Brain Bridge High School Ltd v Montclair Schools Ltd and Another (Miscellaneous Application No. 94 of 2022)
Observed later treatment
No later-treatment classification is recorded for this judgment.
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Holding
Held that the application for a temporary mandatory injunction was refused. The applicant failed to demonstrate the high degree of assurance required that it would establish its right at trial. The court found that the applicant had not shown it would suffer irreparable damage that could not be compensated by an award of damages. The balance of convenience favoured the respondents: the first respondent had lawfully acquired the property for valuable consideration and ordering them to vacate might cause injustice if the injunction was wrongly issued.
Outcome
Application dismissed with costs; parties to conduct inventory and fast track main suit
Facts
The applicant entered a tenancy agreement in October 2018 to run a school on land owned by Byaruhanga Muhamood. The landlord mortgaged the property to the second respondent to secure borrowing by Mashunga Enterprises Ltd, for which the applicant issued a corporate guarantee. Mashunga Enterprises defaulted on the loan and the second respondent foreclosed the mortgage, selling the land to the first respondent in August 2022. The first respondent took possession of the property and continued operating the school. The applicant filed suit challenging the takeover as unauthorised, high-handed and illegal, seeking recovery of school property, students, staff, operations and goodwill. It then applied for a temporary mandatory injunction to compel the first respondent to vacate and restrain use of the school name and property.
Issues
- Whether the chamber summons was defective for failing to contain the grounds of the application.
- Whether an application for mandatory injunction can seek restrictive measures.
- Whether the application disclosed a cause of action against the second respondent.
- Whether the application raised sufficient grounds for the grant of a temporary mandatory injunction.
Orders
- Application for temporary mandatory injunction dismissed.
- Interim order of 13 October 2022 shall continue in force until it ceases to have the desired effect.
- Parties ordered to jointly carry out a stock count and inventory of all properties claimed by the applicant at the suit land under supervision of H/W Basaija Steven, Magistrate Grade One, and to file same on or before 15 December 2022.
- Parties advised to fast track the main suit so that it is determined in the shortest possible time.
- Costs of this application awarded to the respondents.
Rules and key headnotes
Legislation cited (6)
- Civil Procedure Act s.98
- Judicature Act s.33
- Civil Procedure Rules O.41 r.1(a)
- Civil Procedure Rules O.41 r.2
- Civil Procedure Rules O.41 r.9
- Mortgage Regulations 2012 reg.13
Cases cited (4)
- Xing Wang Co Ltd v Zheng Zuping (High Court Miscellaneous Application No. [X] of 2018)
- Kenya Breweries Ltd and Another v Washington O Okeya [2002] EKLR
- Morris v Redland Bricks Ltd [1970] AC 652
- Nottingham Building Society v Eurodynamics Systems plc [1993] FSR 468
Full judgment
The original judgment as reported. Read the original PDF before relying on any passage.