Fine Spinners Uganda Limited v A to Z Textile Mills Limited (Misc. Application No. 152 of 2025)
Observed later treatment
No later-treatment classification is recorded for this judgment.
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Holding
The High Court Commercial Division granted an application for leave to amend a written statement of defence and counterclaim where the applicant sought to correct accounting errors discovered during a comprehensive audit. The court held that amendments should be freely allowed before hearing provided they do not occasion injustice to the other party. The proposed amendments added particulars to the existing claim but did not introduce new facts or causes of action and the respondent failed to demonstrate prejudice.
Outcome
Application granted. Applicant given leave to amend its written statement of defence and counterclaim within 14 days, with respondent to file amended reply within 14 days thereafter.
Facts
In Civil Suit No. 1023 of 2023, A to Z Textile Mills sued Fine Spinners Uganda Limited for USD 33,123.35 being outstanding payment for fabric supplied. Fine Spinners filed a defence and counterclaim alleging the respondent supplied poor quality fabric causing losses, initially claiming USD 826,583 based on a productivity loss statement. Fine Spinners subsequently conducted a comprehensive audit and reconciled its accounting books, discovering that the original productivity loss statement contained grave errors and did not reflect accurate affairs. The corrected statement showed losses of USD 2,697,093.38. Fine Spinners applied for leave to amend its written statement of defence and counterclaim to reflect the corrected figures and provide better particulars. The hearing had not yet commenced.
Issues
- Whether the Applicant should be granted leave to amend its pleadings in Civil Suit No. 1023 of 2023.
- What remedies are available to the parties.
Orders
- The Applicant is hereby granted leave to amend its written statement of defence and counterclaim in High Court Civil Suit No.1023 of 2023 by amending the amount claimed and providing better particulars of the same.
- The Applicant shall file and serve the amended written statement of defence and counterclaim to the Respondent within fourteen (14) days from the date of this Ruling.
- The Respondent shall file and serve its amended reply to the written statement of defence and counterclaim within fourteen (14) days after receipt of the amended written statement of defence and counterclaim.
- Costs of this application shall be in the cause.
Rules and key headnotes
Legislation cited (6)
Cases cited (3)
- Gaso Transport Services (Bus) Ltd v Martin Adala Obene (Supreme Court Civil Appeal No. 4 of 1994)
- Eastern Bakery v Castelino [1958] 1 EA 461
- Mulowooza & Brothers Ltd v N. Shah & Co. Ltd (Court of Appeal Civil Appeal No. 26 of 2010)
Full judgment
The original judgment as reported. Read the original PDF before relying on any passage.