Aya Investments (U) Ltd v M/s Kibeedi & Co. Advocates (Misc. Appl. No. 492 of 2008) [2008] UGHC 48 (9 November 2008)

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APPLICATION NO 492 OF 2008 \line }{\i\lang1033\langfe2057\langnp1033\insrsid5381239\charrsid4132068 (Arising from High Court Misc. Application Cause No. 112 of 2008) \line }{ \i\lang1033\langfe2057\langnp1033\insrsid4132068\charrsid4132068 \par }\pard \s15\ql \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid4132068 {\b\lang1033\langfe2057\langnp1033\insrsid5381239\charrsid4132068 AYA INVESTMENTS (U) }{ \b\lang1033\langfe2057\langnp1033\insrsid4132068\charrsid4132068 LTD:}{\i\lang1033\langfe2057\langnp1033\insrsid5381239\charrsid4132068 :::::::::::::::::::::::::::::.:::::::: }{\b\lang1033\langfe2057\langnp1033\insrsid5381239\charrsid4132068 APPLICANT \line }{\b\lang1033\langfe2057\langnp1033\insrsid4132068\charrsid4132068 \par }\pard \s15\qc \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid4132068 {\b\lang1033\langfe2057\langnp1033\insrsid5381239\charrsid4132068 VERSUS \line }{ \b\lang1033\langfe2057\langnp1033\insrsid4132068\charrsid4132068 \par }\pard \s15\ql \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid4132068 {\b\lang1033\langfe2057\langnp1033\insrsid4132068\charrsid4132068 M/}{ \b\lang1033\langfe2057\langnp1033\insrsid5381239\charrsid4132068 S KIBEEDI & CO. }{\b\lang1033\langfe2057\langnp1033\insrsid4132068\charrsid4132068 ADVOCATES:}{\i\lang1033\langfe2057\langnp1033\insrsid5381239\charrsid4132068 ::::::::::::::::::::::::::::: }{\b\lang1033\langfe2057\langnp1033\insrsid5381239\charrsid4132068 RESPONDENT \line }{\b\lang1033\langfe2057\langnp1033\insrsid4132068\charrsid4132068 \par }{\b\lang1033\langfe2057\langnp1033\insrsid5381239\charrsid4132068 BEFORE: }{\b\ul\lang1033\langfe2057\langnp1033\insrsid5381239\charrsid4132068 THE HONOURABLE MR. JUSTICE YOROKAMU BAMWINE \line }{ \b\ul\lang1033\langfe2057\langnp1033\insrsid4132068\charrsid4132068 \par }{\b\ul\lang1033\langfe2057\langnp1033\insrsid5381239\charrsid4132068 RULING }{\b\lang1033\langfe2057\langnp1033\insrsid5381239\charrsid4132068 \line }{\lang1033\langfe2057\langnp1033\insrsid5381239\charrsid4132068 This application was brought under 0. 22 rr. 26 and 52 (1) and (2) of the \line Civil Procedure Rules; Section 98 of the Civil Procedure Act, Articles 126 \line (2) (e) and 128 (1) of the Constitution; an}{\lang1033\langfe2057\langnp1033\insrsid4132068 d Section 39 of the Judicature }{\lang1033\langfe2057\langnp1033\insrsid5381239\charrsid4132068 Act. It is for orders that: \line }{\lang1033\langfe2057\langnp1033\insrsid4132068 \par }\pard \s15\ql \fi-720\li1440\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin1440\itap0\ipgp1\pararsid4132068 {\lang1033\langfe2057\langnp1033\insrsid5381239\charrsid4132068 1. }{ \lang1033\langfe2057\langnp1033\insrsid4132068 \tab }{\lang1033\langfe2057\langnp1033\insrsid5381239\charrsid4132068 An order doth issue staying and setting aside the taxation order, the Garnishee order (Nisi), together with the warrant of attachm ent and all other execution orders granted against the applicant. \line }{\lang1033\langfe2057\langnp1033\insrsid4132068 \par }{\lang1033\langfe2057\langnp1033\insrsid5381239\charrsid4132068 2. }{\lang1033\langfe2057\langnp1033\insrsid4132068 \tab }{\lang1033\langfe2057\langnp1033\insrsid5381239\charrsid4132068 Costs of this application be provided for. \line }{ \lang1033\langfe2057\langnp1033\insrsid4132068 \par }\pard \s15\ql \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid4132068 {\lang1033\langfe2057\langnp1033\insrsid5381239\charrsid4132068 The major ground of the application is}{ \lang1033\langfe2057\langnp1033\insrsid4132068 that the taxation of Advocate -}{\lang1033\langfe2057\langnp1033\insrsid5381239\charrsid4132068 client Bill of costs in H. C Misc. Cause No. 112/2008 which gave rise to the garnishee proceedings and order nis}{\lang1033\langfe2057\langnp1033\insrsid4132068 i and subsequently Warrant of }{\lang1033\langfe2057\langnp1033\insrsid5381239\charrsid4132068 Attachment of the Land and development thereon comprised in LRV 3556 folio 8 at Nakasero Hill, Kampala City, dated 21}{\lang1033\langfe2057\super\langnp1033\insrsid5381239\charrsid2375091 st}{\lang1033\langfe2057\langnp1033\insrsid5381239\charrsid4132068 October, 2008 were irregular, bad in law, and null and an application has been filed seeking to set aside the proceedings. \line }{\lang1033\langfe2057\langnp1033\insrsid2375091 \par }{\lang1033\langfe2057\langnp1033\insrsid5381239\charrsid4132068 When the suit came up for hearing on 03-11-2008, Mr. Lule for the applicant moved court for a stay of execution. The applicants want the status quo preserved pending determination of the application to set aside the proceedings. \line }{ \lang1033\langfe2057\langnp1033\insrsid2375091 \par }{\lang1033\langfe2057\langnp1033\insrsid5381239\charrsid4132068 According to counsel, there is a warrant of attachment which the applicant thinks was improperly obtained, in breach of the most fundamental principles of law, the principle being that no person be condemned unheard in defence of property. \line }{ \lang1033\langfe2057\langnp1033\insrsid2375091 \par }{\lang1033\langfe2057\langnp1033\insrsid5381239\charrsid4132068 The application is objected to by learned counsel for the respondent, Mr. Walubiri. According to counsel, the application is defective in that although it is headed Notice of Motion to stay Execution, it also seeks setting aside of the taxation order, the garnishee order nisi together with the Warrant of Attachment. In otherwords, the application seeks final orders as well as temporary orders. According to counsel, the order to set aside is incompatible with the intended appeal, the su bject matter of }{\b\ul\lang1033\langfe2057\langnp1033\insrsid5381239\charrsid4132068 HCMA No 491 of 2008. }{\b\lang1033\langfe2057\langnp1033\insrsid5381239\charrsid4132068 \line }{\b\lang1033\langfe2057\langnp1033\insrsid2375091 \par }{\lang1033\langfe2057\langnp1033\insrsid5381239\charrsid4132068 Further, counsel argues that if there was an appeal, the instant application would be governed by 0.43 r. 4. Under this law, security has to be given by the applicant for the due performance of the decree or order as ma y ultimately be binding upon him/her. Counsel is of the view that if stay is to be granted, an order ought to be made by thi}{\lang1033\langfe2057\langnp1033\insrsid2375091 s court for the applicant to }{ \lang1033\langfe2057\langnp1033\insrsid5381239\charrsid4132068 deposit in court by way of security for costs th}{\lang1033\langfe2057\langnp1033\insrsid2375091 e decretal sum herein that is, }{ \lang1033\langfe2057\langnp1033\insrsid5381239\charrsid4132068 USD 2,448,500. \line }{\lang1033\langfe2057\langnp1033\insrsid2375091 \par }{\lang1033\langfe2057\langnp1033\insrsid5381239\charrsid4132068 I have very carefully addressed my mind to the able arguments of counsel, both for and against the application. \line }{\lang1033\langfe2057\langnp1033\insrsid2375091 \par }{\lang1033\langfe2057\langnp1033\insrsid5381239\charrsid4132068 At the very heart of this matter is an Advocate \emdash Client bill of costs which the Registrar of this Court taxed and allowed ex-parte on 20-05-2008. Following the ex-parte taxation, the respondent proceeded to extract a decree and to seek enforcement thereof by way of execution. The applicant has since resisted the execution process arguing that the decree was irregularly obtained. The initial attemp t to have the decree set aside by the Registrar who made it suffered a set back because the Registrar, very correctly in my view, decided that he had no jurisdiction in the matter. \line }{\lang1033\langfe2057\langnp1033\insrsid2375091 \par }{\lang1033\langfe2057\langnp1033\insrsid5381239\charrsid4132068 Clearly, what the applicant wanted in that application was High Court\rquote s rev iew of its own decree. The power to review judgments or orders of the High Court (including those entered by Registrars) is not among the powers delegated to the Registrar: }{\b\ul\lang1033\langfe2057\langnp1033\insrsid5381239\charrsid2375091 Attorney Ge} {\b\ul\lang1033\langfe2057\langnp1033\insrsid2375091\charrsid2375091 neral & anor Vs James Mark Kamog}{\b\ul\lang1033\langfe2057\langnp1033\insrsid5381239\charrsid2375091 a & Anor}{\ul\lang1033\langfe2057\langnp1033\insrsid5381239\charrsid4132068 }{ \b\ul\lang1033\langfe2057\langnp1033\insrsid5381239\charrsid4132068 SCCA No. 8 of 2004. }{\lang1033\langfe2057\langnp1033\insrsid5381239\charrsid4132068 (unreported). \line }{\lang1033\langfe2057\langnp1033\insrsid2375091 \par }{\lang1033\langfe2057\langnp1033\insrsid5381239\charrsid4132068 The applicant has since filed }{\b\ul\lang1033\langfe2057\langnp1033\insrsid5381239\charrsid2375091 HCMA No. 491 of 2008}{\ul\lang1033\langfe2057\langnp1033\insrsid5381239\charrsid4132068 } {\lang1033\langfe2057\langnp1033\insrsid5381239\charrsid4132068 seeking leave to be granted to the applicant to file an appeal to the Judge of the High Court of Uganda out of time against the decision of the Taxing Officer}{ \lang1033\langfe2057\langnp1033\insrsid2375091 made on 20- 05-2008 taxing the }{\lang1033\langfe2057\langnp1033\insrsid5381239\charrsid4132068 respondent\rquote s Advocate \emdash Client Bill of Costs ex-parte and allowing it at USD 2,448,500. \line }{ \lang1033\langfe2057\langnp1033\insrsid2375091 \par }{\lang1033\langfe2057\langnp1033\insrsid5381239\charrsid4132068 As to whether the instant application is defective, I notice that it is headed: \line \'93Notice of Motion to stay Execution\'94. Howeve}{\lang1033\langfe2057\langnp1033\insrsid2375091 r, for reasons best known to }{\lang1033\langfe2057\langnp1033\insrsid5381239\charrsid4132068 the applicant and/or its counsel, the application also seeks an order to set aside the taxation order itself, the Garnishee order (nisi) and the Warrant of attachment and other execution orders granted against the application, remedies which in my opinion are inconsistent wi th the application itself. I say so because the applicant cannot be heard to apply for leave to file an appeal to the Judge of the High Court under }{\ul\lang1033\langfe2057\langnp1033\insrsid5381239\charrsid4132068 HCMA NO. 491 of 2008 }{ \lang1033\langfe2057\langnp1033\insrsid5381239\charrsid4132068 and before leave is granted have the impugned orders set aside. Court can utmost order s tay of execution of the impugned order pending determination of the application for leave to file an appeal. To this extent, Mr. Walubiri\rquote s argument is valid. \line }{\lang1033\langfe2057\langnp1033\insrsid2375091 \par }{\lang1033\langfe2057\langnp1033\insrsid5381239\charrsid4132068 Having said so, would court reject the application on account of misjoinder of reliefs? \line }{\lang1033\langfe2057\langnp1033\insrsid2375091 \par }{\lang1033\langfe2057\langnp1033\insrsid5381239\charrsid4132068 In my view, to do so would be to trivialise the applicant\rquote s complaint in the whole saga. What learned counsel has pointed out to court is an adoption of a wrong procedure as to the other reliefs. This would not invalidate proceedings where: \line (a) it did not go to the question of jurisdiction; or \line (b) no prejudice was caused to the opposite party. \line }{\lang1033\langfe2057\langnp1033\insrsid2375091 \par }{\lang1033\langfe2057\langnp1033\insrsid5381239\charrsid4132068 None of those two essential elements pertain in the instant application in as far as I am able to ascertain. \line }{\lang1033\langfe2057\langnp1033\insrsid2375091 \par }{\lang1033\langfe2057\langnp1033\insrsid5381239\charrsid4132068 Moreover, it appears to me that even Article 126 (2) (e) of the constitution would be appropriately invoked in a situation such as this. Since the applicant\rquote s complaint relates to alleged violation of a fundamental right, that is, their right to be heard before its property can be taken away, a liberal approach would be taken when consideri}{\lang1033\langfe2057\langnp1033\insrsid2375091 ng procedural technicalities }{\lang1033\langfe2057\langnp1033\insrsid5381239\charrsid4132068 or rules that tend to reduce on the guaranteed unhindered access a person has to this court. Substantive justice must be administered without undue regard to technicalities. \line }{\lang1033\langfe2057\langnp1033\insrsid2375091 \par }{\lang1033\langfe2057\langnp1033\insrsid5381239\charrsid4132068 As regards the issue of security for costs, this application was brought under 0. 22 r. 26. This law provides for stay of execution pending suit between decree holder and judgment debtor. \line }{\lang1033\langfe2057\langnp1033\insrsid2375091 \par }{\lang1033\langfe2057\langnp1033\insrsid5381239\charrsid4132068 It provides: \line }{\lang1033\langfe2057\langnp1033\insrsid2375091 \par }\pard \s15\ql \li720\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\ipgp1\pararsid2375091 {\b\i\lang1033\langfe2057\langnp1033\insrsid5381239\charrsid4132068 \'93 Where a suit is pending in any court against the holder of a decree of the court in the name of the person against whom the decree was passed, the court may, on such terms as to security or otherwise, as it thinks }{ \i\lang1033\langfe2057\langnp1033\insrsid5381239\charrsid4132068 fit, }{\b\i\lang1033\langfe2057\langnp1033\insrsid5381239\charrsid4132068 stay execution of the decree until the pending suit has been decided\'94. \line }{ \b\i\lang1033\langfe2057\langnp1033\insrsid2375091 \par }\pard \s15\ql \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid2375091 {\lang1033\langfe2057\langnp1033\insrsid5381239\charrsid4132068 Learned counsel for the applicant appea red to suggest that there is no suit before court. I am unable to accept that argument. The law (S.2 of the Civil Procedure Act) defines \lquote Suit\rquote to mean \lquote all civil proceedings commenced in any manner prescribed\rquote . \line }{ \lang1033\langfe2057\langnp1033\insrsid2375091 \par }{\lang1033\langfe2057\langnp1033\insrsid5381239\charrsid4132068 The applicant seeks a remedy under }{\ul\lang1033\langfe2057\langnp1033\insrsid5381239\charrsid4132068 HCMA NO. 491 of 2008. }{\lang1033\langfe2057\langnp1033\insrsid5381239\charrsid4132068 It has moved this court by way a Notice of Motion under 0. 51 r. 6 and 0. 52 rr. (1) and (2). Until that matter is determined, it is a pending suit in the context of 0. 22 r. 26. \line }{\lang1033\langfe2057\langnp1033\insrsid2375091 \par }{\lang1033\langfe2057\langnp1033\insrsid5381239\charrsid4132068 As regards payment of security, 0. 43 r. 4 cited to me by lear ned counsel for the respondent is inapplicable herein. While I must reserve my own comments on the impropriety of the proceedings brought under 0. 51 r. 6 aimed at setting aside the decree of this court through its Registrar, until }{ \lang1033\langfe2057\langnp1033\insrsid2375091 such time as circumstances will warrant, payment of security under O.22 r. 26 is discretionary. As a general rule, the only ground for stay of execution is for the applicant to show that once the property in issue is disposed of, there is no likelihood of getting it back should the appeal succeed. As I have already stated herein, what is at stake herein is a decree that was obtained exparte. If at the end of the day court finds that the applicant was never served for the hearing of the application for the taxation of the respondent\rquote s bill of costs, the decree will be nullified. Once it is nullified, every proceeding founded on it will follow suit. \par It is not necessary at this stage to consider whether the applicant will succeed in }{\ul\lang1033\langfe2057\langnp1033\insrsid7144712 HCMA No. 491 of 2008.}{\lang1033\langfe2057\langnp1033\insrsid7144712 The appli cants have only to present such facts as would satisfy court that a prima facie case exists for court to exercise its discretion in their favour pending determination of the issue as to alleged service of process on them. \par They have shown that they stand to lose vast business interests in the suit property if the intended sale is not put on hold pending determination of their complaint. Considering all the facts and circums tances as presented to court, it is my sincere and honest opinion that the interests of justice herein demand that the garnishee order nisi, together with the warrant of attachment and all other execution orders granted against the applicant be stayed pending investigation and remedial action of this court in }{\ul\lang1033\langfe2057\langnp1033\insrsid7144712 HCMA No. 491 of 2008}{\lang1033\langfe2057\langnp1033\insrsid7144712 . There shall be no order as to payment of security for costs as what is in issue is exercise of court\rquote s power to review its own order. The second objection shall also be disallowed.}{\lang1033\langfe2057\langnp1033\insrsid5381239\charrsid4132068 \line \par }\pard \s15\ql \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid4132068 {\lang1033\langfe2057\langnp1033\insrsid5381239\charrsid4132068 In the result, the t wo objections are disallowed. Execution of the court\rquote s order shall be stayed pending determination of }{\ul\lang1033\langfe2057\langnp1033\insrsid5381239\charrsid4132068 HCMA NO. 491 of 2008 }{ \lang1033\langfe2057\langnp1033\insrsid5381239\charrsid4132068 unless court for a good cause orders otherwise. \line }{\lang1033\langfe2057\langnp1033\insrsid7144712 \par Yorokam}{\lang1033\langfe2057\langnp1033\insrsid5381239\charrsid4132068 u }{\lang1033\langfe2057\langnp1033\insrsid7144712 Bamwine \line JUDG}{\lang1033\langfe2057\langnp1033\insrsid5381239\charrsid4132068 E \line 10-11-2008 \line }{ \lang1033\langfe2057\langnp1033\insrsid7144712 \par }{\lang1033\langfe2057\langnp1033\insrsid5381239\charrsid4132068 10-11-2008 \line }{\lang1033\langfe2057\langnp1033\insrsid7144712 \par }{\lang1033\langfe2057\langnp1033\insrsid5381239\charrsid4132068 Mr. Lule. G \line Mr. Nkurunziza. D - for applicants \line Mr. Walubiri for Respondent \line Respondent\rquote s Mr. Kibeedi present \line Court: Ruling delivered \par }{\lang1033\langfe2057\langnp1033\insrsid7144712 Yorokamu Bamwine JUDGE 1}{\lang1033\langfe2057\langnp1033\insrsid5381239\charrsid4132068 0-11-08 \par \par }\pard\plain \ql \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4132068 \fs24\lang2057\langfe2057\cgrid\langnp2057\langfenp2057 {\lang1033\langfe2057\langnp1033\insrsid5381239\charrsid4132068 \par }}