Corporate Security Services Uganda Limited v Davern Hardware Limited (Miscellaneous Application 53 of 2023)
Observed later treatment
No later-treatment classification is recorded for this judgment.
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Holding
The High Court struck out the plaint on the ground that the plaintiff company was non-existent and lacked capacity to sue. A search with the Uganda Registration Services Bureau revealed no record of the respondent company in its database. The court held that annexures purporting to prove the company's incorporation were not properly certified, lacked signatures of responsible officers, and could not be relied upon. Only incorporated companies have capacity to sue in their own names, and a suit by a non-existent party is a nullity. No order as to costs was made because a non-existent party cannot be condemned to pay costs.
Outcome
Civil Suit No. 20 of 2023 struck out on the ground that the plaintiff company is non-existent and incapable of suing
Facts
The respondent company instituted Civil Suit No. 20 of 2023 against the applicant seeking a declaration that the applicant breached a contract. When served with the plaint, the applicant filed a written statement of defence and indicated it would raise a preliminary objection on a point of law. The applicant conducted a search with the Uganda Registration Services Bureau to establish whether the respondent company was duly registered. By letter dated 12 July 2023, the Registrar General responded that the respondent company was not reflected in its database. The applicant then filed this application seeking to strike out the plaint and for a declaration that the respondent is non-existent. The respondent opposed the application and attached to its affidavit in reply annexures comprising a Certificate of Incorporation, Company Form 18, Company Form 20, and a Company Activation document, claiming these proved its existence.
Issues
- Whether the Respondent company has capacity to commence a suit against the Applicant.
- What remedies are available to the parties.
Orders
- Civil Suit No. 20 of 2023 is struck out.
- The Respondent company is declared non-existent with no capacity to commence a suit against the Applicant.
- No order as to costs.
Rules and key headnotes
Legislation cited (6)
- Companies Act No. 1 of 2021 s.22
- Companies Act s.116
- Companies Act s.192(1)(4)
- Civil Procedure Act s.27(1)
- Civil Procedure Act s.98
- Civil Procedure Rules O.7 r.12
Cases cited (4)
- Salomon v A Salomon & Co Ltd [1897] AC 22 (HL)
- Sabric Building & Decorating Contractors Ltd v Attorney General (Court of Appeal No. 21 of 2025)
- Wasswa Primo v Moulders Ltd (High Court Miscellaneous Application No. 685 of 2017)
- Gusii Mwalimu Investment Co. Ltd vs Gusii Mwalimu Savings Credit Co-op Society Ltd [2017] eKLR
Full judgment
The original judgment as reported. Read the original PDF before relying on any passage.