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Uganda National Roads Authority v Parambot Breweries Limited and Another (Civil Appeal 321 of 2019)

Court of Appeal · [2023] UGCA 288 · 2023 Appeal Dismissed ✦ AI-generated summary ↓ Download
Jurisdiction
Uganda
Case Type
Civil appeal from a High Court judgment on admission entered against the appellant
Decision
Appeal dismissed; High Court judgment on admission of UGX 31,484,904,247 against the appellant upheld

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Holding

The Court of Appeal dismissed UNRA's appeal against a High Court judgment on admission. It held that a limitation defence never raised in the pleadings could not be entertained on appeal, parties being bound by their pleadings. As a body corporate under the general supervision of the Minister of Works under s.5(3) of the UNRA Act, the appellant was bound by the Attorney General's opinion that the Chief Mechanical Engineer's report was binding. As the statutory implementing agency for the national road network under s.6, UNRA remained liable in negligence despite contracting a third party. The Transfer of Assets Regulations 2012 covered only physical assets, not claims in negligence. The award of UGX 31,484,904,247 was properly entered on admission.

Facts

The respondents operated twin factories (a brewery and a distillery) situated on land along the Gayaza-Zirobwe Road. They sued the Attorney General and the Uganda National Roads Authority jointly and severally in negligence and for encroachment, alleging that the construction of the road damaged their premises, land and factory machinery. The parties commissioned conflicting valuation reports, so by consent the Chief Mechanical Engineer of the Ministry of Works and Transport was engaged to reconcile them. He produced a detailed report assessing compensation for the machinery at UGX 31,484,904,247, which the Attorney General conceded. The trial court entered a judgment on admission against the appellant and the Attorney General for that sum and ordered the respondents to prove the remaining claims for the wall fence, housing structures and land. UNRA appealed, contending the suit was time-barred, that the Attorney General's admission did not bind it, and that the construction was carried out by a contracted third party.

Issues

  1. Whether the suit against the appellant was barred by limitation where the defence was not raised in the pleadings.
  2. Whether the admission of the Attorney General as to the Chief Mechanical Engineer's report was binding on the appellant.
  3. Whether the Ministry of Works and Transport supervises the appellant such that the Attorney General's opinion binds it.
  4. Whether the appellant could be held liable in negligence for road works carried out by a contractor under a contract to which it was not a party.
  5. Whether the Uganda National Roads Authority (Transfer of Assets and Liabilities) Regulations 2012 applied to exclude the appellant's liability.
  6. Whether the trial judge properly entered judgment on admission for UGX 31,484,904,247.

Orders

  • The appellant, jointly and severally with the Attorney General, shall pay the respondents the sum of UGX 31,484,904,247 as contained in the Chief Mechanical Engineer's report.
  • The respondents are awarded costs of this appeal and of the suit in the trial court.
  • The respondents are awarded interest on the sum at court rate.

Key headnotes

Civil Procedure — Pleadings — Limitation defence must be pleaded
A defence of limitation that is raised only in counsel's submissions and not in the pleadings cannot be entertained, since parties are bound by their pleadings under Order 6 rule 7 of the Civil Procedure Rules and a court cannot be faulted for failing to decide a matter not pleaded.
Civil Procedure — Judgment on Admission — Order 13 rule 6
Under Order 13 rule 6 of the Civil Procedure Rules a court may enter judgment on admission at any stage of a suit where an admission of fact has been made on the pleadings or otherwise, so as to give a party speedy judgment to the extent of the admitted relief.
Administrative Law — Attorney General — Binding nature of legal opinion on government agencies
The opinion of the Attorney General regarding the laws of Uganda and their effect is binding on government and its public institutions and agencies, and a statutory body under the general supervision of a Minister cannot disclaim it.
Tort Law — Negligence — Liability of a statutory implementing agency for contracted works
A statutory road authority that is the implementing agency of government for the national road network remains liable in negligence for damage arising from road construction within its mandate, notwithstanding that the works were carried out by a contracted third party.
Statutory Interpretation — Transfer of assets regulations — Scope confined to scheduled physical assets
The Uganda National Roads Authority (Transfer of Assets and Liabilities) Regulations 2012 transfer only the physical assets and attendant liabilities listed in the Schedule and do not extend to claims in negligence or compensation.

Legislation cited (15)

  • Judicature (Court of Appeal Rules) Directions SI 13-10 r.30(1)
  • Judicature (Court of Appeal Rules) Directions SI 13-10 r.86(1)
  • Judicature (Court of Appeal Rules) Directions SI 13-10 r.92(1)
  • Civil Procedure and Limitation (Miscellaneous Provisions) Act s.3
  • Civil Procedure and Limitation (Miscellaneous Provisions) Act s.8
  • Civil Procedure and Limitation (Miscellaneous Provisions) Act (Amendment of the Third Schedule) Order SI No. 42 of 2012
  • Civil Procedure Rules O.6 r.7
  • Civil Procedure Rules O.13 r.6
  • Civil Procedure Rules O.1 r.14
  • Uganda National Roads Authority Act s.5
  • Uganda National Roads Authority Act s.6
  • Uganda National Roads Authority Act s.39
  • Uganda National Roads Authority (Transfer of Assets and Liabilities) Regulations 2012 reg.2
  • Uganda National Roads Authority (Transfer of Assets and Liabilities) Regulations 2012 reg.3
  • Constitution of Uganda Article 119

Cases cited (10)

  • Kifamunte Henry v Uganda (Supreme Court Criminal Appeal No. 10 of 1997)
  • Mohammed B Kasasa v Jasper Buyonga Sirasi (Civil Appeal No. 42 of 2008)
  • Nyeko v Attorney General (Supreme Court Civil Appeal No. 1 of 2016)
  • Jani Properties Ltd versus Dar-es-Salaam City Council, (1966) EA 281
  • Struggle Ltd versus Pan African Insurance Co. Ltd, (1990) ALR 46 -47
  • Interfreight Forwarders (U) Ltd v East African Development Bank (Civil Appeal No. 33 of 1992)
  • Mr. Fidelis Kititi Kivaya, Returning Oflicer Njoro Constituency and 2 others Vs Karanja Ihbage and another, Civil Application No. 21 Of 2014 (UR 16/2014)
  • Cassam v Sachania, [1982] KLR 191
  • Bank of Uganda v Banco Arabe Espanol (Supreme Court Civil Appeal No. 8 of 1998)
  • National Social Security Fund and another v Alcon International Ltd (Supreme Court Civil Appeal No. 15 of 2009)
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