Noble Builders (Co) Limited v M/s Sietco (Miscellaneous Application 154 of 1993)
Observed later treatment
No later-treatment classification is recorded for this judgment.
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Holding
The court held that where a counter claim alleges fraud through the use of unspecified 'tricks and strategies' to extract money, but fails to provide the necessary particulars of fraud as required by Order 6 rule 2 of the Civil Procedure Rules, the counter claim discloses no cause of action and must be struck out. Order 6 rule 2 is mandatory and failure to plead particulars of fraud is a fundamental defect that cannot be cured.
Outcome
Counter claim struck out with costs for failure to comply with mandatory pleading requirements
Facts
Noble Builders (Co) Limited (plaintiff) filed Civil Suit No. 17/90 against M/s Sietco (defendant). The defendant filed a counter claim alleging that the plaintiff failed to complete construction work on a UNDP office block and housing estate, and that the plaintiff 'using tricks and other strategies' extracted US$ 1,300,000 from the defendant. The counter claim also alleged that the plaintiff 'deliberately and fraudulently represented' that it had the ability, capacity, skill and expertise to carry out the work when it did not. The plaintiff brought a miscellaneous application to strike out the counter claim on grounds that it did not disclose a cause of action because the allegations of fraud were not accompanied by the necessary particulars as required by Order 6 rule 2 of the Civil Procedure Rules. The defendant opposed the application, arguing that sufficient particulars were provided when the pleadings were read together.
Issues
- Whether the defendant's counter claim discloses a cause of action where it alleges fraud but does not provide the particulars of fraud as required by the Civil Procedure Rules.
- Whether allegations of 'tricks and strategies' used to extract money constitute allegations of fraud requiring particularisation under Order 6 rule 2.
- Whether a counter claim alleging fraud without sufficient particulars should be struck out under Order 6 rule 29 and Order 48 rule 1.
Orders
- The Counter Claim insofar as it relates to the claim for US$ 1,300,000 is struck out.
- Costs awarded to the plaintiff/applicant.
Rules and key headnotes
Legislation cited (7)
Cases cited (9)
- Steven Luboga v Barclays Bank of Uganda Ltd (Civil Appeal No. 2 of 1992)
- In RE RICA Gold Washing Company 1879 11 ch.D 36
- John Wallingford v The Directors of The Mutual Society (1879-80) 5 App Cas 683
- Newport Drydock & Engineering Company vs Panter (1886) 34 ch. D. 88
- Dow Hager Lawrance v Lord Norreys (1890) 15 AC 210
- Misango vs Musigire 1968 E.A. 590
- Libyan Arab Bank vs Intrepo Ltd. 1985 HCB 73
- Okello v Uganda National Examination Board (Civil Appeal No. 12 of 1987)
- Shankerdass Moyer and Others versus Trustees of The Rahimtulla LALJI HIRJI Charitable Trust 1955 E.A.C.A 18
Full judgment
The original judgment as reported. Read the original PDF before relying on any passage.