Wakilii

M s Schenker N.V v Uganda Revenue Authority & Another (Miscellaneous Cause 94 of 2023)

High Court · [2023] UGCOMMC 161 · 2023 Application Granted AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Application for orders to release containers for re-export brought by way of Miscellaneous Cause
Decision
Application granted. Containers to be released to the Applicant for re-export upon compliance with Commissioner's conditions.

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

Held that a company struck off the register by the Registrar of Companies under section 265A(1) of the Companies Act 2012 ceases to have legal existence and has no locus standi before court. Where a consignee has not claimed goods since delivery, cannot be traced, and has no proven ownership, the Commissioner of Customs may permit amendment of destination under section 24(4) of the East African Community Customs Management Act 2004. The court ordered release of containers to the applicant exporter for re-export upon fulfilment of conditions set by the Commissioner.

Outcome

Application granted. Containers to be released to the Applicant for re-export upon compliance with Commissioner's conditions.

Facts

The Applicant, an international forwarding company, was assigned by a consignor to transport three containers of conductive carbon black from Antwerp, Belgium to Mombasa, Kenya in September 2022. The consignee indicated on shipping documents was the 2nd Respondent, Reagent Chemicals Uganda Ltd. In November 2022, the Applicant received information from a third party alleging fraud and that the consignee was non-existent. The Applicant instructed its agents not to release the goods. The consignee never claimed the goods and could not be traced. The Applicant sought a renouncement letter to re-export but the consignee was untraceable. The 1st Respondent (URA) advised the Applicant to seek a court order. The 2nd Respondent later appeared claiming ownership but provided no documentation. It emerged that the 2nd Respondent had been struck off the company register by URSB on 30th August 2023.

Issues

  1. Whether the 2nd Respondent has locus standi to participate in the proceedings given its status on the company register.
  2. Whether the suit goods should be handed over to the Exporter/Applicant.
  3. What remedies are available to the parties.

Orders

  • Preliminary objection against the 2nd Respondent upheld — 2nd Respondent has no locus standi having been struck off the company register on 30th August 2023.
  • The 1st Respondent (Uganda Revenue Authority) is ordered to release containers No. TCNU8849303, GCXU2194124 and AXIU1618617 containing conductive carbon black to the Applicant for re-export.
  • The release is conditional upon the Applicant fulfilling the conditions set out in the letter dated 1st September 2023 by the Commissioner Customs.
  • Each party to bear its own costs.

Rules and key headnotes

Company Law — Struck Off Companies — Effect on Legal Existence and Locus Standi
Under section 265A(1) of the Companies Act 2012 (as amended in 2022), a company struck off the Register by the Registrar of Companies ceases to have legal existence and has no locus standi to participate in court proceedings.
Customs Law — Amendment of Destination of Goods — Commissioner's Powers
Section 24(4) of the East African Community Customs Management Act 2004 empowers the Commissioner of Customs to permit the master or agent of a vessel to amend the destination, ownership or status of goods specified in the customs report where a change in such destination, ownership or status is intended.
International Trade — Ownership of Goods — Burden of Proof
Under international trade, the consignee is regarded as the legally recognized owner of goods, but a party claiming ownership of goods must adduce documentary evidence such as bills of lading or shipping documents to support their claim. Mere assertions in affidavit evidence without supporting documentation are insufficient.

Legislation cited (6)

Full judgment

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

M s Schenker N.V v Uganda Revenue Authority & Another (Miscellaneous Cause 94 of 2023) [2023] UGCommC 161 (5 December 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.