East Africa Foam Limited v East and Southern Trade and Development Bank (PTA Bank) and Another (Miscellaneous Application 64 of 2001)
Observed later treatment
No later-treatment classification is recorded for this judgment.
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Holding
Held that leave to appeal against an order for security for costs would be granted, but only on condition that the applicant deposit the ordered sum of Shs. 30,000,000 within 30 days. The court found that the applicant's grounds challenging the security order lacked merit, as the court had considered appropriate grounds and the security was justified in an insolvency situation.
Outcome
Leave to appeal granted conditionally
Facts
The applicant sought leave to appeal against an order dated 16 February 2001 requiring it to deposit Shs. 30,000,000 as security for costs. The matter arose from HCCS No. 1567 of 2000. After the application was filed, there were delays in obtaining proceedings, with counsel for the respondent filing a complaint in April 2002 about not receiving the record since December. The record was located on 10 April 2002. The application was eventually heard in January 2003. The applicant challenged the security order on grounds that the court failed to consider proper grounds for ordering security, ignored the applicant's affidavit in reply, erroneously adopted reasoning from an earlier case between the parties, and that the security amount was excessive. The matter involved an insolvency situation.
Issues
- Whether leave to appeal should be granted against an order for security for costs.
- Whether the court failed to consider proper grounds for ordering security for costs.
- Whether the security ordered was excessive.
Orders
- Leave to appeal granted conditional upon the Applicant depositing Shs. 30,000,000 in court within 30 days.
- No order as to costs.
Rules and key headnotes
Cases cited (1)
- G.M.-Combine (U) Ltd yrs A.K., ^Detergents (U) Ltd MA No. 23/1994
Full judgment
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