Mavid Pharmaceuticals Ltd v Royal Group of Pakistan (Civil Application No. 549 of 2024)
Observed later treatment
No later-treatment classification is recorded for this judgment.
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Holding
The single Justice held that the court may, under Rule 105(3) of the Court of Appeal Rules, order further security for costs where there is reasonable cause to believe a successful party will be unable to recover its costs. Applying Noble Builders v Jabal Singh Sandhu and De Bry v Fitzgerald, the court found the respondent was a foreign company domiciled in Pakistan with no known address or assets in Uganda, that the company it claimed as its local representative had denied any dealings with it, and that no reciprocal enforcement existed. The application was accordingly granted and the respondent ordered to deposit further security.
Outcome
Application granted; respondent ordered to deposit Shs. 50,000,000 as further security for costs within thirty days
Facts
Judgment in High Court Civil Suit No. 319 of 2009 was entered in favour of the applicant, Mavid Pharmaceuticals Ltd, against the respondent, Royal Group of Pakistan. The respondent appealed (Civil Appeal No. 150 of 2016) and had earlier deposited USD 62,819 as security for due performance of the decree. The applicant sought further security for costs, contending that the respondent was a foreign company domiciled in Karachi, Pakistan, with no known address or assets in Uganda and no reciprocal enforcement arrangement, making recovery of any costs awarded impossible. The respondent claimed it traded in Uganda through a local technical representative, Abacus Pharmaceuticals; however, Abacus, by letter dated 12 March 2020, denied any dealings with or holding of assets for the respondent. The applicant valued the outstanding sums at USD 214,228.40 and Ugx 3,850,938, and the interest on the decree accrued at 20% per annum.
Issues
- Whether the applicant established sufficient cause for an order directing the respondent to furnish further security for the costs of the pending appeal.
Orders
- The application is granted.
- The respondent shall deposit in court, within thirty days from the date of the ruling, the sum of Shs. 50,000,000 as further security for costs of the appeal.
- The applicant is granted the costs of this application.
Rules and key headnotes
Legislation cited (4)
- Judicature (Court of Appeal) (Rules) Directions SI 13-10 Rule 105(3)
- Companies Act Cap 106 s.282
- Advocates (Remuneration and Taxation of Costs) Rules SI 267-4 sixth schedule
- Advocates (Remuneration and Taxation of Costs) (Amendment) Regulations 2018
Cases cited (4)
- [2004] UGSC 12
- Mawogola Farmers & Growers Ltd vs Kayanja and others (No1) [97] | I EA 108
- Kakoza Jonathan and Another v Kasaala Cooperative Society Ltd (SCCA No. 13 of 2011)
- De Bry v Fitzgerald and Another [1990] 1 All ER 560
Full judgment
The original judgment as reported. Read the original PDF before relying on any passage.