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Lwanga v Administrator General & Anor (Civil Suit No 0086 of 2002) [2002] UGHC 12 (28 August 2002)
- Citation
- [2002] UGHC 12
- Status
- Judgment
- Jurisdiction
- Uganda
- Court
- High Court of Uganda
- Posture
- Civil Suit / Ruling on Garnishee Proceedings
- Case number
- Civil Suit No 0086 of 2002
- Language
- English
More details
- Court
- High Court of Uganda
- Posture
- Civil Suit / Ruling on Garnishee Proceedings
- Case number
- Civil Suit No 0086 of 2002
- Language
- English
On this page
Professional case brief
Research organized from the available case record
01
Holding and result
The court held that while the account in question is a trust account, the garnishee order serves as a prohibitory order to prevent the Administrator General from depleting the account to the detriment of the applicant. The attachment does not force the Administrator General to pay from the trust account but compels the government to settle the judgment debt as provided under section 36 of the Administrator General's Act. The court found it just and proper to bar the Administrator General from operating the account until the debt is paid, thereby ensuring that the applicant's claim is not prejudiced and that the Administrator General takes steps to secure payment from government funds. The garnishee nisi was therefore made absolute, and the applicant was awarded taxed costs of the application.
Court disposition
Garnishee nisi made absolute; applicant awarded taxed costs.
Orders
- The garnishee nisi is made absolute.
- The Administrator General is barred from operating the account with the garnishee until payment of the debt.
- Applicant is awarded taxed costs of this application.
02
Material facts
Parties
Mildred Lwanga
Plaintiff Counsel: OmodingAdministrator General
Defendant Counsel: Francis AtukiUganda Commercial Bank
DefendantAmounts and remedies
- Taxed Costs Awarded: UGX 4,977,000
03
Procedural history
Posture
Civil Suit / Ruling on Garnishee Proceedings
04
Questions and positions
Legal issues
- 01
Whether a trust account held by the Administrator General with a commercial bank can be attached by garnishee order to satisfy a judgment debt.
- 02
Whether section 36 of the Administrator General's Act precludes attachment of such accounts for payment of costs awarded against the Administrator General.
Party arguments
- Applicant
- The applicant argued that the Administrator General, having been condemned in costs, failed to pay the taxed amount. The applicant sought to enforce the judgment by garnishee proceedings against the Administrator General's account with Uganda Commercial Bank, contending that the account should be subject to attachment to satisfy the debt.
- Respondent
- The respondent contended that the account in question is a trust account and not subject to attachment. He argued that costs against the Administrator General are to be paid out of the estate, or if there is no property, from the consolidated fund, relying on section 36 of the Administrator General's Act to argue that government revenues, not the trust account, should be used to pay the debt.
05
Court’s reasoning
Legal principles
- 01
General principles of civil procedure and enforcement
A garnishee order is a form of attachment that prohibits the garnishee from releasing funds to the judgment debtor, but does not create a security or lien in favour of the attaching creditor.
- 02
Section 36, Administrator General's Act
Section 36 of the Administrator General's Act provides that government revenues are liable to discharge liabilities of the Administrator General, except in cases of unavoidable liability.
- 03
Miscellaneous Application No. 829 of 2001; judicial observation by NTABGOBA, PJ.
Attachment of a trust account is to force the government to pay, not to force the Administrator General to pay from the trust account directly.
06
Ratio, limits and disposition
Ratio decidendi
The court held that while the account in question is a trust account, the garnishee order serves as a prohibitory order to prevent the Administrator General from depleting the account to the detriment of the applicant. The attachment does not force the Administrator General to pay from the trust account but compels the government to settle the judgment debt as provided under section 36 of the Administrator General's Act. The court found it just and proper to bar the Administrator General from operating the account until the debt is paid, thereby ensuring that the applicant's claim is not prejudiced and that the Administrator General takes steps to secure payment from government funds. The garnishee nisi was therefore made absolute, and the applicant was awarded taxed costs of the application.
Obiter and limits
- A garnishee order is a prohibitory order that prohibits the garnishee from releasing funds to the respondent.
- The effect of attachment is to prevent private alienation of the property to the prejudice of the claims enforceable under the attachment.
- It is just and proper that the respondent is forced to go to Government to settle the debt.
Court disposition
Garnishee nisi made absolute; applicant awarded taxed costs.
- The garnishee nisi is made absolute.
- The Administrator General is barred from operating the account with the garnishee until payment of the debt.
- Applicant is awarded taxed costs of this application.
Source and reliance status
High 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.
High Court of Uganda
Judgment
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{\pntxtb (}{\pntxta )}}{\*\pnseclvl9\pnlcrm\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}\pard\plain \qc \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9724680 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\fs24\insrsid9319337\charrsid9724680 THE REPUBLIC OF UGANDA \par IN THE HIGH COURT OF UGANDA AT KAMPALA \par }{\b\fs24\insrsid9724680 CIVIL SUIT NO}{\b\fs24\insrsid9319337\charrsid9724680 0086 OF 2002 \par }\pard\plain \s1\ql \li0\ri0\sl360\slmult1\keepn\widctlpar\aspalpha\aspnum\faauto\outlinelevel0\adjustright\rin0\lin0\itap0\pararsid9724680 \b\fs28\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\b0\fs24\insrsid9319337\charrsid9724680 MILDRED LWANGA}{ \b0\fs24\insrsid9724680 \'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85..}{\b0\fs24\insrsid9319337\charrsid9724680 : PLAINTIFF \par }\pard\plain \s2\qc \li0\ri0\sl360\slmult1\keepn\widctlpar\aspalpha\aspnum\faauto\outlinelevel1\adjustright\rin0\lin0\itap0\pararsid9724680 \b\fs28\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\b0\fs24\insrsid9319337\charrsid9724680 VERSUS \par }\pard\plain \s1\ql \li0\ri0\sl360\slmult1\keepn\widctlpar\aspalpha\aspnum\faauto\outlinelevel0\adjustright\rin0\lin0\itap0\pararsid9724680 \b\fs28\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\b0\fs24\insrsid9319337\charrsid9724680 ADMINISTRATOR
GENERAL}{\b0\fs24\insrsid11561002 }{\b0\fs24\insrsid9319337\charrsid9724680 AND}{\b0\fs24\insrsid11561002 \par }{\b0\fs24\insrsid9319337\charrsid9724680 UGANDA COMMERCIAL BANK}{\b0\fs24\insrsid9724680 \'85\'85\'85\'85\'85\'85\'85\'85\'85}{\b0\fs24\insrsid11561002 \'85..}{\b0\fs24\insrsid9724680 \'85\'85\'85..}{\b0\fs24\insrsid9319337\charrsid9724680 DEFENDANT}{ \b0\fs24\insrsid9319337 \par }\pard\plain \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9724680 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\insrsid9724680\charrsid9724680 \par }\pard \ql \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9724680 {\b\fs24\ul\insrsid9319337\charrsid9724680 BEFORE: HON. MR. JUSTICE J. B. A. KATUTSI: \par }\pard \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9724680 {\b\fs24\ul\insrsid9319337\charrsid9724680 \par RULING: \par \par }\pard\plain \s16\qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9724680 \fs28\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\fs24\insrsid9319337\charrsid9724680 In 1993 respondent, the Administrator General sued the applicant on behalf of the beneficiaries of the estate of the deceased person. The suit was dismissed under O.15 r.6 of the Civil Procedure Act, and the
respondent condemned to costs w hich were taxed at shs.4,977,000/=. He did not pay. \par }\pard\plain \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9724680 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\fs24\insrsid9319337\charrsid9724680 \par The applicant brought garnishee proceedings against the Uganda Commercial Bank (herein after referred to as the garnishee) in whose bank respondent has an account. A garnishee nisi was granted and the garnished ordered to appear in court and show cause why he sh}{\fs24\insrsid11561002 ould not pay. On 7/6/2002 one S}{\fs24\insrsid9319337\charrsid9724680 yson Kekuruso appeared on behalf of the garnishee. Her duty was to inform court whether or not the respondent had an account with the garnishee and whether or not there were sufficient funds to pay the debt in question. She never said a word and Learned Counsel for the applicant left her to leave the cou}{\fs24\insrsid11561002 rt without altering a word. In}{\fs24\insrsid9319337\charrsid9724680 stead it was Mr. Stoke who appeared on behalf of the respondent that addressed court at length. The gist of his address was that the respondent\rquote s account with the garnishee is a trust account and is not subject to attachment. He referred to several provisions of the law in a bid to persuade court that his contention was right. It is
that contention that I am now concerned with. \par }{\fs24\insrsid11561002 \par }{\fs24\insrsid9319337\charrsid9724680 In his argument respondent contends that costs against the administrator General are normally paid out of the estate and that where there is no property the costs are to be paid from the consolidated funds. \par \par Section 36 of the Administrator General\rquote s Act enacts as hereunder: \par }\pard \qj \li720\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid9724680 {\fs24\insrsid9319337\charrsid9724680 \'93 The revenues of the Government shall be liable to make good all sums required to discharge any liability which the Administrator General, if he were a private administrator, would be perso nally liable to discharge except when the liability is one which neither the Administrator General nor any of his agents would, by the exercise of reasonable diligence, have averted and in either of those cases the Administrator General shall not, nor sha ll the revenue of the Government, be subject to any liability.\'94 \par }\pard \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9724680 {\fs24\insrsid9319337\charrsid9724680 \par It is not suggested that the present case falls under the above stated exception. \par \par The garnishee order is a form of attachment. A garnishee order
is the order served on a garnishee attaching a debt in his hands. \par \par The effect of attachment is to prevent private alienation of the property to the prejudice of the claims enforceable under the attachment. It does not create any security, charge or lien in favour of the attaching creditor. \par \par A garnishee order is a prohibitory order that prohibits the garnish from giving in this case the money on the account over to the respondent. \par \par As ob}{\fs24\insrsid9724680 served by NTABGOBA, PJ. In miscellaneous}{\fs24\insrsid9319337\charrsid9724680 App}{\fs24\insrsid9724680 lication}{\fs24\insrsid9319337\charrsid9724680 . No. 829 of 2001, the garnishee nisi order has not the effect o f forcing the Administrator General to pay from the attached account. The attachment of the account is to force the Government to pay. The respondent does not deny that he is a judgment debtor. It is, I think, just and proper that the respondent is for ced to go to Government to set the money to set}{\fs24\insrsid11561002 tle the debt. This can only be }{\fs24\insrsid9319337\charrsid9724680 done by making an order that until payment of the de}{\fs24\insrsid9724680 b}{ \fs24\insrsid9319337\charrsid9724680 t, the Administrator General is barred from operating the account he has with the garnishee by with drawing there from any mo ney that would deplete it to the detriment of the
applicant. This order I hope will get the desired goal of forcing the Administrator General to take serious steps to get payment from the Government under section 36 of the Administrator General\rquote s Act. \par \par To this extent the garnishee nisi is made absolute. Applicant will get taxed costs of this application. I so order. \par \par J. B. A. Katutsi \par }\pard\plain \s3\qj \li0\ri0\sl360\slmult1\keepn\widctlpar\aspalpha\aspnum\faauto\outlinelevel2\adjustright\rin0\lin0\itap0\pararsid9724680 \b\fs28\ul\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\fs24\insrsid9319337\charrsid9724680 JUDGE \par }\pard\plain \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9724680 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\b\fs24\insrsid9724680 \par }{\b\fs24\insrsid9319337\charrsid9724680 28/8/2002 \par }\pard\plain \s16\qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9724680 \fs28\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\fs24\insrsid9319337\charrsid9724680 I direct that this ruling be raised by the Deputy Registrar. \par }\pard\plain \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9724680 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\fs24\insrsid9319337\charrsid9724680 \par J. B. A. Katutsi \par
}\pard\plain \s3\qj \li0\ri0\sl360\slmult1\keepn\widctlpar\aspalpha\aspnum\faauto\outlinelevel2\adjustright\rin0\lin0\itap0\pararsid9724680 \b\fs28\ul\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\fs24\insrsid9319337\charrsid9724680 JUDGE \par }\pard\plain \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9724680 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\b\fs24\insrsid9319337\charrsid9724680 28/8/2002}{ \fs24\insrsid9319337\charrsid9724680 \par \par }{\b\fs24\insrsid9319337\charrsid9724680 30/8/2002 \par }\pard\plain \s16\qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9724680 \fs28\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\fs24\insrsid9319337\charrsid9724680 Francis Atuki for first respondent.
\par }\pard\plain \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9724680 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\fs24\insrsid9319337\charrsid9724680 Omoding for the applicant. \par Applicant absent. \par Second respondent absent. \par }\pard\plain \s4\qj \li0\ri0\sl360\slmult1\keepn\widctlpar\aspalpha\aspnum\faauto\outlinelevel3\adjustright\rin0\lin0\itap0\pararsid9724680 \fs28\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\fs24\insrsid9319337\charrsid9724680 Court clerk Florence.
\par }\pard\plain \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9724680 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\fs24\insrsid9319337\charrsid9724680 \par }{\b\fs24\ul\insrsid9319337\charrsid9724680 Court: \par }{\fs24\insrsid9319337\charrsid9724680 Ruling read and delivered. \par H. Wolayo \par }\pard\plain \s3\qj \li0\ri0\sl360\slmult1\keepn\widctlpar\aspalpha\aspnum\faauto\outlinelevel2\adjustright\rin0\lin0\itap0\pararsid9724680 \b\fs28\ul\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\fs24\insrsid9319337\charrsid9724680 REGISTRAR \par }\pard\plain \ql \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9724680 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\fs24\insrsid9319337\charrsid9724680 \par }}
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