Bank of Baroda (U) Ltd V Ataco Freight Services Ltd (Civil Appeal No. 45 of 2007) [2009] UGCA 42 (9 September 2009)

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JUSTICE A. TWINOMUJUNI, JA \par \tab \tab HON. JUSTICE C. N. B. KITUMBA, JA \par \tab \tab HON. JUSTICE A. S. NSHIMYE, JA \par \par \par }\pard \qc \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid8087095 {\b\ul\insrsid537193\charrsid8087095 CIVIL APPEAL NO.45 OF 2007 \par \par }{\b\ul\insrsid11409167\charrsid8087095 \par }{\b\ul\insrsid537193\charrsid8087095 \par }\pard \ql \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid8087095 {\b\insrsid537193\charrsid8087095 BANK OF BARODA (U) LTD \'85\'85\'85\'85\'85\'85\'85\'85\'85. APPELLANT \par \par }\pard \qc \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid8087095 {\b\insrsid537193\charrsid8087095 V E R S U S \par \par }\pard \ql \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid8087095 {\b\insrsid537193\charrsid8087095 ATACO FREIGHT SERVICES LTD\'85\'85\'85\'85\'85\'85.. RESPONDENT \par }{\b\insrsid11409167\charrsid8087095 \par }{\b\insrsid10710583\charrsid8087095 \par }{\b\insrsid537193\charrsid8087095 \par }\pard \qc \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid8087095 {\b\insrsid537193\charrsid8087095 [Appeal from the ruling and order of }{\b\insrsid8130340\charrsid8087095 \par }{\b\insrsid537193\charrsid8087095 the High Court at }{\b\insrsid14418848\charrsid8087095 Kampala}{\b\insrsid537193\charrsid8087095 (}{\b\insrsid14418848\charrsid8087095 Mukasa}{\b\insrsid537193\charrsid8087095 , J) }{\b\insrsid8130340\charrsid8087095

\par }{\b\insrsid537193\charrsid8087095 dated 20}{\b\super\insrsid537193\charrsid8087095 th}{\b\insrsid537193\charrsid8087095 April 2007 in HCCS No.448 of 2002] \par \par \par }\pard \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid8087095 {\b\ul\insrsid537193\charrsid8087095 JUDGMENT OF TWINOMUJUNI, JA: \par }{\insrsid537193\charrsid8087095 \par \par This is an appeal against the ruling of the High Court of Uganda in which the learned trial judge dismissed a preliminary objection raised by the second defendant to the effect that it was improperly joined as a party to the suit. \par \par }{\insrsid14418848\charrsid8087095 The background facts to this suit which were agreed on in a scheduling conference by counsel for both parties are as follows:}{\insrsid537193\charrsid8087095 \par }\pard \qj \li720\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid8087095 {\b\insrsid11409167\charrsid8087095 \par }{\b\insrsid1132789\charrsid8087095 \'93A. \tab }{\b\ul\insrsid1132789\charrsid8087095 AGREED FACTS: \par \par }\pard \qj \fi-720\li1440\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin1440\itap0\pararsid8087095 {\b\insrsid1132789\charrsid8087095 \tab }{\b\insrsid14418848\charrsid8087095 On 8}{\b\super\insrsid14418848\charrsid8087095 th}{ \b\insrsid14418848\charrsid8087095 August, 2002 the respondent filed H. C. C. S. No. 448 of 2002 against Lanex Forex Bureau Limited inter alia for recovery of Ugshs.33,858,275/= allegedly paid from the respondent\rquote s account with the appellant without the respondent\rquote s lawful authority and based on stolen/forged cheques.}{\b\insrsid1132789\charrsid8087095 \par \tab \par }\pard \qj \li1440\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin1440\itap0\pararsid8087095 {\b\insrsid14418848\charrsid8087095 On or about 9}{\b\super\insrsid14418848\charrsid8087095 th}{\b\insrsid14418848\charrsid8087095 September, 2002 the respondent also sued the appellant in H. C. C. S. No.507 of 2002, inter alia, for recovery of US$15,060.29 and Ug.shs.8,560,325/= allegedly negligently paid from the respondent\rquote s account to Lanex Forex Bureau on forged cheques and without the respondent\rquote s authority.}{\b\insrsid1132789\charrsid8087095 \par \par By amended plaint filed on 12}{\b\super\insrsid1132789\charrsid8087095 th}{\b\insrsid1132789\charrsid8087095 November, 2002, the respondent joined the appellant as a defendant }{\b\insrsid8130340\charrsid8087095 in H. C. C. S. N}{ \b\insrsid1132789\charrsid8087095 o.448 of 2002. Subsequent}{\b\insrsid8130340\charrsid8087095 ly, the respondent filed Misc. A}{\b\insrsid1132789\charrsid8087095 pplication No.169 of 2003 for orders, inter alia, that H. C. C. S. No.507 of 2002 be stayed until further notice. \par \par Following the filing of the amended plaint, the appellant and the respondent commenced }{\b\insrsid14418848\charrsid8087095 negotiations}{\b\insrsid1132789\charrsid8087095 with a view to amicably settling the matter out of Court. The }{ \b\insrsid14418848\charrsid8087095 parties}{\b\insrsid1132789\charrsid8087095 subsequently agreed to a compromise and the same was recorded by Court on or about 6}{\b\super\insrsid1132789\charrsid8087095 th}{\b\insrsid1132789\charrsid8087095 July, 2004 in }{\b\insrsid14418848\charrsid8087095 the following}{\b\insrsid1132789\charrsid8087095 terms:- \par {\listtext\pard\plain\b\insrsid1132789\charrsid8087095 \hich\af0\dbch\af0\loch\f0 a)\tab}}\pard \qj \fi-360\li1800\ri0\sl360\slmult1\widctlpar\jclisttab\tx1800\aspalpha\aspnum\faauto\ls1\adjustright\rin0\lin1800\itap0\pararsid8087095 { \b\insrsid1132789\charrsid8087095 The respondent\rquote s suit against the appellant in H. C. C. S. No.448 of 2002 be }{\b\insrsid14418848\charrsid8087095 withdrawn}{\b\insrsid1132789\charrsid8087095 . \par {\listtext\pard\plain\b\insrsid1132789\charrsid8087095 \hich\af0\dbch\af0\loch\f0 b)\tab}The respondent be given a further }{\b\insrsid14418848\charrsid8087095 ten (}{\b\insrsid1132789\charrsid8087095 10) months period from 6}{ \b\super\insrsid1132789\charrsid8087095 th}{\b\insrsid1132789\charrsid8087095 July, 2004 within which to settle its outstanding }{\b\insrsid14418848\charrsid8087095 loan}{\b\insrsid1132789\charrsid8087095 obligation with the appellant. \par {\listtext\pard\plain\b\insrsid8130340\charrsid8087095 \hich\af0\dbch\af0\loch\f0 c)\tab}}{\b\insrsid8130340\charrsid8087095 Interest}{\b\insrsid14418848\charrsid8087095 accruing}{\b\insrsid1407555\charrsid8087095 on the respondent\rquote s loan account with the appellant for the period between 12}{\b\super\insrsid1407555\charrsid8087095 th}{\b\insrsid1407555\charrsid8087095 November, 2002 and 12}{\b\super\insrsid1407555\charrsid8087095 th}{\b\insrsid1407555\charrsid8087095 April, 2003 be waived.}{ \b\insrsid1132789\charrsid8087095 \par {\listtext\pard\plain\b\insrsid1407555\charrsid8087095 \hich\af0\dbch\af0\loch\f0 d)\tab}}{\b\insrsid1407555\charrsid8087095 Each party bears its costs. \par }\pard \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid8087095 {\b\insrsid1407555\charrsid8087095 \par }\pard \qj \li1440\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin1440\itap0\pararsid8087095 {\b\insrsid1407555\charrsid8087095 By further amended plaint filed on 28}{\b\super\insrsid1407555\charrsid8087095 th}{ \b\insrsid1407555\charrsid8087095 July, 2006 the respondent yet again joined the appellant as a defendant in H. C. C. S. No.448 of 2002. When the s}{\b\insrsid8130340\charrsid8087095 u}{\b\insrsid1407555\charrsid8087095 it came up for hearing on 21}{ \b\super\insrsid1407555\charrsid8087095 st}{\b\insrsid10710583\charrsid8087095 M}{\b\insrsid1407555\charrsid8087095 arch 2007, the appellant\rquote s advocate set up a preliminary objection to the effect that the appellant was wrongly joined to the suit since by the consent/compromise recorded by court on 6}{\b\super\insrsid1407555\charrsid8087095 th}{\b\insrsid1407555\charrsid8087095 July 2004, the respondent withdrew all the claims against the appellant. The appellant\rquote s said objection was rejected and dismissed with costs hence this appeal.}{\b\insrsid8327041\charrsid8087095 \'94}{\b\insrsid1407555\charrsid8087095 \par }{\b\insrsid8327041\charrsid8087095 \par }\pard \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid8087095 {\insrsid8327041\charrsid8087095 The Memorandum of Appeal contains four grounds of appeal and a prayer as follows: \par }\pard \qj \li720\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid8087095 {\insrsid8327041\charrsid8087095 \par {\listtext\pard\plain\b\insrsid8327041\charrsid8087095 \hich\af0\dbch\af0\loch\f0 1.\tab}}\pard \qj \fi-360\li1080\ri0\sl360\slmult1\widctlpar\jclisttab\tx1080\aspalpha\aspnum\faauto\ls3\adjustright\rin0\lin1080\itap0\pararsid8087095 { \b\insrsid8327041\charrsid8087095 The learned trial judge erred in law and fact in holding that the respondent\rquote s claim in the sum of Ug.shs.33,858,275 against the appellant in the amended plaint filed on 28}{\b\super\insrsid8327041\charrsid8087095 th}{\b\insrsid8327041\charrsid8087095 July, 2006 was a fresh claim not covered by the compromise recorded by Court on 6}{\b\super\insrsid8327041\charrsid8087095 th}{\b\insrsid8327041\charrsid8087095 July, 2004. \par {\listtext\pard\plain\b\insrsid8327041\charrsid8087095 \hich\af0\dbch\af0\loch\f0 2.\tab}Having fou nd that a decree was passed in accordance with the compromise between the appellant and the respondent, the learned trial judge erred in law in holding that the respondent was not barred from filing a fresh suit on substantially similar facts and issues.

\par {\listtext\pard\plain\b\insrsid8327041\charrsid8087095 \hich\af0\dbch\af0\loch\f0 3.\tab}The learned trial judge erred in law and fact in failing to hold that the respondent\rquote s act }{\b\insrsid14418848\charrsid8087095 of reinstating}{ \b\insrsid8327041\charrsid8087095 H. C. C. S. N}{\b\insrsid1786918\charrsid8087095 o.448 of 2002 against the appellant by way of amended plaint filed on 28}{\b\super\insrsid1786918\charrsid8087095 th}{\b\insrsid1786918\charrsid8087095 }{ \b\insrsid14418848\charrsid8087095 July}{\b\insrsid1786918\charrsid8087095 , 2006 amounted to abuse of Court process.}{\b\insrsid8327041\charrsid8087095 \par {\listtext\pard\plain\b\insrsid1786918\charrsid8087095 \hich\af0\dbch\af0\loch\f0 4.\tab}}{\b\insrsid1786918\charrsid8087095 The learned trial judge erred in law and fact in failing to }{\b\insrsid14418848\charrsid8087095 discharge}{ \b\insrsid1786918\charrsid8087095 the appellant from defending the respondent\rquote s claim in the amended plaint filed on 28}{\b\super\insrsid1786918\charrsid8087095 th}{\b\insrsid1786918\charrsid8087095 July, 2006. \par }\pard \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid8087095 {\b\insrsid1786918\charrsid8087095 \par }\pard \qj \li720\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid8087095 {\b\ul\insrsid1786918\charrsid8087095 IT IS PROPOSED }{\b\insrsid1786918\charrsid8087095 to ask Court for orders that: \par {\listtext\pard\plain\b\insrsid1786918\charrsid8087095 \hich\af0\dbch\af0\loch\f0 (1)\tab}}\pard \qj \fi-360\li1080\ri0\sl360\slmult1\widctlpar\jclisttab\tx1080\aspalpha\aspnum\faauto\ls4\adjustright\rin0\lin1080\itap0\pararsid8087095 { \b\insrsid1786918\charrsid8087095 The appeal be allowed \par {\listtext\pard\plain\b\insrsid1786918\charrsid8087095 \hich\af0\dbch\af0\loch\f0 (2)\tab}The ruling and order of the High Court be set aside \par {\listtext\pard\plain\b\insrsid1786918\charrsid8087095 \hich\af0\dbch\af0\loch\f0 (3)\tab}The appellant be struck out as second defendant in HCCS No.448 of 2002. \par {\listtext\pard\plain\b\insrsid1786918\charrsid8087095 \hich\af0\dbch\af0\loch\f0 (4)\tab}The respondent pays the appellant\rquote s costs in the High Court at this court.\'94 \par }\pard \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid8087095 {\b\insrsid1786918\charrsid8087095 \par }{\insrsid8130340\charrsid8087095 At the hearing of this appeal, th}{\insrsid4941932\charrsid8087095 e appellant was represented by Mr. D}{\insrsid8130340\charrsid8087095 enis Wamala and the respondent was represented by Mr. Banard Tibeisgwa. \par \par Before I consider, the merits of this appeal, it is necessary to define exactly what this appeal is about. Though the preliminary objection in the High Court was about w}{\insrsid1786918\charrsid8087095 hether the appellant was wrongly su ed because of a compromise reached by the parties on 6}{\super\insrsid1786918\charrsid8087095 th}{\insrsid1786918\charrsid8087095 July 2004 the leaned trial judge went out to discuss other matters like resjudicata and causes of }{ \insrsid14418848\charrsid8087095 action}{\insrsid15613433\charrsid8087095 resulting into the M}{\insrsid1786918\charrsid8087095 emorandum of Appeal raising those issues. }{\insrsid14418848\charrsid8087095 Here below}{\insrsid1786918\charrsid8087095 , I reproduce the first part of the ruling of the learned trial judge to illustrate what I am talking about:- \par \par }\pard \qj \li720\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid8087095 {\b\insrsid1786918\charrsid8087095 \'93RULING: \par \par When this suit was called before me for hearing Mr. Dennis Wamala, counsel for the 2}{\b\super\insrsid1786918\charrsid8087095 nd}{\b\insrsid1786918\charrsid8087095 defendant, Bank of }{\b\insrsid14418848\charrsid8087095 Baroda}{ \b\insrsid16714677\charrsid8087095 (U) L}{\b\insrsid1786918\charrsid8087095 imited, raised a preliminary objection that by a compromise between the plaintiff and the 2}{\b\super\insrsid1786918\charrsid8087095 nd}{\b\insrsid1786918\charrsid8087095 defendant recorded by this Court on 6}{\b\super\insrsid1786918\charrsid8087095 th}{\b\insrsid1786918\charrsid8087095 July 2004 the plaintiff withdrew all its claims against the 2}{\b\super\insrsid1786918\charrsid8087095 nd}{ \b\insrsid1786918\charrsid8087095 defendant arising out of this suit. \par }{\b\insrsid5837260\charrsid8087095 \par On 6}{\b\super\insrsid5837260\charrsid8087095 th}{\b\insrsid5837260\charrsid8087095 July 2004 }{\b\insrsid14418848\charrsid8087095 Mr}{\b\insrsid5837260\charrsid8087095 . Francis Wazarwaki Bwengye, counsel for the plaintiff addressed court in the following words:- \par \par }\pard \qj \li1440\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin1440\itap0\pararsid8087095 {\b\i\insrsid5837260\charrsid8087095 \lquote Plaintiff and 2}{\b\i\super\insrsid5837260\charrsid8087095 nd}{ \b\i\insrsid5837260\charrsid8087095 defendant have come to some compromise. The terms of the compromise are as follows:- \par }{\b\i\insrsid4941932\charrsid8087095 \par {\listtext\pard\plain\b\i\insrsid5837260\charrsid8087095 \hich\af0\dbch\af0\loch\f0 1.\tab}}\pard \qj \fi-360\li1800\ri0\sl360\slmult1\widctlpar\jclisttab\tx1800\aspalpha\aspnum\faauto\ls3\ilvl1\adjustright\rin0\lin1800\itap0\pararsid8087095 { \b\i\insrsid5837260\charrsid8087095 Plaintiff be given a further period of ten months from the date of the compromise within which to settle its obligation with }{\b\i\insrsid14418848\charrsid8087095 the bank}{\b\i\insrsid5837260\charrsid8087095 . \par {\listtext\pard\plain\b\i\insrsid14418848\charrsid8087095 \hich\af0\dbch\af0\loch\f0 2.\tab}}{\b\i\insrsid14418848\charrsid8087095 Interest}{\b\i\insrsid5837260\charrsid8087095 accruing on the plaintiff\rquote s }{\b\i\insrsid14418848\charrsid8087095 loan}{\b\i\insrsid5837260\charrsid8087095 with the bank from 12}{\b\i\super\insrsid5837260\charrsid8087095 th}{\b\i\insrsid5837260\charrsid8087095 November 2002 to 12}{\b\i\super\insrsid5837260\charrsid8087095 th}{\b\i\insrsid5837260\charrsid8087095 April 2003 be waived by the bank. \par {\listtext\pard\plain\b\i\insrsid16714677\charrsid8087095 \hich\af0\dbch\af0\loch\f0 3.\tab}}{\b\i\insrsid16714677\charrsid8087095 S}{\b\i\insrsid5837260\charrsid8087095 uit against the 2}{\b\i\super\insrsid5837260\charrsid8087095 nd}{ \b\i\insrsid5837260\charrsid8087095 defendant be withdrawn with no order as to costs.}{\b\i\insrsid10034850\charrsid8087095 \rquote }{\b\i\insrsid5837260\charrsid8087095 \par }\pard \qj \li1440\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin1440\itap0\pararsid8087095 {\b\i\insrsid4941932\charrsid8087095 \par }\pard \qj \li720\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid8087095 {\b\insrsid10034850\charrsid8087095 The court made the following order: \par \par }\pard \qj \li1440\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin1440\itap0\pararsid8087095 {\b\i\insrsid10034850\charrsid8087095 \lquote Suit against the 2}{\b\i\super\insrsid10034850\charrsid8087095 nd}{ \b\i\insrsid10034850\charrsid8087095 defendant is hereby withdrawn in the terms of the above compromise.\'94 \par \par }\pard \qj \li720\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid8087095 {\b\insrsid10034850\charrsid8087095 Order 25 rule 6 of the }{\b\insrsid16714677\charrsid8087095 C}{\b\insrsid14418848\charrsid8087095 ivil}{ \b\insrsid10034850\charrsid8087095 Procedure Rules on compromise of suits provides: \par \par }\pard \qj \li1440\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin1440\itap0\pararsid8087095 {\b\i\insrsid10034850\charrsid8087095 Where it is proved to the satisfaction of the Court that a suit has been adjusted wholly or in part by any lawful agreement or }{\b\i\insrsid14418848\charrsid8087095 compromise}{\b\i\insrsid10034850\charrsid8087095 , or where the defendant satisfies the plaintiff in respect of the wholly }{ \b\i\insrsid16714677\charrsid8087095 or }{\b\i\insrsid10034850\charrsid8087095 a}{\b\i\insrsid16714677\charrsid8087095 n}{\b\i\insrsid10034850\charrsid8087095 y part of the subject matter of the suit, the court may on the application of a }{ \b\i\insrsid14418848\charrsid8087095 party}{\b\i\insrsid10034850\charrsid8087095 , order the agreement, compromise or satisfaction to be recorded, and pass a decree in accordance with the agreement, compromise or satisfaction so far as it relates to the suit.\rquote \par }{\b\i\insrsid3093165\charrsid8087095 \par }\pard \qj \li720\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid8087095 {\b\insrsid3093165\charrsid8087095 Apparently that is what happened and on 24}{\b\super\insrsid3093165\charrsid8087095 th}{ \b\insrsid3093165\charrsid8087095 September 2004 the plaintiff filed}{\b\insrsid16714677\charrsid8087095 an amended plaint where the 2}{\b\super\insrsid16714677\charrsid8087095 nd}{\b\insrsid16714677\charrsid8087095 }{\b\insrsid3093165\charrsid8087095 }{\b\insrsid14418848\charrsid8087095 defendant}{\b\insrsid3093165\charrsid8087095 did not future as a party. Thereafter the suit proceeded without the 2}{\b\super\insrsid3093165\charrsid8087095 nd}{\b\insrsid3093165\charrsid8087095 defendant until 11} {\b\super\insrsid3093165\charrsid8087095 th}{\b\insrsid3093165\charrsid8087095 July 2006 when by consent of both counsels for the plaintiff and the 1}{\b\super\insrsid3093165\charrsid8087095 st}{\b\insrsid3093165\charrsid8087095 }{ \b\insrsid16714677\charrsid8087095 defendant in Miscellaneous A}{\b\insrsid3093165\charrsid8087095 pplication No.453 of 2006 this court granted the plaintiff l}{\b\insrsid16714677\charrsid8087095 eave to add Bank of Baroda (U) L}{ \b\insrsid3093165\charrsid8087095 td, as a defendant to this suit. On 28}{\b\super\insrsid3093165\charrsid8087095 th}{\b\insrsid3093165\charrsid8087095 July 2006 the plaintiff filed yet another amended plaint re-introducing Bank of Baroda (U) Ltd as a 2 }{\b\super\insrsid3093165\charrsid8087095 nd}{\b\insrsid3093165\charrsid8087095 defendant. \par \par It is the contention of counsel for the 2}{\b\super\insrsid3093165\charrsid8087095 nd}{\b\insrsid3093165\charrsid8087095 defendant that consideration had been furnished by the 2}{\b\super\insrsid3093165\charrsid8087095 nd}{ \b\insrsid3093165\charrsid8087095 defendant for the withdraw. Further that the plaintiff had in its letter dated 31}{\b\super\insrsid3093165\charrsid8087095 st}{\b\insrsid3093165\charrsid8087095 January 2006 confirmed }{ \b\insrsid14418848\charrsid8087095 that}{\b\insrsid3093165\charrsid8087095 there was no pending claim against the 2}{\b\super\insrsid3093165\charrsid8087095 nd}{\b\insrsid3093165\charrsid8087095 defendant. Counsel prayed that in the }{ \b\insrsid14418848\charrsid8087095 interest}{\b\insrsid3093165\charrsid8087095 of justice the 2}{\b\super\insrsid3093165\charrsid8087095 nd}{\b\insrsid3093165\charrsid8087095 }{\b\insrsid14418848\charrsid8087095 defendant}{ \b\insrsid3093165\charrsid8087095 be }{\b\insrsid14418848\charrsid8087095 discharged}{\b\insrsid3093165\charrsid8087095 . \par \par In reply counsel for the plaintiff submitted that the cause of action against the 2}{\b\super\insrsid3093165\charrsid8087095 nd}{\b\insrsid3093165\charrsid8087095 defendant in the amended plaint was different from the cause of action in the original plaint which had been withdrawn under the compromise. }{\b\insrsid14418848\charrsid8087095 Further}{\b\insrsid3093165\charrsid8087095 that a withdraw of a suit does not act as resjudicata as judgment is not based on the merits of the case.\'94 \par \par }\pard \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid8087095 {\insrsid3093165\charrsid8087095 It will be seen that the above extract correctly captured what the preliminary objection was all about. However , the learned trial judge was misled into discussing other irrelevant matters by arguments of counsel for both parties. Also the learned trial judge was in error to assume that there was a compromise within the meaning of order 25 rule 6 of the }{ \insrsid14418848\charrsid8087095 Civil}{\insrsid16714677\charrsid8087095 Procedure R}{\insrsid3093165\charrsid8087095 ules, }{\insrsid14418848\charrsid8087095 yet}{\insrsid3093165\charrsid8087095 in my view, it was the compromise which was }{ \insrsid14418848\charrsid8087095 at}{\insrsid3093165\charrsid8087095 the centre of the preliminary objections. He should have considered whether a compromise within the meaning of the law was concluded on 6}{\super\insrsid3093165\charrsid8087095 th}{ \insrsid3093165\charrsid8087095 July 2004. It is the failure to do so which led him to discuss other matters such as }{\insrsid14418848\charrsid8087095 causes}{\insrsid3093165\charrsid8087095 of action and rejusidcata. \par \par I consider it as our duty now }{\insrsid14418848\charrsid8087095 to}{\insrsid3093165\charrsid8087095 re-direct this appeal to the only issue which was raised by the preliminary }{\insrsid14418848\charrsid8087095 objection}{ \insrsid3093165\charrsid8087095 , namely, whether a co}{\insrsid16714677\charrsid8087095 mpromise within the meaning of O}{\insrsid3093165\charrsid8087095 rder 26 Rule 6 was reached on 6}{\super\insrsid3093165\charrsid8087095 th}{ \insrsid3093165\charrsid8087095 July 2004.}{\insrsid2045209\charrsid8087095 On that issue }{\insrsid14418848\charrsid8087095 Mr}{\insrsid2045209\charrsid8087095 . Denise Wamala learned counsel for he appellant submitted }{ \insrsid3742723\charrsid8087095 that }{\insrsid2045209\charrsid8087095 the issue }{\insrsid14418848\charrsid8087095 whether}{\insrsid2045209\charrsid8087095 the agreement on 6}{\super\insrsid2045209\charrsid8087095 th}{\insrsid2045209\charrsid8087095 }{ \insrsid14418848\charrsid8087095 June}{\insrsid3041271\charrsid8087095 2}{\insrsid2045209\charrsid8087095 004 amounted to a compromise in law was not in dispute. He contended that it was the }{\insrsid14418848\charrsid8087095 respondent\rquote s}{ \insrsid2045209\charrsid8087095 advocate who }{\insrsid14418848\charrsid8087095 announced}{\insrsid2045209\charrsid8087095 to court that a compromise had been reached and he read its terms. In his view, the appellant was }{ \insrsid14418848\charrsid8087095 estopped}{\insrsid2045209\charrsid8087095 from disputing the fact. Secondly, in the ruling of the trial court, the trial judge found as fact that there was }{\insrsid14418848\charrsid8087095 a}{ \insrsid2045209\charrsid8087095 compromise between the parties in terms of 0.25 r. 6 of the }{\insrsid14418848\charrsid8087095 Civil}{\insrsid16714677\charrsid8087095 Procedure R}{\insrsid2045209\charrsid8087095 ule. Thirdly, that the respondent should have filed a cross-appeal if he considered that there was no compromise reached between the parties on 6}{\super\insrsid2045209\charrsid8087095 th}{\insrsid2045209\charrsid8087095 }{ \insrsid14418848\charrsid8087095 June}{\insrsid2045209\charrsid8087095 2004.}{\insrsid3093165\charrsid8087095 \par }{\insrsid2045209\charrsid8087095 \par In reply, }{\insrsid14418848\charrsid8087095 Mr}{\insrsid2045209\charrsid8087095 . Tibesigwa outlined the elements of a compromise within the meaning of o}{\insrsid16714677\charrsid8087095 rder 26 rule 6 Civil Procedure R}{\insrsid2045209\charrsid8087095 ule as follows:- \par \par {\listtext\pard\plain\insrsid14418848\charrsid8087095 \hich\af0\dbch\af0\loch\f0 (a)\tab}}\pard \qj \fi-360\li720\ri0\sl360\slmult1\widctlpar\jclisttab\tx720\aspalpha\aspnum\faauto\ls5\adjustright\rin0\lin720\itap0\pararsid8087095 { \insrsid14418848\charrsid8087095 It}{\insrsid2045209\charrsid8087095 must be lawful. \par {\listtext\pard\plain\insrsid2045209\charrsid8087095 \hich\af0\dbch\af0\loch\f0 (b)\tab}The parties must agree to it. \par {\listtext\pard\plain\insrsid2045209\charrsid8087095 \hich\af0\dbch\af0\loch\f0 (c)\tab}It must relate to issues in the suit. \par {\listtext\pard\plain\insrsid2045209\charrsid8087095 \hich\af0\dbch\af0\loch\f0 (d)\tab}A decree must be }{\insrsid14418848\charrsid8087095 passed}{\insrsid2045209\charrsid8087095 in respect of the same. \par {\listtext\pard\plain\insrsid2045209\charrsid8087095 \hich\af0\dbch\af0\loch\f0 (e)\tab}It must be recorded. \par }\pard \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid8087095 {\insrsid2045209\charrsid8087095 \par Learned counsel for the respondent made the following concise submission, which I propose to adopt as correct, which I hope will dispose of this }{\insrsid14418848\charrsid8087095 appeal:}{\insrsid2045209\charrsid8087095 \par \par }\pard \qj \li720\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid8087095 {\b\insrsid2045209\charrsid8087095 \'93It is the }{\b\insrsid14418848\charrsid8087095 respondent\rquote s}{ \b\insrsid2045209\charrsid8087095 submission}{\b\insrsid7614069\charrsid8087095 that the proceedings of 6}{\b\super\insrsid7614069\charrsid8087095 th}{\b\insrsid7614069\charrsid8087095 }{\b\insrsid14418848\charrsid8087095 July}{ \b\insrsid7614069\charrsid8087095 , 2004 did not amount to a compromise in law for the following reasons;}{\b\insrsid2045209\charrsid8087095 \par }{\b\insrsid7614069\charrsid8087095 \par First, what was agreed upon by the parties as narrated by counsel for the plaintiff did not relate to the }{\b\insrsid14418848\charrsid8087095 issues}{\b\insrsid7614069\charrsid8087095 in the suit. \par \par The main issue in the suit between the appellant and the respondent was whether the appellant was liable to pay to the respondent the following:- \par \par {\listtext\pard\plain\b\insrsid7614069\charrsid8087095 \hich\af0\dbch\af0\loch\f0 a)\tab}}\pard \qj \fi-360\li1080\ri0\sl360\slmult1\widctlpar\jclisttab\tx1080\aspalpha\aspnum\faauto\ls6\adjustright\rin0\lin1080\itap0\pararsid8087095 { \b\insrsid7614069\charrsid8087095 US$15,060.29 \par {\listtext\pard\plain\b\insrsid7614069\charrsid8087095 \hich\af0\dbch\af0\loch\f0 b)\tab}General damages \par {\listtext\pard\plain\b\insrsid7614069\charrsid8087095 \hich\af0\dbch\af0\loch\f0 c)\tab}Costs of the suit \par }\pard \qj \li1080\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin1080\itap0\pararsid8087095 {\b\insrsid7614069\charrsid8087095 (See amended plaint page 26 of the record) \par \par }\pard \qj \li720\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid8087095 {\b\insrsid7614069\charrsid8087095 The purported compromise of 6}{\b\super\insrsid7614069\charrsid8087095 th}{ \b\insrsid7614069\charrsid8087095 July, 2004 did not adjudicate on whether the appellant was liable t o the respondent as claimed. Instead what was recorded as a compromise related to issues not connected with those in the suit cannot compromise the suit. (See KHUSHALDAS & SONS LTD VS WEINSTEIN & ANOTHER [1964}{\b\insrsid7425245\charrsid8087095 ] E. A. 734).}{\b\insrsid7614069\charrsid8087095 \par }{\b\insrsid7425245\charrsid8087095 \par Secondly, no decree was passed and recorded. Section 2 of the }{\b\insrsid14418848\charrsid8087095 Civil}{\b\insrsid7425245\charrsid8087095 Procedure Act defines a decree as:- \par \par }\pard \qj \li1440\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin1440\itap0\pararsid8087095 {\b\insrsid7425245\charrsid8087095 \'93a formal expression of an adjudication which \'85 .conclusively determines the rights of the parities }{\b\ul\insrsid7425245\charrsid8087095 with regard to all or any of the matters in controversy in the suit between the parties\'94}{\b\insrsid7425245\charrsid8087095 (emphasis mine). As I have already pointed out what the parties agreed upon were not in controversy between them in the suit. Apart from the judge allowing a withdrawal of the suit, he never passed any decree in respect of the liability of the app ellant to the respondent, a matter which was in controversy between the parties.\'94 \par \par }\pard \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid8087095 {\insrsid7425245\charrsid8087095 I agree with this submission. A look at the so called compromise of 6}{\super\insrsid7425245\charrsid8087095 th}{\insrsid7425245\charrsid8087095 June 2004 and the amended plaint which was before the court then will reveal the fact that there was }{\insrsid14418848\charrsid8087095 no compromise within the meaning of Order 26 Rule 6 of the }{ \insrsid10710583\charrsid8087095 C}{\insrsid14418848\charrsid8087095 ivil Procedure Code. Therefore there was nothing to bar the suit from proceeding. This appeal fails and since Hon. Justice C. N. B. Kitumba, J. A and Hon. Justice A. S. Nshimye agree, the appeal is dismissed with costs to the respondent. The file should be transmitted to the High Court for it to proceed with the hearing of the main suit.}{\insrsid7425245\charrsid8087095 \par }{\insrsid14418848\charrsid8087095 \par Dated at Kampala this \'85\'85}{\insrsid1194092\charrsid8087095 09}{\super\insrsid1194092\charrsid8087095 th }{\insrsid14418848\charrsid8087095 \'85\'85\'85day of \'85}{\insrsid1194092\charrsid8087095 September}{\insrsid14418848\charrsid8087095 ..2009.

\par \par \par \par \'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85. \par Hon. Justice Amos Twinomujuni \par }{\b\ul\insrsid10710583\charrsid8087095 JUSTICE OF APPEAL. \par }{\b\ul\insrsid1194092\charrsid8087095 \par JUDGMENT OF KITUMBA JA;}{\insrsid1194092\charrsid8087095 \par \par I HAVE READ THE JUDGMENT OF Twinomujuni JA. I concur that the appeal should be dismissed with costs. \par \par Dated at Kampala this \'859}{\super\insrsid1194092\charrsid8087095 th}{\insrsid1194092\charrsid8087095 \'85.day of \'85\'85.. September\'85\'85.2009 \par \par C. N. B. KITUMBA \par JUSTICE OF APPEAL \par \par \par \par \par \par }{\b\ul\insrsid1194092\charrsid8087095 JUDGMENT OF A. S. NSHIMYE, JA;}{\insrsid1194092\charrsid8087095 \par \par I have had the benefit of reading in draft, the lead judgment of my brother Hon Justice A. Twinomujuni, JA. I agree with his reasoning and that the appeal should be dismissed with costs. \par \par Dated at Kampala this \'8509}{\super\insrsid1194092\charrsid8087095 th}{\insrsid1194092\charrsid8087095 day of \'85. September\'85\'85\'852009. \par \par A. S. NSHIMYE, JA \par JUSTICE OF APPEAL \par \par }\pard \ql \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid8087095 {\b\insrsid7425245\charrsid8087095 \par }{\insrsid2045209\charrsid8087095 \par }\pard \ql \li1440\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin1440\itap0\pararsid8087095 {\b\i\insrsid10034850\charrsid8087095 \par }\pard \ql \li720\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid8087095 {\b\insrsid10034850\charrsid8087095 \par }\pard \ql \li1440\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin1440\itap0\pararsid8087095 {\b\i\insrsid10034850\charrsid8087095 \par }{\b\insrsid1407555\charrsid8087095 \par }\pard \ql \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid8087095 {\insrsid537193\charrsid8087095 \par }\pard \qc \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid8087095 {\b\ul\insrsid537193\charrsid8087095 \par \par \par }}