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MK Financiers Ltd v N Shah & Co Ltd & 4 Ors (MISCELLANEOUS APPLICATION NO.343 OF 2015)

High Court · [2017] UGHCCD 90 · 2017 Application Dismissed AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Application to set aside Deputy Registrar's decision withdrawing underlying civil suit with costs, arising from Civil Suit No. 382 of 2014
Decision
Application dismissed with costs — Deputy Registrar's order allowing withdrawal of Civil Suit No. 382 of 2014 with costs to respondents upheld

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

The High Court dismissed the application challenging the Deputy Registrar's order withdrawing Civil Suit No. 382 of 2014 with costs to the respondents. The court held that the Registrar acted within his jurisdiction under Practice Direction No. 1 of 2002 and properly consulted the trial judge on the issue of costs. Order 25 Rule 1 of the Civil Procedure Rules mandates payment of costs upon withdrawal of a suit, and the applicant's conditional withdrawal letter could not override this statutory requirement. The Registrar's decision was lawful and not contradictory.

Outcome

Application dismissed with costs — Deputy Registrar's order allowing withdrawal of Civil Suit No. 382 of 2014 with costs to respondents upheld

Facts

MK Financiers Limited filed Civil Suit No. 382 of 2014 against the respondents seeking remedies following a distress for rent exercise. The respondents filed a written statement of defence. By letter dated 22 July 2015, the applicant sought to withdraw the suit on condition that no costs be awarded to either party. The respondents insisted on costs. After the applicant filed written arguments opposing costs, and after consultation with the trial judge, the Deputy Registrar allowed withdrawal of the suit with costs to the respondents on 2 September 2015. The applicant brought this application challenging the Registrar's decision on grounds including lack of jurisdiction, denial of fair hearing, failure to comply with procedural requirements under Order 25 Rule 7, and improper consideration of the applicant's conditional withdrawal letter.

Issues

  1. Whether the Deputy Registrar had jurisdiction to withdraw Civil Suit No. 382 of 2014 with costs when the matter had become contentious.
  2. Whether the Deputy Registrar violated the applicant's right to fair hearing by not summoning parties for oral submissions.
  3. Whether the Deputy Registrar erred by relying on Order 25 Rule 1 of the CPR when no chamber summons was filed as required by Order 25 Rule 7.
  4. Whether the Deputy Registrar erred by allowing withdrawal with costs when the applicant's letter sought withdrawal on condition that no costs be awarded.
  5. Whether the Deputy Registrar improperly considered communications from the 4th Respondent who was himself a party to the suit.

Orders

  • Appeal dismissed.
  • Costs awarded to the respondents to be paid by the appellant.

Rules and key headnotes

Civil Procedure — Jurisdiction of Deputy Registrar — Withdrawal of Suits — Practice Direction No. 1 of 2002
A Deputy Registrar of the High Court has jurisdiction under Practice Direction No. 1 of 2002 to handle withdrawal of suits under Order 25 of the Civil Procedure Rules, and where the issue of costs becomes contentious, the Registrar may consult the trial judge and act on the judge's directions.
Civil Procedure — Withdrawal of Suits — Costs — Order 25 Rule 1 CPR
Under Order 25 Rule 1 of the Civil Procedure Rules, payment of costs upon withdrawal of a suit is mandatory. A plaintiff who seeks to withdraw a suit by notice in writing shall pay the defendants' costs unless the defendants consent to waive costs. A plaintiff cannot impose conditions on the withdrawal that override this statutory requirement.
Civil Procedure — Right to Fair Hearing — Written Submissions
The right to fair hearing may be satisfied through written submissions where parties address the court in writing on the contested issue. Where both parties submit written arguments to the court on a matter and the court considers those submissions before reaching a decision, the requirement of fair hearing is met.
Civil Procedure — Withdrawal of Suits — Procedure — Order 25 Rules 1 and 7 CPR
Where a plaintiff initiates withdrawal of a suit by notice in writing under Order 25 Rule 1(1) of the Civil Procedure Rules rather than by chamber summons as contemplated by Order 25 Rule 7, the plaintiff cannot subsequently challenge the procedural irregularity he himself created. A party cannot benefit from his own default or abuse court process by choosing a procedure and then disowning it.

Legislation cited (17)

Cases cited (9)

  • Shell (U) Ltd and 9 Others v Muwema & Mugerwa Advocates (Supreme Court Civil Appeal No. 02 of 2013)
  • Mukula International v Cardinal Wamala [1982] HCB 11
  • Dr Ahmed Mohamed Kisuule v Green Land Bank (Supreme Court Civil Appeal No. 07 of 2010)
  • Mugabi v Palm Developments (U) Ltd (High Court Miscellaneous Application No. 1 of 2016)
  • Fangamin v Belex Tours (Supreme Court Civil Appeal No. 6 of 2013)
  • Atom Outdoor v Arrow Center Uganda Ltd (Commercial Court Civil Suit No. 488 of 2003)
  • Makula International v Cardinal Nsubuga [1982] HCB 11
  • Hon Kato Lubwama Paul v Buwembo Habib (Miscellaneous Cause No. 272 of 2016)
  • MK Financiers Ltd v Shah & Co and 4 Others (Miscellaneous Application No. 343 of 2015)

Full judgment

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

MK Financiers Ltd Vs N Shah & Co Ltd & 4 Ors (MISCELLANEOUS APPLICATION NO.343 OF 2015) [2017] UGHCCD 90 (7 June 2017)
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.