Alkarim Badrudin Sunderji v SMA Distillers and Others (Miscellaneous Application No. 974 of 2015)
Observed later treatment
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Holding
An application for attachment before judgment under Order 40 CPR was dismissed as premature where the applicant failed to first summon defendants to show cause and failed to prove a prima facie case or the defendants' intent to obstruct justice. The court held that mere allegations of absconding without evidence of non-return or intention to defeat execution are insufficient.
Outcome
Application for attachment before judgment dismissed; main suit to proceed
Facts
The applicant entered into an investment agreement on 5 October 2014 with the 2nd and 3rd respondents for USD 70,000, allegedly to share profits from a distillery business. The 2nd and 3rd respondents incorporated SMA Distillers Ltd on 31 October 2014 and commenced business operations. The applicant alleged the respondents failed to pay profits and filed a summary suit (Civil Suit No. 385 of 2015) obtaining judgment, though execution was stayed. The applicant claimed that the respondents removed company properties from bailiff custody to unknown locations and had absconded the jurisdiction, citing airline tickets from May 2015. The respondents countered that the 1st respondent is a registered Ugandan company still operating, that the 3rd respondent is a Ugandan citizen, and that a lawful attorney represents all respondents. The respondents presented forensic evidence alleging the investment agreement signatures were forged and challenged the agreement's legality as an unregistered floating charge.
Issues
- Whether an order of attachment before judgment should be issued in favour of the applicant.
Orders
- Application dismissed.
- Costs to abide the cause.
Rules and key headnotes
Legislation cited (8)
- Civil Procedure Act s.98
- Civil Procedure Rules Order 40 rule 1
- Civil Procedure Rules Order 40 rule 2
- Civil Procedure Rules Order 40 rule 6(1)
- Civil Procedure Rules Order 3 rule 2
- Evidence Act s.84
- Companies Act No. 1 of 2012 s.105(3)(f)
- Companies Act No. 1 of 2012 regulation 79 of article A
Cases cited (5)
- Pyarali Datardini v Anglo Amusement Park [1930] 4 ULR 28
- Abe Mugimu v Luciano Basabusa (1991) HCB 70
- Uganda Electricity (In Liquidation) v Royal Van Zanten (U) Ltd (Miscellaneous Application No. 251 of 2006)
- Victoria General Repairers (E.A) Ltd v MTC Associates (Miscellaneous Application No. 225 of 2014)
- Orient Bank Ltd v Fredrick Zaabwe and Another (Civil Appeal No. 77 of 2007)
Cases citing this judgment (1)
How later Ugandan judgments in the Wakilii corpus have cited this case. Treatment labels come from Sequitur — Uganda’s citator — each backed by a verbatim span from the citing judgment, and are not an assertion that this case is, or is not, good law.
Full judgment
The original judgment as reported. Read the original PDF before relying on any passage.