Stirling Civil Engineering Ltd v Petro (U) Ltd & 2 Ors (High Court Miscellaneous Application No. 92 of 2008) [2009] UGCommC 4 (8 March 2009)

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)}} {\*\pnseclvl5\pndec\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}{\*\pnseclvl6\pnlcltr\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}{\*\pnseclvl7\pnlcrm\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}{\*\pnseclvl8 \pnlcltr\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}{\*\pnseclvl9\pnlcrm\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}\pard\plain \qc \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid5380611 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\b\insrsid7619203\charrsid5380611 THE REPUBLIC OF UGANDA \par \par IN THE HIGH COURT OF UGANDA AT KAMPALA \par (COMMERCIAL DIVISION) \par \par HCT-00-CC-M. A 92-2008 \par \par }\pard \ql \fi720\li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid5380611 {\b\insrsid7619203\charrsid5380611 STIRLING CIVIL ENGINEERING LTD\'85..\'85\'85\'85\'85APPLICANT \par }\pard \qc \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid5380611 {\b\insrsid7619203\charrsid5380611 \par VS \par \par PETRO (U) LTD & 2 OTEHRS}{\b\insrsid6037961\charrsid5380611 ..}{\b\insrsid7619203\charrsid5380611 \'85\'85\'85\'85\'85\'85\'85\'85\'85\'85. DEFENDANT \par \par }\pard \ql \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid5380611

{\b\insrsid7619203\charrsid5380611 \par }\pard \qc \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid5380611 {\b\ul\insrsid7619203\charrsid5380611 BEFORE: THE HONOURABLE MR. JUSTICE ANUP SINGH CHOUDRY \par \par }{\b\insrsid7619203\charrsid5380611 \par }{\b\insrsid7619203\charrsid5380611 R U L I N G \par }\pard \ql \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid5380611 {\b\insrsid7619203\charrsid5380611 \par }{\i\insrsid3870209\charrsid5380611 (Advertisement in the local vernacular newspaper not prope}{\i\insrsid15167641\charrsid5380611 r Notice for sale by auction}{\i\insrsid3870209\charrsid5380611 to the}{\i\insrsid15167641\charrsid5380611 Public and}{ \i\insrsid3870209\charrsid5380611 highest Bidder, sale by Bailiffs set aside) \par }{\insrsid3870209\charrsid5380611 \par }\pard \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid5380611 {\insrsid7619203\charrsid5380611 This is an Application by the Applicant Stirling Civil Engineering by way of moti on to set aside dismissal of Misc. Application 256 of 2008 which was dismissed by this court on 23rd February as Counsel Mr. Kwemara Kafuuzi for the Applicant was 30 minutes late in the court. \par \par The application to set aside the execution was made in October 2008 but did not come for hearing

until 23}{\super\insrsid7619203\charrsid5380611 rd}{\insrsid7619203\charrsid5380611 February. During that period the grader which is subject matter of this application seems to have been di}{\insrsid3870209\charrsid5380611 sposed of}{\insrsid7619203\charrsid5380611 by the bailiffs notwithstanding that at an earlier hearing before the Registrar, it was indicated to the Registrar by the Bailiffs that the }{\insrsid3870209\charrsid5380611 grader had not been disposed of}{\insrsid7619203\charrsid5380611 and it was also indicated that the matter was in the process of being settled. \par \par }{\insrsid3702261\charrsid5380611 Mr. Kafuuzi has sworn}{\insrsid7619203\charrsid5380611 an affidavit and has been very frank with the court and told the court that it was a genuine mistake on his part. I do }{\insrsid16603201\charrsid5380611 accept that mistakes }{\insrsid7619203\charrsid5380611 happen, }{\insrsid3702261\charrsid5380611 but in any event the court was notified by his manuscript note that he }{\insrsid2370741\charrsid5380611 might not attend court and order ought not to have been made. I}{\insrsid7619203\charrsid5380611 t now brings me to the question of merits of the case in case the execution is to be set aside. \par \par The complaint by Mr. Kafuuzi is that the machine was sold in auction without proper notice given to the world at large; in

particular}{\insrsid863132\charrsid5380611 the sale of the machine was advertised}{\insrsid7619203\charrsid5380611 for auct}{ \insrsid863132\charrsid5380611 ion in the newspaper called Buk}{\insrsid3702261\charrsid5380611 edde; Bukedde}{\insrsid7619203\charrsid5380611 is }{\insrsid863132\charrsid5380611 local newspaper in Luganda.}{\insrsid7619203\charrsid5380611 \par }{\insrsid863132\charrsid5380611 \par The Applicants are a foreign company Stirling Civil Engineering Ltd. }{\insrsid3702261\charrsid5380611 They}{\insrsid863132\charrsid5380611 are aggrieved that they }{\insrsid16603201\charrsid5380611 had no notice of such sale by}{ \insrsid863132\charrsid5380611 auction. }{\insrsid3702261\charrsid5380611 In the court}{\insrsid863132\charrsid5380611 I did indicate }{\insrsid3702261\charrsid5380611 to the parties }{\insrsid863132\charrsid5380611 that this was a matter which ought to have been settled because there was }{\insrsid3702261\charrsid5380611 a sum of}{\insrsid863132\charrsid5380611 61 million that remained outstanding and proposals could have been made to settle }{\insrsid16603201\charrsid5380611 this balance}{ \insrsid863132\charrsid5380611 quite easily. And I am sure the parties would have been amenable }{\insrsid3702261\charrsid5380611 to that settlement. H}{\insrsid8137029\charrsid5380611 owever, the Bailiffs went ahead for reasons

unknow}{ \insrsid3870209\charrsid5380611 n to this court and disposed of}{\insrsid8137029\charrsid5380611 the machine in the sum of 61 million shillings which the A}{\insrsid3702261\charrsid5380611 pplicants alleged was undersold.}{ \insrsid8137029\charrsid5380611 }{\insrsid3702261\charrsid5380611 There}{\insrsid8137029\charrsid5380611 is no evidence that this was the case. \par \par However, in the interest of commercial justice and in the wider interest of }{\insrsid3174883\charrsid5380611 giving the public}{\insrsid3702261\charrsid5380611 and investors confidence in}{\insrsid3174883\charrsid5380611 Uganda\rquote s economy }{ \insrsid3702261\charrsid5380611 and Judicial system i}{\insrsid3174883\charrsid5380611 t is impor}{\insrsid3702261\charrsid5380611 tant that there is transparency. Hence}{\insrsid3174883\charrsid5380611 proper notices }{\insrsid16603201\charrsid5380611 must be }{\insrsid3174883\charrsid5380611 given}{\insrsid3702261\charrsid5380611 . A local notice in rural language }{\insrsid16603201\charrsid5380611 in a local newspaper }{\insrsid3702261\charrsid5380611 is clearly not proper notice. I}{ \insrsid3174883\charrsid5380611 n those circumstances I will set aside the }{\insrsid3702261\charrsid5380611 order dated}{\insrsid3174883\charrsid5380611 23}{\super\insrsid3174883\charrsid5380611 rd}{\insrsid3174883\charrsid5380611 February

}{ \insrsid3702261\charrsid5380611 made by this }{\insrsid4877249\charrsid5380611 court and}{\insrsid16603201\charrsid5380611 }{\insrsid3702261\charrsid5380611 set}{\insrsid16603201\charrsid5380611 aside the}{\insrsid3174883\charrsid5380611 sale of the machine by the Bailiffs. And I will further order that sale of the machine is properly advertis}{\insrsid16603201\charrsid5380611 ed in national newspapers }{\insrsid4877249\charrsid5380611 and trust}{\insrsid3174883\charrsid5380611 that this will serve as }{\insrsid3702261\charrsid5380611 a }{\insrsid3174883\charrsid5380611 precedent for the future }{\insrsid3702261\charrsid5380611 conduct of Bailiffs }{\insrsid3174883\charrsid5380611 in similar cases. No orders as to costs.

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