Vantage Mezzanine Fund II Partnership v Uganda Registration Services Bureau and Others (Civil Appeal No. 263 of 2022)
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Holding
The Court of Appeal allowed the appeal, holding that a foreign partnership domiciled in South Africa with no place of business in Uganda is not obliged to register under the Partnership Act or the Business Names Registration Act. Neither Act deals with capacity to sue or locus standi; registration requirements apply only to firms carrying on business with a place of business in Uganda, so the trial judge erred in dismissing the appellant's judicial review application for want of capacity. The court further held that the 2nd to 5th respondents, being private entities with no connection to the public duty challenged, were wrongly joined to judicial review proceedings directed at a public body. The trial ruling was set aside with costs.
Facts
In December 2014 the appellant, a foreign partnership domiciled in South Africa, entered a Mezzanine Term Facility Agreement with the 2nd to 5th respondents (the Simba Companies), advancing funds secured by charges over shares and accompanying share transfer documents. When the respondents defaulted, they filed several suits against the appellant in the High Court Commercial Division. In June 2021 those suits were dismissed and referred to arbitration. The appellant then lodged documents with the 1st respondent, Uganda Registration Services Bureau, to effect the share transfers under the agreement. The 1st respondent declined to register them. The appellant filed Miscellaneous Cause No. 205 of 2021 for judicial review in the High Court Civil Division. The trial judge dismissed the application, finding that the appellant, being a foreign partnership not registered in Uganda, lacked legal presence and capacity to sue. The appellant did not have a place of business in Uganda, having only advanced a loan facility.
Issues
- Whether a foreign partnership without a place of business in Uganda is required to register under the Partnership Act and the Business Names Registration Act before it can sue in Uganda.
- Whether non-registration of a partnership under those Acts deprives it of capacity to sue or locus standi.
- Whether the learned trial judge erred in joining the 2nd to 5th respondents (private entities) to judicial review proceedings against a public body.
Orders
- The ruling and orders of the learned trial judge in MC No. 205 of 2021 are set aside.
- The appellant had locus (capacity) to commence Miscellaneous Cause No. 205 of 2021.
- The 2nd, 3rd, 4th and 5th respondents were wrongly joined as parties to proceedings in MC No. 205 of 2021.
- The respondents pay costs of this appeal and in the court below.
Key headnotes
Legislation cited (11)
- Partnership Act Cap 110 s.2
- Partnership Act Cap 110 s.4
- Business Names Registration Act Cap 105 s.2
- Civil Procedure Rules Order 30 rules 1 and 10
- Arbitration and Conciliation Act s.5
- Constitution of Uganda 1995 Article 21(1)
- Judicature Act
- Judicature (Judicial Review) Rules 2009 Rule 6(2)
- Judicature (Judicial Review) (Amendment) Rules 2019 Rule 3
- Judicature (Judicial Review) (Amendment) Rules 2019 Rule 7A
- Court of Appeal Rules Rule 86
Cases cited (12)
- Selle & Another v Associated Motor Boat Co. Ltd & Others [1968] EA 123
- Fr. Nasensio Begumisa & 3 Others v Eric Tibebaga (Supreme Court Civil Appeal No. 17 of 2002)
- Coghlan v Cumberland (1898) 1 Ch. 704
- Faith Asiimwe T/A Faith Fashion Solution Enterprises v Air Uganda, Air Mali and Air Burkina (Miscellaneous Application No. 197 of 2015)
- Krone Uganda Limited v Kerilee Investments Uganda Limited (Miscellaneous Application No. 306 of 2019)
- Buganda Land Board v John Wampamba (Miscellaneous Cause No. 622 of 2013)
- Sadrudin Shariff v Tarlochan Singh [1961] EA 77
- Uganda Departed Asian Property Custodian Board v Jaffer Brothers Ltd [1999] EA 55
- Dr. Ernest Kirabo Kimbugwe v The Registered Trustees of Mengo Central Old Boys Club and Another (HCMA No. 808 of 2021)
- Nazarali Punjwani v Kampala District Land Board & Another (HCCS No. 07 of 2005)
- Amiran Enterprises Ltd v Uganda Revenue Authority (HCMA No. 06 of 2010)
- Ashmore v Corporation of Lloyd's [1992] 2 All ER 486