fs24\insrsid5268972\charrsid16348632 n}{ \fs24\insrsid7036740\charrsid16348632 d , seven hundred eighty only) }{\fs24\insrsid5268972\charrsid16348632 in Court being payment of the money secured by the legal mortgage dated June 30, 2003 and to release the title free of any }{ \fs24\insrsid12917894\charrsid16348632 incumbrances}{\fs24\insrsid5268972\charrsid16348632 .}{\fs24\insrsid7036740\charrsid16348632 \par }{\fs24\insrsid5268972\charrsid16348632 \par The brief background to this application is that by an Acknowledgement of Indebtedness / Memorandum of Understanding dated 26}{\fs24\super\insrsid5268972\charrsid16348632 th}{\fs24\insrsid5268972\charrsid16348632 June 2003 signed by the Applicant for and on behalf of the 1}{\fs24\super\insrsid5268972\charrsid16348632 st}{\fs24\insrsid5268972\charrsid16348632 Plaintiff, Ms Travo}{\fs24\insrsid12917894\charrsid16348632 b}{\fs24\insrsid5268972\charrsid16348632 ase Ltd, the Applicant as director/shareholder

of the 1}{\fs24\super\insrsid5268972\charrsid16348632 st}{\fs24\insrsid5268972\charrsid16348632 Plaintiff deposited with the Respondent his Certificate of Title to the land and develop}{ \fs24\insrsid1317106\charrsid16348632 ments comprised i}{\fs24\insrsid5268972\charrsid16348632 n LRV 237 Folio 11 Plot 41 at Kiira Road Kampala as security for the repayment and personally guaranteed the repayment of the sum of Shs.15}{ \fs24\insrsid12917894\charrsid16348632 ,0}{\fs24\insrsid5268972\charrsid16348632 00}{\fs24\insrsid2243070\charrsid16348632 ,}{\fs24\insrsid5268972\charrsid16348632 000/= and US}{\fs24\insrsid1317106\charrsid16348632 $}{ \fs24\insrsid5268972\charrsid16348632 47,780 to the Respondent. The Applicant executed}{\fs24\insrsid12917894\charrsid16348632 a}{\fs24\insrsid5268972\charrsid16348632 legal mortgage dated 30}{\fs24\super\insrsid5268972\charrsid16348632 th}{ \fs24\insrsid5268972\charrsid16348632 June 2003 over the said property in favour of the Respondent for the above sums. \par \par }{\fs24\insrsid5186750\charrsid16348632 The Applicant}{\fs24\insrsid10054277\charrsid16348632 and Travobase Ltd filed Civil Suit No 437 of }{\fs24\insrsid5186750\charrsid16348632 2003 against}{\fs24\insrsid10054277\charrsid16348632 the Respondent and Stephen Mwo}{\fs24\insrsid12917894\charrsid16348632 ro}{\fs24\insrsid10054277\charrsid16348632 zi whereby he contends that he executed

the Acknowledgement/ }{\fs24\insrsid5186750\charrsid16348632 Memorandum and}{ \fs24\insrsid10054277\charrsid16348632 }{\fs24\insrsid5186750\charrsid16348632 the Legal}{\fs24\insrsid10054277\charrsid16348632 mortgage under duress and seeks orders, interalia, that the Acknowledgement/ Memorandum and Legal mortgage be set aside and for delivery of the Title Deed for the property to the Applicant. }{\fs24\insrsid5268972\charrsid16348632 \par }{\fs24\insrsid10054277\charrsid16348632 \par The Respondent filed a Counter-claim against the Applicant, Beatrice Kabatesi (now deceased) and Travobase Ltd whereby it counter-claims and seeks from them jointly and severally the payment of US $48,080 plus costs. \par \par The Applicant has since repaid the sum }{\fs24\insrsid5186750\charrsid16348632 of Uganda}{\fs24\insrsid417450\charrsid16348632 }{\fs24\insrsid10054277\charrsid16348632 shs15,000,000/= to the Respondent. In his affidavit in support of the application, paragraph 9}{\fs24\insrsid12917894\charrsid16348632 ,}{\fs24\insrsid10054277\charrsid16348632 the Applicant states:- \par }\pard \qj \li1440\ri1440\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin1440\lin1440\itap0\pararsid16348632 {\fs24\insrsid10054277\charrsid16348632 \par \'939. THAT I wish }{\fs24\insrsid417450\charrsid16348632 to deposit}{\fs24\insrsid10054277\charrsid16348632 in court a Bank Guarantee for the

sum of US$47,780 (United States Dollars Forty seven thousand, seven }{\fs24\insrsid417450\charrsid16348632 hundred eighty}{\fs24\insrsid10054277\charrsid16348632 only) to }{\fs24\insrsid2321327\charrsid16348632 discharge}{\fs24\insrsid10054277\charrsid16348632 my obligations under the legal mortgage so that the title deed for the }{ \fs24\insrsid417450\charrsid16348632 property comprised}{\fs24\insrsid10054277\charrsid16348632 in LRV 237 Folio 11 Plot No. 41 Kiira Road Kololo now held by the Respondent }{\fs24\insrsid16611750\charrsid16348632 may be released to me free of any incumbrance by the Respondents. \'93}{\fs24\insrsid10054277\charrsid16348632 \par }{\fs24\insrsid16611750\charrsid16348632 \par }\pard \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid16348632 {\fs24\insrsid16611750\charrsid16348632 Mr. Kiryowa Kiwanuka, Counsel for }{\fs24\insrsid417450\charrsid16348632 the applicant}{ \fs24\insrsid12917894\charrsid16348632 ,}{\fs24\insrsid16611750\charrsid16348632 submitted that the only amount outstanding on the mortgage i}{\fs24\insrsid1317106\charrsid16348632 s}{\fs24\insrsid16611750\charrsid16348632 US$47,780. }{ \fs24\insrsid417450\charrsid16348632 T}{\fs24\insrsid16611750\charrsid16348632 hat a dispute has since arisen whereby }{\fs24\insrsid12917894\charrsid16348632 the mortgagee/Applicant contends that the

mortgage}{\fs24\insrsid16611750\charrsid16348632 was signed by him under duress. He contends that pending the determination of the dispute in C}{\fs24\insrsid1317106\charrsid16348632 S}{\fs24\insrsid16611750\charrsid16348632 }{\fs24\insrsid12917894\charrsid16348632 No}{ \fs24\insrsid16611750\charrsid16348632 437 of 2003 the }{\fs24\insrsid12917894\charrsid16348632 A}{\fs24\insrsid16611750\charrsid16348632 pplicant should be granted leave to deposit a bank guarantee in the sum of US$47,780 to secure the discharge of the }{\fs24\insrsid12917894\charrsid16348632 A}{\fs24\insrsid417450\charrsid16348632 pplicant\rquote s}{\fs24\insrsid16611750\charrsid16348632 obligation under the mortgage and have the title deed released. He argued that und er a mortgage the mortgagor always has the right to redeem his property. The Applicants intention is to redeem his property by deposit of an alternative security in the form }{\fs24\insrsid417450\charrsid16348632 of a}{ \fs24\insrsid16611750\charrsid16348632 bank guarantee. Counsel cited }{\i\fs24\ul\insrsid2907512\charrsid16348632 Pethras Sha}{\i\fs24\ul\insrsid1317106\charrsid16348632 h}{\i\fs24\ul\insrsid2907512\charrsid16348632 Vs Queenland, }{ \i\fs24\ul\insrsid16611750\charrsid16348632 Mohanlal Insurance Company }{\i\fs24\ul\insrsid417450\charrsid16348632 Ltd (}{\i\fs24\ul\insrsid16611750\charrsid16348632 1962) EA

269}{\fs24\insrsid16611750\charrsid16348632 . }{ \fs24\insrsid417450\charrsid16348632 T}{\fs24\insrsid16611750\charrsid16348632 he case concerned an }{\fs24\insrsid417450\charrsid16348632 amendment}{\fs24\insrsid16611750\charrsid16348632 }{\fs24\insrsid417450\charrsid16348632 denying liability subsequent to payment into court with admission of liability and how court is to deal with money paid into court under Order 27. With due respect to }{\fs24\insrsid15490967\charrsid16348632 Counsel I find the above au thority of no particular relevancy to the issue before me. }{\fs24\insrsid16611750\charrsid16348632 \par }{\fs24\insrsid15490967\charrsid16348632 \par Mr. Blaze Babigumir}{\fs24\insrsid1992613\charrsid16348632 a}{\fs24\insrsid15490967\charrsid16348632 , Counsel for the Respondent, strongly opposed the application. He }{\fs24\insrsid2907512\charrsid16348632 relied on }{ \fs24\insrsid15490967\charrsid16348632 the Respondent}{\fs24\insrsid1992613\charrsid16348632 \rquote }{\fs24\insrsid15490967\charrsid16348632 s affidavit in reply and s}{\fs24\insrsid2907512\charrsid16348632 worn}{\fs24\insrsid15490967\charrsid16348632 by its Managing director Steve}{\fs24\insrsid2907512\charrsid16348632 n Mworozi and raised }{\fs24\insrsid15490967\charrsid16348632 several reasons. Firstly that the Applicant who was a plaintiff to the main suit could not bring an application under Order 27

rule 1 of the Civil Procedure Rules. Counsel submitted that rule 1 limits itself to an application by a defendant. \par \par The rule states:- \par \par }\pard \qj \li1440\ri1440\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin1440\lin1440\itap0\pararsid16348632 {\fs24\insrsid15490967\charrsid16348632 \'93Where any suit is }{\fs24\ul\insrsid15490967\charrsid16348632 brought to recover a debt or damages }{\fs24\insrsid15490967\charrsid16348632 any }{\fs24\ul\insrsid15490967\charrsid16348632 defendant}{\fs24\insrsid15490967\charrsid16348632 may before or at the time of filing his defence or at any later time by leave of the Court }{\fs24\ul\insrsid15490967\charrsid16348632 pay into Court a sum of money}{\fs24\insrsid15490967\charrsid16348632 by way of satisfaction which shall be taken to admit the claim or cause of action in respect of which the payment is }{\fs24\insrsid1992613\charrsid16348632 made;}{\fs24\insrsid15490967\charrsid16348632 she may with a defence denying }{ \fs24\insrsid1519502\charrsid16348632 liability}{\fs24\insrsid15490967\charrsid16348632 (except in suits or counterclaims for libel or slander), }{\fs24\insrsid2907512\charrsid16348632 pay }{\fs24\insrsid15490967\charrsid16348632 money into }{ \fs24\insrsid2907512\charrsid16348632 c}{\fs24\insrsid15490967\charrsid16348632 ourt which shall be subject to the provisions of rule 6 of this Order ,

except that in a suit on a bond, payment into court shall be admissible in respect of particular breaches only, }{\fs24\insrsid1519502\charrsid16348632 and not of the whole suit. \'93}{\fs24\insrsid15490967\charrsid16348632 \par }{\fs24\insrsid1519502\charrsid16348632 \par }\pard \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid16348632 {\fs24\insrsid1519502\charrsid16348632 Order 27 rule 1 of the Civil Procedure Rules clearly limits its application }{ \fs24\insrsid11471562\charrsid16348632 to the defendant}{\fs24\insrsid1519502\charrsid16348632 to a suit}{\fs24\insrsid2907512\charrsid16348632 . I agree with Mr. Babigumira that it }{\fs24\insrsid1992613\charrsid16348632 is}{ \fs24\insrsid2907512\charrsid16348632 only the defendant }{\fs24\insrsid1519502\charrsid16348632 who can make an application under the rule. Secondly, the defendant can only make the application under the rule where the suit is brought to recover a debt or damages. In the instant suit Mr. Kibuuka Musoke AS, the Applicant, is the 2}{ \fs24\super\insrsid1519502\charrsid16348632 nd}{\fs24\insrsid1519502\charrsid16348632 Plaintiff in Civil Suit No 4376 of 2003 out of which this application arises. The plaintiffs in that suit are not seeking to recover a debt or damages. }{ \fs24\insrsid11471562\charrsid16348632 They are}{\fs24\insrsid1519502\charrsid16348632

seeking an order setting aside an agreement/ acknowledgement and a legal mortgage, an injunction against the sell of the applicant\rquote s p}{ \fs24\insrsid1992613\charrsid16348632 roperty, an order for delivery of}{\fs24\insrsid1519502\charrsid16348632 the Title Deed for the property to the Applicant and a return of the transfer deed forms signed by the Applicant. In the premises I find that the application is wrongly brought under rule 1 of Order 27. \par \par Mr. Kiryowa \endash Kiwanuka argued that the Applicant }{\fs24\insrsid6578107\charrsid16348632 had brought the application as a defendant to the Counter-claim in the suit. True the Respondent}{\fs24\insrsid2907512\charrsid16348632 ,}{ \fs24\insrsid6578107\charrsid16348632 together with its Written Statement of defence}{\fs24\insrsid2907512\charrsid16348632 ,}{\fs24\insrsid6578107\charrsid16348632 }{\fs24\insrsid8202105\charrsid16348632 filed a counter-claim whereby it seeks to recover a debt or special damages of US$47,780 and the Applicant is one of the defendant}{\fs24\insrsid2907512\charrsid16348632 s}{\fs24\insrsid8202105\charrsid16348632 to the Counter-claim. However there is a specific provision under which a plaintiff who is a defendant to a counter-claim can bring the application. }{\fs24\insrsid11147804\charrsid16348632 T}{\fs24\insrsid8202105\charrsid16348632 his is under rule 9

} {\fs24\insrsid11147804\charrsid16348632 of the Order, which provides:-}{\fs24\insrsid1519502\charrsid16348632 \par }{\fs24\insrsid11147804\charrsid16348632 \par }\pard \qj \li1440\ri1440\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin1440\lin1440\itap0\pararsid16348632 {\fs24\insrsid11147804\charrsid16348632 \'939. }{\fs24\insrsid5061083\charrsid16348632 A}{\fs24\insrsid11147804\charrsid16348632 } {\fs24\insrsid2907512\charrsid16348632 plaintiff or}{\fs24\insrsid11147804\charrsid16348632 any person made }{\fs24\insrsid5061083\charrsid16348632 defendant to a Counter claim may in answer to a Counter}{\fs24\insrsid1929592\charrsid16348632 -}{ \fs24\insrsid5061083\charrsid16348632 Claim }{\fs24\insrsid2907512\charrsid16348632 in answer to a counter claim }{\fs24\ul\insrsid5061083\charrsid16348632 pay money into Court}{\fs24\insrsid5061083\charrsid16348632 in satisfaction of the Counter}{ \fs24\insrsid1929592\charrsid16348632 -claim, subject to the like conditions as t}{\fs24\insrsid2907512\charrsid16348632 o}{\fs24\insrsid1929592\charrsid16348632 cost}{\fs24\insrsid2907512\charrsid16348632 s}{\fs24\insrsid1929592\charrsid16348632 and otherwise as }{\fs24\insrsid13902865\charrsid16348632 upon payment into court by a defendant.\'94}{\fs24\insrsid11147804\charrsid16348632 \par }{\fs24\insrsid13902865\charrsid16348632 \par }\pard \qj

\li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid16348632 {\fs24\insrsid13902865\charrsid16348632 Counsel for the Respondent argued that the Applicant could not enjoy the provisions of rule 9 since he had not brought the application under the rule. He relied on }{\i\fs24\ul\insrsid13902865\charrsid16348632 P}{ \i\fs24\ul\insrsid2907512\charrsid16348632 e}{\i\fs24\ul\insrsid13902865\charrsid16348632 ragio Munyangira Vs Andrew Mutayitwa}{\i\fs24\ul\insrsid2907512\charrsid16348632 k}{\i\fs24\ul\insrsid13902865\charrsid16348632 o HC Misc. App No. 37 of 1993}{ \fs24\insrsid13902865\charrsid16348632 . In that }{\fs24\insrsid2907512\charrsid16348632 matter}{\fs24\insrsid13902865\charrsid16348632 , the application was brought under section 18 of the Civil Procedure Act seeking an order of the High Court to transfer Mengo Civil Suit G. K. 105 6/91 from the Chief Magistrates Court of Mengo to the High Court for trial. It did not cite any rule. Justice Okello relied on }{\i\fs24\ul\insrsid13902865\charrsid16348632 Adongkara Vs Kamanda (1968) EA 210 }{\fs24\insrsid13902865\charrsid16348632 and held that the application was defective for failure to cite the rule under which it was brought to }{\fs24\insrsid5984424\charrsid16348632 Court.}{\fs24\insrsid13902865\charrsid16348632 \par }{\fs24\insrsid5984424\charrsid16348632 \par Counsel also relied on

}{\i\fs24\ul\insrsid5984424\charrsid16348632 Kibuuka Musoke AS Vs Travobase Centre Ltd HCT-00-CC-MA-308-2008}{\fs24\insrsid5984424\charrsid16348632 . I dismissed the above application for reasons that it had been wrongly brought under Order 27 rule}{\fs24\insrsid1992613\charrsid16348632 s}{\fs24\insrsid5984424\charrsid16348632 10 and 12 of the Civil Procedure }{ \fs24\insrsid2907512\charrsid16348632 R}{\fs24\insrsid5984424\charrsid16348632 ules and had been brought by the wrong procedure of chamber summons instead of a Notice of Motion. \par \par However, in }{\i\fs24\ul\insrsid6226466\charrsid16348632 Intra}{\i\fs24\ul\insrsid5984424\charrsid16348632 ship (U) Ltd Vs G. M. Combine (U) Ltd (1994) VI KALR 42}{\fs24\insrsid5984424\charrsid16348632 Court }{\fs24\insrsid1992613\charrsid16348632 found }{\fs24\insrsid5984424\charrsid16348632 that the application had be}{\fs24\insrsid6226466\charrsid16348632 en brought under the wrong law. While considering whe}{\fs24\insrsid2907512\charrsid16348632 ther}{\fs24\insrsid6226466\charrsid16348632 in the circumstances the application should be struck out Justice Sempa \endash Lugayizi held that the question should be whether the irregularity is serious enough to prevent the Court from hearing the application and determin}{ \fs24\insrsid551632\charrsid16348632 in}{\fs24\insrsid6226466\charrsid16348632 g it on its own merits. That the answer

would depend on whether the non-}{\fs24\insrsid1992613\charrsid16348632 observance }{\fs24\insrsid6226466\charrsid16348632 of the procedural }{\fs24\insrsid551632\charrsid16348632 rule in issue would lead to injustice. If it would not then the court would be willing to }{\fs24\insrsid2907512\charrsid16348632 o}{\fs24\insrsid551632\charrsid16348632 ver look it, otherwise it would not. Article 126 (2) (e) of the Constitution requires court to administer substantive justice without undue regard to technicalities. In }{\i\fs24\ul\insrsid551632\charrsid16348632 Alcon International Vs Kasirye, Byaruhanga & Co Advocates (1995}{\i\fs24\ul\insrsid1992613\charrsid16348632 )}{\i\fs24\ul\insrsid551632\charrsid16348632 III KALR 91}{\fs24\insrsid551632\charrsid16348632 Justice Musoke-Kibuuka held that procedural defects can be cured by the invocation of Article 126 (2) (e) of the Constitution. In }{\i\fs24\ul\insrsid551632\charrsid16348632 Salume Namukasa Vs Yosefu Bulya (1966) EA 433}{ \fs24\insrsid551632\charrsid16348632 while considering the invocation of the Cou}{\fs24\insrsid2907512\charrsid16348632 rts}{\fs24\insrsid551632\charrsid16348632 }{\fs24\insrsid2907512\charrsid16348632 inherent}{\fs24\insrsid551632\charrsid16348632 powers under the equivalent of section 98 of the Civil Procedure Act, Sir Udo Udom}{\fs24\insrsid2907512\charrsid16348632 a}{\fs24\insrsid551632\charrsid16348632

CJ observed that before the provisions of the section can be invo}{ \fs24\insrsid2907512\charrsid16348632 ked}{\fs24\insrsid551632\charrsid16348632 the matter or the proceedings concerned must have been brought to the Court the proper way in terms of the procedure prescribed by the rules. That is in the manner prescribed by law. }{\fs24\insrsid5984424\charrsid16348632 \par }{\fs24\insrsid551632\charrsid16348632 \par Order 27 does not provide for the procedure to follow in an application under rule 9 thereof. However Order 52 Rule 1 provides. \par \par }\pard \qj \li1440\ri1440\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin1440\lin1440\itap0\pararsid16348632 {\fs24\insrsid551632\charrsid16348632 \'93All applications to the Court, except whe}{\fs24\insrsid2907512\charrsid16348632 re}{ \fs24\insrsid551632\charrsid16348632 otherwise e}{\fs24\insrsid2907512\charrsid16348632 xpressly provided for under thes}{\fs24\insrsid551632\charrsid16348632 e Rules, shall be by motion and shall be heard in open}{\fs24\insrsid2907512\charrsid16348632 }{\fs24\insrsid551632\charrsid16348632 court.}{\fs24\insrsid2907512\charrsid16348632 \'94}{\fs24\insrsid551632\charrsid16348632 \par \par }\pard \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid16348632 {\fs24\insrsid551632\charrsid16348632 This }{\fs24\insrsid416401\charrsid16348632

application is by Notice of Motion. Therefore brought by the }{\fs24\insrsid9769091\charrsid16348632 }{\fs24\insrsid416401\charrsid16348632 right procedure, though, brought under a wrong rule by a defendant to a counter claim. }{\fs24\insrsid551632\charrsid16348632 \par }{\fs24\insrsid416401\charrsid16348632 \par On the authorities I have cited above I }{\fs24\insrsid9769091\charrsid16348632 find}{\fs24\insrsid4741982\charrsid16348632 the}{\fs24\insrsid416401\charrsid16348632 }{\fs24\insrsid9769091\charrsid16348632 irregularity\rquote s}{ \fs24\insrsid416401\charrsid16348632 not so serious as to prevent me from entertaining the application under rule }{\fs24\insrsid4741982\charrsid16348632 9.}{\fs24\insrsid416401\charrsid16348632 However, both rules 1 and 9 of the Order specifically address payment of money into court in satisfaction of the claim. In the instant application the Applicant is seeking leave }{\fs24\insrsid9769091\charrsid16348632 \'93}{ \fs24\insrsid416401\charrsid16348632 to deposit security for the sum of US$47,780 -----\'93 \par }\pard \qj \li1440\ri1440\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin1440\lin1440\itap0\pararsid16348632 {\fs24\insrsid416401\charrsid16348632 \par }\pard \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid16348632 {\fs24\insrsid416401\charrsid16348632 In ground 8 of the

application and in paragraph 9 of the Applicant}{ \fs24\insrsid1992613\charrsid16348632 \rquote }{\fs24\insrsid416401\charrsid16348632 s affidavit in support the Applicant states that he is prepared to deposit a Bank Guarantee for the sum of US$47,780 to discharge his obligations }{ \fs24\insrsid9769091\charrsid16348632 u}{\fs24\insrsid416401\charrsid16348632 nder the mortgage. \par \par A deposit of security in court for the payment of money is not payment of money into court in satisfaction of the claim. The Order does not cover deposit of security for the money claimed in the suit. The }{\fs24\insrsid9769091\charrsid16348632 relief}{ \fs24\insrsid416401\charrsid16348632 sought is outside the scope of Order 29. \par \par The Applicant is tactfully inviting this Court to order a substitution of the security deposited. That is to substitute the Certificate of Title with }{\fs24\insrsid9769091\charrsid16348632 a}{\fs24\insrsid416401\charrsid16348632 Bank Guarantee. The }{ \fs24\insrsid4741982\charrsid16348632 mortgag}{\fs24\insrsid9769091\charrsid16348632 e}{\fs24\insrsid4741982\charrsid16348632 e has}{\fs24\insrsid416401\charrsid16348632 a right of choice of the security to be deposited. \par }{\fs24\insrsid5393957\charrsid16348632 Further annexture B to }{\fs24\insrsid4741982\charrsid16348632 the application}{\fs24\insrsid5393957\charrsid16348632 is a Crane Bank Ltd letter

dated 25}{\fs24\super\insrsid5393957\charrsid16348632 th}{ \fs24\insrsid5393957\charrsid16348632 February 2008. It is \'93Re: Bank Guarantee No 2008/041 date}{\fs24\insrsid9769091\charrsid16348632 d}{\fs24\insrsid5393957\charrsid16348632 25.02.2008 for US$57,000 in favour valid up to 24.02.2009\'94}{ \fs24\insrsid9769091\charrsid16348632 }{\fs24\insrsid5393957\charrsid16348632 It states that the guarantee is valid for a period of one year from the 25}{\fs24\super\insrsid5393957\charrsid16348632 th}{\fs24\insrsid5393957\charrsid16348632 Fe bruary 2008. }{\fs24\insrsid4741982\charrsid16348632 T}{\fs24\insrsid5393957\charrsid16348632 his application was filed on 10}{\fs24\super\insrsid5393957\charrsid16348632 th}{\fs24\insrsid5393957\charrsid16348632 November 2008 and heard on 15}{ \fs24\super\insrsid5393957\charrsid16348632 th}{\fs24\insrsid5393957\charrsid16348632 November 2008. The main suit is still under hearing. Inevitably by the time of judgment in the main suit the }{\fs24\insrsid9769091\charrsid16348632 g}{ \fs24\insrsid5393957\charrsid16348632 uarantee, if allowed to be deposited, would have already lapsed. \par \par Considering all the above, I agree with Mr. Babigumira that, to make }{\fs24\insrsid4071849\charrsid16348632 the Order}{\fs24\insrsid5393957\charrsid16348632 sought will be prejudic}{\fs24\insrsid9769091\charrsid16348632

ial}{ \fs24\insrsid5393957\charrsid16348632 to the Respondent. The application accordingly fails and is dismissed with costs to the Respondent. \par \par \par }{\fs24\insrsid4071849\charrsid16348632 \par \par \par \par }{\fs24\insrsid5393957\charrsid16348632 \par }\pard \ql \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid16348632 {\fs24\insrsid5393957\charrsid16348632 \par }\pard \qc \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid16348632 {\fs24\insrsid4071849\charrsid16348632 Hon Mr. Justice }{\fs24\insrsid5393957\charrsid16348632 Lameck N. Mukasa \par }{\b\fs24\insrsid5393957\charrsid16348632 JUDGE \par }{\fs24\insrsid5393957\charrsid16348632 5}{\fs24\super\insrsid5393957\charrsid16348632 th}{\fs24\insrsid5393957\charrsid16348632 February 2009}{\fs24\insrsid10054277\charrsid16348632 \par }\pard \ql \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid16348632 {\fs24\insrsid10054277\charrsid16348632 \par }{\fs24\insrsid7036740\charrsid16348632 \par }{\fs24\insrsid5268972\charrsid16348632 \par }{\fs24\insrsid7036740\charrsid16348632 \par \par \par }}