Simba Properties Investiment Company Limited and 5 Others v Vantage Mezzanine Fund 11 Partnership and 6 Others (Miscellaneous Application 331 of 2022)
Observed later treatment
No later-treatment classification is recorded for this judgment.
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Holding
The High Court dismissed an application for a temporary injunction seeking to restrain respondents from instituting private prosecution against the applicants pending determination of a contempt application. The Court held the application was fundamentally misconceived because there was no substantive suit pending from which the interlocutory relief arose, and the proper route to challenge criminal proceedings in a magistrate's court is through prerogative or supervisory jurisdiction, not by way of temporary injunction.
Outcome
Application dismissed with costs against applicants' counsel personally for filing a fundamentally misconceived application
Facts
On 11 December 2014, the 1st and 2nd applicants borrowed money from the 1st respondent under a Mezzanine Term Facility Agreement secured by property registered in the applicants' names. Disputes arose over loan repayment. The applicants filed Civil Suit No. 988 of 2019. The respondents sought a stay on grounds that the agreement contained a valid arbitration clause. On 16 June 2021, the High Court referred the matter to arbitration and dismissed the civil suit. The 1st respondent commenced arbitration but also filed Miscellaneous Cause No. 205 of 2022 seeking orders regarding share transfers, which was dismissed on 9 May 2022 due to ongoing arbitration. The 4th respondent was granted powers of attorney to initiate private prosecution against the 5th and 6th applicants. With assistance of the 6th and 7th respondents (advocates), the 4th respondent filed a criminal complaint before the Chief Magistrate's Court at Buganda Road. The applicants claimed to have filed Miscellaneous Application No. 408 of 2022 seeking to hold respondents in contempt and then brought the current application seeking to restrain the private prosecution.
Issues
- Whether the applicants established a prima facie case with a probability of success for the grant of a temporary injunction.
- Whether the applicants would suffer irreparable injury if the injunction did not issue.
- Whether the balance of convenience favoured the grant of the temporary injunction.
- Whether the High Court has jurisdiction to injunct criminal proceedings in a magistrate's court by way of an interlocutory injunction.
- Whether continuation of a private prosecution alongside arbitral proceedings constitutes an abuse of court process.
- Whether advocates representing a party in a private prosecution should be joined and restrained from performing their professional duties.
Orders
- Application dismissed.
- Costs of the application to be met personally by counsel on record for the applicants.
Rules and key headnotes
Legislation cited (22)
- Judicature Act s.33
- Judicature Act s.36(1)
- Judicature Act s.17(2)
- Civil Procedure Act s.64(c)
- Civil Procedure Act s.64(e)
- Civil Procedure Act s.98
- Civil Procedure Rules Order 41 r.2
- Civil Procedure Rules Order 41 r.9
- Civil Procedure Rules Order 10 r.12(1)
- Arbitration and Conciliation Act s.5
- Constitution of the Republic of Uganda 1995 art.128
- Constitution of the Republic of Uganda 1995 art.120(3)(c)
- Constitution of the Republic of Uganda 1995 art.120(5)
- Constitution of the Republic of Uganda 1995 art.250(4)
- Magistrates Courts Act s.42(1)(c)
- Magistrates Courts Act s.43
- Criminal Procedure Code Act s.48
- Criminal Procedure Code Act s.50(b)
- Penal Code Act s.323
- Penal Code Act s.324
- Penal Code Act s.309
- Uganda Code of Judicial Conduct 2003 Principle 1
Cases cited (36)
- E.A. Industries v Trufoods [1972] EA 420
- Fellowes and Son v Fisher [1976] 1 QB 122
- American Cyanamid Co v Ethicon Limited [1975] AC 396
- Geilla v Cassman Brown Co Ltd [1973] EA 358
- GAPCO Uganda Limited v Kaweesa and another (High Court Miscellaneous Application No. 259 of 2013)
- Godfrey Sekitoleko and 4 Others v Seezi Peter Mutabazi and 2 Others [2001-2005] HCB 80
- Nsubuga and another v Mutawe [1974] EA 487
- In the matter of C Kasozi Ddamba [1980] HCB 115
- M/S Muwayire Nakana & Co Advocates v Departed Asians Property Custodian Board and another [1987] HCB 91
- Gouriet v Union of Post Office Workers [1978] AC 435
- R (on the application of Asim and Raed Siddiqui) v Westminster Magistrates' Court [2021] EWHC 1648 (Admin)
- R (on the application of Smith-Allison) v Westminster Magistrates' Court (No 2) [2021] EWHC 2361
- R v Panel on Take-Overs and Mergers Ex parte Datafin [1987] 1 QB 815
- Uganda v Byaruhanga Alikanjeru [1978] HCB 82
- R (on the application of Deripaska) v DPP [2020] EWHC 2918 (Admin)
- Asif v Ditta and Riaz [2021] EWCA Crim 1091
- Gopal Chandra Chakravarti and another v Suresh Chandra Sanyal and others AIR 1929 Cal 563
- City Council of Kampala v Donozio Musisi Sekyaya (Court of Appeal Civil Application No. 3 of 2000)
- Owiti Andrew v Opio John [1977] HCB 124
- Nzabona M v Bigirishaka and another [1981] HCB 72
- Semakula Fenekansi v Musoke J, F Musoke and East African General Insurance Co Ltd [1981] HCB 46
- Ramnarain Singh v Mahatam Singh 1962 CriLJ 661
- Jagannath Acharya v Rajagopalachari AIR 1931 Pat 411
- Bhagwat Prasad v Ramkisun Ram Sonar AIR 1930 Pat 351
- ACP Bakaleeke Siraji v Attorney General (High Court Miscellaneous Cause No. 212 of 2018)
- Sarah Kulata Basangwa v Inspectorate of Government (High Court Miscellaneous Application No. 465 of 2011)
- Sarah Kulata Basangwa v Uganda (Court of Appeal Criminal Appeal No. 3 of 2018)
- Musumba Yahaya and another v Uganda (High Court Criminal Revision Cause No. 4 of 2019)
- Sebulime Baker v Uganda (High Court Criminal Appeal No. 21 of 2018)
- Belanger v Caughell (1995) 22 OR (3d) 741 (Gen Div)
- Weinberg v Dickson-Weinberg 229 P 3d 1133 (Haw 2010)
- Quebec (Criminal and Penal Prosecutions) v Jodoin 2017 SCC 26
- Ridehalgh v Horsefield [1994] Ch 205
- Kamurasi Charles v Accord Properties Ltd and another (Supreme Court Civil Appeal No. 3 of 1996)
- Abraham v Justin [1963] 2 All ER 402
- JB Kohli and others v Bachulal Popallac [1964] EA 219
Full judgment
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