In the matter of an application to conduct a private investigation under the Magistrates Court Act by Kirunda(Lawful Attorney of vantage and fund 11 (Criminal Revision Application 24 of 2022)
Observed later treatment
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Holding
Held that the trial magistrate had both territorial and subject matter jurisdiction to entertain the private prosecution application. The court found that the requirement under s.42(4) Magistrates Courts Act to consult the local chief does not bind the magistrate to accept the chief's views on whether offences occurred, particularly for complex white collar crimes beyond lay understanding. Where documentary evidence establishes a prima facie case, the magistrate must apply her mind to it rather than defer to the local chief's lack of knowledge. The trial magistrate's decision refusing to sanction the charge sheet was set aside.
Outcome
Matter remitted to Chief Magistrate's Court at Buganda Road with directions to sanction charge sheet within five business days
Facts
Vantage Mezzanine Fund II lent USD 10,000,000 to Simba Properties Investment Company Limited under a mezzanine facility agreement on 11 December 2014. Patrick Bitature and Carol Nzaro Bitature, as ultimate beneficial owners, offered shares in multiple companies (Linda Properties Limited, Elgon Terrace Limited, Simba Properties Investment Company Limited, and Simba Telecom Limited) as security. Company charges were executed prohibiting transfer or alteration of the charged shareholding. Subsequently, the suspects allegedly altered the shareholding of the Simba Companies and filed annual returns indicating nil indebtedness despite the existing charges. The intending private prosecutor filed an application in the Chief Magistrate's Court seeking to commence private prosecution for fraud, false statements by directors, and conspiracy to defraud. The trial magistrate refused the application after consulting the local chief, who confirmed the suspects resided in the jurisdiction but stated he had no knowledge of the alleged offences.
Issues
- Whether the trial court had jurisdiction to entertain Criminal Miscellaneous Application No. 38 of 2022.
- Whether the intending private prosecutor established a prima facie case of commission of an offence by the suspects.
- Whether the application and intended prosecution are frivolous and vexatious.
- What remedies are available.
Orders
- The trial magistrate's decision in Criminal Miscellaneous Application No. 38 of 2022 is set aside.
- The Chief Magistrate of Buganda Road Chief Magistrate's Court is ordered to sanction the Charge Sheet and any attendant document within 5 business days from the date of this decision.
Rules and key headnotes
Legislation cited (17)
- Magistrates Courts Act s.42(1)(c)
- Magistrates Courts Act s.42(3)
- Magistrates Courts Act s.42(4)
- Magistrates Courts Act s.42(5)
- Magistrates Courts Act s.161(1)
- Criminal Procedure Code Act Cap 111 s.48
- Criminal Procedure Code Act Cap 111 s.50(1)(b)
- Criminal Procedure Code Act Cap 111 s.50(2)
- Penal Code Act Cap 120 s.309
- Penal Code Act Cap 120 s.323
- Penal Code Act Cap 120 s.324
- Constitution of the Republic of Uganda 1995 Article 126(1)
- Constitution of the Republic of Uganda 1995 Article 126(2)
- Constitution of the Republic of Uganda 1995 Article 120(3)(c)
- Judicature Act s.33
- Magistrates Courts (Magisterial Areas) Instrument SI No.11 of 2017
- Local Administration Act 1967 s.40
Cases cited (14)
- Hassan Bassajjabalaba v Kakande Benard (Criminal Revision No. 2 of 2013)
- Ahmed Kawoza Kangu v Bangu Aggrey Fred and Another (SCC Application No. 4 of 2007)
- Kasibante Moses v Katongole Singh Marwaka and Another (Kampala Election Petition No. 23 of 2011)
- Ankawtsa Mary v Uganda (HCT-CR-CV-004-2013)
- Rananlal T. Bhatt v R (1957) EA 332
- Simba Properties Investment Company and others v Vantage Mezzanine Fund II Partnership and others (Miscellaneous Application No. 414 of 2022)
- R (on the application of Asim and Raed Siddiqui) v. Westminster Magistrates' Court [2021] EWHC 1648 (Admin)
- Gouriet vs Union of Post Office Workers 1978 AC 435
- Attorney General v Uganda Law Society (Constitutional Appeal No. 1 of 2006)
- Uganda (Private Prosecution by Male H. Mabirizi Kiwanuka) vs Hon Mao Nobert and others
- Pepper V. Hart (1993) 1 All ER 42
- R v Ajit Singh s/o Vir Singh (1957) EA 822
- RE Singapore Souvenir Industry (Pte) Ltd (1985-1986) SLR © 161
- Lehman Brothers Special Financing Inc v Hartadi Angkosubroto (1998) 3 SLR ® 664
Full judgment
The original judgment as reported. Read the original PDF before relying on any passage.