Nkoba v Traminco (U) Limited and Another (Miscellaneous Application No. 668 of 2019)

Observed later treatment

No later-treatment classification is recorded for this judgment.

Citator coverage is limited to judgments in the Wakilii corpus and source-matched treatment records. Absence of a signal is not an assertion that the case remains good law.

Holding

Application to vary Registrar's orders dismissed. Court held that the Registrar acted within jurisdiction under s.98 CPA in granting 30 days to furnish security. However, to protect the Applicant's interests, Court ordered Arab Contractors to refrain from paying Shs 950,000,000 owed to Respondents and to hold those funds until further orders.

Outcome

Application dismissed but protective order granted restraining payment of contract funds pending further orders

Facts

The Applicant sought to vary orders made by the Registrar in MA 1067 of 2020, which had granted the Respondents 30 days to furnish security in the form of a bank guarantee before attachment of equipment and machinery. The Applicant contended that the Respondents would use the 30-day period to dispose of or remove the equipment, rendering the order futile. The Applicant argued that the Respondents were financially incapacitated and unable to furnish a bank guarantee, and that the second Respondent had been charged with issuing false cheques. The Respondents countered that they were in the process of obtaining the bank guarantee, that their equipment was on site executing road construction works on the Pallisa-Kamonkoli road, and that they had not disposed of any equipment. The Respondents argued that attachment of both the equipment and contract funds would paralyze their road works contract.

Issues

1. Whether the Registrar's order granting the Respondents 30 days to furnish security should be varied to allow immediate attachment of equipment.
2. Whether the Court should restrain Arab Contractors from paying money owed to the Respondents pending determination of the main suit.

Orders

• Application to vary the Registrar's orders dismissed.
• Arab Contractors - Osman Ahmed Osama to refrain from paying Shs 950,000,000 owing to the Respondents by virtue of a sub-contract on the Pallisa-Kamonkoli Road Project.
• Arab Contractors to hold the said sums of money until further orders of Court.
• Costs in the cause.

Rules and key headnotes

Legislation cited (2)

• Civil Procedure Act s.98
• Civil Procedure Rules Order 40 r.5

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