Kitende v Orient Bank Ltd (Civil Suit No. 591 of 2013)
Observed later treatment
No later-treatment classification is recorded for this judgment.
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Holding
Held that the plaint disclosed a cause of action. The plaintiff established the three essential elements: a right (a savings account with the bank), violation of that right (account closure without consent or court order), and defendant's liability. The defendant's contentions regarding illegality arising from the plaintiff's criminal conviction could not be determined on pleadings alone and required a full trial on the merits. A criminal conviction does not bar a party from seeking civil remedies unless expressly prohibited by law. The preliminary objection was overruled.
Outcome
Matter to proceed to full hearing on the merits
Facts
The plaintiff maintained a savings account with the defendant bank holding Shs. 517,652,881. During police investigations in a criminal case (HCT ACD CSC 030/2011), the bank closed the plaintiff's account. The plaintiff was subsequently prosecuted and convicted of conspiracy to defraud and theft of over Shs. 880,000,000 from the bank. The bank refused to allow the plaintiff to access the account, asserting that the plaintiff had defrauded the bank and that no sums remained on the account. The bank filed a counterclaim seeking to recover the allegedly stolen funds. The plaintiff brought suit seeking to recover his account, interest, costs, and an order reopening the account, contending that the closure was unlawful and that deductions were unjustified. The bank raised a preliminary objection that the plaint disclosed no cause of action and was barred by law due to illegality.
Issues
- Whether the plaint discloses a cause of action.
- Whether the plaint is barred by law.
Orders
- Preliminary objection overruled.
- Suit to be fixed for hearing.
- Costs to abide the outcome of the suit.
Rules and key headnotes
Legislation cited (2)
Cases cited (9)
- Tororo Cement Ltd v Frokina International Co Ltd (Supreme Court Civil Appeal No. 2 of 2001)
- Uganda vs. Walubiri Godfrey vs. Zakeri Kitenda HCT 00 ACD CSC 030/2011
- Makula International Ltd v His Eminence Cardinal Nsubuga and Another [1982] HCB II
- Active Automobile Spares Ltd v Crane Bank Ltd and Rajesh Pakesh (Supreme Court Civil Appeal No. 21 of 2001)
- Mukisa Biscuit Manufacturing Co Ltd v West End Distributors Ltd [1969] EA 696
- Nas Airport Services v Attorney General [1959] EA 53
- Auto Garage v Motokov (No. 3) [1971] EA 514
- Ismail Serugo v Kampala City Council & Attorney General (Supreme Court Civil Appeal No. 2 of 1998)
- Nurdin Ali Dewji & Others v GMM Meghji & Co & Others (1953) 20 EACA 132
Full judgment
The original judgment as reported. Read the original PDF before relying on any passage.