Wakilii

Pan Afric Commodities Limited (In Receivership) and 2 Others v Kare Distributors Limited and 2 Others (Miscellaneous Application 2313 of 2025)

High Court · [2026] UGCOMMC 228 · 2026 Application Dismissed AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Application for stay of execution pending review of judgment in civil suit 665 of 2019
Decision
Application struck out for want of locus standi

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

The court held that a director of a company in receivership lacks locus standi to institute proceedings on behalf of the company without the receiver's sanction or court approval. Under the Insolvency Act, a receiver assumes primary authority over the company's assets and business, displacing the directors' powers. The application was struck out for want of locus standi, as the proper party to bring proceedings is the receiver, not the director.

Outcome

Application struck out for want of locus standi

Facts

The 1st respondent obtained judgment against the applicants in civil suit 665 of 2019 and commenced execution proceedings. The applicants filed an application for review of that judgment (Miscellaneous Application 2299 of 2025) and sought stay of execution pending the review, claiming threat of substantial loss from execution of the decree. The 1st applicant is a company in receivership. The respondents raised a preliminary objection that the 1st applicant, being in receivership, lacked locus standi to bring the application through its director without the receiver's sanction.

Issues

  1. Whether the applicants have fulfilled the conditions necessary for a grant of an order for stay of execution.
  2. Whether the 1st applicant (a company in receivership) has locus standi to bring the application through its director without the receiver's sanction.

Orders

  • Application struck out for want of locus standi.
  • Costs awarded to the respondents.

Rules and key headnotes

Company Law — Receivership — Locus Standi of Directors
Upon appointment of a receiver or receiver-manager under the Insolvency Act, the powers of the directors to control the company's assets and business are displaced and vested in the receiver, who assumes primary authority to institute or defend proceedings on behalf of the company in respect of assets under receivership.
Civil Procedure — Locus Standi — Company in Receivership
A director lacks locus standi to commence proceedings in the name of a company in receivership without the sanction of the receiver or the court, unless it is demonstrated that the receiver has acted in bad faith, has failed or refused to act, or that the proceedings relate to matters falling outside the scope of the receivership.
Company Law — Receivership — Effect on Corporate Powers
Under section 187(1) of the Insolvency Act, where a company is in administrative receivership, the company shall not exercise any of its functions or powers and a director or secretary shall not exercise his or her functions or powers, except with the administrative receiver's approval.

Legislation cited (3)

Cases cited (2)

  • Re B Johnson & Co (Builders) Ltd [1955] Ch 634
  • Newhart Developments Ltd v Co-operative Commercial Bank Ltd (1978) KLR 123

Full judgment

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

Pan Afric Commodities Limited (In Receivership) and 2 Others v Kare Distributors Limited and 2 Others (Miscellaneous Application 2313 of 2025) [2026] UGCommC 228 (8 April 2026)
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.