Victoria Finance Co. Ltd v Walugembe Adirisa and Another (Miscellaneous Application 519 of 2004)

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.

Holding

The court held that a judicial sale of an attached motor vehicle conducted after a court order directing that the vehicle not be sold was void ab initio. A judicial sale, unlike a private sale, is not complete immediately it takes place and is liable to be set aside on appropriate proceedings. The sale conducted without court authorisation and in contempt of a preservation order was irregular and void. The preliminary objection was dismissed and the court directed that objector proceedings continue.

Outcome

Preliminary objection dismissed; matter to proceed to hearing on the merits of the objector proceedings

Facts

Victoria Finance Co. Ltd obtained judgment against Walugembe Adirisa in HCCS No. 303 of 2004. A warrant of attachment was issued and executed on motor vehicle UAE 901 J on 11 July 2004. Jamada Musisi filed objector proceedings under Order 19 rules 55 and 57 of the Civil Procedure Rules. On 13 August 2004, Justice Lugayizi ordered that the motor vehicle not be sold pending disposal of the objector application. Both parties agreed to maintain the status quo. Despite this order, court bailiffs M/s Orbit Property Agencies conducted a provisional sale on 6 August 2004 and completed the sale on 20 August 2004, receiving Shs. 7,500,000/= and handing over the vehicle and log book to the purchaser. The decretal sum and costs were paid to the judgment creditor and his advocates. The judgment creditor raised a preliminary objection arguing that the sale disposed of the objector proceedings.

Issues

1. Whether a preliminary objection that the attached property had been sold disposed of the objector proceedings finally.
2. Whether a judicial sale conducted in the face of a court order preserving the status quo was valid.
3. Whether Order 19 rule 55 of the Civil Procedure Rules applied where property had allegedly been sold.

Orders

• Preliminary objection dismissed.
• Alleged sale of motor vehicle declared void ab initio.
• Costs of the preliminary objection awarded to the Applicant/Objector.
• Court to proceed to investigate the Applicant/Objector's claim under objection proceedings.

Rules and key headnotes

Legislation cited (3)

• Civil Procedure Rules Order 19 rule 55
• Civil Procedure Rules Order 19 rule 57
• Civil Procedure Rules Order 55 rule 2

Cases cited (2)

• Intraship (U) Ltd v G.M. Combined (U) Ltd, Fuloence Mungereza & Another (HCCS No. 441 of 1993)
• Lawrence Muwanga v Lawrence Kyeyune (Civil Appeal No. 12 of 2001)

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