Wakilii

Lambu Pharma Limited & Another v Wakiso Pharmacy Limited (Miscellaneous Application 1332 of 2024)

High Court · [2024] UGCOMMC 320 · 2024 Application Granted AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Objector application arising from execution proceedings in civil suit seeking release of property from attachment
Decision
Property released from attachment and returned to objector

Observed later treatment

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Holding

Held that an objector claiming property attached in execution must demonstrate possession and interest at the date of attachment. Constructive possession through documents evidencing power and intention to control property is sufficient. Where a pharmacy was sold before the attachment and the objector held a sale agreement, company resolution, licence application and payment invoice, the objector had constructive possession at the date of attachment despite the licence issuing days before attachment. Property ordered released.

Outcome

Property released from attachment and returned to objector

Facts

On 3 April 2024, Lambu Pharma Limited purchased a pharmacy and NDA licence from Wakiso Pharmacy Limited. On 23 April 2024, Davimed Pharma Limited obtained judgment against Wakiso Pharmacy Limited for UGX 306,616,400. On 7 June 2024, the High Court issued a warrant of attachment against Wakiso Pharmacy Limited's assets. On 13 June 2024, the National Drug Authority issued a pharmacy licence to Lambu Pharma Limited. On 21 June 2024, a bailiff acting for Davimed closed the pharmacy and attached the assets. Lambu Pharma Limited applied as objector to release the property from attachment, claiming it had acquired the pharmacy before the judgment. Davimed contended the transfer was fraudulent and intended to defeat execution, noting the licence transferred six days after attachment was ordered.

Issues

  1. Whether the property should be released from the attachment.

Orders

  • The pharmaceutical premises and pharmacy NDA licenses situated at Shop No. 3 Ground Floor, Rental premises at Prince Kaizza Complex Wakiso Trading Centre, Hoima Road Wakiso are hereby released from attachment/execution.
  • The attachment and sale of movable assets, medical supplies, computer equipment, cash at hand, computers, software and any other movable of the objector is hereby set aside.
  • Costs awarded to the objector.

Rules and key headnotes

Civil Procedure — Execution — Objector Proceedings — Test for Release of Property
In objector proceedings under Order 22 Rules 55-57 of the Civil Procedure Rules, the question to be decided is whether on the date of attachment the judgment debtor or the objector was in possession of the property, and if the objector was in possession, whether possession was on the objector's own account or in trust for the judgment debtor.
Civil Procedure — Execution — Objector Proceedings — Burden of Proof
Under Order 22 Rule 56 of the Civil Procedure Rules, the claimant or objector must adduce evidence to show that at the date of attachment they had some interest, whether legal or equitable, in the property attached.
Civil Procedure — Execution — Possession — Actual versus Constructive Possession
Possession for purposes of objector proceedings may be actual or constructive. A person has actual possession where they have direct physical control of property. A person has constructive possession where they have both the power and the intention at a given time to exercise control over a thing, either directly or through another person. A person with constructive possession has the same rights as one with actual possession.
Civil Procedure — Execution — Constructive Possession — Documentary Evidence
Whether an objector exercises dominion over property is determined by examining available records disclosing the name of the person by whom or on whose behalf the property is occupied. This information may be gathered from documents used in the ordinary course of business as proof of possession or control, such as documents which would enable the possessor to transfer or receive the property or to possess the property.
Civil Procedure — Execution — Objector Proceedings — Release of Property
Where court finds on evidence including sale agreements registered before attachment, company resolutions authorising sale, and licence applications and payments made before attachment that the objector had constructive possession of property at the date of attachment, the property must be released from attachment under Order 22 Rule 57 of the Civil Procedure Rules even if the regulatory licence issued shortly before the attachment date.

Legislation cited (11)

Cases cited (5)

  • Bukonko Traders & Transport Bus Company & Another v Sempala Ronald (High Court Civil Suit No. 167 of 2016)
  • Lucy Oker Lagol & Others v Bonga Ronald Okech & Another (Civil Appeal No. 0119 of 2019)
  • David Muhenda & 3 Others v Margaret Kamuje (Supreme Court Civil Appeal No. 9 of 1999)
  • Muscle Construction Limited & Another v Muscle Group Limited (Miscellaneous Application No. 1256 of 2024)
  • Gorrepati v Grant Thornton Management & Another (Miscellaneous Application No. 418 of 2023)

Full judgment

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

Lambu Pharma Limited & Another v Wakiso Pharmacy Limited (Miscellaneous Application 1332 of 2024) [2024] UGCommC 320 (25 October 2024)
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.