Wakilii

Rukikaire v INCAFEX Limited (Miscellaneous Application 4 of 2021)

Supreme Court · [2022] UGSC 25 · 2022 Application Dismissed AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Application to a single justice of the Supreme Court for contempt orders, winding up and payment, arising out of Civil Appeal No. 3 of 2015
Decision
Application declined; parties directed to return to PWC for the special audit ordered in Civil Appeal No. 3 of 2015

Observed later treatment

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Holding

A single justice has power under section 8 of the Judicature Act to entertain an interlocutory matter before the Supreme Court. However, it was premature and improper for a single judge to make further, additional or different orders before the orders of the full panel in Civil Appeal No. 3 of 2015 had been properly and exhaustively implemented; doing so bordered on abuse of process and offended the principle that there should be an end to litigation. The court declined to grant the orders sought for contempt, winding up and payment, and directed the parties to return to PWC for the special audit ordered in the appeal.

Outcome

Application declined; parties directed to return to PWC for the special audit ordered in Civil Appeal No. 3 of 2015

Facts

The applicant, a 45% shareholder in the respondent company, had succeeded in the Supreme Court in Civil Appeal No. 3 of 2015, which allowed his oppression claim and ordered the appointment of an auditor; PWC was appointed to conduct a special audit. The applicant alleged the audit was frustrated by the respondent's directors and that the respondent had instituted High Court Civil Suit No. 887 of 2018 over substantially the same subject matter, which he said was an abuse of process aimed at defeating the Supreme Court's orders. He applied to the Supreme Court for orders holding the respondent in contempt, winding up the company and appointing a liquidator, and payment of 45% of compensation said to be owed to the respondent by Government. The respondent denied frustrating the audit, contending the applicant's own defaults caused the impasse, and that it had filed the High Court suit to set aside the judgment on grounds of fraud.

Issues

  1. Whether a single justice of the Supreme Court may entertain and determine the application under section 8 of the Judicature Act.
  2. Whether it is proper for a single justice to make further or different orders before the orders of the full panel in Civil Appeal No. 3 of 2015 have been implemented.
  3. Whether the respondent was in contempt of the orders of the Supreme Court.
  4. Whether the court should order the winding up of the respondent company and appoint a liquidator.

Orders

  • The orders prayed for are declined.
  • Parties are advised to return to PWC for the special audit as ordered in Supreme Court Civil Appeal No. 3 of 2015.
  • There is no order as to costs.

Rules and key headnotes

Civil Procedure — Supreme Court — Powers of a Single Justice in Interlocutory Matters
Under section 8 of the Judicature Act, a single justice of the Supreme Court may exercise any power vested in the Supreme Court in any interlocutory cause or matter before the court.
Civil Procedure — Finality of Litigation — Abuse of Process
It is improper and an abuse of process for a single justice to make further, additional or different orders before the orders of the full panel of the court have been properly and exhaustively implemented; the principle that there must be an end to litigation precludes appeals disguised as applications for review, revision or clarification.
Civil Procedure — Contempt of Court — Ingredients
To establish contempt of court it must be shown that an order was issued by the court, that the order was served on or brought to the notice of the alleged contemnor, that there was non-compliance with the order, and that the non-compliance was wilful or mala fide.
Company Law — Winding Up — Liquidation as a Last Resort
Winding up is an extreme remedy and the provisions of the Companies Act providing alternatives should be applied to avoid it; liquidation issues are properly handled by the High Court as a trial court rather than by the final appellate court.

Legislation cited (7)

Cases cited (8)

  • Frederick Sempebwa & 2 Others v Attorney General (Civil Appeal No. 5 of 2016)
  • Pheko & others vs Ekurhuleni Metropolitan Municipality No. 2
  • National Union of Clerical, Commercial, Professional and Technical Employees v National Insurance Corporation (Civil Appeal No. 17 of 1993)
  • Ayub Suleiman vs Salim Kikambalo
  • Livingstone Sewanyana v Martin Aliker (Civil Application No. 40 of 1991)
  • Lakhamshi Brothers Ltd v Raja & Sons [1966] EA 313
  • Obote William v Uganda (Civil Appeal No. 1 of 2017)
  • Mulindwa v Kisubika (Civil Appeal No. 12 of 2014)

Full judgment

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

Rukikaire v INCAFEX Limited (Miscellaneous Application 4 of 2021) [2022] UGSC 25 (4 January 2022)
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.