Wakilii

Kamuhanda v National Bank Of Commerce And Bank of Uganda (Labour Dispute Miscellaneous Application 187 of 2021)

Industrial Court · [2022] UGIC 60 · 2022 Application Dismissed AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Application for leave to amend memorandum of claim to add Bank of Uganda as co-respondent in underlying labour dispute arising from wrongful dismissal claim
Decision
Application dismissed; underlying labour dispute to proceed against National Bank of Commerce (in Liquidation) only

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

Held that a financial institution under liquidation remains a separate corporate entity capable of suing and being sued through its liquidator, the Bank of Uganda, until liquidation is concluded. The liquidator need not be added as a co-respondent where the claimant has no direct cause of action against it. Application to amend memorandum of claim to add Bank of Uganda as co-respondent dismissed.

Outcome

Application dismissed; underlying labour dispute to proceed against National Bank of Commerce (in Liquidation) only

Facts

The applicant was employed by National Bank of Commerce from 1995 until his summary dismissal on 20 October 2006. He instituted proceedings for wrongful dismissal, which were transferred to the Industrial Court as Labour Dispute Reference No. 003 of 2019. During proceedings, counsel for the bank revealed it was under liquidation by the Bank of Uganda. The applicant sought leave to amend his memorandum of claim to add the Bank of Uganda as a co-respondent, arguing its presence was necessary to effectually adjudicate the dispute. The Bank of Uganda opposed, contending it was already defending the suit in the name of the bank pursuant to section 100(1)(a) of the Financial Institutions Act 2004, and that the applicant had no cause of action against it as liquidator.

Issues

  1. Whether an action can be maintained against the Bank of Uganda as liquidator of a financial institution.
  2. Whether the Bank of Uganda should be added as a co-respondent in an employment dispute against a bank in liquidation.
  3. Whether the applicant disclosed a cause of action against the Bank of Uganda.

Orders

  • Application for leave to amend the memorandum of claim denied.
  • Application to add Bank of Uganda as co-respondent denied.
  • No order as to costs.

Rules and key headnotes

Banking & Finance — Liquidation — Status of Financial Institution Under Liquidation
A financial institution under liquidation by the Central Bank retains its character as a body corporate with capacity to sue or be sued until liquidation is finally concluded, though it can only sue or be sued through the Central Bank as liquidator.
Banking & Finance — Liquidation — Role and Liability of Liquidator
The Central Bank acting as liquidator of a financial institution under section 100(1)(a) of the Financial Institutions Act 2004 assumes management and control functions but does not become the institution itself, and is not directly liable for the institution's pre-liquidation obligations including employment contracts.
Civil Procedure — Parties — Joinder — Cause of Action Requirement
A party cannot be joined as a defendant or respondent unless the claimant discloses a cause of action against that party; the principle of privity of contract prevents a stranger to an employment contract from being sued for its breach.
Employment & Labour — Wrongful Dismissal — Proper Defendant Where Employer in Liquidation
In an employment dispute concerning wrongful dismissal by a bank in liquidation, the proper respondent is the bank itself (described as 'in Liquidation'), not the Central Bank as liquidator, as the liquidator is not privy to the employment contract and the Financial Institutions Act 2004 does not transfer employment liabilities to the liquidator.

Legislation cited (9)

Cases cited (5)

  • Greenland Bank Ltd v Westmont Land (Asia) (High Court Civil Suit No. 309 of 1999)
  • Robert Mwesigwa and 134 Others v Bank of Uganda (High Court Civil Suit No. 588 of 2003)
  • Peoples Transport Company v Afric Cooperative Society Ltd (High Court Civil Suit No. 467 of 1995)
  • Birakwate v Kilembe Mines [1976] HCB 19
  • Kayanja Vs New India insurance Company Ltd [1968]

Full judgment

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

Kamuhanda_v_National_Bank_Of_Commerce_And_Bank_of_Uganda_(Labour_Dispute_Miscellaneous_Application_187_of_2021)_[2022]_UGIC_60_(9_March_2022)
Source: this page presents Wakilii’s issue analysis and metadata for a publicly reported Ugandan judgment. Any AI-generated summary is marked as such. Judgment text is sourced from the Uganda Legal Information Institute (ulii.org). Wakilii is not affiliated with ULII.