Wakilii

Global Trust Bank Limited and Another v Ssemombwe (Labour Dispute Miscellaneous Application 5 of 2023)

Industrial Court · [2023] UGIC 88 · 2023 Application Granted AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Application to strike out memorandum of claim for being barred by limitation, not disclosing a cause of action, and having been filed against a non-existent party
Decision
Claim struck out as statute-barred

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

The Industrial Court held that a Labour Officer has discretion under Employment Act s.71(2) to extend time for filing a complaint beyond the statutory three months, but such extension cannot exceed the six-year limitation period prescribed by Limitation Act s.3(1)(e). Where a claimant was dismissed in May 2008 and filed his complaint in May 2021 — thirteen years later — the claim is statute-barred. The Court further held that where a party seeks to rely on disability as an exemption from limitation under s.21 of the Limitation Act, the grounds of exemption must be pleaded in the memorandum of claim as required by Order 7 Rule 6 CPR. Introducing the disability for the first time in an affidavit in reply is insufficient. Application allowed; claim struck out.

Outcome

Claim struck out as statute-barred

Facts

The Respondent was dismissed from employment with Commercial Microfinance Limited on 12 May 2008. He filed a complaint before the Labour Officer on 3 May 2021, thirteen years and three months after his dismissal. The Labour Officer extended time, citing the Respondent's bipolar affective disorder and the lengthy liquidation process of the employer. The Applicants, Global Trust Bank Limited (successor to Commercial Microfinance Limited) and DFCU Bank Ltd (which subsequently acquired Global Trust Bank), applied to strike out the memorandum of claim on grounds that it was barred by limitation, disclosed no cause of action, and was filed against a non-existent party. The Respondent opposed the application, arguing that the Labour Officer had validly extended time and that his medical condition constituted a disability exempting him from the limitation period.

Issues

  1. Whether the Respondent's claim is barred by the law of limitation.
  2. Whether the memorandum of claim discloses a cause of action against the Applicants.
  3. Whether the Respondent's claim against Global Trust (In liquidation) was brought against a non-existent entity.

Orders

  • Application succeeds.
  • Labour Dispute Reference No. 310 of 2022 dismissed.
  • No order as to costs.

Rules and key headnotes

Employment & Labour — Limitation — Labour Officer's Power to Extend Time — Scope and Limits
A Labour Officer has discretion under Employment Act s.71(2) to extend time for filing a complaint beyond the statutory three months for just and equitable reasons, but such extension cannot exceed the six-year limitation period prescribed by Limitation Act s.3(1)(e) for actions founded on contract or tort.
Employment & Labour — Limitation — Calculation of Time Limits
Where an employee is dismissed on 12 May 2008, the three-month period for filing a complaint before a Labour Officer expires on 12 August 2008, and the six-year limitation period under Limitation Act s.3(1)(e) expires on 12 May 2014. A complaint filed in May 2021 is statute-barred.
Civil Procedure — Limitation — Disability as Exemption — Pleading Requirements
Where a party seeks to rely on disability as an exemption from the law of limitation under Limitation Act s.21, the grounds of exemption must be pleaded in the memorandum of claim as required by Order 7 Rule 6 CPR. Introducing the disability for the first time in an affidavit in reply is insufficient and does not satisfy the mandatory pleading requirement.
Statutory Interpretation — Limitation Statutes — Strict Construction
Statutes of limitation are strict and inflexible enactments and not mere technicalities but substantive laws which must be strictly complied with. Limitation is an absolute defence to a claim and collapses a claim where the statutory period has expired.

Legislation cited (9)

Cases cited (10)

  • Christopher Gashirabake v Samantha Mwesigwa (Labour Dispute Miscellaneous Application No. 27 of 2022)
  • Osilo Jack v Industrial Security Services (Labour Dispute Claim No. 215 of 2015)
  • Aroga v Hajji Muhamed Anule (Civil Appeal No. 10 of 2016)
  • National Bank of Commerce Ltd (In Liquidation) v Fred Twinobusingye & 19 Others (Labour Dispute Appeal No. 09 of 2020)
  • Eng John Eric Mugyenzi v Uganda Electricity Generation Co. Ltd (Court of Appeal Civil Appeal No. 167 of 2018)
  • Hilton v Sulton Steam Laundry [1946] 1 KB 81
  • Kizza Gerald & Another v Camusat U Ltd (Labour Dispute Reference No. 081 of 2017)
  • Akoko Joseph v Uganda Manufacturers Association (Labour Dispute Reference No. 139 of 2019)
  • Uganda Railways Corporation v Ekwaru D.O and 5104 Others
  • Gastapo Company Limited v Attorney General (High Court Civil Suit No. 030 of 2011)

Full judgment

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

Global_Trust_Bank_Limited_and_Another_v_Ssemombwe_(Labour_Dispute_Miscellaneous_Application_5_of_2023)_[2023]_UGIC_88_(28_November_2023)
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