Wakilii

Tusubira Joseph v Umeme Ltd (Miscellaneous Application 88 of 2025)

High Court · [2026] UGHC 149 · 2026 Application Dismissed AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Application for security for costs under Order 40 CPR arising from civil suit for damages
Decision
Application for security for costs dismissed; main suit to proceed to trial

Observed later treatment

No later-treatment classification is recorded for this judgment.

Citator coverage is limited to judgments in the Wakilii corpus and source-matched treatment records. Absence of a signal is not an assertion that the case remains good law.

AI-generated summary. This summary was generated by AI from the full text of the judgment. It may contain errors or omissions—always read the source judgment before relying on it.

Holding

Application for security for costs dismissed. Court held that Order 40 CPR requires proof that defendant is leaving jurisdiction to obstruct decree execution. Respondent's exit from Uganda's power distribution market was pursuant to natural expiry of a twenty-year concession agreement with Government, not mala fide flight from creditors. Liabilities may have transferred to successor company UEDCL under orderly handover arrangements. Attachment order premature without ascertaining liability allocation in exit arrangement.

Outcome

Application for security for costs dismissed; main suit to proceed to trial

Facts

Applicant filed suit against respondent seeking UGX 3,633,215,000 compensation for equipment damaged by alleged high voltage electricity supply to his plastics factory, plus medical expenses and damages. Before serving plaint, applicant sought court order requiring respondent to deposit the claimed sum as security pending suit determination under Order 40 CPR. Applicant alleged respondent was winding up business in Uganda after its power distribution concession was not renewed by government. Respondent opposed, stating its twenty-year concession with Government of Uganda had naturally expired in March 2025, it remained listed on Uganda and Nairobi Stock Exchanges with NSSF as majority shareholder, had not commenced delisting or winding up, was conducting orderly handover to successor company UEDCL, and maintained insurance coverage for such claims through Sanlam General Insurance.

Issues

  1. Whether the respondent is exiting the jurisdiction of court to defeat the plaintiff's suit.
  2. Whether the defendant's liability was passed over to Government of Uganda through the successor company UEDCL.

Orders

  • Application dismissed.
  • Costs awarded to the respondent.

Rules and key headnotes

Civil Procedure — Security for Costs — Order 40 CPR — Conditions for Grant
Under Order 40 Rule 1(1)(f) of the Civil Procedure Rules, a court may order a defendant to furnish security for appearance only where the applicant demonstrates reasonable probability that the defendant is about to leave Uganda in circumstances affording reasonable probability that the plaintiff will be obstructed or delayed in execution of any decree, and the plaintiff has a prima facie unimpeachable cause of action.
Civil Procedure — Security for Costs — Mala Fide Departure Distinguished from Lawful Exit
A defendant's exit from a jurisdiction pursuant to natural expiry of a contractual concession agreement does not constitute the mala fide departure contemplated by Order 40 CPR, even where the exit results in cessation of business operations in the jurisdiction.
Civil Procedure — Security for Costs — Premature Application
An application for security for costs is premature where triable issues exist regarding whether the defendant's liabilities have been transferred to a successor entity under contractual handover arrangements, and where no winding up process has commenced.
Civil Procedure — Attachment Before Judgment — Caution Required
The power to attach property before judgment is not to be exercised lightly and without proof of the mischief aimed at, as a court should not protect a creditor before he obtains judgment.

Legislation cited (2)

Cases cited (1)

  • Lister v Stubbs (1890) 45 CHD 4

Full judgment

↓ Download PDF

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

Tusubira Joseph v Umeme Ltd (Miscellaneous Application 88 of 2025) [2026] UGHC 149 (5 January 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.