Narottam Bhatia & Another v Boutique Shazimi Ltd (Civil Appeal 16 of 2009)
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Holding
The Supreme Court dismissed the second appeal and confirmed that the plaint in HCCS No. 411 of 1998 disclosed a cause of action. Applying the test in Attorney General v Tinyefuza and Mulla's Code of Civil Procedure, the court held that a cause of action is disclosed where the plaint shows a right, its violation, and the defendant's liability, looking only at the plaint and its annextures and assuming the pleaded facts true. The appellants' arguments on agency, the date of payment and passing of title were matters of evidence for trial, not grounds to reject the plaint. Any deficiency was curable by amendment. The file was remitted to the High Court before another judge.
Facts
On 1 July 1995 the appellants' attorney, Nipun Bhatia, executed a written agreement to sell property at Plot 12 Buganda Road, Kampala for USD 117,300. The respondent paid USD 50,000 but did not pay the balance within the 75 days stipulated by the agreement, which provided that on default the sale would lapse and the property revert to the vendor, subject only to a refund. The appellants gave notice repudiating the contract. The respondent first sued the attorney in HCCS No. 910 of 1995 for specific performance; that suit was struck out for not disclosing a cause of action. The respondent then filed HCCS No. 411 of 1998 against the appellants seeking the same relief. The appellants applied to reject the plaint as res judicata and for failing to disclose a cause of action. The High Court struck out the suit as res judicata; the Court of Appeal reversed, holding a cause of action was disclosed, and remitted the suit. The appellants appealed to the Supreme Court.
Issues
- Whether the plaint in High Court Civil Suit No. 411 of 1998 disclosed a cause of action against the appellants for breach of a contract for the sale of land.
Orders
- The order of the Court of Appeal that the file be remitted to the High Court and placed before another judge for hearing is confirmed.
- Appeal dismissed with costs to the respondent in this Court and the courts below.
Key headnotes
Legislation cited (4)
- Civil Procedure Rules Order 7 rule 11(a)
- Civil Procedure Rules Order I rule 10(2) and (4)
- Civil Procedure Rules Order 48 rule 1
- Judicature (Court of Appeal) (Directions) Rules rule 92
Cases cited (4)
- Attorney General v Major General David Tinyefuza (Constitutional Appeal No. 1 of 1997)
- Sharif Osman v Haji Haruna Mulangwa (Civil Appeal No. 38 of 1995)
- Tororo Cement Co. Ltd v Frokina International Ltd (Civil Appeal No. 2 of 1997)
- Auto Garage v Motokov (No. 3) [1971] EA 514