Wakilii

National Resistance Movement & Anor v NBS Television Ltd & Anor (Miscellaneous Application No. 73 of 2017)

High Court · [2017] UGCOMMC 70 · 2017 Application Granted AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Application for unconditional leave to appear and defend a summary suit arising from Civil Suit No. 20 of 2017
Decision
Applicants granted unconditional leave to defend Civil Suit No. 20 of 2017

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

The High Court Commercial Division granted the applicants unconditional leave to defend a summary suit for breach of contract. The court held that the applicants raised two plausible defences: first, that the contract was executed with an entity called 'NRM National Task Force 2016' and not the first applicant, a registered political party which must contract in its corporate name under the Political Parties and Organisations Act; second, that the second applicant was sued personally despite not executing any contract and could not be held vicariously liable for the party's corporate obligations. The court found these defences arguable and not frivolous or vexatious, warranting a full trial on the merits.

Outcome

Applicants granted unconditional leave to defend Civil Suit No. 20 of 2017

Facts

The respondent television companies filed a summary suit for UGX 190,000,000 against the applicants for unpaid advertising services. The claim was based on a contract allegedly entered into with 'NRM National Task Force 2016' signed by one Herbert. The first applicant, the National Resistance Movement, is a registered political party and body corporate under the Political Parties and Organisations Act 2005. The second applicant, Justine Kasule Lumumba, is the Secretary General of the NRM. The applicants denied any knowledge of or involvement in the contract, stating that there is no organ or structure within the NRM called 'NRM National Task Force', and that the party has established structures for contracting through its National Secretariat. The applicants argued they were not party to the contract and that the second applicant could not be personally liable for corporate obligations without piercing the corporate veil. The respondents filed an affidavit in reply out of time without seeking leave of court and did not appear at the hearing or file written submissions.

Issues

  1. Whether the Respondent's affidavit in reply was time barred.
  2. Whether the Applicants' defence raises triable issues of fact or law.
  3. What remedies are available to the parties.

Orders

  • The applicants are granted unconditional leave to file a defence.
  • The applicants shall file a written statement of defence within 15 days from the date of this order.
  • The costs of this application shall abide the outcome of the main suit.

Rules and key headnotes

Civil Procedure — Summary Suit — Leave to Defend — Test for Granting Leave
In an application for leave to defend a summary suit, the court does not determine the merits of the suit but only whether the defendant has shown good cause to be given leave to defend. The applicant must disclose a plausible defence that is not frivolous or vexatious and must state the defence with sufficient particularity as to appear genuine. Whenever a genuine defence, either in fact or law, sufficiently appears, the defendant is entitled to unconditional leave to defend.
Company Law — Political Parties — Corporate Personality — Capacity to Contract
A political party registered under the Political Parties and Organisations Act 2005 is a body corporate with perpetual succession that may sue and be sued in its corporate name. A contract purporting to bind a political party must be executed in the name of the party as a body corporate and not by a non-entity or informal group using the party's abbreviation. A party can only be sued on a contract to which it is privy, and the doctrine of privity of contract prevents a contract from conferring rights or imposing obligations on strangers to it.
Company Law — Separate Legal Personality — Personal Liability of Officers
An individual officer of a body corporate cannot be made personally or vicariously liable for the commercial dealings of the corporate body merely by virtue of holding office. To impose personal liability on an officer for corporate contracts would require piercing the corporate veil, which cannot be done in a summary suit.
Civil Procedure — Affidavits in Reply — Time Limits — Effect of Late Filing
A reply to an interlocutory application must be filed within 15 days of service of the application on the respondent under Order 12 Rule 3(2) of the Civil Procedure Rules. An affidavit in reply filed out of time without leave of court cannot be taken into account. A respondent who files a reply out of time and does not seek leave of court to validate the reply through extension of time has no locus standi and cannot be heard, as it is as if no reply was filed.

Legislation cited (4)

Cases cited (10)

  • The Ramgarhia Sikh Society and Others v The Ramgarhia Education Society Limited and Others (HCMA No. 352 of 2015)
  • Geoffrey Gatete and Angela Maria Nakigonya v William Kyobe (SCCA No. 5 of 2005)
  • NSSF v Alcon International Limited (SCCA No. 15 of 2009)
  • Namusoke v Electoral Commission (Election Petition No. 004 of 2011)
  • Salomon v Salomon & Co [1897] AC 22 (HL)
  • Sengendo v Attorney-General [1972] 1 EA 140
  • Kanji Devji v Damodar Jinabhai & Co (1934) 1 EACA 87
  • Home and Overseas Insurance Co Ltd v Mentor Insurance Co (UK) Ltd (In Liquidation) [1989] 3 All ER 74
  • Zola and Another v Ralli Brothers Limited and Another [1969] 1 EA 691
  • Souza Figuerido & Co Ltd v Moorings Hotel Co Ltd (1959) EA 426

Full judgment

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

National Resistance Movement & Anor v NBS Television Ltd & Anor (Miscellaneous Application No. 73 of 2017) [2017] UGCommC 70 (6 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.