Nakanjako v R.L Jain Limited & 5 Others (Miscellaneous Application 1925 of 2023)
Observed later treatment
No later-treatment classification is recorded for this judgment.
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Holding
The High Court granted leave to amend the plaint to add a new cause of action alleging fraudulent sale of mortgaged property and to join five additional defendants. The court held that amendments sought before hearing should be freely allowed where they cause no injustice to the other party, do not prejudice their rights, and avoid multiplicity of suits. The Civil Procedure Rules do not bar introduction of new causes of action through amendment. The amendment did not substitute or fundamentally change the character of the original cause of action concerning a void loan agreement.
Outcome
Leave to amend granted; matter to proceed on amended pleadings
Facts
The Applicant filed Civil Suit No. 94 of 2023 against R.L Jain Limited seeking declarations that their loan agreement was illegal and void, and a permanent injunction against sale of her mortgaged land. While the suit was pending, the 1st Respondent allegedly fraudulently sold and transferred the suit property to the 2nd, 3rd, and 4th Respondents. The Applicant alleged the 1st Respondent had agreed to stop the sale after she paid UGX 15,000,000, but proceeded with the sale without re-advertising or proper valuation. The 5th Respondent auctioneer and 6th Respondent land registrar allegedly facilitated the irregular transfer seven months after advertising without fresh valuation. The Applicant sought leave to amend her plaint to include allegations of fraud and add the five additional parties as defendants.
Issues
- Whether the Applicant should be granted leave to amend the Plaint in Civil Suit No. 94 of 2023
Orders
- Application allowed.
- Leave granted to the Applicant to amend the Plaint in Civil Suit No. 94 of 2023.
- The 2nd, 3rd, 4th, 5th, and 6th Respondents be added as Defendants.
- The amended pleadings be filed and served to the Defendants.
- Costs shall be in the cause.
Rules and key headnotes
Legislation cited (5)
Cases cited (4)
- Gaso Transport Services (Bus) Ltd v Obene (SCCA No. 4 of 1994)
- Eastern Bakery v Castelino (1958) 1 EA 461
- Mulowooza & Brothers Ltd v Shah & Co Ltd (SCCA No. 26 of 2010)
- Mohan Musisi Kiwanuka v Asha Chad (SCCA No. 14 of 2002)
Full judgment
The original judgment as reported. Read the original PDF before relying on any passage.