Wakilii

Mutweita v Akamba Handicraft Industries Ltd (Civil Suit No. 1711 of 1953)

East African Court of Appeal · [1954] EACA 21 · 1954 Application Granted AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Application by defendant company to set aside judgment entered by default of appearance on grounds of invalid service
Decision
Judgment by default set aside; defendant entitled to defend the suit on the merits if plaintiff re-serves according to law

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

Held that service on a limited company must strictly follow the statutory procedure in section 349(1) of the Companies Ordinance, which requires leaving the document at or sending it by post to the registered office. The words 'leaving at' mean leaving the summons with someone in the office or within the office premises, not affixing it to the outer door. Service by affixing to the door is invalid and Order 5 rule 14 cannot be invoked for service on corporations. The judgment by default was set aside with costs against the plaintiff.

Outcome

Judgment by default set aside; defendant entitled to defend the suit on the merits if plaintiff re-serves according to law

Facts

The plaintiff sued the defendant company and purported to effect service by affixing a copy of the summons to the closed outer door of the company's registered office at Kiburi House, Nairobi. The process server made several visits and found the office closed on each occasion. On the basis of this return, the Registrar entered judgment by default of appearance. The managing director of the defendant company deposed that he was present at the office during the alleged visits, found nothing affixed to the door, and only discovered the summons later in a bundle of old newspapers. The defendant applied to set aside the judgment on the ground that there had been no valid service.

Issues

  1. Whether service on a limited company by affixing a summons to the closed outer door of its registered office constitutes valid service under section 349(1) of the Companies Ordinance.
  2. Whether the special statutory procedure for service on companies prescribed by the Companies Ordinance excludes the general procedure under Order 5 rule 14 of the Civil Procedure Rules.
  3. Whether the court should exercise its discretion to set aside a judgment entered by default where service was invalid.

Orders

  • Judgment by default set aside.
  • Execution raised.
  • Plaintiff to pay defendant's costs of the application.
  • Plaintiff to pay costs thrown away.

Rules and key headnotes

Civil Procedure — Service of Process — Corporations — Statutory Procedure Prevails
Where a special procedure for service is prescribed by statute, the Civil Procedure Ordinance and rules made thereunder cannot limit or affect that procedure by virtue of section 2 of the Civil Procedure Ordinance.
Company Law — Service on Limited Companies — Meaning of 'Leaving At' Registered Office
Service on a limited company under section 349(1) of the Companies Ordinance requires leaving the document at or sending it by post to the registered office. The words 'leaving at' mean leaving the summons with someone in the office or otherwise leaving it within the office premises. The word 'at' includes the limits of the office and requires leaving within those limits.
Civil Procedure — Service on Corporations — Order 5 Rule 14 Inapplicable
Section 349(1) of the Companies Ordinance does not provide for service by affixing to the outer door of the registered office. Service so attempted on a limited company is invalid and no recourse can be had to Order 5 rule 14 of the Civil Procedure Rules, which does not apply to service on corporations.
Civil Procedure — Default Judgment — Setting Aside — Invalid Service
Where service is invalid, this constitutes good ground for setting aside a judgment entered by default under Order 9 rule 10. The entering of judgment by the Registrar does not relieve the plaintiff from responsibility for ensuring that service was valid before applying for judgment.
Civil Procedure — Costs — Invalid Service — Plaintiff's Responsibility
Where service is invalid and the plaintiff failed to satisfy himself that the procedure was in order before moving for judgment, the plaintiff must pay the costs thrown away and the costs of the application to set aside, as the defendant is at the bar through the plaintiff's error and omissions.

Legislation cited (7)

  • Civil Procedure Ordinance s.2
  • Companies Ordinance (Cap. 288) s.349(1)
  • Civil Procedure (Revised) Rules 1948 Order 5 rule 14
  • Civil Procedure (Revised) Rules 1948 Order 9 rule 10
  • Civil Procedure (Revised) Rules 1948 Order 9 rule 24
  • Civil Procedure (Revised) Rules 1948 Order 28 rule 2
  • Civil Procedure (Revised) Rules 1948 Order 48 rule 2(1)

Cases cited (4)

  • White v Land and Water Co (1883) WN 174
  • Price v Bala and Festiniog Railway Co (1884) 50 LT 787
  • In re Fortune Copper Mining Company LR 10 Eq 390
  • Watson v Sheather (1886) 2 TLR 473

Full judgment

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Mutweita v Akamba Handicraft Industries Ltd (Civil Suit No. 1711 of 1953) [1954] EACA 21 (1 January 1954)
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.