Mugerenge and Others v Rock Grass Root Investment Enterprises Limited
Mugerenge and Others v Rock Grass Root Investment Enterprises Limited (Civil Appeal 71 of 2015) [2023] UGCommC 20 (19 January 2023)
The court held that the appellants failed to discharge the burden of proof required under Section 284 of the Companies Act, 2012 to show, by credible evidence, that the respondent company was unable to pay costs if unsuccessful. The court found no corroborative evidence in the pleadings or affidavits to support the claim of impecuniosity or lack of assets. The trial magistrate properly exercised judicial discretion in refusing to order security for costs, as the application lacked merit. The court confirmed that the onus was on the appellants to prove the respondent's financial incapacity, wh…
Source excerpt
- Security For Costs
- Company Liability
- Burden Of Proof
- Impecuniosity
- Judicial Discretion