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Uganda Judgment

Commercial Court of Uganda

Salini Construction S.P.A v Bisons Consult International (HCT-00-MA 88 of 2008) [2009] UGCommC 44 (23 February 2009)

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01

Holding and result

The court held that the grounds advanced by the applicant—failure of negotiations, delay in hearing, and interests of justice—do not constitute valid grounds for reviewing a consent order. The law is settled that a consent judgment is a fresh agreement between parties and can only be set aside for fraud, mistake, misapprehension, or illegality. The evidence showed that the consent order was entered into to protect the respondent's interests, especially since the applicant is a foreign company with no assets in Uganda and was winding up its project. The applicant failed to rebut the respondent's affidavit evidence or provide a bank guarantee as previously agreed. The global financial crisis was also not a valid ground for review. Granting the orders sought would leave the respondent's claim unsecured. The application was therefore dismissed with costs to the respondent.

Court disposition

application dismissed with costs to the respondent

Orders

  • The application to review paragraphs 4 and 6 of the consent order dated 3rd December 2007 is dismissed.
  • The application to unfreeze the defendant's Barclays Bank account No. 0001424232 is dismissed.
  • Costs of the application are awarded to the respondent.

02

Material facts

Parties

Salini Construction S. P. A

Applicant Counsel: Mr. Namanya

Bisons Consult International

Respondent Counsel: Mr. Kibeedi

Amounts and remedies

  • Amount Held in Barclays Bank Account: UGX 567,915,271
  • Respondent's Total Claim in Main Suit: UGX 535,646,848

03

Procedural history

  1. Posture

    Miscellaneous Application / Ruling on Application to Review Consent Order and Unfreeze Account

04

Questions and positions

Legal issues

Party arguments

Applicant
The applicant argued that negotiations for amicable settlement of the main suit failed, the hearing of the main suit is likely to take a long time, and it is in the interest of justice that the defendant be allowed to access the money held on its account pending the disposal of the main suit. The applicant sought review of paragraphs 4 and 6 of the consent order and unfreezing of the Barclays Bank account to access UGX 567,915,271.
Respondent
The respondent opposed the application, arguing that a consent judgment is binding unless vitiated by fraud, mistake, misapprehension, or contravention of court policy. The respondent emphasized that the consent order was reached in exchange for relinquishing a default judgment and decree, and that the funds were security for the respondent's claim, especially since the applicant is a foreign company with no assets in Uganda.

05

Court’s reasoning

  1. 01

    Hirani v Kassam (1952) E.A. 131; Brooke Bond Liebig (T) Ltd v Mallya (1957) E.A. 266; Mohammed Alibhai v W.E. Bukenya & Another SCCA No. 56 of 1996; Attorney General & Uganda Land Commission v James Mark Kamoga & James Kamala SCCA No. 8 of 2004

    A consent judgment or order is binding on all parties and can only be set aside on limited grounds such as fraud, collusion, mistake, misapprehension, or contravention of court policy.

  2. 02

    National Union of Clerical, Commercial, Professional & Technical Employees v National Insurance Corporation SCCA No. 17 of 1993

    The court's inherent powers to review or vary its orders must be exercised judicially and only where denial of a right or injustice would result.

06

Ratio, limits and disposition

Ratio decidendi

The court held that the grounds advanced by the applicant—failure of negotiations, delay in hearing, and interests of justice—do not constitute valid grounds for reviewing a consent order. The law is settled that a consent judgment is a fresh agreement between parties and can only be set aside for fraud, mistake, misapprehension, or illegality. The evidence showed that the consent order was entered into to protect the respondent's interests, especially since the applicant is a foreign company with no assets in Uganda and was winding up its project. The applicant failed to rebut the respondent's affidavit evidence or provide a bank guarantee as previously agreed. The global financial crisis was also not a valid ground for review. Granting the orders sought would leave the respondent's claim unsecured. The application was therefore dismissed with costs to the respondent.

Obiter and limits

  • The words 'until further orders from Court' in the consent order are clear and unambiguous and should be given their natural meaning.
  • A consent order creates a new legal relationship which should not be tampered with unless exceptional circumstances exist.
  • The global financial crisis is not a ground for review of a consent order negotiated by parties with the assistance of counsel.

Court disposition

application dismissed with costs to the respondent

  • The application to review paragraphs 4 and 6 of the consent order dated 3rd December 2007 is dismissed.
  • The application to unfreeze the defendant's Barclays Bank account No. 0001424232 is dismissed.
  • Costs of the application are awarded to the respondent.

Source and reliance status

Commercial 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.

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Judgment text

The complete available source text.

Source document

Commercial Court of Uganda

Judgment

[2009] UGCommC 44

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\li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid8740353 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\b\insrsid8740353\charrsid12466864 REPUBLIC OF UGANDA \par IN THE HIGH COURT OF UGANDA AT KAMAPALA \par [COMMERCIAL COURT] \par HCT-00-MA-88-2008 \par }\pard \ql \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid8740353 {\b\insrsid8740353\charrsid12466864 SALINI CONSTRUCTION S. P. A::::::::::::::::::::::::APPLICANT \par }\pard \qc \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid8740353 {\b\insrsid8740353\charrsid12466864 VERSUS \par }\pard \ql \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid8740353 {\b\insrsid8740353\charrsid12466864 BISONS CONSULT INTERNATIONAL:::::::::::::::::RESPONDENT \par }\pard \qc \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid8740353 {\b\insrsid8740353\charrsid12466864 \par }{\b\ul\insrsid8740353\charrsid12466864 BEFORE: HON LADY JUSTICE M. S ARACH-AMOKO \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0 {\insrsid8740353\charrsid12466864 \par }\pard \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12654274 {\insrsid5781153\charrsid12466864 \par

}{\b\insrsid5781153\charrsid12466864 Ruling: \par }{\insrsid5781153\charrsid12466864 \par This ruling is in respect of an applicatio}{\insrsid12654274\charrsid12466864 n by Salini Construction S. P. A }{\insrsid5911781\charrsid12466864 (}{\insrsid12654274\charrsid12466864 hereinafter}{\insrsid12659122\charrsid12466864 referred to as the applicant), }{\insrsid5781153\charrsid12466864 under the provisions of section 98 of the Civil }{\insrsid12654274\charrsid12466864 Procedure}{\insrsid5781153\charrsid12466864 Act (cap. 71) , Order 52 Rules 1 and 3 of the Civil }{ \insrsid12654274\charrsid12466864 Procedure}{\insrsid5781153\charrsid12466864 Rules , ( S.}{\insrsid4478363\charrsid12466864 I 71-1)}{\insrsid2688197\charrsid12466864 , }{\insrsid4478363\charrsid12466864 seeking orders from this Court that :}{ \insrsid5781153\charrsid12466864 \par }{\insrsid11101453\charrsid12466864 \par }{\insrsid5470525\charrsid12466864 i}{\insrsid12654274\charrsid12466864 ) Paragraphs}{\insrsid11101453\charrsid12466864 4 and 6 of the Consent Order dated 3}{\super\insrsid11101453\charrsid12466864 rd}{\insrsid11101453\charrsid12466864 December }{ \insrsid5470525\charrsid12466864 2007}{\insrsid11101453\charrsid12466864 be }{\insrsid5470525\charrsid12466864 reviewed.}{\insrsid11101453\charrsid12466864 \par \par (}{\insrsid5470525\charrsid12466864 ii}{\insrsid11101453\charrsid12466864

)}{\insrsid5470525\charrsid12466864 The Defendant\lquote s}{\insrsid11101453\charrsid12466864 Barclays Bank Account }{\insrsid14419141\charrsid12466864 No. 0001424232, be }{ \insrsid5470525\charrsid12466864 unfrozen to}{\insrsid14419141\charrsid12466864 enable the }{\insrsid5470525\charrsid12466864 defendant to}{\insrsid14419141\charrsid12466864 access the sum of U shs. 567,915,271 held on the said account.}{ \insrsid11101453\charrsid12466864 \par }{\insrsid5470525\charrsid12466864 \par }{\insrsid14419141\charrsid12466864 (}{\insrsid5470525\charrsid12466864 iii}{\insrsid14419141\charrsid12466864 ) Costs of the application be provided for. \par \par }{\insrsid80691\charrsid12466864 The grounds of the application are }{\insrsid5470525\charrsid12466864 briefly that}{\insrsid80691\charrsid12466864 :}{\insrsid14419141\charrsid12466864 \par {\listtext\pard\plain\insrsid2688197\charrsid12466864 \hich\af0\dbch\af0\loch\f0 (1)\tab}}\pard \qj \fi-360\li720\ri0\sl360\slmult1\widctlpar\jclisttab\tx720\aspalpha\aspnum\faauto\ls2\adjustright\rin0\lin720\itap0\pararsid12654274 { \insrsid2688197\charrsid12466864 T}{\insrsid80691\charrsid12466864 hat negotiations for an amicable settlement of the main suit has failed; \par {\listtext\pard\plain\insrsid80691\charrsid12466864 \hich\af0\dbch\af0\loch\f0 (2)\tab}That the hearing of the main suit is likely to take a long time

}{\insrsid9765580\charrsid12466864 before it is finally determined by Court ; and }{ \insrsid80691\charrsid12466864 \par {\listtext\pard\plain\insrsid3554672\charrsid12466864 \hich\af0\dbch\af0\loch\f0 (3)\tab}}{\insrsid3554672\charrsid12466864 It is in the interest of justice that the defendant be allowed to access money held on its account pending the disposal of the main }{\insrsid5470525\charrsid12466864 suit.}{\insrsid3554672\charrsid12466864 \par }\pard \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12654274 {\insrsid2961283\charrsid12466864 \par The application was supported by the affidavit sworn on the 27}{\super\insrsid2961283\charrsid12466864 th}{\insrsid2961283\charrsid12466864 February }{\insrsid5470525\charrsid12466864 2008 }{\insrsid622361\charrsid12466864 by Mr}{ \insrsid5470525\charrsid12466864 .}{\insrsid2961283\charrsid12466864 Mel England its }{\insrsid622361\charrsid12466864 Project Manager.}{\insrsid4935848\charrsid12466864 Mr. Bisangwa Kasimba Josephant, the respondent\rquote s Managing }{ \insrsid10290201\charrsid12466864 Director swore an affidavit in reply on the 11}{\super\insrsid10290201\charrsid12466864 th}{\insrsid10290201\charrsid12466864 March 2008.}{\insrsid2961283\charrsid12466864 \par }{\insrsid8323770\charrsid12466864 \par The }{\insrsid12654274\charrsid12466864 brief

background}{\insrsid8323770\charrsid12466864 to the }{\insrsid5460122\charrsid12466864 application is that the parties executed an agreement by which the }{\insrsid12654274\charrsid12466864 respondent agreed} {\insrsid3616187\charrsid12466864 to }{\insrsid12654274\charrsid12466864 supply}{\insrsid3616187\charrsid12466864 30,000 tons of}{\insrsid5460122\charrsid12466864 rock-fill }{\insrsid622361\charrsid12466864 material within a radius}{ \insrsid5986076\charrsid12466864 of three }{\insrsid622361\charrsid12466864 kilometers for}{\insrsid5460122\charrsid12466864 the Northe}{\insrsid5986076\charrsid12466864 r}{\insrsid5460122\charrsid12466864 n Bypass}{\insrsid3616187\charrsid12466864 } {\insrsid622361\charrsid12466864 Project. }{\insrsid3616187\charrsid12466864 The respondent }{\insrsid5470525\charrsid12466864 complied. }{\insrsid5986076\charrsid12466864 Thereafter, the parties agreed orally that the respondent sup plies extra materials beyond the three kilometers. The respondent }{\insrsid5439839\charrsid12466864 again }{\insrsid5986076\charrsid12466864 complied. It appears, }{\insrsid5470525\charrsid12466864 however,}{\insrsid5986076\charrsid12466864 that the parties did not agree on the rate for transporting the extra materials. This resulted into a dispute which ended up in HCCS No. 790 of 2}{\insrsid5439839\charrsid12466864 00}{\insrsid5986076\charrsid12466864

6}{\insrsid5439839\charrsid12466864 being}{\insrsid5986076\charrsid12466864 filed by the respondent }{\insrsid10762488\charrsid12466864 against the applicant claiming shs.338,559,240 for the said materials plus other additional claims which came to a total of a total of shs. 535,646,848}{ \insrsid622361\charrsid12466864 , }{\insrsid5439839\charrsid12466864 together with }{\insrsid4484490\charrsid12466864 inter alia }{\insrsid10762488\charrsid12466864 general damages and costs.}{\insrsid8323770\charrsid12466864 \par }{\insrsid6964794\charrsid12466864 \par On the 24}{\super\insrsid6964794\charrsid12466864 th}{\insrsid6964794\charrsid12466864 April 2007, the Registrar entered default judgment}{\insrsid12405956\charrsid12466864 under Order 11 rule 6 of the CPR}{\insrsid6964794\charrsid12466864 against the }{\insrsid5470525\charrsid12466864 applicant on}{\insrsid12405956\charrsid12466864 the ground that the }{\insrsid8999359\charrsid12466864 applicant}{\insrsid12405956\charrsid12466864 ha}{\insrsid5470525\charrsid12466864 d failed to file a }{ \insrsid12405956\charrsid12466864 defence within the prescribed time.}{\insrsid5470525\charrsid12466864 }{\insrsid12405956\charrsid12466864 A}{\insrsid6359173\charrsid12466864 }{\insrsid12405956\charrsid12466864 decree was extracted on the same day.}{ \insrsid5470525\charrsid12466864 }{\insrsid12405956\charrsid12466864 On the

27}{\super\insrsid12405956\charrsid12466864 th}{\insrsid12405956\charrsid12466864 of November 2007, the applicant was served with a garnishee orde}{ \insrsid15555925\charrsid12466864 r}{\insrsid12405956\charrsid12466864 attaching its account No.0001424232 with Barclays }{\insrsid5470525\charrsid12466864 Bank}{\insrsid8999359\charrsid12466864 ,}{\insrsid5470525\charrsid12466864 in}{ \insrsid15555925\charrsid12466864 an attempt to satisfy the decree. The applicant responded by challenging the default judgment}{\insrsid6249465\charrsid12466864 vide}{\insrsid15227914\charrsid12466864 }{\insrsid6249465\charrsid12466864 Misc. Application}{\insrsid15227914\charrsid12466864 s}{\insrsid6249465\charrsid12466864 No.}{\insrsid15227914\charrsid12466864 749, }{\insrsid6249465\charrsid12466864 810 }{\insrsid15227914\charrsid12466864 & 811}{\insrsid6249465\charrsid12466864 of 2007 on the ground that it had a good defence to the claim and prayed that the execution and the garnishee order be stayed and leave be granted to it to file a defence . While the application was pending }{\insrsid15227914\charrsid12466864 in }{ \insrsid5470525\charrsid12466864 Court,}{\insrsid15227914\charrsid12466864 the parties reached }{\insrsid5911781\charrsid12466864 a consent}{\insrsid5470525\charrsid12466864 and}{\insrsid15227914\charrsid12466864 on the 29}{ \super\insrsid15227914\charrsid12466864

th}{\insrsid15227914\charrsid12466864 November 200}{\insrsid4484490\charrsid12466864 8}{\insrsid15227914\charrsid12466864 ,}{\insrsid622361\charrsid12466864 }{\insrsid15227914\charrsid12466864 they filed the }{ \insrsid5911781\charrsid12466864 Consent Order}{\insrsid15227914\charrsid12466864 the subject of this application.}{\insrsid6964794\charrsid12466864 \par }{\insrsid10369629\charrsid12466864 \par }{\insrsid13698097\charrsid12466864 It is no}{\insrsid6761612\charrsid12466864 w }{\insrsid13698097\charrsid12466864 w}{\insrsid5712087\charrsid12466864 ell}{\insrsid13698097\charrsid12466864 }{\insrsid5470525\charrsid12466864 settled that}{ \insrsid5712087\charrsid12466864 a consent judgment has to be upheld unless it is vitiated by a reason that would enable a court to set aside an }{\insrsid5470525\charrsid12466864 agreement,}{\insrsid5712087\charrsid12466864 }{ \insrsid5470525\charrsid12466864 such as fraud}{\insrsid5712087\charrsid12466864 , }{\insrsid5470525\charrsid12466864 mistake,}{\insrsid5712087\charrsid12466864 misapprehension or contravention of court policy . This }{\insrsid6761612\charrsid12466864 is on the premise that }{\insrsid5470525\charrsid12466864 a consent}{\insrsid6761612\charrsid12466864 is a fresh agreement between the }{\insrsid5470525\charrsid12466864 parties. }{\insrsid10369629\charrsid12466864 \par }{\insrsid622361\charrsid12466864 \par

}{\insrsid6761612\charrsid12466864 The principle upon which the Court may interfere with a consent judgment was outlined by the Court of Appeal for }{\insrsid11610440\charrsid12466864 East }{\insrsid622361\charrsid12466864 Africa in Hirani vs-}{ \insrsid11610440\charrsid12466864 Kassam (1952) E. A 131 in which it approved and adopted the following passage from}{\insrsid12408111\charrsid12466864 Seton on Judgments and Orders, }{\insrsid11610440\charrsid12466864 7}{ \super\insrsid11610440\charrsid12466864 th}{\insrsid15934964\charrsid12466864 Edn. Vol. 1 p .124}{\insrsid12408111\charrsid12466864 .}{\insrsid15934964\charrsid12466864 \par \par }{\i\insrsid15934964\charrsid12466864 \'93}{\i\insrsid11610440\charrsid12466864 Prima }{\i\insrsid622361\charrsid12466864 facie,}{\i\insrsid11610440\charrsid12466864 }{\i\insrsid9512796\charrsid12466864 any order made in the presence and with consent of counsel is binding on all parties to the proceedings or }{\i\insrsid622361\charrsid12466864 action,}{\i\insrsid9512796\charrsid12466864 and cannot be varied or discharged unless obtained by fraud or collusion, or by an agreement}{\i\insrsid5778225\charrsid12466864 contrary to the policy of the Court \'85\'85\'85.or if the consent was given without }{\i\insrsid6191522\charrsid12466864 sufficient facts}{\i\insrsid5778225\charrsid12466864 , or in misapprehension or in ignorance

}{\i\insrsid6191522\charrsid12466864 of material}{\i\insrsid5778225\charrsid12466864 }{\i\insrsid8390769\charrsid12466864 facts,}{ \i\insrsid6364096\charrsid12466864 or in general for a reason which would enable a co}{\i\insrsid12654274\charrsid12466864 urt to set aside an agreement}{\i\insrsid6191522\charrsid12466864 \'94}{\i\insrsid6761612\charrsid12466864 \par }{\insrsid6364096\charrsid12466864 \par Subsequently, the same Court reiterated the principle }{\b\insrsid6364096\charrsid12466864 in }{\b\ul\insrsid6364096\charrsid12466864 Brooke Bond Lie}{\b\ul\insrsid2128347\charrsid12466864 s}{\b\ul\insrsid6364096\charrsid12466864 big (T) Ltd. Vs. Mallya (1957) E. A 266 and the Supreme Court of Uganda followed it in Mohammed Alibhai vs. W. E. Bukenya and Another SCCA No. 56 of 1996 (unreported)}{\b\ul\insrsid2128347\charrsid12466864 , }{\b\ul\insrsid1146200\charrsid12466864 and in Attorney General and The Uganda Land Commission vs. James Mark Kamoga and James Kamala SCCA No.8 0f 2004,also}{\b\ul\insrsid2128347\charrsid12466864 relied on by Mr. Muzamil}{\insrsid2128347\charrsid12466864 }{ \b\ul\insrsid2128347\charrsid12466864 Kibeedi, learned counsel for the }{\b\ul\insrsid8207480\charrsid12466864 respondent}{\ul\insrsid1146200\charrsid12466864 }{\b\ul\insrsid1146200\charrsid12466864 unreported}{\b\insrsid1146200\charrsid12466864 .}{ \insrsid6773500\charrsid12466864

}{\insrsid1146200\charrsid12466864 This is wh}{\insrsid10894518\charrsid12466864 a}{\insrsid1146200\charrsid12466864 t Mulenga }{\insrsid16076899\charrsid12466864 JSC,}{\insrsid1146200\charrsid12466864 as he then was said at p. 13 of his judgment: \par }{\insrsid5847739\charrsid12466864 \par }{\b\i\insrsid1146200\charrsid12466864 \lquote \'85unlike judgments in uncontested cases, consent judgments are treated as fresh }{\b\i\insrsid5847739\charrsid12466864 agreements}{\b\i\insrsid1146200\charrsid12466864 and may only be interfered}{ \insrsid1146200\charrsid12466864 }{\b\i\insrsid1146200\charrsid12466864 with on limited grounds such as illegality , fraud , or mistake.\rquote }{\b\i\insrsid13764548\charrsid12466864 \par }{\insrsid13764548\charrsid12466864 \par In the instant }{\insrsid5847739\charrsid12466864 application, the}{\insrsid13764548\charrsid12466864 grounds pleaded are}{\insrsid10894518\charrsid12466864 indeed}{\insrsid13764548\charrsid12466864 ,}{\insrsid5847739\charrsid12466864 }{ \insrsid13764548\charrsid12466864 failure of negotiation for an }{\insrsid5847739\charrsid12466864 amicable settlement}{\insrsid10894518\charrsid12466864 by the parties}{\insrsid13764548\charrsid12466864 , delay by Court to hear the suit and interest of justice.}{\insrsid2621998\charrsid12466864 From the affidavits }{\insrsid9245632\charrsid12466864 o}{\insrsid2621998\charrsid12466864 n

record,}{\insrsid10894518\charrsid12466864 Court finds that w hilst it is true that the}{\insrsid5067567\charrsid12466864 }{\insrsid10894518\charrsid12466864 various efforts}{\insrsid5067567\charrsid12466864 made by the parties to}{\insrsid10894518\charrsid12466864 try and settle the matter amicably }{ \insrsid5067567\charrsid12466864 were futile, that mediation by}{\insrsid16076899\charrsid12466864 the Registrar has also failed, }{\insrsid10894518\charrsid12466864 and}{\insrsid16076899\charrsid12466864 that }{\insrsid10894518\charrsid12466864 the suit filed way back in December 2006 is still dragging in Court }{\insrsid12615207\charrsid12466864 due to}{\insrsid6359173\charrsid12466864 }{\insrsid5067567\charrsid12466864 the busy}{\insrsid5847739\charrsid12466864 Court schedule, among others, }{\insrsid5067567\charrsid12466864 this evidence per se on the basis of the authorities above does not jus}{\insrsid2190823\charrsid12466864 tify the review of the Consent Order sought from }{\insrsid5067567\charrsid12466864 th}{ \insrsid2190823\charrsid12466864 is Court}{\insrsid5067567\charrsid12466864 . \par \par }{\insrsid6359173\charrsid12466864 }{\insrsid6773500\charrsid12466864 Further,}{\insrsid5067567\charrsid12466864 it is the Court\rquote s view that}{\insrsid6359173\charrsid12466864 the}{\insrsid11534956\charrsid12466864 words }{ \i\insrsid2901317\charrsid12466864

\'93}{\i\insrsid11534956\charrsid12466864 until further orders }{\i\insrsid6773500\charrsid12466864 from}{\insrsid6773500\charrsid12466864 }{\i\insrsid6773500\charrsid12466864 Court}{\i\insrsid2901317\charrsid12466864 \'94}{\i\insrsid6773500\charrsid12466864 ,}{\insrsid11534956\charrsid12466864 used in }{\insrsid6773500\charrsid12466864 the paragraphs}{\insrsid11534956\charrsid12466864 which the applicant seeks to be reviewed are really clear and unambiguous and should be given their natural meaning.}{\insrsid5847739\charrsid12466864 }{\insrsid8804614\charrsid12466864 It}{\insrsid2190823\charrsid12466864 may well be}{ \insrsid8804614\charrsid12466864 that both parties had in mind a situation where they would have to resort to court in case}{\insrsid2193158\charrsid12466864 negotiations failed}{\insrsid2190823\charrsid12466864 and indeed both }{ \insrsid5847739\charrsid12466864 parties}{\insrsid2190823\charrsid12466864 have a right to do so especially since the suit is still pending in }{\insrsid5847739\charrsid12466864 court, they}{\insrsid2193158\charrsid12466864 did not include}{ \insrsid2190823\charrsid12466864 }{\insrsid1394793\charrsid12466864 }{\insrsid2193158\charrsid12466864 among the agreed terms}{\insrsid1394793\charrsid12466864 any }{\insrsid2901317\charrsid12466864 express }{\insrsid1394793\charrsid12466864 provision that the Consent

}{\insrsid5847739\charrsid12466864 Order would be}{\insrsid1394793\charrsid12466864 reviewed once }{\insrsid5847739\charrsid12466864 negotiations failed}{\insrsid1394793\charrsid12466864 .}{\insrsid5847739\charrsid12466864 }{ \insrsid10697192\charrsid12466864 It is therefore difficult for this Court to read that intention in}{\insrsid2901317\charrsid12466864 to}{\insrsid10697192\charrsid12466864 the clear wording of the Consent Order. \par \par }{\insrsid1394793\charrsid12466864 A}{\insrsid11291385\charrsid12466864 ccording to }{\insrsid6773500\charrsid12466864 me,}{\insrsid11291385\charrsid12466864 and bas}{\insrsid10697192\charrsid12466864 e}{\insrsid11291385\charrsid12466864 d on perusal of the evidence on Court record}{\insrsid6773500\charrsid12466864 , the}{\insrsid11291385\charrsid12466864 Consent Order was reached in exchange for the respondent }{\insrsid5847739\charrsid12466864 relinquishing}{ \insrsid11291385\charrsid12466864 the default judgment}{\insrsid10697192\charrsid12466864 and }{\insrsid6773500\charrsid12466864 decree,}{\insrsid11291385\charrsid12466864 and allowing the applicant to file a defence in the main suit. As Mr Bisangwa explained in his }{\insrsid5847739\charrsid12466864 affidavit in}{\insrsid11291385\charrsid12466864 reply}{\insrsid5847739\charrsid12466864 , he}{ \insrsid11291385\charrsid12466864 was present in court when his lawyer gave conditional

consent }{\insrsid10697192\charrsid12466864 to the }{\insrsid5847739\charrsid12466864 applicant\rquote s application for}{\insrsid10697192\charrsid12466864 leave to file a defence .}{\insrsid11291385\charrsid12466864 }{\insrsid11412800\charrsid12466864 He }{\insrsid5847739\charrsid12466864 stated that}{\insrsid10697192\charrsid12466864 the underlying reason for }{\insrsid5847739\charrsid12466864 their instruction}{\insrsid10697192\charrsid12466864 was that the applicant is a foreign }{\insrsid5847739\charrsid12466864 registered company}{\insrsid10697192\charrsid12466864 without any assets in Uganda }{\insrsid5847739\charrsid12466864 and was}{ \insrsid10697192\charrsid12466864 in the process of windi}{\insrsid11412800\charrsid12466864 n}{\insrsid10697192\charrsid12466864 g up the project for which the respondent had supplied the land fill }{\insrsid5847739\charrsid12466864 materials, the}{ \insrsid11412800\charrsid12466864 Consent Order was therefore intended to protect the respondent\rquote s interest since it would be very difficult to recover from the applicant the moment the project wound }{\insrsid9402544\charrsid12466864 up. }{ \insrsid11412800\charrsid12466864 These }{\insrsid4591110\charrsid12466864 averments}{\insrsid11412800\charrsid12466864 wer}{\insrsid3880474\charrsid12466864 e}{\insrsid11412800\charrsid12466864 not rebutted by the

}{\insrsid12994905\charrsid12466864 applicant.}{\insrsid9402544\charrsid12466864 }{\insrsid11412800\charrsid12466864 Court therefore }{\insrsid2901317\charrsid12466864 find}{\insrsid11412800\charrsid12466864 s some element of truth in }{\insrsid5847739\charrsid12466864 them especially}{ \insrsid11412800\charrsid12466864 after the failure by the applicant to obtain a bank guarantee }{\insrsid12994905\charrsid12466864 from a}{\insrsid11412800\charrsid12466864 reputable bank in }{\insrsid12994905\charrsid12466864 Uganda,}{ \insrsid11412800\charrsid12466864 a condition which the respondent had accepted }{\insrsid12994905\charrsid12466864 for unfreezing}{\insrsid11412800\charrsid12466864 the said account.}{\insrsid3880474\charrsid12466864 \par \par The global financial crisis is also no ground for review of a Consent Order negotiated by parties with the assistance of counsel}{\insrsid2902545\charrsid12466864 because as }{\insrsid3880474\charrsid12466864 s}{\insrsid2901317\charrsid12466864 tated earlier on in this ruling,}{\insrsid2902545\charrsid12466864 a consent order is a special }{\insrsid12994905\charrsid12466864 category}{\insrsid2902545\charrsid12466864 of remedies, it creates a new legal relationship which should not be tampered with}{\insrsid8137746\charrsid12466864 by Court}{\insrsid2902545\charrsid12466864 unless the exceptional circumstances

}{\insrsid12994905\charrsid12466864 aforementioned}{ \insrsid2902545\charrsid12466864 }{\insrsid8137746\charrsid12466864 exist}{\insrsid2902545\charrsid12466864 }{\insrsid3880474\charrsid12466864 .}{\insrsid2902545\charrsid12466864 }{\insrsid3880474\charrsid12466864 \par }{\insrsid8137746\charrsid12466864 \par The case }{\insrsid15557682\charrsid12466864 of }{\b\ul\insrsid15557682\charrsid12466864 National}{\b\ul\insrsid8137746\charrsid12466864 Union of Clerical , Commercial ,Professional &}{\insrsid8137746\charrsid12466864 }{ \b\ul\insrsid8137746\charrsid12466864 Technical Employees vs. National Insurance Corporation ,SCCA No.}{\ul\insrsid8137746\charrsid12466864 }{\b\ul\insrsid8137746\charrsid12466864 17 of 1993}{\insrsid8137746\charrsid12466864 ,relied on by Mr}{ \insrsid12994905\charrsid12466864 .}{\insrsid8137746\charrsid12466864 }{\insrsid15557682\charrsid12466864 Benard }{\insrsid8137746\charrsid12466864 Namanya,}{\insrsid15557682\charrsid12466864 learned Counsel for the applicant}{ \insrsid8137746\charrsid12466864 clearly says tha}{\insrsid15557682\charrsid12466864 t: }{\insrsid8137746\charrsid12466864 }{\i\insrsid15557682\charrsid12466864 \'93}{\i\insrsid8137746\charrsid12466864 the question whether a court should invoke its inherent pow}{\i\insrsid3833174\charrsid12466864 ers in a given case is a matter fo}{\i\insrsid8137746\charrsid12466864

r}{\i\insrsid3833174\charrsid12466864 the court\rquote s discretion which should be exercised judicially}{\i\insrsid15557682\charrsid12466864 \'94}{\i\insrsid3833174\charrsid12466864 }{\i\insrsid8527929\charrsid12466864 and \'93}{\i\insrsid3833174\charrsid12466864 The court will }{ \i\insrsid869430\charrsid12466864 in}{\insrsid12994905\charrsid12466864 }{\i\insrsid3833174\charrsid12466864 exercise o}{\i\insrsid869430\charrsid12466864 f}{\i\insrsid12994905\charrsid12466864 }{\i\insrsid3833174\charrsid12466864 this discret ion grant the relief sought only where to do so otherwise would be to deny a right or to do injustice}{\i\insrsid8527929\charrsid12466864 \'94}{\insrsid8527929\charrsid12466864 }{\insrsid16081932\charrsid12466864 \par \par }{\insrsid3833174\charrsid12466864 The evidence on court record d}{\insrsid12994905\charrsid12466864 o}{\insrsid3833174\charrsid12466864 es no}{\insrsid12994905\charrsid12466864 t}{\insrsid3833174\charrsid12466864 indicate that the applicant}{ \insrsid869430\charrsid12466864 would be }{\insrsid12994905\charrsid12466864 denied any}{\insrsid869430\charrsid12466864 right, on the }{\insrsid12994905\charrsid12466864 contrary, it is}{\insrsid869430\charrsid12466864 apparent that to grant the order }{\insrsid12994905\charrsid12466864 sought}{\insrsid869430\charrsid12466864 would leave the respondent\rquote s claim without any security should the

case go in its favour .}{\insrsid8137746\charrsid12466864 \par }{\insrsid3880474\charrsid12466864 \par I}{\insrsid6359173\charrsid12466864 n the premises }{\insrsid10903974\charrsid12466864 I}{\insrsid6359173\charrsid12466864 find that no case has been made }{\insrsid12994905\charrsid12466864 out to}{\insrsid869430\charrsid12466864 }{ \insrsid12994905\charrsid12466864 justify the}{\insrsid869430\charrsid12466864 grant of the order sought}{\insrsid10903974\charrsid12466864 .}{\insrsid7154732\charrsid12466864 \par \par I accordingly do not find any merit in the }{\insrsid12994905\charrsid12466864 application. }{\insrsid7154732\charrsid12466864 The }{\insrsid12994905\charrsid12466864 application is}{\insrsid7154732\charrsid12466864 dismissed with costs to the }{ \insrsid12994905\charrsid12466864 respondent. }{\insrsid6359173\charrsid12466864 \par }{\insrsid12352037\charrsid12466864 \par \par \'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85.. \par M. S Arach-Amoko \par }{\b\insrsid12352037\charrsid12466864 Judge}{\b\insrsid3237173\charrsid12466864 .}{\b\insrsid12352037\charrsid12466864 \par }{\b\insrsid5702650\charrsid12466864 \par }{\insrsid5702650\charrsid12466864 Ruling delivered in }{\insrsid3237173\charrsid12466864 C}{\insrsid5702650\charrsid12466864 ourt on the 24}{\super\insrsid5702650\charrsid12466864 th}{\insrsid5702650\charrsid12466864 February 2009 in the presence of:

\par {\listtext\pard\plain\insrsid5702650\charrsid12466864 \hich\af0\dbch\af0\loch\f0 1)\tab}}\pard \qj \fi-405\li765\ri0\sl360\slmult1\widctlpar\jclisttab\tx765\aspalpha\aspnum\faauto\ls3\adjustright\rin0\lin765\itap0\pararsid5702650 { \insrsid5702650\charrsid12466864 Mr}{\insrsid1909661\charrsid12466864 .}{\insrsid5702650\charrsid12466864 Namanya for Applicant}{\insrsid3237173\charrsid12466864 .}{\insrsid5702650\charrsid12466864 \par {\listtext\pard\plain\insrsid5702650\charrsid12466864 \hich\af0\dbch\af0\loch\f0 2)\tab}Mr. Kibeedi for Respondent}{\insrsid3237173\charrsid12466864 .}{\insrsid5702650\charrsid12466864 \par {\listtext\pard\plain\insrsid5702650\charrsid12466864 \hich\af0\dbch\af0\loch\f0 3)\tab}Mr}{\insrsid1909661\charrsid12466864 .}{\insrsid5702650\charrsid12466864 Okuni Court Clerk}{\insrsid3086107\charrsid12466864 .}{\insrsid5702650\charrsid12466864

\par }\pard \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid3086107 {\insrsid3086107\charrsid12466864 \par \par \'85\'85\'85\'85\'85\'85\'85\'85\'85 \par M. S Arach-Amoko \par }{\b\insrsid3086107\charrsid12466864 Judge \par }{\b\insrsid1328397\charrsid12466864 24/2/2009 \par }\pard \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12654274 {\insrsid6359173\charrsid12466864 \par }{\insrsid2193158\charrsid12466864 }{\insrsid13764548\charrsid12466864 \par }{\insrsid6364096\charrsid12466864 \tab \par }{\insrsid14419141\charrsid12466864 \par }{\insrsid4478363\charrsid12466864 \par }}

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Authorities

Authorities used by the court

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

Hirani v Kassam (1952) E.A. 131

Case cited

Brooke Bond Liebig (T) Ltd v Mallya (1957) E.A. 266

Case cited

Mohammed Alibhai v W.E. Bukenya & Another SCCA No. 56 of 1996

Case cited

Attorney General & Uganda Land Commission v James Mark Kamoga & James Kamala SCCA No. 8 of 2004

Case cited

National Union of Clerical, Commercial, Professional & Technical Employees v National Insurance Corporation SCCA No. 17 of 1993

Case cited

Civil Procedure Act (Cap. 71) Section 98

Legislation

Legislation referenced in the available case record.

Civil Procedure Rules (SI 71-1) Order 52 Rules 1 and 3

Legislation

Legislation referenced in the available case record.

Civil Procedure Rules Order 11 Rule 6

Legislation

Legislation referenced in the available case record.

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