Wakilii

Kyeyune v Tropical Bank Limited (Miscellaneous Application 308 of 2022)

High Court · [2023] UGHC 65 · 2023 Application Granted — Contempt Found AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Application for contempt of court arising from failure to comply with court order in Miscellaneous Application No. 226 of 2022, itself arising from Civil Suit No. 067 of 2020
Decision
Respondent found in contempt of court, compelled to comply with previous court order within 14 days, and ordered to pay fine and damages to applicant

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

Held that the respondent bank was in contempt of court for failing to file loan documentation with the court as ordered within 14 days, despite subsequently providing documents to the applicant's advocates. A party cannot choose whether or how to comply with court orders. The court compelled compliance, awarded a fine of UGX 5,000,000 for contempt, general damages of UGX 10,000,000, and costs to the applicant.

Outcome

Respondent found in contempt of court, compelled to comply with previous court order within 14 days, and ordered to pay fine and damages to applicant

Facts

The applicant commenced Civil Suit No. 67 of 2020 disputing indebtedness to the respondent bank and challenging the freezing of his bank account. The respondent filed a counterclaim seeking to recover UGX 132,333,995. In Miscellaneous Application No. 226 of 2022, the Deputy Registrar ordered the respondent to avail court with readable loan application forms signed by the applicant and guarantors, disbursement and repayment schedules within 14 days from 9th September 2022. The respondent was served with the order on 14th September 2022. The respondent's company secretary deposed that documents were provided to the applicant's counsel rather than filed in court, and that the applicant's bank account was removed from write-off classification. The applicant filed the present contempt application alleging the respondent refused to comply with the court order.

Issues

  1. Whether the Respondent is in contempt of court for failing to comply with the court order dated 9th September 2022.
  2. What remedies are available to the parties if contempt is established.

Orders

  • Declaration that the respondent acted in contempt of court orders issued on 9th September 2022.
  • Respondent compelled to obey court orders in Miscellaneous Application No. 226 of 2022 and deposit readable loan documentation in court within fourteen (14) days from delivery of this ruling.
  • Respondent to pay a fine of UGX 5,000,000 (Five million shillings) for contempt of court orders.
  • Respondent to pay UGX 10,000,000 (Ten million shillings) to the applicant as general damages.
  • Costs of the application awarded to the applicant.

Rules and key headnotes

Contempt of Court — Essential Elements — Lawful Order, Knowledge, and Disobedience
For contempt of court to be found, three conditions must exist: (a) a lawful order, (b) the potential contemnor's knowledge of the order, and (c) the potential contemnor's failure to comply with or disobedience of the order.
Contempt of Court — Compliance with Court Orders — Party Cannot Choose Manner of Compliance
A party who is subject to a court order cannot choose whether or how to comply with the order. The order must be complied with in totality and in the manner directed by the court, regardless of whether the party finds the order unreasonable or inconvenient, subject only to the party's right to challenge the order through lawful appellate or review procedures.
Contempt of Court — Validity of Orders — Duty to Obey Until Set Aside
Unless vacated by another court order, an order of court remains valid even if the parties find it unreasonable or erroneous, and parties are not at liberty to disobey such an order.
Contempt of Court — Remedies — Fine and General Damages
Civil contempt may be punished by way of committal to civil prison, by way of fine, by injunction against the contemnor, or by an award of general damages to compensate the injured party for inconvenience and injury caused by the disobedience.

Legislation cited (5)

Cases cited (15)

  • Kaahwa Stephen & Another v Kalema Hannington (High Court Civil Appeal No. 07 of 2011)
  • Megha Industries Ltd v Conform Uganda Ltd (High Court Miscellaneous Cause No. 21 of 2014)
  • Hon. Sitenda Sebalu v Secretary General of the East African Community (No. 8 of 2012)
  • Hadkinson v Hadkinson [1952] All ER
  • Church v Cremer (1 Coop Temp Cott 342)
  • Kilama Lajul v Uganda Coffee Development Authority & 2 Others (Civil Miscellaneous Application No. 324 of 2020)
  • Stanbic Bank (U) Ltd vs Commissioner General Uganda Revenue Authority
  • Margaret L.L Etuusa v Makerere University & 3 Others (Miscellaneous Cause No. 181 of 2017)
  • Geraldine Busuulwa Ssali v National Social Security Fund & 2 Others (Miscellaneous Application No. 116 of 2016)
  • Prof. Elsam Magara v Makerere University and Ors (Miscellaneous Application No. 497 of 2015)
  • Bashaija v Electoral Commission & Anor (High Court Election Petition No. 4 of 2011)
  • Stanbic Bank (U) Ltd & Jacobsen Power Plant Ltd v The Commissioner General Uganda Revenue Authority (Miscellaneous Application No. 42 of 2010)
  • Francis Butagira v Deborah Mukasa (Supreme Court Civil Appeal No. 6 of 1989)
  • Uganda Development Bank v Muganga Construction Company [1981] HCB 35
  • Sutherland v Canada (Attorney General) [2008] BCCA 27

Full judgment

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

Kyeyune v Tropical Bank Limited (Miscellaneous Application 308 of 2022) [2023] UGHC 65 (30 August 2023)
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.