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Uganda Judgment

HC: Civil Division (Uganda)

Pipal Projects (PVT) Limited v Radiant Projects and Estates Limited (MISCELLANEOUS APPLICATION NO. 412 OF 2018) [2019] UGHCCD 264 (20 March 2019)

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01

Holding and result

The court found that at the interlocutory stage, it could not conclusively determine whether the applicant had a prima facie case with a high chance of success or whether irreparable loss would occur that could not be compensated by damages. Given this uncertainty, the court applied the principle of balance of convenience and determined that the applicant would be exposed to great inconvenience if the respondent were allowed to deal with the suit land before the main suit was resolved. To preserve the status quo and prevent potential injustice, the court granted a temporary injunction restraining the respondent from dealing with the land in any way without the applicant's consent until the disposal of the main suit. Each party was ordered to bear its own costs.

Court disposition

temporary injunction granted; each party to bear its own costs

Orders

  • A temporary injunction is granted restraining the respondent and/or its agents, servants, assignees and anyone acting under its authority from dealing with land comprised in Block 560 Plot 17 and Block 560 Plot 14 land at Mazzi, Luweero district in any way without the consent of the applicant until the disposal of the main suit.
  • Each party shall bear its own costs.

02

Material facts

Parties

Pipal Projects (Pvt) Ltd

Applicant Counsel: Mr. McDusman Kabega

Radiant Projects & Estates Limited

Respondent Counsel: Dennis Sembuya

Amounts and remedies

  • Applicant's Investment in Project: USD 59,171

03

Procedural history

  1. Posture

    Miscellaneous Application / Ruling on Application for Temporary Injunction

04

Questions and positions

Legal issues

Party arguments

Applicant
The applicant argued that it entered into a partnership agreement with the respondent for farming, with the respondent providing the suit land. The applicant invested approximately USD 59,171 and fears the respondent may dispose of or mortgage the land without its knowledge, causing irreparable damage and rendering the suit nugatory. The applicant contends the suit has a high chance of success and seeks to preserve the status quo until the main suit is determined.
Respondent
The respondent contended that the application is irregular, misconceived, and an abuse of court process. It argued that the agreement was made privately with an individual lacking authority to bind the respondent, and the applicant has not purchased any assets for any project with the respondent. As the registered proprietor, the respondent is not obliged to notify the applicant before dealing with its land. Any alleged loss is quantifiable in monetary terms and can be compensated.

05

Court’s reasoning

  1. 01

    Order 41 rule 2 of the Civil Procedure Rules; Giella v Cassman Brown & Co. Ltd [1973] EA 358

    For a temporary injunction to be granted, the applicant must show a prima facie case with a likelihood of success and a risk of irreparable harm if the injunction is denied. If these are in doubt, the court considers the balance of convenience.

  2. 02

    Giella v Cassman Brown & Co. Ltd [1973] EA 358

    Irreparable loss refers to harm that cannot be adequately compensated by an award of damages.

06

Ratio, limits and disposition

Ratio decidendi

The court found that at the interlocutory stage, it could not conclusively determine whether the applicant had a prima facie case with a high chance of success or whether irreparable loss would occur that could not be compensated by damages. Given this uncertainty, the court applied the principle of balance of convenience and determined that the applicant would be exposed to great inconvenience if the respondent were allowed to deal with the suit land before the main suit was resolved. To preserve the status quo and prevent potential injustice, the court granted a temporary injunction restraining the respondent from dealing with the land in any way without the applicant's consent until the disposal of the main suit. Each party was ordered to bear its own costs.

Obiter and limits

  • At this stage I cannot tell if the Applicant has a prima facie case with high chances of success.
  • I also cannot tell if the Applicant would suffer irreparable loss that the Respondent cannot atone in damages and costs.
  • To abate the possibility of inconvenience, a temporary injunction to maintain the status quo is necessary until court determines the main dispute.

Court disposition

temporary injunction granted; each party to bear its own costs

  • A temporary injunction is granted restraining the respondent and/or its agents, servants, assignees and anyone acting under its authority from dealing with land comprised in Block 560 Plot 17 and Block 560 Plot 14 land at Mazzi, Luweero district in any way without the consent of the applicant until the disposal of the main suit.
  • Each party shall bear its own costs.

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 264

THE REPUBLIC OF UGANDA IN THE HIGH COURT OF UGANDA AT KAMPALA MISC. APP. NO. 412 OF 2018

PIPAL PROJECTS (PVT) LTD ::::::::::::::::::::::::: APPLICANT

VERSUS

RADIANT PROJECTS & ESTATES LIMITED ::::::::::::::::::::::::: RESPONDENT

BEFORE: LADY JUSTICE LYDIA MUGAMBE

RULING

- 1. The Applicant filed this application seeking: - i. A temporary injunction restraining the Respondent and or his agents, servants, assignees and anyone acting under the authority of the Respondent from dealing with land comprised in Block 560 Plot 17 and Block 560 Plot 14 land at Mazzi, Luweero district in any way without the consent of the Applicant until disposal of the main suit. - ii. Costs of the application. - 2. The application was supported by the affidavit of Mr. C. Ramalaksmaiah the Applicant's director but the briefly the grounds are that; (1) on 2nd May 2013, the Applicant and the Respondent entered into a partnership agreement for farming and the Respondent provided the suit land for the partnership use; (2) the Applicant has invested approximately USD 59,171 and fears that the Respondent may dispose of or mortgage the suit land without the Applicant's Knowledge; (3) the Applicant will suffer irreparable damage if anything is done

on the land and the suit will be rendered nugatory and (4) the suit stands a very high chance of success.

- 3. The Applicant was represented by Mr. McDusman Kabega of M/s. Tumusiime, Kabega & Co. Advocates and the Respondent was represented by Dennis Sembuya of M/s. Kasirye Byaruhanga & Co. Advocates. - 4. The Respondent opposed this application through the affidavit in reply of Mr. Andrew Kasirye the director of the Respondent. He averred that the application is objectionable for being irregular, misconceived, bad at law and an abuse of court process. The agreement was made privately between the Applicant and a one B. Mudhusudhan Reddy who had no authority to enter into any transaction on behalf of the Respondent and that the Applicant has not purchased any assets for any purported project with the Respondent. The Respondent does not have to notify the Applicant before disposing off or dealing with its land as the lawfully registered proprietor. The Applicant will not suffer any irreparable damage as it is claiming a monetary sum of USD 200,000 which is a quantifiable figure that can be atoned in monetary terms. - 5. For a temporary injunction to succeed, the applicant must demonstrate that he has a *prima facie* case with high chances of success and that if the injunction is not allowed, he would suffer irreparable loss. If in doubt of these two, then the Court makes a determination based on a balance of convenience. - 6. At this stage I cannot tell if the Applicant has a *prima

facie* case with high chances of success. I also cannot tell if the Applicant would suffer irreparable loss that the Respondent cannot atone in damages and costs. I will therefore make a determination on a balance of convenience. - 7. The Applicant is wary that if the injunction is not granted the Respondent may sell or mortgage the suit land and the Applicant will be exposed to great inconvenience. In the circumstances of this case, to abate this possibility, a temporary injunction to maintain the status quo is necessary until court determines the main dispute between the parties.

Accordingly a temporary injunction is granted restraining the Respondent and/or his agents, servants, assignees and anyone acting under the authority of the Respondent from dealing with land comprised in Block 560 Plot 17 and Block 560 Plot 14 land at Mazzi, Luweero district in any way without the consent of the Applicant until the disposal of the main suit. Each party shall bear its costs.

I so order.

Lydia Mugambe Judge 20th March 2019

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Authorities

Authorities used by the court

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

Giella v Cassman Brown & Co. Ltd [1973] EA 358

Case cited

Order 41 rule 2 of the Civil Procedure Rules

Legislation

Legislation referenced in the available case record.

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