Active Automobile Spares Ltd v Crane Bank Ltd and Anor [2003] UGSC 32 (22 October 2003)

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)}}{\*\pnseclvl7\pnlcrm\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}{\*\pnseclvl8 \pnlcltr\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}{\*\pnseclvl9\pnlcrm\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}\pard\plain \s46\qc \li0\ri0\sb67\sl-470\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid924911 \f2\fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\cs74\b\f0\insrsid924911\charrsid924911 THE REPUBLIC OF UGANDA}{\cs74\b\f0\insrsid924911\charrsid924911 \par }{\cs74\b\f0\insrsid924911\charrsid924911 IN THE SUPREME COURT OF UGANDA }{\cs74\b\f0\insrsid924911\charrsid924911 \par }{\cs74\b\f0\insrsid924911\charrsid924911 AT MENGO \par }\pard\plain \s40\ql \li0\ri960\sl-240\slmult0\widctlpar\faauto\rin960\lin0\itap0\pararsid924911 \f2\fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\f0\insrsid924911\charrsid924911 \par }\pard \s40\qc \li0\ri-34\sb230\sl-475\slmult0\widctlpar\faauto\rin-34\lin0\itap0\pararsid924911 {\cs74\b\f0\insrsid924911\charrsid924911 (CORAM: ODOKI C. J.; ODER, MULENGA, KANYEIHAMBA, AND}{\cs74\b\f0\insrsid924911\charrsid924911 }{ \cs74\b\f0\insrsid924911\charrsid924911 KATO,JJ. SC.) \par }\pard\plain \s35\qc \li0\ri2722\sl-240\slmult0\widctlpar\faauto\rin2722\lin0\itap0\pararsid924911 \f2\fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\f0\insrsid924911\charrsid924911 \par }\pard \s35\qc \li0\ri-34\sb226\sl-475\slmult0\widctlpar\faauto\rin-34\lin0\itap0\pararsid924911 {\cs74\b\f0\insrsid924911\charrsid924911 CIVIL APPEAL NO.21 OF 2001 }{\cs74\b\f0\insrsid924911\charrsid924911 \par }{\cs74\b\f0\insrsid924911\charrsid924911 BETWEEN \par }\pard\plain \s40\qj \li0\ri0\sl-240\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid924911 \f2\fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\f0\insrsid924911\charrsid924911 \par \par }\pard \s40\qj \li0\ri0\sb139\widctlpar\faauto\rin0\lin0\itap0\pararsid924911 {\cs74\b\f0\insrsid924911\charrsid924911 ACTIVE AUTOMOBILE SPARES LTD: :::::::::::::::: APPELLANT \par }\pard\plain \s47\qc \li0\ri0\sl-240\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid924911 \f2\fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\f0\insrsid924911\charrsid924911 \par \par }\pard \s47\qc \li0\ri0\sb19\sl-480\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid924911 {\cs74\b\f0\insrsid924911\charrsid924911 AND \par }\pard\plain \s42\ql \li0\ri0\sb5\sl-480\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid924911 \f2\fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\cs74\b\f0\insrsid924911\charrsid924911 1. CRANE BANK LTD) \par }\pard \s42\ql \li0\ri0\sl-480\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid924911 {\cs62\b\f0\insrsid924911\charrsid924911 2}{\cs74\b\f0\insrsid924911\charrsid924911 . RAJESH PAKEKH) : ::::::::::::::::::::::: RESPONDENTS \par }\pard\plain \s22\ql \li0\ri1997\sl-240\slmult0\widctlpar\faauto\rin1997\lin0\itap0\pararsid924911 \f2\fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\f0\insrsid924911\charrsid924911 \par \par }\pard \s22\ql \li0\ri-34\sb125\sl-312\slmult0\widctlpar\faauto\rin-34\lin0\itap0\pararsid924911 {\cs65\b\i\f0\insrsid924911\charrsid924911 (Appeal from the decision of the Court of Appeal at Kampala (G. M. Okello, A. Twinomujuni, and }{ \cs61\b\i\f0\expnd10\expndtw50\insrsid924911\charrsid924911 C. N.}{\cs61\b\i\f0\insrsid924911\charrsid924911 }{\cs65\b\i\f0\insrsid924911\charrsid924911 Kitumba JJ. A) DATED 18.9.2001 IN Civil Appeal No.63 of 2001) \par }\pard\plain \s40\ql \li0\ri0\sl-240\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid924911 \f2\fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\f0\insrsid924911\charrsid924911 \par \par \par }\pard \s40\qc \li0\ri0\sb72\widctlpar\faauto\rin0\lin0\itap0\pararsid924911 {\cs74\b\f0\ul\insrsid924911\charrsid924911 JUDGMENT OF ODER JSC \par }\pard\plain \s46\qj \li0\ri0\sl-240\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid924911 \f2\fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\f0\insrsid924911\charrsid924911 \par \par }\pard \s46\qj \li0\ri0\sb43\sl-475\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid924911 {\cs74\f0\insrsid924911\charrsid924911 This is a second appeal against the decision of the Court of Appeal dismissing the Appellant's appeal against the High Court judgment, which had dismissed the appellant's suit against the first respondent. The suit}{ \cs74\b\f0\insrsid924911\charrsid924911 }{\cs75\f0\insrsid924911\charrsid924911 had been instituted against both the first and the second respondent jointly. It succeeded against the second respondent only. The suit against the first respondent was dismissed. The first appeal was also against both the respondents. The present appeal is, in fact, against the first respondent only although the second respondent appears as a party to the appeal. \par }\pard\plain \s30\qj \li0\ri0\sl-240\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid924911 \f2\fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\f0\insrsid924911\charrsid924911 \par }\pard \s30\qj \li0\ri0\sb226\sl-470\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid924911 {\cs75\f0\insrsid924911\charrsid924911 In this judgment the first respondent and the second respondent are referred to as the Bank and Rajesh respectively. \par }\pard \s30\qj \li0\ri0\sl-240\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid924911 {\f0\insrsid924911\charrsid924911 \par }\pard \s30\qj \li0\ri0\sb226\sl-470\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid924911 {\cs75\f0\insrsid924911\charrsid924911 The appellant's case in the courts below and in this Court is that on 18}{\cs75\f0\super\insrsid924911\charrsid924911 th}{ \cs75\f0\insrsid924911\charrsid924911 June, 1988 an employee of the appellant, Dansukh Patel, P. W 2, took to the Bank a bank draft issued by Gold Trust Bank of Uganda for Shs. 120,764,562/= and left it with instructions to transfer the proceed s of the draft by Telegraphic Transfer (TT) pound sterling 60,382 to M/S Agric Link Company in London. The Bank accepted the instructions. The money was for purchase and importation into Uganda of spare parts from the United Kingdom. On 19th June 1998, Da n sukh returned to the Bank and was informed that the Bank did not have sufficient pounds in sterling to comply with the appellant's instructions. The Bank suggested to Dansukh to take United States dollars instead. He agreed and received US $ 97,000

in cash, which he took to the appellant's premises on Plot 25, Nakivubo Road, Kampala. In the afternoon of the same day, Dansukh telephoned Rajesh and informed him that he had been instructed by his boss, the Managing Director of the appella n t, Kimanbhai Ranchodbhai Patel,P. W.1,who was then in London, to transfer only pounds sterling, not U. S. dollars. Dansukh also asked Rajesh to collect the cash dollars from the appellant's premises and return the money to the Bank. Rajesh picked up the mon e y and acknowledged receipt thereof in writing on a piece of paper bearing the Bank's letter heads. He also issued to Dansukh a personal cheque as an additional guarantee. Eventually the appellant learnt that no money was ever transferred to London. The do llars or their equivalent in Uganda shillings were never returned to the appellant, either. \par }\pard \s30\qj \li0\ri0\sl-240\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid924911 {\f0\insrsid924911\charrsid924911 \par }\pard \s30\qj \li0\ri0\sb230\sl-470\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid924911 {\cs75\f0\insrsid924911\charrsid924911 It was the appellant's case that at all material times Rajesh was employed and acting as the Manager of the Bank's Forex International Division. \par }\pard \s30\qj \li0\ri0\sl-470\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid924911 {\cs75\f0\insrsid924911 \line }{\cs75\f0\insrsid924911\charrsid924911 Rajesh accepted th is version of what happened as true and added that after he collected the dollars, he sold the same to some currency dealers in Kikubo and deposited Uganda shs.120,764,562/= with the Bank in order to return the appellant's money to the Bank. He claimed th at at all times during this transaction, he was acting as the Manager , Forex International Division of the Bank. \par }\pard\plain \s49\qj \li0\ri0\sb67\sl-470\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid924911 \f2\fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\cs75\f0\insrsid924911 \line }{\cs75\f0\insrsid924911\charrsid924911 The Bank's case was that it received the Gold Trust Bank draft on 18 June 1998 from the appellant's employee, Dansukh, who wanted to purchase c ash dollars. After being satisfied with the genuineness of the Gold Trust Bank draft, it gave Dansukh US dollars 97,000, which he took away. Thereafter, Dansukh did not return to the Bank until some days later, after Rajesh had been arrested by the police on charges of fraud. \par }\pard\plain \s30\qj \li0\ri0\sl-240\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid924911 \f2\fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\f0\insrsid924911\charrsid924911 \par \par }\pard \s30\qj \li0\ri0\sl-470\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid924911 {\cs75\f0\insrsid924911\charrsid924911 The appellant subsequently sued the Bank and Rajesh jointly and severally for recovery of the US.$ 97,000 or its value in local currency, damages, interest and costs. \par }\pard \s30\qj \li0\ri0\sl-240\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid924911 {\f0\insrsid924911\charrsid924911 \par }\pard \s30\qj \li0\ri0\sb235\sl-470\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid924911 {\cs75\f0\insrsid924911\charrsid924911 The trial court held that the Bank was not liable to refund the money to the appellant but held that Rajesh was. Dissatisfied with the trial court's decision, the Bank appealed to the Court of Appeal. Rajesh also cross-appealed against the trial court's judgment. I have already referred to the result of that appeal. Rajesh's cross appeal was also dismissed. \par }\pard \s30\qj \li0\ri0\sl-240\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid924911 {\f0\insrsid924911\charrsid924911 \par \par }\pard \s30\qj \li0\ri0\sl-470\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid924911 {\cs75\f0\insrsid924911\charrsid924911 There are three grounds of appeal set out in the memorandum of appeal as follows:- \par {\listtext\pard\plain\s48 \cs75\charrsid924911 \hich\af0\dbch\af0\loch\f0 1.\tab}}\pard\plain \s48\qj \fi-360\li720\ri0\sb5\sl-466\slmult0\widctlpar\faauto\ls1\rin0\lin720\itap0\pararsid924911 \f2\fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 { \cs75\f0\insrsid924911\charrsid924911 In view of the grounds of appeal and the submissions, the learned Justices of Appeal erred in law in holding that it was their duty }{\cs66\b\i\f0\expnd-4\expndtw-20\insrsid924911\charrsid924911 "to}{ \cs66\f0\expnd-2\expndtw-10\insrsid924911\charrsid924911 }{\cs65\b\i\f0\insrsid924911\charrsid924911 re-appraise all the evidence}{\cs65\b\i\f0\insrsid924911 on record and to come }{\cs65\b\i\f0\insrsid924911\charrsid924911 t o its own conclusions as to whether the conclusion could be supported." \par {\listtext\pard\plain\s52 \cs75\charrsid924911 \hich\af0\dbch\af0\loch\f0 2.\tab}}\pard\plain \s52\qj \fi-360\li720\ri0\sb5\sl-470\slmult0\widctlpar\faauto\ls1\rin0\lin720\itap0\pararsid924911 \f2\fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 { \cs75\f0\insrsid924911\charrsid924911 The learned Justices of Appeal erred in law in holding}{\cs75\f0\insrsid924911 }{\cs75\f0\insrsid924911\charrsid924911 that the learned trial Judge's conclusion could be}{\cs75\f0\insrsid924911 }{ \cs75\f0\insrsid924911\charrsid924911 supported.}{\cs75\i\f0\insrsid924911\charrsid924911 \tab }{\cs75\i\f0\insrsid924911 \par {\listtext\pard\plain\s52 \cs75\charrsid924911 \hich\af0\dbch\af0\loch\f0 3.\tab}}{\cs75\f0\insrsid924911\charrsid924911 The learned Justices of Appeal erred in law in failing to consider the appellant's submissions on the laws of banking, exchange control and regulations made there under, and which, if they had considered, they would have held t hat appellant's money should have been received in accordance with those laws and that, in failing to do so and instead paying cash in U. S. dollars, the 1st respondent was in breach of the appellant's instructions and must refund the appellant's money.}{ \cs75\i\f0\insrsid924911\charrsid924911 \par }\pard \s52\qj \li0\ri0\sl-240\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid924911 {\f0\insrsid924911\charrsid924911 \par \par }\pard \s52\qj \li0\ri0\sl-466\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid924911 {\cs75\f0\insrsid924911\charrsid924911 W e note that grounds, 1 and 3 of this appeal offended against rule 81 of the Supreme Court Rules in that they are not precise and are argumentative, but in the interest of justice we decided to hear the parties. \par }\pard \s52\qj \li0\ri0\sl-240\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid924911 {\f0\insrsid924911\charrsid924911 \par }\pard \s52\qj \li0\ri0\sb230\sl-470\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid924911 {\cs75\f0\insrsid924911\charrsid924911 Dr Joseph Byamugisha, learned counsel for th e appellant, argued all the grounds of appeal together. He first attacked the Court of Appeal's finding which upheld the trial courts decision that when the appellant deposited the bank draft of Shs. 120,764,562/= it did not instruct the Bank to transfer the proceeds of the bank draft, impound sterling 60,382 to M/S Agric Link Company in}{\cs75\f0\insrsid924911 }{\cs75\f0\insrsid924911\charrsid924911 London. Learned counsel submitted that such finding was contrary to the Bank's pleadings in its written statement of defence which admitted the appella nt's allegations in its plaint that the appellant so instructed the Bank. The finding was also contrary to the evidence given at the trial by the appellant's official, Dansukh, PW.2, and the Bank's official, Rajesh, the second defendant, D. W.2. Evidence f r om Rajesh included a photocopy of the bank draft from Gold Trust Bank, exhibit P.4. The flip side of the document bears a note written by Rajesh, who had received it at the Bank, to the effect that the bank draft was received for the purpose of transfer o f pound sterling 60.382.28. \par }\pard \s52\qj \li0\ri0\sl-240\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid924911 {\f0\insrsid924911\charrsid924911 \par \par }\pard \s52\qj \li0\ri0\sb5\sl-466\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid924911 {\cs75\f0\insrsid924911\charrsid924911 Secondly, learned counsel criticized the Court of Appeal for accepting the denial by Rezakalan, D. W. I, in his testimony that any request for transfer of money abroad was made by the appellants's employee, Dansukh, because the l egal procedure for doing so was not followed. The legal requirements included the filling up of Form E under the Bank of Uganda Foreign Exchange Regulation, which Danskh did not do. \par }\pard \s52\qj \li0\ri0\sl-240\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid924911 {\f0\insrsid924911\charrsid924911 \par \par }\pard \s52\qj \li0\ri0\sb10\sl-466\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid924911 {\cs75\f0\insrsid924911\charrsid924911 Learned counsel's third attack of the court of Appeal's decision related to its finding that the conduct of Dansukh, P. W.2, was more consistent with that of a person who requested to purchase dollars and was indeed, sold dollars by the Bank, which he took to the appellant's premises. In the circumstances, learned counsel cont e nded that the learned Justices of Appeal erred to have held that the Appellant never requested the Bank to transfer pound sterling to any London-based beneficiary and that the appellant received from the Bank US $ 97.000 as full consideration for the bank

draft of shs.120.764.562/= which Dansukh had deposited in the Bank. Learned counsel submitted that the appellant sued the Bank for the failure to follow its instructions to remit pound sterling to London, and for not following banking laws. Learned counse l contended that it was illegal for the Bank's employee to pay out foreign exchange to Dansukh in the manner he did. It was also illegal for the appellant's employee to receive the foreign currency. All this was in contravention of section 1 of the Exchang e Control Act, (cap.158), as amended by the Exchange Control Act (Amendment)Act, 1965, and the Exchange Control Act (Amendment) Decree 1972. This law prohibits the Bank from issuing foreign money except to a foreign exchange dealer. The appellant's employe e}{\cs75\f0\insrsid924911 , Dansukh, }{\cs75\f0\insrsid924911\charrsid924911 was not such a dealer. \par }\pard\plain \s49\qj \li0\ri0\sl-240\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid924911 \f2\fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\f0\insrsid924911\charrsid924911 \par }\pard \s49\qj \li0\ri0\sb235\sl-470\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid924911 {\cs75\f0\insrsid924911\charrsid924911 The learned counsel also referred to the Exchange Control (Foreign Bureaux) Order, 1991 and contended that both the Bank, as a foreign exchange bureau, and the appellant, as a firm which wanted to import goods into}{\cs75\f0\insrsid924911 }{ \cs75\f0\insrsid924911\charrsid924911 Uganda, were bound by Regulat ions 18,19,and 21 of the Order. Under these Regulations a firm may purchase foreign currency from a forex bureau for the purpose of importation of goods into Uganda. Where the goods to be imported with foreign currency so obtained are valued at 10000= U. S . dollars or more the goods shall be subject to pre-shipment inspection, in accordance with the Bank of Uganda (Pre-shipment Inspection of Imports) Regulation, 1982. In the instant case, it was contended by Dr. Byamugisha that as the goods to be imported w e re in excess of US $ 10000, the Bank acted illegally, contrary to these Regulations, in paying out U. S. $ 97.000= to the appellant's employee, Dansukh, P. W.2, in the manner the payment was made to him, purportedly for the importation of spare parts into U g anda. Learned counsel further submitted that the learned Justices of Appeal did not consider the appellant's submission before it that the Bank's payment of foreign currency to the appellant's employee, Dansukh, in the manner it was done was illegal, beca use the Bank contravened the statutory provisions the learned counsel has just cited. It was an error for the Court of Appeal not to have decided on the issue of illegality of the Bank's action. \par }\pard\plain \s30\qj \li0\ri0\sl-240\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid924911 \f2\fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\f0\insrsid924911\charrsid924911 \par }\pard \s30\qj \li0\ri0\sb235\sl-466\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid924911 {\cs75\f0\insrsid924911\charrsid924911 Mr. Paul Kiapi, learned counsel for the Bank, opposed the app eal. He submitted that the appeal hinges on one question, which is whether in dealing with the appellant's U. S.$ 97,000, Rajesh was acting in the course of his employment. Learned counsel contended that the learned Justices of Appeal con s idered this question and concluded that Rajesh was on a floric of his own. He was not acting in the course of his employment. Learned counsel contended that there was ample evidence to support the Court of Appeal's finding to that effect, evidence which h a d been accepted and acted upon by the learned trial judge. Such evidence came, for instance, from Ali Rezakalan, D. W. I who testified,inter alia, that the Bank's employees were never allowed to collect money from people's premises. As an employee, the duty

of Rajesh was to sit in the Bank to serve customers. D. W. I also testified that it was not the Bank's practice to acknowledge receipt of money on its headed paper. Special pay-in slips were used by customers who wanted to do telegraphic transfers, in which

details of the beneficiary, sender, amount of money and contact numbers are written. The pay-in slips are filled in at the Bank. The sender takes a copy thereof, duly signed by the cashier, and the chief cashier. After the transaction is completed, the cu s tomer is then given a copy of the message, which has been sent to the Bank's correspondent bank abroad, and which is known as T. T. The learned counsel further submitted that Rajesh's own admission that he went to the appellant's premises, collected the U. S. dollars and sold it in Kikubo justified the Court of}{\cs75\f0\insrsid924911 }{\cs75\f0\insrsid924911\charrsid924911 It is noteworthy that the appellant did not raise this point about departure from pleadings during the trial of the suit or before the Court of Appeal. It has been raised for the first time in this Co urt. Be that as it may, it is my view that since it is a point of law, this Court should consider the matter. \par }\pard\plain \s52\ql \li0\ri0\sl-240\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid924911 \f2\fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\f0\insrsid924911\charrsid924911 \par }\pard \s52\ql \li0\ri0\sb226\sl-480\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid924911 {\cs75\f0\insrsid924911\charrsid924911 In its plaint the appellant pleaded: \par }\pard\plain \s50\qj \li0\ri0\sb10\sl-480\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid924911 \f2\fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\cs57\f0\expnd4\expndtw20\insrsid924911\charrsid924911 "4}{\cs57\f0\insrsid924911\charrsid924911 }{\cs67\i\f0\expnd-4\expndtw-20\insrsid924911\charrsid924911 On}{\cs67\i\f0\expnd-2\expndtw-10\insrsid924911\charrsid924911 }{\cs67\i\f0\expnd-4\expndtw-20\insrsid924911\charrsid924911 or}{\cs67\i\f0\expnd-2\expndtw-10\insrsid924911\charrsid924911 }{ \cs67\i\f0\expnd-4\expndtw-20\insrsid924911\charrsid924911 about}{\cs67\i\f0\expnd-2\expndtw-10\insrsid924911\charrsid924911 }{\cs67\i\f0\expnd-4\expndtw-20\insrsid924911\charrsid924911 18}{\cs71\b\i\f0\expnd10\expndtw50\insrsid924911\charrsid924911 /}{ \cs71\i\f0\expnd10\expndtw50\insrsid924911\charrsid924911 6}{\cs67\i\f0\expnd-4\expndtw-20\insrsid924911\charrsid924911 /98,}{\cs67\i\f0\expnd-2\expndtw-10\insrsid924911\charrsid924911 }{\cs67\i\f0\expnd-4\expndtw-20\insrsid924911\charrsid924911 the}{ \cs67\i\f0\expnd-2\expndtw-10\insrsid924911\charrsid924911 }{\cs67\i\f0\expnd-4\expndtw-20\insrsid924911\charrsid924911 plaintiff}{\cs67\i\f0\expnd-2\expndtw-10\insrsid924911\charrsid924911 }{\cs67\i\f0\expnd-4\expndtw-20\insrsid924911\charrsid924911 issued}{\cs67\i\f0\expnd-2\expndtw-10\insrsid924911\charrsid924911 }{\cs67\i\f0\expnd-4\expndtw-20\insrsid924911\charrsid924911 a}{\cs67\i\f0\expnd-2\expndtw-10\insrsid924911\charrsid924911 }{\cs67\i\f0\expnd-4\expndtw-20\insrsid924911\charrsid924911 Gold Trust}{\cs67\i\f0\expnd-2\expndtw-10\insrsid924911\charrsid924911 }{\cs67\i\f0\expnd-4\expndtw-20\insrsid924911\charrsid924911 Bank}{\cs67\i\f0\expnd-2\expndtw-10\insrsid924911\charrsid924911 }{ \cs67\i\f0\expnd-4\expndtw-20\insrsid924911\charrsid924911 Draft}{\cs67\i\f0\expnd-2\expndtw-10\insrsid924911\charrsid924911 }{\cs67\i\f0\expnd-4\expndtw-20\insrsid924911\charrsid924911 No. GTB}{\cs67\i\f0\expnd-2\expndtw-10\insrsid924911\charrsid924911 }{\cs67\i\f0\expnd-4\expndtw-20\insrsid924911\charrsid924911 867/98}{\cs67\i\f0\expnd-2\expndtw-10\insrsid924911\charrsid924911 }{\cs67\i\f0\expnd-4\expndtw-20\insrsid924911\charrsid924911 (045277)}{ \cs67\i\f0\expnd-2\expndtw-10\insrsid924911\charrsid924911 }{\cs67\i\f0\expnd-4\expndtw-20\insrsid924911\charrsid924911 for Ug. 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}{\cs67\i\f0\expnd-4\expndtw-20\insrsid924911\charrsid924911 (equivalent}{\cs67\i\f0\expnd-2\expndtw-10\insrsid924911\charrsid924911 }{\cs67\i\f0\expnd-4\expndtw-20\insrsid924911\charrsid924911 of}{ \cs67\i\f0\expnd-2\expndtw-10\insrsid924911\charrsid924911 }{\cs67\i\f0\expnd-4\expndtw-20\insrsid924911\charrsid924911 Shs. U.g. Shs.120,764,562}{\cs67\i\f0\expnd-2\expndtw-10\insrsid924911\charrsid924911 }{ \cs67\i\f0\expnd-4\expndtw-20\insrsid924911\charrsid924911 at}{\cs67\i\f0\expnd-2\expndtw-10\insrsid924911\charrsid924911 }{\cs67\i\f0\expnd-4\expndtw-20\insrsid924911\charrsid924911 the}{\cs67\i\f0\expnd-2\expndtw-10\insrsid924911\charrsid924911 }{ \cs67\i\f0\expnd-4\expndtw-20\insrsid924911\charrsid924911 time)}{\cs67\i\f0\expnd-2\expndtw-10\insrsid924911\charrsid924911 }{\cs67\i\f0\expnd-4\expndtw-20\insrsid924911\charrsid924911 Since}{\cs67\i\f0\expnd-2\expndtw-10\insrsid924911\charrsid924911 } {\cs67\i\f0\expnd-4\expndtw-20\insrsid924911\charrsid924911 there}{\cs67\i\f0\expnd-2\expndtw-10\insrsid924911\charrsid924911 }{\cs67\i\f0\expnd-4\expndtw-20\insrsid924911\charrsid924911 was}{\cs67\i\f0\expnd-2\expndtw-10\insrsid924911\charrsid924911 }{ \cs67\i\f0\expnd-4\expndtw-20\insrsid924911\charrsid924911 no sufficient}{\cs67\i\f0\expnd-2\expndtw-10\insrsid924911\charrsid924911 }{\cs67\i\f0\expnd-4\expndtw-20\insrsid924911\charrsid924911 pound}{ \cs67\i\f0\expnd-2\expndtw-10\insrsid924911\charrsid924911 }{\cs67\i\f0\expnd-4\expndtw-20\insrsid924911\charrsid924911 sterling}{\cs67\i\f0\expnd-2\expndtw-10\insrsid924911\charrsid924911 }{\cs67\i\f0\expnd-4\expndtw-20\insrsid924911\charrsid924911 to} {\cs67\i\f0\expnd-2\expndtw-10\insrsid924911\charrsid924911 }{\cs67\i\f0\expnd-4\expndtw-20\insrsid924911\charrsid924911 be}{\cs67\i\f0\expnd-2\expndtw-10\insrsid924911\charrsid924911 }{\cs67\i\f0\expnd-4\expndtw-20\insrsid924911\charrsid924911 sent}{ \cs67\i\f0\expnd-2\expndtw-10\insrsid924911\charrsid924911 }{\cs67\i\f0\expnd-4\expndtw-20\insrsid924911\charrsid924911 at}{\cs67\i\f0\expnd-2\expndtw-10\insrsid924911\charrsid924911 }{\cs67\i\f0\expnd-4\expndtw-20\insrsid924911\charrsid924911 the}{ \cs67\i\f0\expnd-2\expndtw-10\insrsid924911\charrsid924911 }{\cs67\i\f0\expnd-4\expndtw-20\insrsid924911\charrsid924911 time and}{\cs67\i\f0\expnd-2\expndtw-10\insrsid924911\charrsid924911 }{\cs67\i\f0\expnd-4\expndtw-20\insrsid924911\charrsid924911 the }{\cs67\i\f0\expnd-2\expndtw-10\insrsid924911\charrsid924911 }{\cs67\i\f0\expnd-4\expndtw-20\insrsid924911\charrsid924911 Plaintiffs}{\cs67\i\f0\expnd-2\expndtw-10\insrsid924911\charrsid924911 }{ \cs67\i\f0\expnd-4\expndtw-20\insrsid924911\charrsid924911 staff}{\cs67\i\f0\expnd-2\expndtw-10\insrsid924911\charrsid924911 }{\cs67\i\f0\expnd-4\expndtw-20\insrsid924911\charrsid924911 accepted}{ \cs67\i\f0\expnd-2\expndtw-10\insrsid924911\charrsid924911 }{\cs67\i\f0\expnd-4\expndtw-20\insrsid924911\charrsid924911 and}{\cs67\i\f0\expnd-2\expndtw-10\insrsid924911\charrsid924911 }{\cs67\i\f0\expnd-4\expndtw-20\insrsid924911\charrsid924911 received the}{\cs67\i\f0\expnd-2\expndtw-10\insrsid924911\charrsid924911 }{\cs67\i\f0\expnd-4\expndtw-20\insrsid924911\charrsid924911 US.}{\cs67\i\f0\expnd-2\expndtw-10\insrsid924911\charrsid924911 }{ \cs67\i\f0\expnd-4\expndtw-20\insrsid924911\charrsid924911 $97,000}{\cs67\i\f0\expnd-2\expndtw-10\insrsid924911\charrsid924911 }{\cs67\i\f0\expnd-4\expndtw-20\insrsid924911\charrsid924911 and}{\cs67\i\f0\expnd-2\expndtw-10\insrsid924911\charrsid924911 } {\cs67\i\f0\expnd-4\expndtw-20\insrsid924911\charrsid924911 took}{\cs67\i\f0\expnd-2\expndtw-10\insrsid924911\charrsid924911 }{\cs67\i\f0\expnd-4\expndtw-20\insrsid924911\charrsid924911 it}{\cs67\i\f0\expnd-2\expndtw-10\insrsid924911\charrsid924911 }{ \cs67\i\f0\expnd-4\expndtw-20\insrsid924911\charrsid924911 to}{\cs67\i\f0\expnd-2\expndtw-10\insrsid924911\charrsid924911 }{\cs67\i\f0\expnd-4\expndtw-20\insrsid924911\charrsid924911 the}{\cs67\i\f0\expnd-2\expndtw-10\insrsid924911\charrsid924911 }{ \cs67\i\f0\expnd-4\expndtw-20\insrsid924911\charrsid924911 Plaintiff's business}{\cs67\i\f0\expnd-2\expndtw-10\insrsid924911\charrsid924911 }{\cs67\i\f0\expnd-4\expndtw-20\insrsid924911\charrsid924911 premises}{ \cs67\i\f0\expnd-2\expndtw-10\insrsid924911\charrsid924911 }{\cs67\i\f0\expnd-4\expndtw-20\insrsid924911\charrsid924911 of}{\cs67\i\f0\expnd-2\expndtw-10\insrsid924911\charrsid924911 }{\cs67\i\f0\expnd-4\expndtw-20\insrsid924911\charrsid924911 Plot }{\cs67\i\f0\expnd-2\expndtw-10\insrsid924911\charrsid924911 }{\cs67\i\f0\expnd-4\expndtw-20\insrsid924911\charrsid924911 25,}{\cs67\i\f0\expnd-2\expndtw-10\insrsid924911\charrsid924911 }{\cs67\i\f0\expnd-4\expndtw-20\insrsid924911\charrsid924911 Nakivubo}{\cs67\i\f0\expnd-2\expndtw-10\insrsid924911\charrsid924911 }{\cs67\i\f0\expnd-4\expndtw-20\insrsid924911\charrsid924911 Road,}{\cs67\i\f0\expnd-4\expndtw-20\insrsid924911 }{\cs65\i\f0\insrsid924911\charrsid924911 Kampala. Photocopy of the receipt is annexure}{\cs65\b\i\f0\insrsid924911\charrsid924911 }{\cs58\f0\insrsid924911\charrsid924911 "B, }{\cs65\i\f0\insrsid924911\charrsid924911 "U."}{\cs65\b\i\f0\insrsid924911\charrsid924911 \par }\pard\plain \s34\qj \li0\ri0\sl-240\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid924911 \f2\fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\f0\insrsid924911\charrsid924911 \par \par }\pard \s34\qj \li0\ri0\sb5\sl-470\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid924911 {\cs75\f0\insrsid924911\charrsid924911 -In its written statement of defence the Bank averred in paragraph 4 thereof: }{ \cs57\f0\expnd4\expndtw20\insrsid924911\charrsid924911 "4}{\cs57\f0\insrsid924911\charrsid924911 }{\cs65\i\f0\insrsid924911\charrsid924911 This defendant admits the contents of paragraph }{\cs55\i\f0\expnd8\expndtw40\insrsid924911\charrsid924911 4}{ \cs55\i\f0\insrsid924911\charrsid924911 }{\cs65\i\f0\insrsid924911\charrsid924911 and }{\cs55\i\f0\expnd8\expndtw40\insrsid924911\charrsid924911 5."}{\cs55\b\i\f0\expnd8\expndtw40\insrsid924911\charrsid924911 \par }\pard\plain \s52\qj \li0\ri0\sl-240\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid924911 \f2\fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\f0\insrsid924911\charrsid924911 \par }\pard \s52\qj \li0\ri0\sb235\sl-470\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid924911 {\cs75\f0\insrsid924911\charrsid924911 The Bank's evidence which was adduced to prove its case against the appellant's suit was clearly a departure from its pleadings in the written statement of defence. Whereas paragraph 4 of the written statement of defence admitted the appellant's cause of a ction as stated in paragraphs 4 and 5 of the plaint, the Bank's evidence at the trial was meant to prove the contrary, namely that when the Gold Trust Cheque of Uganda shillings was deposited at the Bank, no instructions were given by the appellant that t h e proceeds of the Bank draft should be transferred in sterling pounds to the appellant's suppliers in London. In my view, the Bank's departure from its pleadings was an irregularity which was not fatal to the trial court's judgment in favour of the Bank, a nd which was upheld by the Court of Appeal. Moreover, the irregularity was cured during the course of events which took place at the trial from the beginning. The appellant did not object to the irregularity at the commencement of, and during the trial or in the Court of Appeal. The trial proceeded on the basis of the issues}{\cs75\f0\insrsid924911 }{\cs75\f0\insrsid924911\charrsid924911 Appeal's finding that he was on a frolic of his own. Regarding the departure by the Bank's evidence from its pleadings in the written statement of defence, Mr. Kiapi submitted fi rst, that the appellant did not raise any objection about the departure during the trial of the suit and on the first appeal. It is, therefore, too late to raise an objection now. Secondly, in view of the Court of Appeal's finding that there was no instru c tion by the appellant to the Bank to remit money to London, the departure did not cause injustice to the appellant, because the bank had no sterling pounds, and in any event, it returned the money. Regarding the appellant's argument that the Bank acted co ntrary to the Bank of Uganda's foreign exchange regulations, Mr. Kiapi contended that the appellant also broke the law. Consequently it cannot benefit from the illegality. \par }\pard\plain \s34\qj \li0\ri0\sl-240\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid924911 \f2\fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\f0\insrsid924911\charrsid924911 \par }\pard \s34\qj \li0\ri0\sb221\sl-470\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid924911 {\cs75\f0\insrsid924911\charrsid924911 I shall first deal with the appellant's submission that contrary to it's admission i n the written statement of defence that the appellant instructed the Bank to transfer by T. T. Sterling pounds \'a3 60,382 to M/s Agric Link Company in London, the Bank, instead, adduced evidence to prove the contrary; that the trial Judge erred to accept the Bank's evidence to that effect, and that the Court of Appeal erred to uphold the trial}{\cs75\f0\insrsid924911 Court's finding in that regard, }{\cs75\f0\insrsid924911\charrsid924911 framed at the beginning, one of which was whether defendant No.1 (the Bank) received the shs.120,764,562/= draft with a request for a ster ling pounds telegraphic transfer. The appellant supported its case with evidence from, inter alia, Dansukh Patel, PW2, that it delivered the Gold Trust Bank draft to Rajesh, the Banks Forex Manager to transfer pound sterling to London. The relevant part o f PW2's evidence reads: \par }\pard\plain \s37\qj \li0\ri0\sl-470\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid924911 \f2\fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\cs66\b\i\f0\expnd-4\expndtw-20\insrsid924911\charrsid924911 "This}{ \cs66\f0\expnd-2\expndtw-10\insrsid924911\charrsid924911 }{\cs65\b\i\f0\insrsid924911\charrsid924911 draft I took to the Crane Bank on }{\cs55\b\i\f0\expnd8\expndtw40\insrsid924911\charrsid924911 18/6/1998.}{\cs55\b\i\f0\insrsid924911\charrsid924911 }{ \cs65\b\i\f0\insrsid924911\charrsid924911 I delivered it to Crane Forex Manager, Rajesh Parekh. I wanted him to make a T. T. of pounds sterling }{\cs55\b\i\f0\expnd8\expndtw40\insrsid924911\charrsid924911 60,382.}{\cs55\b\i\f0\insrsid924911\charrsid924911 }{\cs65\b\i\f0\insrsid924911\charrsid924911 It was to be transferred to Agric Link London. He did not accept the instructions,(witness changes answer). Yes he accepted to send the T. T. He did not send the T. T." }{\cs75\f0\insrsid924911\charrsid924911 In cross-examination, it was put to PW2 by the Bank's counsel, Mr. Rukutana that he acted contrary to his boss's (PWl's) instructions and conspired with Rajesh to embezzle the money. PW2 denied the suggestion. \par }\pard\plain \s49\qj \li0\ri0\sl-240\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid924911 \f2\fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\f0\insrsid924911\charrsid924911 \par }\pard \s49\qj \li0\ri0\sb216\sl-475\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid924911 {\cs75\f0\insrsid924911\charrsid924911 The Bank resisted the appellant's claim that it was instructed by the appellant to transfer money to London by adducing evidence from Ali Rezakalam (DW1) to the effect that PW2 went with the bank draft to him (DW1). PW2 wanted to purchase cash U$ dollars and he was given US$ 97,000. When DW1 asked PW2 why he wanted dollars in cash, the latter told the former that it was none of his business and went away with the dollars. DW1 said that}{ \cs75\f0\insrsid924911 }{\cs75\f0\insrsid924911\charrsid924911 PW2 dealt with him on this matter not with Rajesh. In cross-examination, DW1 said that PW2 did not ask him to transfer money to London. \par }\pard \s49\qj \li0\ri0\sl-240\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid924911 {\f0\insrsid924911\charrsid924911 \par }\pard \s49\qj \li0\ri0\sb226\sl-475\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid924911 {\cs75\f0\insrsid924911\charrsid924911 The appellant's counsel at the trial canvassed in his submission under issue No.2, that Rajesh, DW2 and first defendant on 18}{\cs62\b\f0\expnd6\expndtw30\insrsid924911\charrsid924911 /6}{\cs75\f0\insrsid924911\charrsid924911 /98 received the bank draft, Exhibit P4 for transfer of sterling \'a3 60,382 by Telegraphic Transfer to London. It was contended that oral evidence of PW2 and DW2, Rajesh, was clear on the point. It was therefore not surprising that PWl, the Managing Director of the appellant company rejected the cash of US$ 97,000 and insisted on the original instructions for a Telegraphic Transfer in Sterling pounds. \par }\pard\plain \s30\qj \li0\ri0\sl-240\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid924911 \f2\fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\f0\insrsid924911\charrsid924911 \par \par }\pard \s30\qj \li0\ri0\sl-470\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid924911 {\cs75\f0\insrsid924911\charrsid924911 Clearly, the appellant conducted its case as if the Bank had pleaded that it did not act in breach of instructions. In the circumstances, the Bank's departure from its pleadings, in my view, did not prejudice the appellant. With respect, therefore, I am n ot persuaded by th}{\cs75\f0\insrsid924911 e learned counsel's arguments}{\cs75\f0\insrsid924911\charrsid924911 in this regard. \par }\pard\plain \s34\qj \li0\ri0\sl-240\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid924911 \f2\fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\f0\insrsid924911\charrsid924911 \par }\pard \s34\qj \li0\ri0\sb226\sl-475\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid924911 {\cs75\f0\insrsid924911\charrsid924911 I shall next deal with the appellant's criticism of the Learned Justices of Appeal that they wrongly upheld the trial court's finding that there were no instructions from the appellant to t he Bank to transfer money to the appellant's supplier in London; and that the appellant's employee, Dansukh Patel, PW2, took the Gold Trust Bank draft to the Bank and only purchased US. dollars, contrary to the appellant's evidence. I shall then later deal with the appellant's contention that the Bank contravened the statutory provisions governing foreign exchange transactions by paying US$ 97,000 to Dansukh, a person who was not a foreign exchange dealer. \par }\pard\plain \s52\qj \li0\ri0\sl-240\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid924911 \f2\fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\f0\insrsid924911\charrsid924911 \par }\pard \s52\qj \li0\ri0\sb235\sl-470\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid924911 {\cs75\f0\insrsid924911\charrsid924911 In his lead judgment, with which all the member s of the Court agreed, Twinomujuni, J. A., referred to the duty of the Court of Appeal as the first appellate court in a case such as the present. That duty enjoins the court to reappraise all the evidence on record and make its own conclusion as to whethe r the decision arrived at by the learned trial judge can be supported or not. The duty is provided for in rule 29(1) (a) of the Court of Appeal Rules, 1996 as follows: \par }\pard\plain \s32\qj \li0\ri0\sl-470\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid924911 \f2\fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\cs65\b\i\f0\insrsid924911\charrsid924911 "29(1)(a) On any appeal from a decision of a High Court acting in the exercise of its original jurisdiction, the Court may- \par }\pard\plain \s38\ql \fi720\li0\ri0\sl-475\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid924911 \f2\fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\cs75\f0\insrsid924911\charrsid924911 (a) }{\cs65\b\i\f0\insrsid924911\charrsid924911 reappraise the evidence and draw inferences of fact;" \par }\pard\plain \s52\qj \li0\ri0\sl-240\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid924911 \f2\fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\f0\insrsid924911\charrsid924911 \par \par }\pard \s52\qj \li0\ri0\sl-470\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid924911 {\cs75\f0\insrsid924911\charrsid924911 This duty of a first appellate court has been stated and discussed in a number of decided cases, one of which was cited by Learned Justice, Twinomujuni, JA, namely, }{\cs74\b\i\f0\insrsid924911 Peters}{\cs74\b\i\f0\insrsid924911\charrsid924911 }{ \cs74\b\f0\insrsid924911\charrsid924911 }{\cs65\b\i\f0\insrsid924911\charrsid924911 vs. Sunday Post Ltd (1958) EA. 424.}{\cs65\b\i\f0\insrsid924911 }{\cs65\b\i\f0\insrsid924911\charrsid924911 Selle and Another vs. Associated Motor Boat Co. Ltd (1968) EA 123 Pandya VS. R (1957) EA 32; Okeno VS. Republic (1972) EA, 32; Watt Or Thoma's VS. Thomas (1947), A. C, 484; Abdu l Hameed Saif VS Alimohamed Sholan (1955) 22 EACA. 270; Kifamunte Henry vs Uganda, Criminal Appeal NO. 10/1997; (SCU) (unreported); }{\cs75\f0\insrsid924911\charrsid924911 Milly Masembe }{\cs65\b\i\f0\insrsid924911\charrsid924911 VS. Sugar Corporation of Uganda Ltd, Civil Appeal No.1/2000 (SCU)(unreported. \par }\pard\plain \s43\qj \li0\ri0\sl-240\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid924911 \f2\fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\f0\insrsid924911\charrsid924911 \par }\pard \s43\qj \li0\ri0\sb221\sl-480\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid924911 {\cs75\f0\insrsid924911\charrsid924911 In }{\cs65\b\i\f0\insrsid924911\charrsid924911 Selle and Another VS. Associated Motor Boat Company Ltd }{ \cs75\f0\insrsid924911\charrsid924911 (supra), Sir Clement De Lestang, P. said this: \par }\pard \s43\qj \fi720\li0\ri0\sl-470\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid924911 {\cs60\b\i\f0\expnd-2\expndtw-10\insrsid924911\charrsid924911 "An}{\cs60\f0\insrsid924911\charrsid924911 }{\cs65\b\i\f0\insrsid924911\charrsid924911 appeal to this Court from a trial by the High Court is by way of a retrial and the principles upon which this Court acts in such an appeal are well settled. Briefly put, they are}{\cs65\b\i\f0\insrsid924911 }{\cs65\b\i\f0\insrsid924911\charrsid924911 that this court must reconsider the evidence, evaluate itself and draw its own conclusion though it should always bear in mind that it has neither seen nor heard the witnesses and should}{\cs65\b\i\f0\insrsid924911 }{ \cs65\b\i\f0\insrsid924911\charrsid924911 make due allowance in this respect. In particular this court is not bound necessarily to follow the trial judge's findings of fact if it appears either that he has clearly failed on some point}{ \cs65\b\i\f0\insrsid924911 }{\cs65\b\i\f0\insrsid924911\charrsid924911 to take account of particular circumstances or probabilities materially to estimate the evidence or if the impression based on the demeanour}{\cs65\b\i\f0\insrsid924911 }{ \cs65\b\i\f0\insrsid924911\charrsid924911 of a witness is inconsistent with the evidence in the case generally (Abdul Hameed Saif vs. Ali Mohamed Sholan (1955) 22 EACA) 270)" \par }\pard\plain \s52\qj \li0\ri0\sb67\sl-470\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid924911 \f2\fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\cs75\f0\insrsid924911 \par }{\cs75\f0\insrsid924911\charrsid924911 In the instant case, the learned Justice of Appeal, Twinomujuni, J. A, re-evaluated the evidence in the case as a whole by reframing 5 issues brought out by the grounds of appeal. Issue No.1 was the most relevant to the point now under consideration. It wa s whether the Bank ever requested a transfer of money to a London beneficiary. The learned Justice of Appeal then said this: \par }\pard\plain \s29\qj \li0\ri0\sl-240\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid924911 \f2\fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\f0\insrsid924911\charrsid924911 \par }\pard \s29\qj \li0\ri0\sb230\sl-470\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid924911 {\cs74\b\i\f0\insrsid924911\charrsid924911 "}{\cs74\b\i\f0\insrsid924911\charrsid924911 There is}{\cs74\b\f0\insrsid924911\charrsid924911 }{ \cs68\b\i\f0\expnd2\expndtw10\insrsid924911\charrsid924911 no}{\cs68\b\i\f0\insrsid924911\charrsid924911 }{\cs68\b\i\f0\expnd2\expndtw10\insrsid924911\charrsid924911 dispute}{\cs68\b\i\f0\insrsid924911\charrsid924911 }{ \cs68\b\i\f0\expnd2\expndtw10\insrsid924911\charrsid924911 that}{\cs68\b\i\f0\insrsid924911\charrsid924911 }{\cs68\b\i\f0\expnd2\expndtw10\insrsid924911\charrsid924911 the}{\cs68\b\i\f0\insrsid924911\charrsid924911 }{ \cs68\b\i\f0\expnd2\expndtw10\insrsid924911\charrsid924911 appellant}{\cs68\b\i\f0\insrsid924911\charrsid924911 }{\cs68\b\i\f0\expnd2\expndtw10\insrsid924911\charrsid924911 deposited}{\cs68\b\i\f0\insrsid924911\charrsid924911 }{ \cs68\b\i\f0\expnd2\expndtw10\insrsid924911\charrsid924911 a draft}{\cs68\b\i\f0\insrsid924911\charrsid924911 }{\cs68\b\i\f0\expnd8\expndtw40\insrsid924911\charrsid924911 of}{\cs68\b\i\f0\insrsid924911\charrsid924911 }{ \cs68\b\i\f0\expnd2\expndtw10\insrsid924911\charrsid924911 shs.}{\cs68\b\i\f0\insrsid924911\charrsid924911 }{\cs68\b\i\f0\expnd2\expndtw10\insrsid924911\charrsid924911 120,764,562/=}{\cs68\b\i\f0\insrsid924911\charrsid924911 }{ \cs68\b\i\f0\expnd2\expndtw10\insrsid924911\charrsid924911 with}{\cs68\b\i\f0\insrsid924911\charrsid924911 }{\cs68\b\i\f0\expnd2\expndtw10\insrsid924911\charrsid924911 the}{\cs68\b\i\f0\insrsid924911\charrsid924911 }{ \cs68\b\i\f0\expnd2\expndtw10\insrsid924911\charrsid924911 1}{\cs68\b\i\f0\expnd2\expndtw10\super\insrsid924911\charrsid924911 st}{\cs68\b\i\f0\insrsid924911\charrsid924911 }{\cs68\b\i\f0\expnd2\expndtw10\insrsid924911\charrsid924911 respondent}{ \cs68\b\i\f0\insrsid924911\charrsid924911 }{\cs68\b\i\f0\expnd2\expndtw10\insrsid924911\charrsid924911 and that}{\cs68\b\i\f0\insrsid924911\charrsid924911 }{\cs68\b\i\f0\expnd2\expndtw10\insrsid924911\charrsid924911 the}{ \cs68\b\i\f0\insrsid924911\charrsid924911 }{\cs68\b\i\f0\expnd2\expndtw10\insrsid924911\charrsid924911 next}{\cs68\b\i\f0\insrsid924911\charrsid924911 }{\cs68\b\i\f0\expnd2\expndtw10\insrsid924911\charrsid924911 day}{ \cs68\b\i\f0\insrsid924911\charrsid924911 }{\cs68\b\i\f0\expnd2\expndtw10\insrsid924911\charrsid924911 he}{\cs68\b\i\f0\insrsid924911\charrsid924911 }{\cs68\b\i\f0\expnd2\expndtw10\insrsid924911\charrsid924911 collected}{ \cs68\b\i\f0\insrsid924911\charrsid924911 }{\cs68\b\i\f0\expnd2\expndtw10\insrsid924911\charrsid924911 US$}{\cs68\b\i\f0\insrsid924911\charrsid924911 }{\cs68\b\i\f0\expnd8\expndtw40\insrsid924911\charrsid924911 97.000}{ \cs68\b\i\f0\insrsid924911\charrsid924911 }{\cs68\b\i\f0\expnd2\expndtw10\insrsid924911\charrsid924911 the}{\cs68\b\i\f0\insrsid924911\charrsid924911 }{\cs68\b\i\f0\expnd2\expndtw10\insrsid924911\charrsid924911 equivalent}{ \cs68\b\i\f0\expnd2\expndtw10\insrsid924911 }{\cs68\b\i\f0\expnd8\expndtw40\insrsid924911\charrsid924911 of}{\cs68\b\i\f0\insrsid924911\charrsid924911 }{\cs68\b\i\f0\expnd2\expndtw10\insrsid924911\charrsid924911 the}{ \cs68\b\i\f0\insrsid924911\charrsid924911 }{\cs68\b\i\f0\expnd2\expndtw10\insrsid924911\charrsid924911 money}{\cs68\b\i\f0\insrsid924911\charrsid924911 }{\cs68\b\i\f0\expnd2\expndtw10\insrsid924911\charrsid924911 on}{ \cs68\b\i\f0\insrsid924911\charrsid924911 }{\cs68\b\i\f0\expnd2\expndtw10\insrsid924911\charrsid924911 the}{\cs68\b\i\f0\insrsid924911\charrsid924911 }{\cs68\b\i\f0\expnd8\expndtw40\insrsid924911\charrsid924911 draft.}{ \cs68\b\i\f0\insrsid924911\charrsid924911 }{\cs68\b\i\f0\expnd2\expndtw10\insrsid924911\charrsid924911 The}{\cs68\b\i\f0\insrsid924911\charrsid924911 }{\cs68\b\i\f0\expnd2\expndtw10\insrsid924911\charrsid924911 appellant}{ \cs68\b\i\f0\insrsid924911\charrsid924911 }{\cs68\b\i\f0\expnd2\expndtw10\insrsid924911\charrsid924911 was}{\cs68\b\i\f0\insrsid924911\charrsid924911 }{\cs68\b\i\f0\expnd2\expndtw10\insrsid924911\charrsid924911 issued}{ \cs68\b\i\f0\insrsid924911\charrsid924911 }{\cs68\b\i\f0\expnd2\expndtw10\insrsid924911\charrsid924911 with a}{\cs68\b\i\f0\insrsid924911\charrsid924911 }{\cs68\b\i\f0\expnd2\expndtw10\insrsid924911\charrsid924911 document}{ \cs68\b\i\f0\insrsid924911\charrsid924911 }{\cs68\b\i\f0\expnd2\expndtw10\insrsid924911\charrsid924911 acknowledging}{\cs68\b\i\f0\insrsid924911\charrsid924911 }{\cs68\b\i\f0\expnd2\expndtw10\insrsid924911\charrsid924911 the}{ \cs68\b\i\f0\insrsid924911\charrsid924911 }{\cs68\b\i\f0\expnd2\expndtw10\insrsid924911\charrsid924911 transaction.}{\cs68\b\i\f0\insrsid924911\charrsid924911 }{\cs68\b\i\f0\expnd2\expndtw10\insrsid924911\charrsid924911 Evidence}{ \cs68\b\i\f0\insrsid924911\charrsid924911 }{\cs68\b\i\f0\expnd2\expndtw10\insrsid924911\charrsid924911 was led}{\cs68\b\i\f0\insrsid924911\charrsid924911 }{\cs68\b\i\f0\expnd2\expndtw10\insrsid924911\charrsid924911 on}{ \cs68\b\i\f0\insrsid924911\charrsid924911 }{\cs68\b\i\f0\expnd2\expndtw10\insrsid924911\charrsid924911 behalf}{\cs68\b\i\f0\insrsid924911\charrsid924911 }{\cs68\b\i\f0\expnd8\expndtw40\insrsid924911\charrsid924911 of}{ \cs68\b\i\f0\insrsid924911\charrsid924911 }{\cs68\b\i\f0\expnd2\expndtw10\insrsid924911\charrsid924911 the}{\cs68\b\i\f0\insrsid924911\charrsid924911 }{\cs68\b\i\f0\expnd2\expndtw10\insrsid924911\charrsid924911 1}{ \cs68\b\i\f0\expnd2\expndtw10\super\insrsid924911\charrsid924911 st}{\cs68\b\i\f0\insrsid924911\charrsid924911 }{\cs68\b\i\f0\expnd2\expndtw10\insrsid924911\charrsid924911 respondent}{\cs68\b\i\f0\insrsid924911\charrsid924911 }{ \cs68\b\i\f0\expnd2\expndtw10\insrsid924911\charrsid924911 that}{\cs68\b\i\f0\insrsid924911\charrsid924911 }{\cs68\b\i\f0\expnd2\expndtw10\insrsid924911\charrsid924911 the}{\cs68\b\i\f0\expnd2\expndtw10\insrsid924911 }{ \cs68\b\i\f0\expnd2\expndtw10\insrsid924911\charrsid924911 appellant requested}{\cs68\b\i\f0\insrsid924911\charrsid924911 }{\cs68\b\i\f0\expnd2\expndtw10\insrsid924911\charrsid924911 for}{\cs68\b\i\f0\insrsid924911\charrsid924911 }{ \cs68\b\i\f0\expnd2\expndtw10\insrsid924911\charrsid924911 dollars}{\cs68\b\i\f0\insrsid924911\charrsid924911 }{\cs68\b\i\f0\expnd2\expndtw10\insrsid924911\charrsid924911 and}{\cs68\b\i\f0\insrsid924911\charrsid924911 }{ \cs68\b\i\f0\expnd2\expndtw10\insrsid924911\charrsid924911 the}{\cs68\b\i\f0\insrsid924911\charrsid924911 }{\cs68\b\i\f0\expnd2\expndtw10\insrsid924911\charrsid924911 transaction}{\cs68\b\i\f0\insrsid924911\charrsid924911 }{ \cs68\b\i\f0\expnd2\expndtw10\insrsid924911\charrsid924911 was}{\cs68\b\i\f0\insrsid924911\charrsid924911 }{\cs68\b\i\f0\expnd2\expndtw10\insrsid924911\charrsid924911 treated}{\cs68\b\i\f0\insrsid924911\charrsid924911 }{ \cs68\b\i\f0\expnd8\expndtw40\insrsid924911\charrsid924911 as }{\cs68\b\i\f0\expnd2\expndtw10\insrsid924911\charrsid924911 a}{\cs68\b\i\f0\insrsid924911\charrsid924911 }{\cs68\b\i\f0\expnd2\expndtw10\insrsid924911\charrsid924911 request}{ \cs68\b\i\f0\insrsid924911\charrsid924911 }{\cs68\b\i\f0\expnd2\expndtw10\insrsid924911\charrsid924911 to}{\cs68\b\i\f0\insrsid924911\charrsid924911 }{\cs68\b\i\f0\expnd2\expndtw10\insrsid924911\charrsid924911 purchase}{ \cs68\b\i\f0\insrsid924911\charrsid924911 }{\cs68\b\i\f0\expnd2\expndtw10\insrsid924911\charrsid924911 dollars.}{\cs68\b\i\f0\insrsid924911\charrsid924911 }{\cs68\b\i\f0\expnd2\expndtw10\insrsid924911\charrsid924911 Rezakalan,}{ \cs68\b\i\f0\insrsid924911\charrsid924911 }{\cs68\b\i\f0\expnd2\expndtw10\insrsid924911\charrsid924911 DWl,who}{\cs68\b\i\f0\insrsid924911\charrsid924911 }{\cs68\b\i\f0\expnd2\expndtw10\insrsid924911\charrsid924911 handled the}{ \cs68\b\i\f0\insrsid924911\charrsid924911 }{\cs68\b\i\f0\expnd2\expndtw10\insrsid924911\charrsid924911 transaction}{\cs68\b\i\f0\insrsid924911\charrsid924911 }{\cs68\b\i\f0\expnd2\expndtw10\insrsid924911\charrsid924911 on}{ \cs68\b\i\f0\insrsid924911\charrsid924911 }{\cs68\b\i\f0\expnd2\expndtw10\insrsid924911\charrsid924911 the}{\cs68\b\i\f0\insrsid924911\charrsid924911 }{\cs68\b\i\f0\expnd2\expndtw10\insrsid924911\charrsid924911 behalf}{ \cs68\b\i\f0\insrsid924911\charrsid924911 }{\cs68\b\i\f0\expnd8\expndtw40\insrsid924911\charrsid924911 of}{\cs68\b\i\f0\insrsid924911\charrsid924911 }{\cs68\b\i\f0\expnd2\expndtw10\insrsid924911\charrsid924911 the}{ \cs68\b\i\f0\expnd2\expndtw10\insrsid924911 }{\cs68\b\i\f0\expnd2\expndtw10\insrsid924911\charrsid924911 Bank}{\cs68\b\i\f0\insrsid924911\charrsid924911 }{\cs68\b\i\f0\expnd2\expndtw10\insrsid924911\charrsid924911 denied}{ \cs68\b\i\f0\insrsid924911\charrsid924911 }{\cs68\b\i\f0\expnd2\expndtw10\insrsid924911\charrsid924911 that}{\cs68\b\i\f0\insrsid924911\charrsid924911 }{\cs68\b\i\f0\expnd2\expndtw10\insrsid924911\charrsid924911 any request}{ \cs68\b\i\f0\insrsid924911\charrsid924911 }{\cs68\b\i\f0\expnd2\expndtw10\insrsid924911\charrsid924911 was}{\cs68\b\i\f0\insrsid924911\charrsid924911 }{\cs68\b\i\f0\expnd2\expndtw10\insrsid924911\charrsid924911 made}{ \cs68\b\i\f0\insrsid924911\charrsid924911 }{\cs68\b\i\f0\expnd2\expndtw10\insrsid924911\charrsid924911 to}{\cs68\b\i\f0\insrsid924911\charrsid924911 }{\cs68\b\i\f0\expnd2\expndtw10\insrsid924911\charrsid924911 transfer}{ \cs68\b\i\f0\insrsid924911\charrsid924911 }{\cs68\b\i\f0\expnd2\expndtw10\insrsid924911\charrsid924911 money}{\cs68\b\i\f0\insrsid924911\charrsid924911 }{\cs68\b\i\f0\expnd2\expndtw10\insrsid924911\charrsid924911 abroad.}{ \cs68\b\i\f0\insrsid924911\charrsid924911 }{\cs68\b\i\f0\expnd2\expndtw10\insrsid924911\charrsid924911 He}{\cs68\b\i\f0\insrsid924911\charrsid924911 }{\cs68\b\i\f0\expnd2\expndtw10\insrsid924911\charrsid924911 contended that}{ \cs68\b\i\f0\insrsid924911\charrsid924911 }{\cs68\b\i\f0\expnd16\expndtw80\insrsid924911\charrsid924911 if}{\cs68\b\i\f0\insrsid924911\charrsid924911 }{\cs68\b\i\f0\expnd2\expndtw10\insrsid924911\charrsid924911 such}{ \cs68\b\i\f0\insrsid924911\charrsid924911 }{\cs68\b\i\f0\expnd2\expndtw10\insrsid924911\charrsid924911 a}{\cs68\b\i\f0\insrsid924911\charrsid924911 }{\cs68\b\i\f0\expnd2\expndtw10\insrsid924911\charrsid924911 request}{ \cs68\b\i\f0\insrsid924911\charrsid924911 }{\cs68\b\i\f0\expnd2\expndtw10\insrsid924911\charrsid924911 had}{\cs68\b\i\f0\insrsid924911\charrsid924911 }{\cs68\b\i\f0\expnd2\expndtw10\insrsid924911\charrsid924911 been}{ \cs68\b\i\f0\insrsid924911\charrsid924911 }{\cs68\b\i\f0\expnd2\expndtw10\insrsid924911\charrsid924911 made,}{\cs68\b\i\f0\insrsid924911\charrsid924911 }{\cs68\b\i\f0\expnd2\expndtw10\insrsid924911\charrsid924911 the}{ \cs68\b\i\f0\insrsid924911\charrsid924911 }{\cs68\b\i\f0\expnd2\expndtw10\insrsid924911\charrsid924911 law}{\cs68\b\i\f0\insrsid924911\charrsid924911 }{\cs68\b\i\f0\expnd2\expndtw10\insrsid924911\charrsid924911 prescribed a}{ \cs68\b\i\f0\insrsid924911\charrsid924911 }{\cs68\b\i\f0\expnd2\expndtw10\insrsid924911\charrsid924911 procedure}{\cs68\b\i\f0\insrsid924911\charrsid924911 }{\cs68\b\i\f0\expnd2\expndtw10\insrsid924911\charrsid924911 which}{ \cs68\b\i\f0\expnd2\expndtw10\insrsid924911 }{\cs68\b\i\f0\expnd2\expndtw10\insrsid924911\charrsid924911 included}{\cs68\b\i\f0\insrsid924911\charrsid924911 }{\cs68\b\i\f0\expnd8\expndtw40\insrsid924911\charrsid924911 filling}{ \cs68\b\i\f0\insrsid924911\charrsid924911 }{\cs68\b\i\f0\expnd2\expndtw10\insrsid924911\charrsid924911 Form}{\cs68\b\i\f0\insrsid924911\charrsid924911 }{\cs68\b\i\f0\expnd2\expndtw10\insrsid924911\charrsid924911 E}{ \cs68\b\i\f0\insrsid924911\charrsid924911 }{\cs68\b\i\f0\expnd8\expndtw40\insrsid924911\charrsid924911 of}{\cs68\b\i\f0\insrsid924911\charrsid924911 }{\cs68\b\i\f0\expnd2\expndtw10\insrsid924911\charrsid924911 the}{ \cs68\b\i\f0\insrsid924911\charrsid924911 }{\cs68\b\i\f0\expnd2\expndtw10\insrsid924911\charrsid924911 Bank}{\cs68\b\i\f0\insrsid924911\charrsid924911 }{\cs68\b\i\f0\expnd8\expndtw40\insrsid924911\charrsid924911 of }{ \cs68\b\i\f0\expnd2\expndtw10\insrsid924911\charrsid924911 Uganda}{\cs68\b\i\f0\insrsid924911\charrsid924911 }{\cs68\b\i\f0\expnd2\expndtw10\insrsid924911\charrsid924911 Foreign}{\cs68\b\i\f0\insrsid924911\charrsid924911 }{ \cs68\b\i\f0\expnd2\expndtw10\insrsid924911\charrsid924911 Exchange}{\cs68\b\i\f0\insrsid924911\charrsid924911 }{\cs68\b\i\f0\expnd2\expndtw10\insrsid924911\charrsid924911 Regulations.}{\cs68\b\i\f0\insrsid924911\charrsid924911 }{ \cs68\b\i\f0\expnd2\expndtw10\insrsid924911\charrsid924911 This}{\cs68\b\i\f0\insrsid924911\charrsid924911 }{\cs68\b\i\f0\expnd2\expndtw10\insrsid924911\charrsid924911 Evidence}{\cs68\b\i\f0\insrsid924911\charrsid924911 }{ \cs68\b\i\f0\expnd2\expndtw10\insrsid924911\charrsid924911 was neither}{\cs68\b\i\f0\insrsid924911\charrsid924911 }{\cs68\b\i\f0\expnd2\expndtw10\insrsid924911\charrsid924911 contradicted}{\cs68\b\i\f0\insrsid924911\charrsid924911 }{ \cs68\b\i\f0\expnd2\expndtw10\insrsid924911\charrsid924911 nor}{\cs68\b\i\f0\insrsid924911\charrsid924911 }{\cs68\b\i\f0\expnd2\expndtw10\insrsid924911\charrsid924911 did}{\cs68\b\i\f0\insrsid924911\charrsid924911 }{ \cs68\b\i\f0\expnd2\expndtw10\insrsid924911\charrsid924911 the}{\cs68\b\i\f0\insrsid924911\charrsid924911 }{\cs68\b\i\f0\expnd2\expndtw10\insrsid924911\charrsid924911 appellant}{\cs68\b\i\f0\insrsid924911\charrsid924911 }{ \cs68\b\i\f0\expnd2\expndtw10\insrsid924911\charrsid924911 prove}{\cs68\b\i\f0\insrsid924911\charrsid924911 }{\cs68\b\i\f0\expnd2\expndtw10\insrsid924911\charrsid924911 in}{\cs68\b\i\f0\insrsid924911\charrsid924911 }{ \cs68\b\i\f0\expnd2\expndtw10\insrsid924911\charrsid924911 any other}{\cs68\b\i\f0\expnd2\expndtw10\insrsid924911 }{\cs68\b\i\f0\expnd2\expndtw10\insrsid924911\charrsid924911 way}{\cs68\b\i\f0\insrsid924911\charrsid924911 }{ \cs68\b\i\f0\expnd2\expndtw10\insrsid924911\charrsid924911 that}{\cs68\b\i\f0\insrsid924911\charrsid924911 }{\cs68\b\i\f0\expnd2\expndtw10\insrsid924911\charrsid924911 he}{\cs68\b\i\f0\insrsid924911\charrsid924911 }{ \cs68\b\i\f0\expnd2\expndtw10\insrsid924911\charrsid924911 ever}{\cs68\b\i\f0\insrsid924911\charrsid924911 }{\cs68\b\i\f0\expnd2\expndtw10\insrsid924911\charrsid924911 requested}{\cs68\b\i\f0\insrsid924911\charrsid924911 }{ \cs68\b\i\f0\expnd2\expndtw10\insrsid924911\charrsid924911 for}{\cs68\b\i\f0\insrsid924911\charrsid924911 }{\cs68\b\i\f0\expnd2\expndtw10\insrsid924911\charrsid924911 a}{\cs68\b\i\f0\insrsid924911\charrsid924911 }{ \cs68\b\i\f0\expnd2\expndtw10\insrsid924911\charrsid924911 transfer}{\cs68\b\i\f0\insrsid924911\charrsid924911 }{\cs68\b\i\f0\expnd8\expndtw40\insrsid924911\charrsid924911 of}{\cs68\b\i\f0\insrsid924911\charrsid924911 }{ \cs68\b\i\f0\expnd2\expndtw10\insrsid924911\charrsid924911 any moneys}{\cs68\b\i\f0\insrsid924911\charrsid924911 }{\cs68\b\i\f0\expnd2\expndtw10\insrsid924911\charrsid924911 to}{\cs68\b\i\f0\insrsid924911\charrsid924911 }{ \cs68\b\i\f0\expnd2\expndtw10\insrsid924911\charrsid924911 London.}{\cs68\b\i\f0\insrsid924911\charrsid924911 }{\cs68\b\i\f0\expnd2\expndtw10\insrsid924911\charrsid924911 PW2,}{\cs68\b\i\f0\insrsid924911\charrsid924911 }{ \cs68\b\i\f0\expnd2\expndtw10\insrsid924911\charrsid924911 the}{\cs68\b\i\f0\insrsid924911\charrsid924911 }{\cs68\b\i\f0\expnd2\expndtw10\insrsid924911\charrsid924911 main}{\cs68\b\i\f0\insrsid924911\charrsid924911 }{ \cs68\b\i\f0\expnd2\expndtw10\insrsid924911\charrsid924911 witness}{\cs68\b\i\f0\insrsid924911\charrsid924911 }{\cs68\b\i\f0\expnd8\expndtw40\insrsid924911\charrsid924911 of}{\cs68\b\i\f0\insrsid924911\charrsid924911 }{ \cs68\b\i\f0\expnd2\expndtw10\insrsid924911\charrsid924911 the}{\cs68\b\i\f0\insrsid924911\charrsid924911 }{\cs68\b\i\f0\expnd2\expndtw10\insrsid924911\charrsid924911 appellant, changed}{\cs68\b\i\f0\insrsid924911\charrsid924911 }{ \cs68\b\i\f0\expnd2\expndtw10\insrsid924911\charrsid924911 his}{\cs68\b\i\f0\insrsid924911\charrsid924911 }{\cs68\b\i\f0\expnd2\expndtw10\insrsid924911\charrsid924911 story}{\cs68\b\i\f0\insrsid924911\charrsid924911 }{ \cs68\b\i\f0\expnd2\expndtw10\insrsid924911\charrsid924911 so}{\cs68\b\i\f0\insrsid924911\charrsid924911 }{\cs68\b\i\f0\expnd2\expndtw10\insrsid924911\charrsid924911 many}{\cs68\b\i\f0\insrsid924911\charrsid924911 }{ \cs68\b\i\f0\expnd2\expndtw10\insrsid924911\charrsid924911 times}{\cs68\b\i\f0\insrsid924911\charrsid924911 }{\cs68\b\i\f0\expnd2\expndtw10\insrsid924911\charrsid924911 in}{\cs68\b\i\f0\insrsid924911\charrsid924911 }{ \cs68\b\i\f0\expnd2\expndtw10\insrsid924911\charrsid924911 the}{\cs68\b\i\f0\insrsid924911\charrsid924911 }{\cs68\b\i\f0\expnd2\expndtw10\insrsid924911\charrsid924911 witness}{\cs68\b\i\f0\insrsid924911\charrsid924911 }{ \cs68\b\i\f0\expnd2\expndtw10\insrsid924911\charrsid924911 box}{\cs68\b\i\f0\insrsid924911\charrsid924911 }{\cs68\b\i\f0\expnd2\expndtw10\insrsid924911\charrsid924911 and}{\cs68\b\i\f0\insrsid924911\charrsid924911 }{ \cs68\b\i\f0\expnd8\expndtw40\insrsid924911\charrsid924911 it}{\cs66\f0\expnd-4\expndtw-20\insrsid924911\charrsid924911 is}{\cs66\f0\expnd-2\expndtw-10\insrsid924911\charrsid924911 }{\cs65\b\i\f0\insrsid924911\charrsid924911 clear why }{ \cs66\f0\expnd-4\expndtw-20\insrsid924911\charrsid924911 the}{\cs66\f0\expnd-2\expndtw-10\insrsid924911\charrsid924911 }{\cs65\b\i\f0\insrsid924911\charrsid924911 learned trial Judge could not believe him. Neither would I. \par }\pard\plain \s31\qj \li0\ri0\sl-470\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid924911 \f2\fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\cs65\b\i\f0\insrsid924911 \par }{\cs65\b\i\f0\insrsid924911\charrsid924911 Another puzzle connected with this point is why if PW2 requested for transfer of money to London, he had to ta ke US$ 97,000 at great security risk to the appellants premises in Nakivubo. I would have thought that after being told that the bank did not have enough pounds to transfer he would have first contacted his boss in London to see if dollars would be accept a ble and either request the bank to transfer dollars, or collect the bank draft he had deposited or its Uganda shillings equivalent in order to try to obtain pound sterling elsewhere. Having opted to carry the dollars to his premises, did he hope to return

them to the bank, if his boss in London had told him that dollars would be acceptable? In my judgment this behavior on the part of PW2 is not consistent with what a reasonable person would do if he had requested for money transfer. It is more consistent w i th that of a person who requested to purchase dollars and was indeed sold dollars, which he took to his premises. I would therefore hold that the appellant never requested the bank to transfer any money to a London beneficiary. I would answer this issue i n the negative." \par }\pard\plain \s52\qj \li0\ri0\sl-240\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid924911 \f2\fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\f0\insrsid924911\charrsid924911 \par \par }\pard \s52\qj \li0\ri0\sb5\sl-470\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid924911 {\cs75\f0\insrsid924911\charrsid924911 The appellant's learned counsel strongly argued that the hand written notes on the flip side of the photocopy of the bank draft (Exbt. P4) to the effect that the draft was received on 18}{\cs75\f0\super\insrsid924911\charrsid924911 th}{ \cs75\f0\insrsid924911\charrsid924911 June 1998 for transfer of 160,328,was clear evidence that the appellant requested the Bank to transfer money to London. It is true that the learned Justices of Appeal did not specifically refer to Exhibit P.4, but it is my opinion that, this is one of th e appellant's pieces of evidence which was a part of the evidence he re-evaluated in the case as a whole and came to the conclusion that there were no instructions from the appellant to transfer money to London. The handwritten note on the flip side of exh ibit P4 would seem to suggest that the bank draft was intended to purchase British pounds for transfer to London, but it would appear that such intention was not translated into action by instructing the Bank. \par }\pard\plain \s36\qj \li0\ri0\sl-240\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid924911 \f2\fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\f0\insrsid924911\charrsid924911 \par }\pard \s36\qj \li0\ri0\sb221\sl-475\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid924911 {\cs75\f0\insrsid924911\charrsid924911 Clearly, such instructions were never complete d. If ever there was an intention on the part of the appellant to do so the Bank of Uganda Form E, which would have formed part of such instructions, would have been completed by the appellant which was under a duty to do so. I shall say more in this judg ment about the appellant's failure to comply with other statutory requirements, indicating that the alleged instructions to the Bank to transfer money to London apparently was not completed.}{\cs75\f0\insrsid924911 \par }{\cs75\f0\insrsid924911\charrsid924911 \par }\pard\plain \s52\qj \li0\ri0\sb67\sl-470\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid924911 \f2\fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\cs75\f0\insrsid924911\charrsid924911 I am satisfied that the learned Justices of Appeal properly re-evaluated the evidence in the case as a whole and, in my view, reached the correct conclusion by up\- holding the trial court's findings, that there were no instructions from the appellant to the Bank to transmit by a telegraphic transfer the sterling pounds in the sum of \'a360,382 to their suppliers in London, M/S Agric Link Company. \par }\pard\plain \s48\ql \li0\ri0\sl-240\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid924911 \f2\fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\f0\insrsid924911\charrsid924911 \par }\pard \s48\qj \li0\ri0\sb235\sl-470\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid924911 {\cs75\f0\insrsid924911\charrsid924911 The appellant's learned counsel submitted that this court should exercise its discretion under rule 29(1) of the Supreme Court Rules and overturn the concurrent findings of fact by the Court of}{\cs75\f0\insrsid924911 }{ \cs75\f0\insrsid924911\charrsid924911 Appeal and the trial Court in this regard. With respect, I am not persuaded by that argument. The Supreme Court, as a second appellate court, will only interfere with findings of fact by the}{ \cs75\f0\insrsid924911 }{\cs75\f0\insrsid924911\charrsid924911 Court of Appeal in exceptional cases, and only if the Court of Appeal has failed as a first appellate court to re\- evaluate evidence and reach }{\cs75\f0\insrsid924911 its own conclusions as }{\cs75\f0\insrsid924911\charrsid924911 required by rule 29(1)(a) of the Cou rt of Appeal Rules. This principle is explained in cases such as }{\cs65\b\i\f0\insrsid924911\charrsid924911 The Gannibantan (2) (1876). IPD; The Hontestroom ss }{\cs74\b\f0\insrsid924911\charrsid924911 vs. Durham }{ \cs65\b\i\f0\insrsid924911\charrsid924911 Castle ss (1972) A. C; Watt }{\cs74\b\f0\insrsid924911\charrsid924911 or }{\cs65\b\i\f0\insrsid924911\charrsid924911 Thomas vs. Thomas (supra); Pandya VS. R (1958) E. A. 3 36; S. M Ruwala VS. R 1957) 570; Khatijab Jiwa Hashman VS Zenab d/o Chandu Nanju (1960)-E. A. 7 (privy council; and Kifamunte Henry VS. Uganda, (supra). \par }\pard\plain \s52\qj \li0\ri0\sb67\sl-470\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid924911 \f2\fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\cs75\f0\insrsid924911 \par }{\cs75\f0\insrsid924911\charrsid924911 It is my view that in this case the appellant has not satisfied this court that this is a case where we should interfere with the concurrent findings of fact by the trial Court and the Court of Appeal. \par }\pard \s52\qj \li0\ri0\sl-470\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid924911 {\cs75\f0\insrsid924911 \par }{\cs75\f0\insrsid924911\charrsid924911 I shall finally, consider the appellant's criticism that the Justices of Appeal erred in law by failing to consider the appellant's submis sions on the laws of banking, exchange control and regulations made thereunder, and the contention that if they had considered them, they would have held that the appellant's money was received in accordance with those laws and that, in paying cash in dol l ars, the bank was in breach of the laws and must refund the appellant's money. I have already referred to the submissions of the appellant's learned counsel in this regard. In my view, the learned Justices of Appeal did not fail to consider the appellant' s submissions under this criticism. Although they did not refer to the relevant statutory provisions by name and discussed their effects on the appellant's case they, nevertheless, upheld the trial court's acceptance of the evidence of Rezakalan, DW1 denyi n g that any request was made to the Bank to transfer money abroad because if such a request had been made, the procedural requirements prescribed by law which included filling of Form E under the Bank of Uganda Foreign Exchange Regulations would have been complied with by the appellant. The appellant did not complete Form E. \par }\pard \s52\qj \li0\ri0\sb67\sl-480\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid924911 {\cs75\f0\insrsid924911\charrsid924911 The clauses 18, 19 and 21 of the Exchange Control (Foreign Bureaux) Orders, 1991 provide: \par }\pard\plain \s32\ql \li0\ri0\sl-475\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid924911 \f2\fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\cs65\b\i\f0\insrsid924911\charrsid924911 "18. Subject to the provisions of this Part, a person, firm or other organization may purchase foreign currency from a forex bureau for the purpose of importing goods into Uganda. \par }\pard\plain \s17\qj \li0\ri0\sb226\sl-475\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid924911 \f2\fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\cs65\b\i\f0\insrsid924911\charrsid924911 19. Where the goods to be imported with foreign currency obtained from a forex bureau under this order are valued at 10,000 United States Dollars or more, the goods shall be subject to pre-shipment inspection in accordance with the Bank of Uganda (Pre-shi pment Inspection of Imports) Regulation, 1982. \par }\pard\plain \s39\ql \li0\ri0\sb154\widctlpar\faauto\rin0\lin0\itap0\pararsid924911 \f2\fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\cs65\b\i\f0\insrsid924911\charrsid924911 20 \tab \par }\pard \s39\ql \li0\ri0\sb187\widctlpar\faauto\rin0\lin0\itap0\pararsid924911 {\cs65\b\i\f0\insrsid924911\charrsid924911 21}{\cs65\i\f0\insrsid924911\charrsid924911 \tab }{\cs65\b\i\f0\insrsid924911\charrsid924911 (1)\tab \par }\pard\plain \s37\qj \li0\ri0\sb19\sl-470\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid924911 \f2\fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\cs65\b\i\f0\insrsid924911\charrsid924911 (2) An importer wishing to import under this paragraph shall do so by requesting his banker to issue him with a bank draft or by requesting a direct transfer by the bank of the money outside Ugand a on his behalf; and shall complete Form E (for imports) and state what he intends to import." \par }\pard\plain \s52\qj \li0\ri0\sl-240\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid924911 \f2\fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\f0\insrsid924911\charrsid924911 \par \par }\pard \s52\qj \li0\ri0\sb14\sl-470\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid924911 {\cs75\f0\insrsid924911\charrsid924911 The appellant wanted to import spare parts, the value of which was more than US$ 10, 000. Accordingly, the goods were subject to the Bank of Uganda (Pre-shipme nt Inspection of Imports) Regulations 1982. Secondly, as the appellant wanted to pay for the goods abroad by a direct transfer of the money, the appellant should have completed Form E and presented it to the Bank with its request for transfer of the money

to London. It did not. Consequently, the appellant failed to comply with a necessary legal requirement for a request to the Bank for payment of importation from abroad of goods valued at more than US$ dollars 10,0000. The appellants, therefore, cannot, in my view, be said to have made such a request to the Bank. In the circumstances, the concurrent findings of the trial court and the Court of Appeal in this regard were justified. \par }\pard \s52\qj \li0\ri0\sl-240\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid924911 {\f0\insrsid924911\charrsid924911 \par }\pard \s52\qj \li0\ri0\sb230\sl-480\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid924911 {\cs75\f0\insrsid924911\charrsid924911 For the purposes of this appeal, the relevant provisions of The Bank of Ugand a (Pre-ship Inspection of Imports) Regulations 1982 are 1,2 and 3, which provide: \par }\pard\plain \s37\qj \li0\ri0\sl-470\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid924911 \f2\fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\cs65\b\i\f0\insrsid924911\charrsid924911 "1(1) No payment shall be made in or outside Uganda by or on the authority of the Bank of Uganda, or any licensed bank in Uganda, to the credit of any person, in respect of goods subject to Pre-Shipment inspection under these Regulations, unless and until a Clean Report of Findings issued under regulation 5 of these Regulations in respect of such goods, is presented together with the relevant shipping documents to an authori zed bank. \par }\pard\plain \s18\qj \li0\ri0\sl-470\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid924911 \f2\fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\cs65\b\i\f0\insrsid924911\charrsid924911 (2) In this regulation, "authorized bank" means a bank authorized by the Bank of Uganda to receive Clean Reports of Findings for purposes of this regulation. \par }\pard\plain \s37\qj \li0\ri0\sb67\sl-470\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid924911 \f2\fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\cs65\b\i\f0\insrsid924911\charrsid924911 2. For the purposes of regulation 1 of these Regulations, all goods other than goods specified in the Schedule to these Regulations, intended for importation into Uganda, shall be subject to pre-shipment inspection by the Inspection Authority. \par }\pard\plain \s43\qj \li0\ri0\sl-240\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid924911 \f2\fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\f0\insrsid924911\charrsid924911 \par }\pard \s43\qj \li0\ri0\sb230\sl-470\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid924911 {\cs65\b\i\f0\insrsid924911\charrsid924911 3 (1) Any person intending to import goods into Uganda who wishes to have such goods inspec ted, for the purpose of these Regulations shall apply to the Bank of Uganda for issuance of an inspection order to have the goods so inspected. \par }\pard\plain \s18\qj \li0\ri0\sl-480\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid924911 \f2\fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\cs65\b\i\f0\insrsid924911\charrsid924911 (2) The Bank of Uganda, may on application made to it in such a manner as may be prescribed, issue an inspection order to the Inspecting Authority to inspect the goods" \par }\pard\plain \s34\qj \li0\ri0\sl-240\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid924911 \f2\fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\f0\insrsid924911\charrsid924911 \par }\pard \s34\qj \li0\ri0\sb230\sl-470\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid924911 {\cs75\f0\insrsid924911\charrsid924911 The Regulations impose on the person intending to import goods into Uganda certain responsibilities to enable the Inspecting Authority abroad to carry out the inspection of the goods. Where after in spection of the goods, the Inspection Authority is satisfied that all the necessary requirements have been complied with, the Inspection Authority must issue to the seller of the goods abroad a }{\cs65\b\i\f0\insrsid924911\charrsid924911 "Clean Report of Findings" }{\cs75\f0\insrsid924911\charrsid924911 which is a document certifying that the goods have passed all the necessary pre-shipment inspection requirements. \par }\pard\plain \s44\qj \li0\ri0\sb67\sl-470\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid924911 \f2\fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\cs75\f0\insrsid924911\charrsid924911 The Schedule to the Regulation exempts certain goods from pre-shipment inspection. In the instant case the goods intended to be imported were spare parts, which are not exempted from pre-shipment inspection requirements under the Regulations. In the circumstances, the alleged request by the appellant to the Bank for transmission of pound sterling to London for payment of the goods (if, indeed, such a request was made to the Bank ) should have been accompanied by a "Clean Report of Findings" issued by the Inspecting Authority to the seller in London. The duty to submit the inspection report to the Bank before payment for the goods could be made under Regulation 1. of the Bank of Ug anda (Pre-Shipment Inspection of Imports) Regulations, 1982, lay with appellant. There is no evidence that the appellant submitted a }{\cs74\b\f0\insrsid924911\charrsid924911 "Clean Report }{\cs65\b\i\f0\insrsid924911\charrsid924911 of Findings" }{ \cs75\f0\insrsid924911\charrsid924911 when the alleged request for transfer of the money was made. Again, in my view, it cannot be said , that the alleged request for transfer of money to pay for import of spare parts was made by the appellant to the Bank, because the appellant did not fulfil the legal requirements which are a precondition before such transfer of money can be made. \par }\pard \s44\qr \li0\ri0\sl-240\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid924911 {\f0\insrsid924911\charrsid924911 \par }\pard \s44\qj \li0\ri0\sb226\sl-470\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid924911 {\cs75\f0\insrsid924911\charrsid924911 I will next deal with issue of the legality of\tab the}{\cs75\f0\insrsid924911 }{ \cs75\f0\insrsid924911\charrsid924911 transaction by which Dansukh bought from the Bank and}{\cs75\f0\insrsid924911 }{\cs75\f0\insrsid924911\charrsid924911 the}{\cs75\f0\insrsid924911 }{\cs75\f0\insrsid924911\charrsid924911 Bank sold to him US dollars 97,000, and in light of\tab the}{\cs75\f0\insrsid924911 provisions }{\cs75\f0\insrsid924911\charrsid924911 of the Exchange Control Act, (Cap 158)}{\cs75\f0\insrsid924911 }{ \cs75\f0\insrsid924911\charrsid924911 as}{\cs75\f0\insrsid924911 }{\cs75\f0\insrsid924911\charrsid924911 a mended, the appellant's learned counsel contended that the transaction was illegal and the Bank should be ordered to repay the money to the appellant. \par }\pard\plain \s34\qj \li0\ri0\sl-240\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid924911 \f2\fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\f0\insrsid924911\charrsid924911 \par }\pard \s34\qj \li0\ri0\sb226\sl-475\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid924911 {\cs75\f0\insrsid924911\charrsid924911 Section 1 of The Exchange Control Act (Cap 158) as amended, provides that except with the permission of the Minister, no person other than an authorised dealer, shall, buy, borrow, or hold foreign}{\cs75\f0\insrsid924911 }{\cs75\f0\insrsid924911\charrsid924911 currency from, or sell or lend any foreign currency to any person other than an authorised dealer. Under order 4 of the Exchange Control (Forex Bureau) Order 1991, a forex bureau is authorised to carry on}{\cs75\f0\insrsid924911 }{ \cs75\f0\insrsid924911\charrsid924911 the business of buying and selling foreign exchange subject to the provisions of that order and those of the Exchange Control Act (cap.158) as amended. Crane Bank Ltd is an authorised dealer in foreign currency und er the Act and is a forex bureau authorised to carry on the business of buying and selling foreign exchange. But the appellant is neither an authorised dealer in foreign currency under the Act, nor a forex bureau authorized to carry on the business of buy i ng and selling foreign exchange. It is apparent, therefore, that the transaction between the Bank and the appellant was illegal, being an offence punishable on conviction by imprisonment for a term not exceeding two years or a fine not exceeding twenty th ousand shillings or both such imprisonment and fine under part 11, paragraph 3 of the Fourth Schedule to the Act. Under}{\cs75\f0\insrsid924911 }{\cs75\f0\insrsid924911\charrsid924911 Order 35(1) and (2) of The Exchange Control (Forex Bureaux) Order, 1991, the same punishment provided for under the Act, equally applies to contravention of the The Exchange Control (Foreign Bureaux) Order, 1991. \par }\pard \s34\qj \li0\ri0\sl-240\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid924911 {\f0\insrsid924911\charrsid924911 \par \par }\pard \s34\qj \li0\ri0\sl-470\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid924911 {\cs75\f0\insrsid924911\charrsid924911 It is trite law that courts will not condone or enforce an illegality. This well established principle of the law was put this way by Lindley L. J, }{\cs74\b\f0\ul\insrsid924911\charrsid924911 in Scott vs Brown. Doering-MCN01> & Co (3) (1892) 2QD, 724}{ \cs74\b\f0\insrsid924911\charrsid924911 }{\cs75\f0\insrsid924911\charrsid924911 at P.728: \par }\pard\plain \s37\qj \li0\ri0\sl-475\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid924911 \f2\fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\cs65\b\i\f0\insrsid924911\charrsid924911 "Exturpi causa }{\cs74\b\f0\insrsid924911\charrsid924911 non oritur }{\cs65\b\i\f0\insrsid924911\charrsid924911 actio. This old and well-known legal maxim is founded in good sense, and expresses a clear and well recognized legal principle, which is not confined to indictable offences. No court ought to enforce an illegal contract or allow itself to be made the instrument of enforcing obligations alleged to ari s e out of a contract or transaction which is illegal if the illegality is duly brought to the notice of the court, and if the person invoking the aid of the court is himself implicated in the illegality. It matters not whether the defendant has pleaded the illegality or whether he has not. If the evidence by the plaintiff proves the illegality the court ought not to assist him." \par }\pard\plain \s39\ql \li0\ri0\sl-240\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid924911 \f2\fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\f0\insrsid924911\charrsid924911 \par \par }\pard \s39\ql \li0\ri0\sb5\sl-470\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid924911 {\cs75\f0\insrsid924911\charrsid924911 In the same case, A. L. Smith, L. J. said: }{\cs74\b\f0\expnd-6\expndtw-30\insrsid924911\charrsid924911 "If}{ \cs74\b\f0\insrsid924911\charrsid924911 }{\cs74\b\f0\expnd-6\expndtw-30\insrsid924911\charrsid924911 a}{\cs74\b\f0\insrsid924911\charrsid924911 }{\cs65\b\i\f0\insrsid924911\charrsid924911 plaintiff cannot maintain his cause of action without showing, as part of such cause of action, that he}{\cs65\b\i\f0\insrsid924911 }{\cs65\b\i\f0\insrsid924911\charrsid924911 has been guilty of illegality, then the court will not assist him." \par }\pard\plain \s53\qj \li0\ri0\sl-240\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid924911 \f2\fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\f0\insrsid924911\charrsid924911 \par \par }\pard \s53\qj \li0\ri0\sl-470\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid924911 {\cs75\f0\insrsid924911\charrsid924911 In the earlier case of }{\cs74\b\f0\insrsid924911\charrsid924911 Taylor vs. Chester (4) (1869) L. R.4 Q. B. 309, }{ \cs75\f0\insrsid924911\charrsid924911 it was said at P 314: \par }\pard\plain \s43\qj \li0\ri0\sl-240\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid924911 \f2\fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\f0\insrsid924911\charrsid924911 \par }\pard \s43\qj \li0\ri0\sb235\sl-470\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid924911 {\cs74\b\f0\insrsid924911\charrsid924911 "The true test }{\cs74\b\f0\expnd-6\expndtw-30\insrsid924911\charrsid924911 for}{\cs74\b\f0\insrsid924911\charrsid924911 }{\cs65\b\i\f0\insrsid924911\charrsid924911 determining whether or not the plaintinff and the defendant were in pari delicto, is by considering whether the plaintiff could make out his case otherwise than through the medium and by aid of the illegal transaction." \par }\pard\plain \s34\qj \li0\ri0\sl-240\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid924911 \f2\fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\f0\insrsid924911\charrsid924911 \par \par }\pard \s34\qj \li0\ri0\sl-475\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid924911 {\cs75\f0\insrsid924911\charrsid924911 In the present case, the appellant and the Bank were in pari delicto in the ill egal transaction under consid erartion. The appellant cannot make out its case for refund of the U. S.dollars 97.000 without depending on the illegal transaction. In the circumstances the Court cannot order for the return of its money. \par For the reasons I have given my view is that all the grounds of appeal should fail. In the result, I would dismiss this appeal with costs to First Respondent in this Court and in the Courts below. \par \sect }\sectd \marglsxn1635\margrsxn1635\margtsxn9081\linex0\colsx60\sectdefaultcl\sftnbj {\footerl \pard\plain \ql \li0\ri0\widctlpar\faauto\rin0\lin0\itap0 \f2\fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\insrsid924911 \par }}{\footerr \pard\plain \ql \li0\ri0\widctlpar\faauto\rin0\lin0\itap0 \f2\fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\insrsid924911 \par }}\pard\plain \s21\qc \li0\ri0\sb53\widctlpar\faauto\rin0\lin0\itap0\pararsid924911 \f2\fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\cs56\b\f0\ul\insrsid924911 \par }{\cs56\b\f0\ul\insrsid924911\charrsid924911 JUDGMENT OF ODOKI CJ \par }\pard\plain \s20\qj \li0\ri0\sl-240\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid924911 \f2\fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\f0\insrsid924911\charrsid924911 \par }\pard \s20\qj \li0\ri0\sb101\sl-413\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid924911 {\cs57\f0\insrsid924911\charrsid924911 I have had the benefit of reading in draft the judgment of my learned brother Oder JSC, and I agree with it and the order he has proposed. \par }\pard \s20\qj \li0\ri0\sl-240\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid924911 {\f0\insrsid924911\charrsid924911 \par }\pard \s20\qj \li0\ri0\sb158\sl-418\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid924911 {\cs57\f0\insrsid924911\charrsid924911 As the other members of the Court also agree, this appeal is dismissed with costs to the first respondent in this Court and the Courts below. \par }\pard\plain \s25\qc \li0\ri0\sb67\widctlpar\faauto\rin0\lin0\itap0\pararsid924911 \f2\fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\cs63\b\f0\ul\insrsid924911 \par }{\cs63\b\f0\ul\insrsid924911\charrsid924911 JUDGMENT OF KANYEIHAMBA, J. S. C. \par }\pard\plain \s16\qj \li0\ri0\sb211\sl-490\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid924911 \f2\fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\cs62\f0\insrsid924911\charrsid924911 I have read in draft the judgment of my learned brother Oder, J. S. C and I agree that this appeal should be dismissed with costs. I also agree with the orders he has proposed. \par }\pard\plain \s24\qc \li0\ri0\sb62\widctlpar\faauto\rin0\lin0\itap0\pararsid924911 \f2\fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\cs64\b\f0\ul\insrsid924911 \par }{\cs64\b\f0\ul\insrsid924911\charrsid924911 J}{\cs54\b\f0\ul\insrsid924911\charrsid924911 UDGMENT OF C. M. KATO, }{\cs64\b\i\f0\ul\insrsid924911\charrsid924911 J}{\cs54\b\f0\ul\insrsid924911\charrsid924911 SC. \par }\pard\plain \s51\qj \li0\ri0\sl-240\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid924911 \f2\fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\f0\insrsid924911\charrsid924911 \par }\pard \s51\qj \li0\ri0\sb72\sl-317\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid924911 {\cs59\f0\insrsid924911\charrsid924911 I have had the benefit of reading the judgment of my Lord Oder JSC, in draft. I agree with it that this appeal should be dismissed with costs. I would dismiss it in terms proposed by him. \par }\pard \s51\qc \li0\ri0\sb82\widctlpar\faauto\rin0\lin0\itap0\pararsid924911 {\cs59\b\i\f0\insrsid924911 \par }{\cs59\b\i\f0\insrsid924911\charrsid924911 Dated at Mengo this 22nd day of October 2003. \par }}