Twaha Luyimbazi Katongolu v The liquidator of Greenland Bank (Misc. Appl. No. 1117 of 2000) (Misc. Appl. No. 1117 of 2000)

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

Held that a temporary injunction under Order 37 Rule 1(a) can only be granted where the property is proved to be in dispute in the main suit. Here, the land was not mentioned in the pleadings and was not the subject matter of the suit, which concerned recovery of a motor vehicle. Order 37 Rule 2(1) applies only where the suit itself seeks to restrain a breach of contract or injury, not where the suit claims recovery of property and damages. The application was misconceived and dismissed with costs.

Outcome

Application dismissed for being misconceived and bad in law

Facts

The applicant obtained an overdraft facility from Greenland Bank and deposited a certificate of title for land at Natete as security in November 1996. In October 1996, the bank took possession of his vehicle, intending to purchase it for Shs.7 million, which would reduce his debt to Shs.2.7 million. The bank neither deducted the vehicle's value from the debt nor released the vehicle. By January 2000, the bank claimed the applicant owed Shs.21,773,333, later increasing to Shs.25,859,183, and threatened to auction the land. The applicant disputed the amounts and interest charged. He filed Civil Suit No. 431 of 2000 claiming the vehicle's value and lost income, then brought this application under Order 37 for a temporary injunction to stop the auction of the land pending the suit's outcome.

Issues

1. Whether the property subject to the application is property in dispute in the main suit such that Order 37 Rule 1(a) of the Civil Procedure Rules applies.
2. Whether a temporary injunction can be granted under Order 37 Rule 2(1) where the main suit is not for restraining the defendant from committing a breach of contract or other injury.

Orders

• Application dismissed with costs to the Respondent/Defendant.

Rules and key headnotes

Legislation cited (2)

• Civil Procedure Rules Order 37 Rule 1(a)
• Civil Procedure Rules Order 37 Rule 2(1)

Cases cited (4)

• Kaggwa v Katende [1985] HCB 43
• Odido v Label (EA) Ltd [1987] HCB 77
• Nyakuranga v Esso (U) Ltd [1992] 1 KLR 182
• UMSC v Sheikh Mulumba [1980] HCB 110

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