Simbamanyo Estates Limited v Equity Bank Uganda Limited and 2 Others (Miscellaneous Application 414 of 2022)
Observed later treatment
No later-treatment classification is recorded for this judgment.
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Holding
The court held that amendments to pleadings before trial should be allowed where they enable determination of the real questions in controversy without injustice to the other party. Most proposed amendments were allowed as they ventilated issues already raised from a different perspective without changing the fundamental character of the suit. However, the amendment asserting renewal of a facility was rejected for violating the principle of approbation and reprobation, as the applicant had previously pleaded non-renewal of the same facility.
Outcome
Leave to amend plaint partially granted; one proposed paragraph rejected for inconsistency with earlier pleadings; remaining amendments permitted to proceed before trial
Facts
The applicant sued the respondents in Civil Suit No. 198 of 2020 seeking declarations that a tripartite loan agreement and mortgage were unenforceable because the 2nd and 3rd defendants (foreign banks) were unlicensed to conduct financial institution business in Uganda. The applicant applied to amend its plaint after engaging new advocates who prepared for trial. The proposed amendments sought to challenge the validity and effectiveness of Facility II (a future loan), assert that mortgage securities never became effective for Facility II, and contend that the 1st defendant's unilateral disbursement under Facility II was unlawful. The respondents opposed, arguing the amendments would change the character of the suit, constitute bad faith, introduce matters already adjudicated, introduce events occurring after filing, and cause prejudice.
Issues
- Whether the proposed amendments are necessary to enable the court determine the real matters in controversy.
- Whether the proposed amendments would change the fundamental character of the suit.
- Whether the proposed amendments would cause injustice or prejudice to the respondents.
- Whether the proposed amendments constitute approbation and reprobation by introducing inconsistent pleadings.
Orders
- Application partly allowed.
- The applicant is granted 14 days within which to file and serve its amended plaint, excluding paragraph (xxix)B.
- The respondents are granted 15 days from service of the amended plaint to file and serve amended written statements of defence if deemed necessary.
- The applicant shall within 7 days of receipt of amended written statements of defence file and serve its reply thereto.
- Costs of the application awarded to the respondents in any event.
Rules and key headnotes
Legislation cited (11)
- Constitution of the Republic of Uganda 1995 art.126(2)(e)
- Civil Procedure Act s.98
- Civil Procedure Act s.100
- Civil Procedure Rules O.6 r.13
- Civil Procedure Rules O.6 r.19
- Civil Procedure Rules O.6 r.23
- Civil Procedure Rules O.6 r.1(2)
- Civil Procedure Rules O.6 r.3
- Civil Procedure Rules O.6 r.9
- Civil Procedure Rules O.6 r.18
- Civil Procedure Rules O.6 r.31
Cases cited (22)
- Mulowooza and Brothers Limited v N Shah and Co Limited (Civil Appeal No. 26 of 2010)
- Bright Chicks Uganda Limited v Dan Bahingire (Miscellaneous Application No. 254 of 2011)
- Gaso Transport Services (Bus) Limited v Martin Adala Obene (Civil Appeal No. 4 of 1994)
- Macharia v. Wanyoike and others [1972] 1 EA 264
- Cropper v. Smith (1883) 26 Ch D 700
- Gaso Transport Services (Bus) Ltd v. Obene [1990-94] EA 88
- Nzirane v. Matiya Lukwago [197l] HCB 75
- Eastern Bakery v. Castelino [1958] EA 641
- Nambi v. Bunyoro General Merchants [1974] HCB 12
- Biiso v. Tibamwenda [1991] HCB 92
- Hill & Grant Ltd v. Hodson [1934] Ch. D 53
- Codrington v. Codrington [1875] LR 7 HL 854
- Banques des Marchands de Moscou v. Kindersley [1951] 1 Ch 112
- Lissenden v. CAV Bosh Limited [1940] AC 412
- Express Newspapers plc v News (UK) Ltd [1990] 1 WLR 1320
- Redworth Construction Ltd v. Brookdale Healthcare Ltd [2006] EWHC 1994 (TCC)
- MPB v. LGK [2020] EWHC 90 (TCC)
- Hemanta Kumari Devi v. Parasanna Kumar, AIR 1930 Cal 32
- Nagubai Ammal v. B. Shama Rao, 1956 SCR 451; AIR 1956 SC 593
- Car & General Ltd v AFS Construction (U) Ltd (Miscellaneous Application No. 371 of 2018)
- Ken Group of Companies Ltd v Standard Chartered Bank (U) Ltd and two others (Civil Suit No. 486 of 2007)
- Seruwagi Kavuma v Barclays Bank (U) Ltd (Miscellaneous Application No. 634 of 2010)
Full judgment
The original judgment as reported. Read the original PDF before relying on any passage.