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Ngamita Paroza & 2 oers v Bank Of Uganda (Misc.App. No.695 Of 2002) (Misc.App. No.695 of 2002)

High Court · [2003] UGHC 86 · 2003 Application Granted AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Application by chamber summons for leave to amend the plaint in HCCS No. 199 of 2002 before commencement of trial
Decision
Leave to amend granted; matter to proceed to scheduling conference

Observed later treatment

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Holding

Held that leave to amend a plaint before commencement of trial should be freely allowed where no prejudice is caused to the opposite party. The use of chamber summons under Order 6 rule 18 instead of notice of motion under Order 1 rule 10(2) does not invalidate proceedings where it does not affect jurisdiction and causes no prejudice. Renaming a defendant to clarify the capacity in which it is sued does not constitute substitution of parties. Section 32(2)(e) of the Financial Institutions Statute 1993 does not prohibit suits against the Central Bank when acting as liquidator; rather it empowers the Bank to defend such suits.

Outcome

Leave to amend granted; matter to proceed to scheduling conference

Facts

The applicants filed Civil Suit No. 199 of 2002 on 4th April 2002 against two defendants: (1) The Bank of Uganda and (2) The Liquidator of The Co-operative Bank Limited. Before the scheduling conference could be fixed, the applicants applied by chamber summons on 8th November 2002 for leave to amend the plaint. The proposed amendment sought to rename the defendants as: (1) The Bank of Uganda (as the liquidator of the Co-operative Bank Ltd) and (2) The Co-operative Bank Ltd (In Liquidation). The applicants argued the original description resulted from inadvertence and that the amendment was sought at an early stage before trial commencement. The respondents objected on two grounds: first, that the proper procedure should have been by notice of motion under Order 1 rule 10(2) as the amendment affected parties; second, that section 32(2)(e) of the Financial Institutions Statute 1993 prohibited suing Bank of Uganda when acting as liquidator.

Issues

  1. Whether the application for leave to amend the plaint should proceed by chamber summons under Order 6 rule 18 or by notice of motion under Order 1 rule 10(2) of the Civil Procedure Rules.
  2. Whether renaming the first defendant from 'Bank of Uganda' to 'Bank of Uganda (as the Liquidator of The Co-operative Bank Ltd)' constitutes a substitution of parties requiring Order 1 rule 10(2) procedure.
  3. Whether renaming the second defendant from 'The Liquidator of The Co-operative Bank' to 'The Co-operative Bank Limited (In Liquidation)' introduces a new party requiring Order 1 rule 10(2) procedure.
  4. Whether section 32(2)(e) of the Financial Institutions Statute 1993 prohibits an action against Bank of Uganda acting as a liquidator.

Orders

  • Leave is granted to the applicants to amend their plaint in the terms proposed in the amended plaint annexed to the application.
  • The defendants shall have 14 days from delivery of this ruling to adjust their own pleadings should they desire to do so.
  • The case is fixed for a scheduling conference on Friday, 14th February 2003 at 10.00 a.m.
  • The costs of the application abide by the outcome of Civil Suit No. 199 of 2002.

Rules and key headnotes

Civil Procedure — Amendment of Pleadings — Timing and Principles
An amendment sought before the commencement of the hearing should be freely allowed if the amendment can be made without prejudice to the other party, and there would be no prejudice caused if the other party can be compensated by costs.
Civil Procedure — Amendment of Pleadings — Procedure for Amendment Affecting Parties
Renaming a defendant to clarify the capacity in which it is sued does not constitute a substitution of parties requiring application by notice of motion under Order 1 rule 10(2); such amendment may properly be sought by chamber summons under Order 6 rule 18.
Civil Procedure — Wrong Procedure — Effect of Adoption of Wrong Procedure
The mere adoption of a wrong procedure will not invalidate proceedings where it does not go to the question of jurisdiction and no prejudice is caused to the opposite party.
Civil Procedure — Substantive Justice — Technicalities
Substantive justice must be administered without undue regard to technicalities, and courts should ensure that all necessary parties are before the court to enable effective and complete adjudication of all questions involved in the suit.
Banking & Finance — Financial Institutions in Liquidation — Central Bank's Power to Defend Actions
Section 32(2)(e) of the Financial Institutions Statute 1993, which empowers the Central Bank to initiate, defend and conduct any action to which a financial institution in its possession may be a party, does not prohibit suits against the Central Bank when acting as liquidator but rather includes the power to defend such suits as a co-party.

Legislation cited (8)

Cases cited (4)

  • Eastern Bakery v Castellino [1958] EA 461
  • Gaso Transport Service Ltd v Martin Adala Obene (SCCS No. 4 of 1994)
  • Essaji v Solanki [1968] EA
  • Boyes v Gathure [1969] EA 385

Full judgment

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Ngamita Paroza & 2 oers v Bank Of Uganda (Misc.App. No.695 Of 2002) (Misc.App. No.695 of 2002) [2003] UGHC 86 (14 January 2003)
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.