Wakilii

Ntende v Stanbic Bank Uganda Limited (Miscellaneous Application 1447 of 2024)

High Court · [2024] UGHCLD 261 · 2024 Application Granted AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Application to strike out respondent's counter-claim arising from Civil Suit No. 116 of 2024
Decision
Respondent's counter-claim struck out with costs to the applicant

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

The High Court held that the applicant had locus standi to challenge the respondent bank's counter-claim because she claimed sufficient interest in the suit property as a spouse whose consent was allegedly not obtained for the mortgage. The court further held that under Order 8 Rule 2 of the Civil Procedure Rules, a counter-claim must be directed against the plaintiff, not solely against a co-defendant. The respondent's counter-claim exclusively against the co-defendant (the applicant's spouse) was therefore improper and struck out.

Outcome

Respondent's counter-claim struck out with costs to the applicant

Facts

Ntende Rebecca instituted Civil Suit No. 116 of 2024 against Stanbic Bank Uganda Limited and Ntende George (her spouse) alleging illegal mortgaging of suit land without her spousal consent. Stanbic Bank filed an amended written statement of defence including a counter-claim solely against Ntende George (the 1st defendant) for breach of contract and recovery of UGX 1,370,000,000. The applicant filed this miscellaneous application seeking to strike out the counter-claim on grounds it was barred by law and amounted to abuse of process. The respondent bank opposed, arguing the counter-claim properly arose from the same facts and was intended to avoid multiplicity of suits. The court noted the mortgage related to loan facilities extended by the bank to Geomax Engineering Ltd and others in which Ntende George had participated.

Issues

  1. Whether the Applicant has locus standi to institute the application?
  2. Whether the Respondent's counter-claim can be maintained?

Orders

  • Application granted as prayed.
  • Respondent's counter-claim struck out.
  • Costs awarded to the applicant.

Rules and key headnotes

Civil Procedure — Locus Standi — Sufficient Interest in Subject Matter
A person who claims that property was mortgaged without their spousal consent has sufficient interest in the subject matter of litigation to challenge proceedings concerning that property, thereby establishing locus standi.
Civil Procedure — Counter-Claims — Requirements under Order 8 Rule 2 CPR
Under Order 8 Rule 2 of the Civil Procedure Rules, a counter-claim is a cross-action against the plaintiff and possibly others, and must challenge the plaintiff's claim. A defendant cannot file a counter-claim solely against a co-defendant without including the plaintiff as a party to the counter-claim.
Civil Procedure — Counter-Claims — Effect as Cross-Action
The effect of a counter-claim is to enable a defendant to state that he or she has a better claim to the subject matter of litigation than the plaintiff. It is not a mechanism for bringing an independent claim against a co-defendant that does not challenge the plaintiff's position.

Legislation cited (8)

Cases cited (12)

  • DFCU Bank Ltd & 3 Ors v MP Electronics Ltd & Anor (High Court Miscellaneous Application No. 124 of 2024)
  • JS Vs Secretary of State [2002] EWHC 234 Admin
  • Christopher Mutiembu Machimbo & 3 Ors vs The County Surveyor, Trans-Nzoia & 4 Ors (2022) eKLR
  • Emmanuel Lukwalju v Kyaggwe Coffee Curing Estates Ltd & Anor (Supreme Court Civil Appeal No. 2 of 2016)
  • Dima Enterprises Poro v Inyani Godfrey (High Court Civil Appeal No. 17 of 2016)
  • Stanbic Bank v Victoria Fishnet Supplies Ltd & Ors (Miscellaneous Application No. 294 of 2015)
  • Otto Justine v Tabu Richard & 7 Ors (High Court Civil Suit No. 23 of 2015)
  • Mohan Musisi Kiwanuka v Asha Chand (Supreme Court Civil Appeal No. 14 of 2002)
  • Suuta Proscovia v Mugabane David & Anor (High Court Civil Appeal No. 123 of 2016)
  • Omumbeila Namusisi & Ors v Makerere University (Miscellaneous Application No. 1199 of 2013)
  • Kabuito Contractors Ltd Vs Mereka & Co. Advocates (Court of Appeal of Kenya CA No. 240 of 2001)
  • Christopher Mutiembu Machimbo & 3 Ors Vs The County Surveyor, Trans-Nzoia ELC Case No. 52 of 2021 (Kenya)

Full judgment

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

Ntende_v_Stanbic_Bank_Uganda_Limited_(Miscellaneous_Application_1447_of_2024)_[2024]_UGHCLD_261_(7_November_2024)
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.