Wakilii

Abdoo v Leo and Another (Civil Appeal No. 29 of 1955)

East African Court of Appeal · [1950] EACA 42 · 1950 Appeal Dismissed AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Appeal from the Supreme Court of Aden challenging jurisdiction and findings on the merits of a claim for repayment of a loan
Decision
Appeal dismissed with decree amended to remove reference to payment location and time period; judgment debt enforceable in Aden

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

The Court of Appeal held that the Supreme Court of Aden had jurisdiction to try the case because the defendant was a permanent resident of Aden carrying on business there and was personally subject to the jurisdiction. A binding contract to pay money in a foreign currency at a place outside the jurisdiction is enforceable, though judgment must be given in the currency legal tender within the jurisdiction. The decree was amended to strike out the words requiring payment in Yemen and within thirty days. The trial judge's finding that the loan was personal rather than a partnership matter was upheld.

Outcome

Appeal dismissed with decree amended to remove reference to payment location and time period; judgment debt enforceable in Aden

Facts

The appellant, a permanent resident of Aden, visited Milan where the first respondent advanced money for his hotel bills and expenses totalling £335 11s. The appellant signed a promissory note promising to reimburse the first respondent's brother (the second respondent) in Hodeidah, Yemen, upon his return to Aden. The appellant claimed the expenses were incurred for a partnership between himself and the second respondent and had been settled in the partnership accounts in Hodeidah. The respondents claimed it was a personal loan that remained unpaid. The Supreme Court of Aden found in favour of the respondents and issued a decree ordering payment in Hodeidah within thirty days. The appellant appealed on grounds of jurisdiction and merits.

Issues

  1. Whether the Supreme Court of Aden had jurisdiction to try a case where the contract stipulated payment outside the Colony.
  2. Whether the decree should provide for payment in Yemen or within a specified time period.
  3. Whether the loan was a personal debt or a partnership matter.

Orders

  • Appeal dismissed.
  • Decree amended by striking out the words 'in Hodeidah (Yemen)'.
  • Decree amended by striking out the words 'within thirty days'.
  • Respondents to pay one-half of the appellant's taxed costs of the appeal, to be set off against the sum payable to them by the appellant.

Rules and key headnotes

Jurisdiction — Personal Jurisdiction — Defendant Resident and Carrying on Business in Forum
Where a defendant is a permanent resident of the jurisdiction and carries on business there, the court has jurisdiction to try a case even where the contract stipulates payment outside the jurisdiction, provided the defendant is personally subject to the jurisdiction.
Enforcement of Foreign Contracts — Payment in Foreign Currency at Foreign Location
A binding contract to pay money in a foreign currency at a place outside the jurisdiction is enforceable in the local courts, though judgment must be given in terms of the currency which is legal tender within the jurisdiction and payable therein.
Decrees — Form of Judgment — Extra-territorial Effect
A decree ordering payment in a foreign jurisdiction either involves a purported assumption of extra-territorial jurisdiction as regards execution or is one to which the court is powerless to give effect. Judgment must be in the form which makes the judgment-debt payable within the jurisdiction.
Jurisdiction — Residence and Business — Indian Civil Procedure Code s.20
The question of voluntary residence, carrying on of business, or working for gain on the part of the defendant within the jurisdiction is an important factor in determining whether the court has jurisdiction, particularly where the defendant would otherwise be a stranger to the jurisdiction.

Legislation cited (8)

  • Aden Colony Order in Council 1936 clause 15(1)
  • Aden Colony Order in Council 1936 clause 15(2)
  • Aden Colony Order in Council 1936 clause 16
  • Supreme Court Ordinance of Aden (Cap. 127) s.8
  • Indian Civil Procedure Code 1908 s.20
  • Civil Courts Ordinance of Aden (Cap. 22) s.18(1)
  • Eastern African Court of Appeal Rules 1954 rule 74(4)
  • Eastern African Court of Appeal Rules 1954 rule 74(5)

Cases cited (5)

  • Manners v Pearson & Son (1898) 1 Ch 581
  • Societe des Hotels Le Touquet Paris-Plage v Cummings (1922) 1 KB 451
  • Madeleine Vionnet et Cie v Wills (1940) 1 KB 72
  • Cornelius v Banque Franco-Serbe (1941) 2 All ER 728
  • Ahmed Yousuf Shariff v Sheikh Ahmed Mansoor (Civil Appeal No. 3 of 1955)

Full judgment

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The original judgment as reported. Read the original PDF before relying on any passage.

Abdoo v Leo and Another (Civil Appeal No. 29 of 1955) [1950] EACA 42 (1 January 1950)
Source: this page presents Wakilii’s issue analysis and metadata for a publicly reported Ugandan judgment. Any AI-generated summary is marked as such. Judgment text is sourced from the Uganda Legal Information Institute (ulii.org). Wakilii is not affiliated with ULII.