Wakilii

Uganda Posts and Telecommunications Corporation v International Television (Civil Suit 93 of 1997)

High Court · [1998] UGHC 31 · 1998 Preliminary Objection Dismissed AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Ruling on preliminary objection challenging plaintiff's locus standi and application to dismiss suit
Decision
Preliminary objection dismissed; matter to proceed to trial on substantive issues

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

The court held that the plaintiff was suing in its own capacity as the authorised national telecommunications provider, not on behalf of the Government, and that ministerial confirmation of the plaintiff's authority to deal with INTELSAT was sufficient pending trial. The Agreement was not void for want of a seal where the defendant had received and continued to use the INTELSAT facilities under the Agreement. The preliminary objection to dismiss the suit was dismissed, and an adjournment was granted to the plaintiff's new counsel to study the case and apply to amend the plaint, with costs awarded to the defendants.

Outcome

Preliminary objection dismissed; matter to proceed to trial on substantive issues

Facts

On 25 May 1996 the plaintiff Uganda Posts and Telecommunications Corporation entered into an uplink satellite services agreement with the first defendant International Television Network Limited, which held a broadcasting licence. The second defendant Thomas Katto signed the agreement as chairman of the first defendant. The agreement provided that the plaintiff would facilitate the first defendant's linkup with INTELSAT for television services over a 15-year period, for which the first defendant would pay annual charges of US$575,000 in two equal instalments. The plaintiff alleged it had been forced to pay US$170,000 to INTELSAT on the defendant's behalf when the defendant failed to pay, and INTELSAT threatened to cut satellite services to Uganda. The defendant challenged the plaintiff's authority to sue, arguing the plaintiff misrepresented that it had signed a protocol with INTELSAT to represent the Government. The defendant also argued the Agreement was void for want of execution under seal and that the service area provided differed from that contracted.

Issues

  1. Whether the plaintiff had authority to sue the defendants where it alleged it had signed a protocol with INTELSAT to represent the Government but failed to produce that protocol
  2. Whether the Agreement between the parties was void for want of execution under seal as required by the defendant company's articles of association
  3. Whether the court should dismiss the suit on a preliminary objection where the plaintiff failed to produce documents requested by the defendant
  4. Whether an adjournment should be granted to allow new counsel for the plaintiff time to study the case and apply to amend the plaint

Orders

  • Application for leave to appeal against the order granting adjournment is dismissed
  • Defendants ordered to meet the costs of the dismissed application
  • Adjournment granted to plaintiff to enable new counsel to study the case
  • Plaintiff ordered to pay costs of the adjournment in any event

Rules and key headnotes

Contract Law — Corporate Contracts — Necessity of Seal — Effect of Companies Act
Where a contract is entered into by a company incorporated under the Companies Act without execution under seal as required by the company's articles of association, but the company receives and continues to use the benefits of the contract, the company cannot refuse to pay for those benefits by relying on the absence of a seal, particularly where section 34 of the Companies Act allows companies to enter into contracts through agents in writing or orally in cases where private persons could contract in like manner.
Contract Law — Locus Standi — Authority to Sue — Representation of Government
Where a plaintiff alleges in its pleadings that it had authority from Government to represent it in dealings with a third party but fails to produce documentary evidence of that authority, the suit should not be dismissed on a preliminary objection where ministerial correspondence confirms the plaintiff's authorised status and the plaintiff is suing in its own capacity, not as agent for the Government, and the defendant has received the benefits of the agreement.
Civil Procedure — Preliminary Objections — Failure to Produce Documents — Dismissal of Suit
A suit should not be dismissed on a preliminary objection for failure to produce documents requested by the defendant where substantive issues arise from the pleadings that require a full trial, and where the failure to produce documents relates to matters that can be addressed through evidence at trial or through amendment of the pleadings.
Civil Procedure — Adjournments — Change of Counsel — Amendment of Pleadings
A court should grant an adjournment where a party engages new counsel who requires time to study the case and contemplate amendments to the pleadings, notwithstanding a previous order that an earlier adjournment was to be final, where substantive justice requires that the party be given a hearing and denying the adjournment would be unjust to both the new counsel and the client.
Civil Procedure — Inherent Powers of Court — Amendment of Pleadings — Section 103 Civil Procedure Act
Under section 103 of the Civil Procedure Act and rule 18 of Order 6 of the Civil Procedure Rules, the court has wide discretion at any time and on such terms as to costs or otherwise as it thinks fit to amend any defect or error in any proceeding, and to order all necessary amendments for the purpose of determining the real question or issue raised by or depending on the proceeding, and a party is entitled to make amendments at any stage of the proceedings.
Civil Procedure — Discretion of Court — Substantive Justice — Right to be Heard
The rules of procedure are designed to give effect to the rights of parties, and where parties are brought before the court in such a way that no possible injustice is caused to either, a mere irregularity in relation to the rules of procedure will not result in vitiation of the proceedings. Substantive justice under Article 125 of the Constitution requires that parties with substantive issues in controversy be given a hearing.

Legislation cited (7)

Cases cited (6)

  • Nicholson v Bradfield Union (1866) LR 1 QB 620
  • Wells v Mayor of Kingston-on-Hull (1875) LR 10 CP 402
  • Mayor of Ludlow v Charlton (1840) 6 M & W 815
  • Yarford v Billericay Rural District Council [1930] 1 KB 772
  • Lakyan v Behrani (1950) 17 EACA 29
  • Manoji v Attorney General [1979] EA 118

Full judgment

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

Uganda Posts and Telecommunications Corporation v International Television (Civil Suit 93 of 1997) [1998] UGHC 31 (25 August 1998)
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.