Makubuya Enock Willy T/A Pollaplast v Songdoh Films (U) Ltd and Another (Miscellaneous Application No.321 of 2018)
Observed later treatment
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Holding
The High Court held that where a defendant is a foreign national who may leave the jurisdiction and has not adequately demonstrated capacity to satisfy a potential decree, the court may in exercise of its discretion under Section 64(a) of the Civil Procedure Act order the defendant to furnish security to prevent the ends of justice being defeated. The court ordered the respondents to furnish security of UGX 100,000,000 within one month, rejecting the preliminary objection that the claim fell outside Order 40's scope.
Outcome
Security for appearance ordered; main suit to proceed to disposal
Facts
The applicant, a tenant trading as Pollaplast, filed a civil suit against the respondents (a Ugandan company and its Korean director) claiming damages for breach of tenancy agreement and unlawful detention of products. The applicant sought an order requiring the 2nd respondent (a foreign national) to furnish security, alleging he was about to leave Uganda and had disposed of machines that formed the subject of the dispute. The applicant claimed the respondents lacked capacity to satisfy a potential decree. The respondents opposed, stating they owned assets worth billions in Uganda, had not sold any assets, and the applicant's claim was speculative. The 2nd respondent's status and the company's ownership structure were not disclosed in their affidavit.
Issues
- Whether the application for arrest and attachment before judgment fell within the exceptions under Section 12 of the Civil Procedure Act.
- Whether the applicant established grounds for requiring the respondents to furnish security for appearance under Section 64(a) of the Civil Procedure Act and Order 40 of the Civil Procedure Rules.
- Whether the respondents had demonstrated capacity to satisfy a potential decree.
Orders
- The respondents are ordered to furnish security to court of a value of UGX 100,000,000 (either in form of bank guarantee or property) within one month from 14 September 2018.
- The main suit shall be disposed of within a period of six months.
- Application allowed.
- Costs in the cause.
Rules and key headnotes
Legislation cited (6)
- Civil Procedure Act s.64(a)
- Civil Procedure Act s.98
- Civil Procedure Act s.12
- Civil Procedure Rules O.40 r.1
- Judicature Act s.14(2)
- Judicature Act s.33
Cases cited (1)
- Chandrika Prashad Singh v Hira Lal (1924) Pat 312
Cases citing this judgment (1)
How later Ugandan judgments in the Wakilii corpus have cited this case. Treatment labels come from Sequitur — Uganda’s citator — each backed by a verbatim span from the citing judgment, and are not an assertion that this case is, or is not, good law.
Full judgment
The original judgment as reported. Read the original PDF before relying on any passage.