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Uganda Judgment

High Court of Uganda

Namoda v The New Vision Printing Publishers Corporation (Miscellaneous Application 27 of 1995) [1996] UGHC 66 (18 September 1996)

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01

Holding and result

The application was struck out because it was not properly brought before the court, having been filed by Notice of Motion instead of Chamber Summons as required by the Civil Procedure Rules. Furthermore, the applicant failed to demonstrate sufficient cause for payment by instalments, as no credible evidence of sickness or financial constraints was provided. The applicant's previous conduct in failing to honour payment pledges undermined his bona fides. The court held that its inherent jurisdiction under section 101 of the Civil Procedure Act cannot be invoked where the prescribed procedure has not been followed. The interests of justice and the rights of the decree holder would be prejudiced by granting the application under these circumstances.

Court disposition

application struck out with costs to the respondent

Orders

  • The application is struck out with costs to the respondent.
  • District Registrar Mbale to deliver this ruling after service notice to the parties.

02

Material facts

Parties

Lawrence Namoda

Applicant Counsel: Mr. Owori

The New Vision Printing and Publishing Corporation

Respondent Counsel: Mr. Wandera

Amounts and remedies

  • Decretal Amount: UGX 19,377,055
  • Taxed Costs: UGX 1,667,069.05
  • Amount Allegedly Paid: UGX 1,500,000
  • Proposed Fortnightly Payment: UGX 500,000
  • Proposed Monthly Payment: UGX 1,000,000

03

Procedural history

  1. Posture

    Miscellaneous Application / Ruling

04

Questions and positions

Legal issues

Party arguments

Applicant
Counsel for the applicant argued that the applicant is willing and ready to pay the debt but is constrained by financial difficulties and sickness. He submitted that committing the applicant to civil prison would not serve the interests of either party, as it would increase the indebtedness. He relied on section 101 of the Civil Procedure Act and cited authorities supporting the court's inherent jurisdiction to allow payment by instalments. He conceded that the court may increase the amount for payment by instalments.
Respondent
Counsel for the respondent contended that the applicant's conduct demonstrates unreliability and lack of bona fides, as previous promises to pay were not honoured. He argued that the application was improperly brought by Notice of Motion instead of Chamber Summons under Order 18 Rule 11 of the Civil Procedure Rules. He further submitted that no sufficient cause was shown, as the applicant failed to provide evidence of sickness or financial constraints.

05

Court’s reasoning

  1. 01

    Section 101 Civil Procedure Act; Ltd. v. Salaeh Abdulla (1959) E.A. 260

    Court may allow payment of decretal amount by instalments if sufficient cause is shown.

  2. 02

    Namukasa v. Bukya (1967) E.A. 433

    Application for payment by instalments should be brought by Chamber Summons under Order 18 Rule 11 Civil Procedure Rules.

  3. 03

    A. Majabali Alidina Restulla Alidina & Anor (1961) E.A. 545

    Court has inherent jurisdiction to make orders in the interest of justice, but proper procedure must be followed.

06

Ratio, limits and disposition

Ratio decidendi

The application was struck out because it was not properly brought before the court, having been filed by Notice of Motion instead of Chamber Summons as required by the Civil Procedure Rules. Furthermore, the applicant failed to demonstrate sufficient cause for payment by instalments, as no credible evidence of sickness or financial constraints was provided. The applicant's previous conduct in failing to honour payment pledges undermined his bona fides. The court held that its inherent jurisdiction under section 101 of the Civil Procedure Act cannot be invoked where the prescribed procedure has not been followed. The interests of justice and the rights of the decree holder would be prejudiced by granting the application under these circumstances.

Obiter and limits

  • The delay in delivering this ruling was due to the judge's assignment to a criminal session, subsequent leave, and transfer.
  • An order of the court should not unnecessarily prejudice the decree-holder, especially where payment of the decretal amount is unduly delayed.

Court disposition

application struck out with costs to the respondent

  • The application is struck out with costs to the respondent.
  • District Registrar Mbale to deliver this ruling after service notice to the parties.

Source and reliance status

High Court of Uganda

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Source document

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Judgment text

The complete available source text.

Source document

High Court of Uganda

Judgment

[1996] UGHC 66

THE REPUBLIC OF UGANDA

IN THE HIGH COURT OF UGANDA

HOLDEN AT MBALE

MISCELLANEOUS APPLICATION NO. 27 OF 1995. (FROM H. C. C. S. NO. J OF 1995).

LAWRENCE NAMODA APPLICANT RESPONDENT. BEFORE: THE MON. MR. JUSTICE S. G. ENGVAU VERSUS THE NEW VISION PRINTING AND PUBLISHING COBOPERATION ...

RULING:

In this applicatian, this Ceurt is saved under seotien 101 Civil Pracedure Act by Netice ef Mstian supperted by an affidavit ta exercise its inherent jurisdictien in the interest ef justice ta grant the applicant leave ta pay by instalsents the decretal ameunt plus taxed casts ef the suit.

In M. C. C. S. Na. J af 1995\* judgment was delivered against the applicant en 10.2.95\* ^be decretal amaunt was U. She 19f377el55/- plus taxed casts in the sum af U. She 1,667,069/05\*

At the hearing af this applicatian, a sum af J.50m/- anly was allegedly paid but a Warrant ta Arrest the applicant te be cemmitted ta civil prisan was issued but expired en 18.12.95\* By then the indebtedness had matured by abeut 10 Henths eld since judgment was passed against the applicant.

If the applicatian is granted, the applicant is prepared ta depesit regularly a sum ef U. 8hs. 500,000/- fartnightly. He put that request ta the decree halder/respandent threugh their advecates but was instead asked te pay initially 10s/~ which the applicant feund te harsh.

It is stated that the applicant is ready and willing te pay that debt but due te financial censtraint and sickness he was unable te raise that ameunt.

/\*

It was submitted that to commit the applicant to civil prison would not be in the interest of the decree holder or the applicant as indebtedness would increase.

2

**decretal amount te be paid by instalments: Ltd., v. Salaeh Abdulla, (1959) E. A.

260. Learned Counsel, Mr. Owori for the applicant, further argued that no fraud was raised against the judgment debtor in his dealings with the decree holder. There is therefore sufficient cause for the Keshavji Jethabhai & Bros**

In conclusion, the learned Counsel conceded that the High Court may increase the amount for payment by instalments: A. Majabali Alidina Restulla Alidina & Aner, (19&1) E. A. 5&5 an^ that section 101 C. P. A. gives court wider power to that effect.

The learned Counsel for the respondents, Mr. Wanders, rightly pointed out that the applicant by his conduct cannot stand by his words and should not benefit by this application: Standard Chartered Bank v. Cloud 10 Ltd., (1988 - 90) MCB.84.

In an affidavit in reply, depened an 14.12.95 at paragraph 5, it is stated:

TtThat by a letter dated 24.4.95 addressed to the District Registrar and copied to the corporation's lawyers, the applicant informed the Registrar that he was willing te settle the decretal amount by way of two instalments to rescue Ms house from sale and that he needed only two weeks to settle the debt. - " (Ann. "C").

In paragraph 6 that affidavit, it was deponed to the effect: "That thia letter was preceded by another letter to the corporation's lawyers proposing payment of the decretal bus between 4 and *6* months" • (Ann. "D").

Paragraph 8 states: "That by a letter dated 4.7.95i the applicant pledged to make minimum monthly payment of shs Jm/-" • (Ann. "F' but all in vain.

/J

- 3 -

In paragraph 10 of the affidavit reads:

"That by a letter dated 1.11.95 to the corporation's lawyers the applicant made an initial deposit of Shs 500,000/- and promised to make another preferably within one month - (Ann. "G"). However, surprisingly within the one month the applicant decided to file this application instead of paying the money.

Judging from the applicant's conduct herein stated above, his pledge to pay She 500,000/- per fortnight might as well meet the same fate. The situation might even worsen if this court increased higher amount of payment beyond the 1s/- monthly as it had happened before.

Bona fides of the applicant are such that he is ist ready to pay his debt before or during the hearing of this application but after sometime next year (1996). An order of this court should not unnocesarily prejudice the decree-holder. Not to pay the decretal amount in full for over 1# years would be detremental to the decroeholder. Takofor instance that J.5'MA\*f the debt is is so far paid, leaving a balance of over 18m/- and it is pledged that payment shall be 1m/- per month and that would cover a period of about 18 months to pay the debt in full when the present currency might have lost its value.

In an application of this mature, there must and ought to be sufficient cause for it. In the instant case, the applicant allegedly claimed sickness which unabled him to pay his debt. Unfortunately, the applicant failed to date to produce medical evidence even when his Counsel promised he would produce some medical forms in the afternoon of the day when this application was hoard. In the absence of such medical forms or evidence to indicate the nature and duration of sickness. I'm inclined to believe that the issue of sickness is an afterthought.

Similarly, mere statement ef financial constraints without evidence disclosing details of such constraints in no sufficient cause to this application to warrant payment of the debt by instalments.

In yet another turn, Mr. Wandera again rightly pointed out that application to pay by instalment should be brought under 0.18 r. U CPR by Chasber Summons. This application is by Notice of Motion. In Namukasa v. Bukya, (196?) E. A. 433, application was brought by Chasber Summons and a preliminary objection was that it should be by Notice of Motion. The application was struck out and an attempt to invoke section 101 C. P. A. was refused because the proceedings were not properly brought before the court. That decision falls squarely with AU the conners of the instant application.

Accordingly, with due respect, I de net agree with the learned Counsel for the applicant that this application is properly brought before thia court and as such de hdreof struck it out with costs to the respondent. I so order.

Before I take leave of this ruling, it is to be noted that it delayed because I was sent on Criminal Session at Soroti and thereafter went on leave and before my leave expired my transfer took immediate effect. Sorry.

> S. G. ENGWAU JUDGE 18.9.96

Orderi District Registrar Mbale to deliver this Ruling after service notice to the parties.

> S. G. ENGWAU JUDGE 26.9.96.

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Authorities

Authorities used by the court

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

Ltd. v. Salaeh Abdulla (1959) E.A. 260

Case cited

A. Majabali Alidina Restulla Alidina & Anor (1961) E.A. 545

Case cited

Namukasa v. Bukya (1967) E.A. 433

Case cited

Standard Chartered Bank v. Cloud 10 Ltd. (1988-90) MCB.84

Case cited

Civil Procedure Act, Section 101

Legislation

Legislation referenced in the available case record.

Civil Procedure Rules, Order 18 Rule 11

Legislation

Legislation referenced in the available case record.

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