ATC Uganda Limited v Kalyowa Abdul (Miscellaneous Application No. 1609 of 2024)

Observed later treatment

No later-treatment classification is recorded for this judgment.

Citator coverage is limited to judgments in the Wakilii corpus and source-matched treatment records. Absence of a signal is not an assertion that the case remains good law.

Holding

Held that where an applicant proves entitlement to indemnification under a license agreement containing an express indemnity clause, the court will grant leave to issue a third party notice. The Option and License Agreement dated 8 October 2020 contained clause 13.4 whereby the licensor undertook to indemnify the licensee against all suits, claims, damages and losses arising from execution of the license. Leave granted to issue third party notice in respect of Civil Suit No. 316 of 2021.

Outcome

Application granted with leave to issue third party notice

Facts

ATC Uganda Limited was sued in Civil Suit No. 316 of 2021 by Kizito Kezekia. On 8 October 2020, the applicant had executed an Option and License Agreement with the respondent Kalyowa Abdul, a kibanja owner, in respect of a parcel of land measuring 20 by 20 meters located at Norongoro village in Kasuku Parish, Wakiso District, for tower installations and cable laying for an initial term of 10 years. The respondent had purchased the kibanja from Kiwanuka Joseph on 9 March 2014. Under clause 13.3 of the agreement, the respondent warranted he was the rightful owner with authority to license the land. Under clause 13.4, the respondent undertook to indemnify the applicant against any suits, claims, damages and losses arising from execution of the license agreement. The applicant filed a written statement of defence denying the plaintiff's claims in the main suit, then brought this ex parte application seeking leave to issue a third party notice against the respondent based on the indemnity clause.

Issues

1. Whether the applicant should be granted leave to issue a third party notice against the respondent under Order 1 rule 14 of the Civil Procedure Rules.

Orders

• Leave granted to the applicant to issue a third party notice to the respondent in accordance with Order 1 rule 14 of the Civil Procedure Rules in respect of Civil Suit No. 316 of 2021.
• Costs to be in the main cause.

Rules and key headnotes

Legislation cited (3)

• Civil Procedure Act s.98
• Judicature Act s.33
• Civil Procedure Rules O.1 r.14

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