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Uganda Judgment

Commercial Court of Uganda

Mbanza & Anor v Stanbic Bank Uganda Ltd (Miscellaneous Application No. 448 of 2017) [2017] UGCommC 98 (5 July 2017)

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01

Holding and result

The court found that the application for amendment was fundamentally flawed. The 2nd applicant did not file an affidavit or authorize the 1st applicant to seek his removal, rendering the request to strike him off the record baseless. Similarly, the attempt to strike off the 5th respondent was procedurally improper, as the correct procedure would have been a withdrawal under Order 25, which would entail costs. Furthermore, the applicants failed to specify or attach the alleged new material facts or a proposed amended plaint, both of which are mandatory for such an application. The absence of these critical elements meant the application did not meet the legal requirements for amendment of pleadings. Consequently, the application was dismissed as misconceived and lacking merit.

Court disposition

application dismissed with costs

Orders

  • The application for leave to amend pleadings is dismissed.
  • The applicants shall pay the costs of this application.

02

Material facts

Parties

Mbanza Lydia

Applicant

Kakooza Michael

Applicant

Stanbic Bank Uganda Limited

Respondent

Jay Fortune Limited

Respondent

Mukisa Johnan

Respondent

Mukisa Irene

Respondent

Craneforce Advanced Agencies Limited

Respondent

03

Procedural history

  1. Posture

    Miscellaneous Application / Ruling on Application for Leave to Amend Pleadings

04

Questions and positions

Legal issues

Party arguments

Applicant
The applicants argued that amendment was necessary because the 2nd applicant had withdrawn from the matter, the 5th respondent should be struck off, and that there were material facts not available at the time of filing the plaint. They contended that all matters in controversy should be pleaded for a just and fair finding, and that the respondents would not suffer prejudice from the amendment.
Respondent
The respondents opposed the application, highlighting procedural deficiencies, including the absence of an affidavit from the 2nd applicant, lack of a proposed amended plaint, and failure to specify the new material facts. They argued that the application was misconceived and unsupported by law.

05

Court’s reasoning

  1. 01

    Order 6 Rule 19 of the Civil Procedure Rules

    An application to amend pleadings must clearly state the material facts necessitating the amendment and be supported by an affidavit detailing those facts.

  2. 02

    Order 25 of the Civil Procedure Rules

    A party seeking to withdraw from proceedings must do so by a formal application, and withdrawal of a defendant/respondent is governed by Order 25 of the Civil Procedure Rules, subject to costs.

06

Ratio, limits and disposition

Ratio decidendi

The court found that the application for amendment was fundamentally flawed. The 2nd applicant did not file an affidavit or authorize the 1st applicant to seek his removal, rendering the request to strike him off the record baseless. Similarly, the attempt to strike off the 5th respondent was procedurally improper, as the correct procedure would have been a withdrawal under Order 25, which would entail costs. Furthermore, the applicants failed to specify or attach the alleged new material facts or a proposed amended plaint, both of which are mandatory for such an application. The absence of these critical elements meant the application did not meet the legal requirements for amendment of pleadings. Consequently, the application was dismissed as misconceived and lacking merit.

Obiter and limits

  • The court noted the unilateral nature of the application by the 1st applicant without proper authorization from the 2nd applicant.
  • The court emphasized that procedural requirements for amendment and withdrawal must be strictly followed to avoid abuse of process.

Court disposition

application dismissed with costs

  • The application for leave to amend pleadings is dismissed.
  • The applicants shall pay the costs of this application.

Source and reliance status

Commercial Court of Uganda

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Source document

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Judgment text

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Source document

Commercial Court of Uganda

Judgment

[2017] UGCommC 98

THE REPUBLIC OF UGANDA

IN THE HIGH COURT OF UGANDA AT KAMPALA

(COMMERCIAL DIVISION)

MISC. APPLICATION NO. 448 OF 2017

(ARISING FROM HCCS NO. 84 OF 2017

MBANZA LYDIA

KAKOOZA MICHAEL::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::APPLICANTS

VERSUS

STANBIC BANK UGANDA LIMITED

JAY FORTUNE LIMITED

MUKISA JOHNAN

MUKISA IRENE

CRANEFORCE ADVANCED AGENCIES LIMITED:::::::::::::::::::RESPONDENTS

BEFORE: THE HON. JUSTICE DAVID WANGUTUSI

R U L I N G:

This Application is brought by Mbanza Lydia and Kakooza Micheal known as the Applicants against Stanbic Bank, Jay Fortune Limited, Mukisa Johnan, Mukisa Irene and Crane Force Advanced Agencies Limited as the Respondents.

The Applicants seek leave to amend their pleadings and ground their application on the following;

1. That in a suit filed as Civil Suit No. 84 of 2017 the Applicants sought among others an order against the 1st Respondent to cancel a mortgage on the suit land and deliver duplicate certificate of title to them.

2. That the 2nd Applicant has since withdrawn from the matter and should therefore be struck off as well as the 5th Respondent.

3. That at the time of filing the plaint there were material facts not available to the Applicant and were thus not pleaded in the plaint.

4. That it is desirable and important that all matters in controversy be pleaded in court in order to reach a just and fair finding 5. That the pleadings in the first place were badly done.

6. That the Respondents would suffer no prejudice.

When this matter came up for hearing the court found the Application so wanting that it dismissed it and reserved the reasons for this Ruling. The brief background is that the two Applicants filed suit No. 84 of 2017 against the Respondents seeking nullification of a mortgage on the ground that it was fraudulently obtained.

They also sought among other things aggravated damages, punitive damages, general damages and interest on all of them. On the 26th May the Plaintiff in civil suit 84 of 2017 now Applicants in this Application filed this Application to amend the plaint and gave the grounds I have earlier enumerated in this Ruling.

One of the grounds for the amendment was that since the 2nd Applicant had withdrawn from this matter he should be struck off from the plaint. Furthermore, the 5th Respondent who was also the 5th Defendant should be struck off. Interestingly, although the 2nd Applicant had been named as a party to this Application and the plaint he did not file any affidavit in support of this Application. The Application shows that this was the 1st Applicant’s doing. There is nothing to show that the 2nd Applicant had empowered the 1st Applicant to apply to have him struck off the record.

In any case for the 2nd Applicant to be struck off the record it was upon himself to put in an application, subject to issues of costs. I find that this Application was unilaterally done by the 1st Applicant. It has no basis anywhere in the law and cannot be sustained. The Applicants also sought an order striking off the 5th Respondent from the record. I again find this strange. The only way the Applicant could have proceeded was under Order 25 of the Civil Procedure Rules by way of withdrawal in which case the Applicant would be saddled with costs.

From the foregoing, this ground as a step towards amendment of pleadings was misconceived and therefore fails.

The Applicants further state that at the time of filing the plaint there were material facts that were not known to them. In an Application such as this one the Applicants should state those material facts that they say were not available to them at the filing of the plaint.

These should be in the affidavit supporting the Application and should be highlighted in the proposed amended plaint which should be attached on the Application.

Interestingly although the Chamber summons stated that there was an attached proposed amended plaint it was never attached. The Chamber summons was filed on 26th May 2017 without the proposed amended plaint. I have also carefully and thoroughly perused the affidavit of the 1st Applicant filed in support of this Application, nowhere does the Applicant state those material facts that were allegedly discovered after filing the plaint. Under those circumstances the ground that the Applicants became aware of new material facts can also not stand.

Having found both those grounds in the negative it is my finding that this Application fails to meet the requirements of an Application seeking amendment. It is misconceived and must fail. The same is therefore dismissed with costs.

Dated at Kampala this 5th day of July 2017.

HON. JUSTICE DAVID WANGUTUSI

JUDGE OF HIGH COURT.

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Authorities

Authorities used by the court

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

Order 6 Rule 19 of the Civil Procedure Rules

Legislation

Legislation referenced in the available case record.

Order 25 of the Civil Procedure Rules

Legislation

Legislation referenced in the available case record.

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