Eastern Builders & Engineers Ltd v Malva Construction(u)Ltd (HCT-00-CC-MA-0563 - 2008) [2010] UGHC 199 (2 March 2010)

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\tqc\tx4680\tqr\tx9360\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin2160\lin2160\itap0 \rtlch\fcs1 \af0\afs22\alang1025 \ltrch\fcs0 \f37\fs22\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\field{\*\fldinst {\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid2563630 PAGE \\* MERGEFORMAT }}{\fldrslt {\rtlch\fcs1 \af0 \ltrch\fcs0 \lang1024\langfe1024\noproof\insrsid13842893 1}}}\sectd \ltrsect\linex0\endnhere\sectdefaultcl\sftnbj {\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid2563630 \par }\pard \ltrpar\s17\ql \li2160\ri2160\sa200\sl276\slmult1\widctlpar\tqc\tx4680\tqr\tx9360\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin2160\lin2160\itap0 {\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid2563630 \par }}{\*\pnseclvl1\pnucrm\pnstart1\pnindent720\pnhang {\pntxta .}}{\*\pnseclvl2\pnucltr\pnstart1\pnindent720\pnhang {\pntxta .}}{\*\pnseclvl3\pndec\pnstart1\pnindent720\pnhang {\pntxta .}}{\*\pnseclvl4\pnlcltr\pnstart1\pnindent720\pnhang {\pntxta )}} {\*\pnseclvl5\pndec\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}{\*\pnseclvl6\pnlcltr\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}{\*\pnseclvl7\pnlcrm\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}{\*\pnseclvl8 \pnlcltr\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}{\*\pnseclvl9\pnlcrm\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}\pard\plain \ltrpar \qc \li2160\ri2160\sa200\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin2160\lin2160\itap0\pararsid4608471 \rtlch\fcs1 \af0\afs22\alang1025 \ltrch\fcs0 \f37\fs22\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \b\caps\f0\fs24\insrsid4608471\charrsid6579453 The republic of Uganda \par In the high court of Uganda at kampala \par HCT-00-CC-MA-0563 - 2008 \par (Arising from HCt-00-CC-CS\emdash 0044-2002) \par \par }\pard \ltrpar\ql \li0\ri0\sa200\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid10239302 {\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \caps\f0\fs24\insrsid4608471\charrsid6579453 Eastern Builders}{\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \caps\f0\fs24\insrsid1318154\charrsid6579453 & ENGINEERS LTD}{\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \caps\f0\fs24\insrsid14695250 \'85\'85\'85\'85\'85\'85\'85\'85\'85.\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85.}{ \rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \caps\f0\fs24\insrsid4608471\charrsid6579453 Applicant \par }\pard \ltrpar\qc \li0\ri0\sa200\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid10239302 {\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \caps\f0\fs24\insrsid4608471\charrsid6579453 Versus \par }\pard \ltrpar\ql \li0\ri0\sa200\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid10239302 {\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \caps\f0\fs24\insrsid14695250 Malva Construction (U) Ltd}{\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \caps\f0\fs24\insrsid4608471\charrsid6579453 \'85\'85\'85\'85\'85}{\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \caps\f0\fs24\insrsid8005585\charrsid6579453 \'85}{\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \caps\f0\fs24\insrsid14695250 \'85\'85\'85\'85\'85\'85\'85\'85\'85 \'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85.}{\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \caps\f0\fs24\insrsid4608471\charrsid6579453 Respondent \par \par }\pard \ltrpar\qc \li0\ri0\sa200\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid10239302 {\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \caps\f0\fs24\insrsid4608471\charrsid6579453 Before}{\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \caps\f0\fs24\insrsid10239302\charrsid6579453 :}{\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \caps\f0\fs24\insrsid4608471\charrsid6579453 Hon Mr. justic}{\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \caps\f0\fs24\insrsid1318154\charrsid6579453 E}{\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \caps\f0\fs24\insrsid4608471\charrsid6579453 lameck N. Mukasa \par }\pard \ltrpar\qc \li2160\ri2160\sa200\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin2160\lin2160\itap0\pararsid4608471 {\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \caps\f0\fs24\insrsid4608471\charrsid6579453 Ruling \par }\pard \ltrpar\qj \li0\ri0\sa200\sl360\slmult1\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid10629416 {\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \f0\fs24\insrsid15668372\charrsid6579453 This is an application seeking}{ \rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \f0\fs24\insrsid1318154\charrsid6579453 an}{\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \f0\fs24\insrsid15668372\charrsid6579453 order to lift the corporate veil brought unde}{\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \f0\fs24\insrsid8005585\charrsid6579453 r Order 38 rule 5 (d) and Order52 rules 1 and 3 of the Civil Procedure Rules.}{\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \f0\fs24\insrsid4608471\charrsid6579453 \par }{\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \f0\fs24\insrsid8005585\charrsid6579453 \par The grounds for the application are briefly that: \par {\listtext\pard\plain\ltrpar \rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8005585\charrsid6579453 \hich\af0\dbch\af0\loch\f0 1.\tab}}\pard \ltrpar\qj \fi-360\li360\ri0\sa200\sl360\slmult1 \widctlpar\wrapdefault\aspalpha\aspnum\faauto\ls1\adjustright\rin0\lin360\itap0\pararsid10629416 {\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \f0\fs24\insrsid8005585\charrsid6579453 Judgment was passed against the defendant in Civil Suit No 44 of 2002 and execution is to commence. \par {\listtext\pard\plain\ltrpar \rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid3295311\charrsid6579453 \hich\af0\dbch\af0\loch\f0 2.\tab}}{\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \f0\fs24\insrsid3295311\charrsid6579453 The defendant does not own any assets as all are in the director\rquote s name. }{\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \f0\fs24\insrsid8005585\charrsid6579453 \par {\listtext\pard\plain\ltrpar \rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid3295311\charrsid6579453 \hich\af0\dbch\af0\loch\f0 3.\tab}}{\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \f0\fs24\insrsid3295311\charrsid6579453 The directors deliberately left the country with the intent to defraud the plaintiff. \par {\listtext\pard\plain\ltrpar \rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid3295311\charrsid6579453 \hich\af0\dbch\af0\loch\f0 4.\tab}The corporate veil be lifted to recover the amounts owed to the plaintiff. \par }\pard \ltrpar\qj \li0\ri0\sa200\sl360\slmult1\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid10629416 {\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \f0\fs24\insrsid3295311\charrsid6579453 This application is supported by two affidavits, one deponed to by Kuldip Singh and an additional deponed to by Gurdyal Singh. Both are directors of Eastern Builders and Engineers Ltd, the Applicant. I}{\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \f0\fs24\insrsid2051771\charrsid6579453 n}{\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \f0\fs24\insrsid3295311\charrsid6579453 their respective affidavits they aver }{\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \f0\fs24\insrsid10239302\charrsid6579453 that on}{ \rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \f0\fs24\insrsid2051771\charrsid6579453 31}{\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \f0\fs24\super\insrsid2051771\charrsid6579453 st}{\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \f0\fs24\insrsid2051771\charrsid6579453 July 2002 Judgment was passed against the Respondent, Ms Malva Construction (U) Ltd, and the Applicant is to recover the amount of US$93,581}{\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \f0\fs24\insrsid1318154\charrsid6579453 .}{\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \f0\fs24\insrsid2051771\charrsid6579453 80 and interest.}{\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \f0\fs24\insrsid3295311\charrsid6579453 \par }\pard \ltrpar\qj \li2160\ri2160\sa200\sl360\slmult1\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin2160\lin2160\itap0\pararsid10629416 {\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \f0\fs24\insrsid2051771\charrsid6579453 \par }\pard \ltrpar\qj \li0\ri2160\sa200\sl360\slmult1\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin2160\lin0\itap0\pararsid10629416 {\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \f0\fs24\insrsid2051771\charrsid6579453 In his a ffidavit in support Kuldip Singh avers:- \par }\pard \ltrpar\qj \fi720\li720\ri2160\sa200\sl360\slmult1\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin2160\lin720\itap0\pararsid10629416 {\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \f0\fs24\insrsid2051771\charrsid6579453 \'93 5. That neither the director}{\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \f0\fs24\insrsid13715953\charrsid6579453 s}{\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \f0\fs24\insrsid2051771\charrsid6579453 nor their place of }{\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \f0\fs24\insrsid7609672\charrsid6579453 \tab }{\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \f0\fs24\insrsid2051771\charrsid6579453 business can be found. \par {\listtext\pard\plain\ltrpar \rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid2051771\charrsid6579453 \hich\af0\dbch\af0\loch\f0 6.\tab}}\pard \ltrpar\qj \fi-360\li1800\ri2160\sa200\sl360\slmult1 \widctlpar\wrapdefault\aspalpha\aspnum\faauto\ls2\adjustright\rin2160\lin1800\itap0\pararsid10629416 {\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \f0\fs24\insrsid2051771\charrsid6579453 That the respondent has always hidden behind the corporate mask thus }{ \rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \f0\fs24\insrsid1318154\charrsid6579453 fr}{\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \f0\fs24\insrsid2051771\charrsid6579453 ustrating execution. \par {\listtext\pard\plain\ltrpar \rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid2051771\charrsid6579453 \hich\af0\dbch\af0\loch\f0 7.\tab}That the directors of the respondent company operated the company as their condu}{\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \f0\fs24\insrsid13715953\charrsid6579453 i}{\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \f0\fs24\insrsid2051771\charrsid6579453 t, a devic}{\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \f0\fs24\insrsid1318154\charrsid6579453 e, a sham, a cloak, a mask which}{\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \f0\fs24\insrsid2051771\charrsid6579453 they held before their faces in an attempt to avoid recognition by the eye of equality.\'94 \par }\pard \ltrpar\qj \li0\ri0\sa200\sl360\slmult1\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid10629416 {\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \f0\fs24\insrsid13109190\charrsid6579453 Gurdyal Si}{\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \f0\fs24\insrsid2051771\charrsid6579453 ngh makes similar averments in his additional affidavit in support. \par Service of this application on the Respondent was by substituted service by }{\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \f0\fs24\insrsid10845768\charrsid6579453 advertisement in the Monitor Newspaper of 20}{\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \f0\fs24\super\insrsid10845768\charrsid6579453 th}{\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \f0\fs24\insrsid10845768\charrsid6579453 and 23}{\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \f0\fs24\super\insrsid10845768\charrsid6579453 rd}{\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \f0\fs24\insrsid10845768\charrsid6579453 April 2009. There was no representation for the Respondent at the hearing and hearing proceeded exparte.}{\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \f0\fs24\insrsid2051771\charrsid6579453 \par }{\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \f0\fs24\insrsid10845768\charrsid6579453 In her submission Ms D}{\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \f0\fs24\insrsid7609672\charrsid6579453 i}{\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \f0\fs24\insrsid10845768\charrsid6579453 ppa }{\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \f0\fs24\insrsid13109190\charrsid6579453 Verma Jivram, Counsel for the Applicant}{\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \f0\fs24\insrsid7609672\charrsid6579453 ,}{\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \f0\fs24\insrsid13109190\charrsid6579453 argued that the Respondent Company was still on the Company Register but its directors had closed the business office and kept their whereabout unknown with an intention to use the company \rquote s subsisting corporate registration as a sham, cloak and a mask in an attempt to avoid execution against them. She prayed for Court to lift the corporate veil and issue a notice to show cause to the Directors of the company why execution }{ \rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \f0\fs24\insrsid12809039\charrsid6579453 should not be levied against them instead of the company. I was referred to a number of authorities. \par \par In }{\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \i\f0\fs24\ul\insrsid12809039\charrsid6579453 Nile Bank Ltd Vs Gomba Machinery and General Equipment Ltd (1992) IKLR 67}{\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \f0\fs24\insrsid12809039\charrsid6579453 , an application by the }{\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \f0\fs24\insrsid4007728\charrsid6579453 J}{\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \f0\fs24\insrsid12809039\charrsid6579453 udgment }{\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \f0\fs24\insrsid13109190\charrsid6579453 }{\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \f0\fs24\insrsid4007728\charrsid6579453 Creditor seeking an order from Court for a warrant of arrest in execution of a judgment to issue }{\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \f0\fs24\insrsid9177745\charrsid6579453 against the Managing Director of the Judgment debtor company, personally, on lifting of }{\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \f0\fs24\insrsid7609672\charrsid6579453 the }{\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \f0\fs24\insrsid9177745\charrsid6579453 veil Karokora J (as he then was) stated}{\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \f0\fs24\insrsid7609672\charrsid6579453 :-}{\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \f0\fs24\insrsid9177745\charrsid6579453 }{\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \f0\fs24\insrsid10845768\charrsid6579453 \par }\pard \ltrpar\qj \li1440\ri2160\sa200\sl360\slmult1\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin2160\lin1440\itap0\pararsid10629416 {\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \f0\fs24\insrsid9177745\charrsid6579453 \'93 ---this would probably be done if the applicant/judgment }{\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \f0\fs24\insrsid7609672\charrsid6579453 c}{\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \f0\fs24\insrsid9177745\charrsid6579453 reditor, in his affidavit proved that the defendant company was as it was described }{\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \f0\fs24\insrsid15540893\charrsid6579453 in }{\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \i\f0\fs24\ul\insrsid15540893\charrsid6579453 Jones Vs L}{\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \i\f0\fs24\ul\insrsid7609672\charrsid6579453 i}{\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \i\f0\fs24\ul\insrsid15540893\charrsid6579453 pma (1962)}{\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \f0\fs24\insrsid15540893\charrsid6579453 I WLR 832 at }{\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \f0\fs24\insrsid16597735\charrsid6579453 page 838}{\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \f0\fs24\insrsid15540893\charrsid6579453 , the creature of the Managing Director, a device and sharm, a mask which he had before his face in an attempt to avoid recognition by the eye of equality. There the court would so act in order to protect the Judgment Creditor against such fraudulent Man aging Director.\'94 \par }\pard \ltrpar\qj \li1080\ri2160\sa200\sl360\slmult1\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin2160\lin1080\itap0\pararsid10629416 {\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \f0\fs24\insrsid15540893\charrsid6579453 \par }\pard \ltrpar\qj \li0\ri0\sa200\sl360\slmult1\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid10629416 {\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \f0\fs24\insrsid15540893\charrsid6579453 In }{\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \i\f0\fs24\ul\insrsid15540893\charrsid6579453 Jones and A}{\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \i\f0\fs24\ul\insrsid13715953\charrsid6579453 u}{\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \i\f0\fs24\ul\insrsid12416361\charrsid6579453 r}{\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \i\f0\fs24\ul\insrsid15540893\charrsid6579453 thor Vs L}{\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \i\f0\fs24\ul\insrsid12416361\charrsid6579453 i}{\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \i\f0\fs24\ul\insrsid15540893\charrsid6579453 pma and Anor (1962) I All EA 442}{\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \f0\fs24\insrsid15540893\charrsid6579453 the claim was for specific performance of an agreement to sell property. It was argued that the property had been sold and transferred in company called Alamed Ltd. Court held that specific performance cannot be resisted by a vend}{\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \f0\fs24\insrsid12416361\charrsid6579453 o}{\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \f0\fs24\insrsid15540893\charrsid6579453 r who, by his absolute ownership and control of a limited company in which the property is vested, is in a position to cause the contract to be completed. }{\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \f0\fs24\insrsid9177745\charrsid6579453 \par }{\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \f0\fs24\insrsid15540893\charrsid6579453 \par In }{\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \i\f0\fs24\ul\insrsid15540893\charrsid6579453 W. E}{\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \i\f0\fs24\ul\insrsid12416361\charrsid6579453 .}{\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \i\f0\fs24\ul\insrsid15540893\charrsid6579453 Kiwalabye Vs Uganda Commercial Bank & Anor 1994 IV KALR 8}{\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \i\f0\fs24\ul\insrsid12416361\charrsid6579453 ,}{\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \f0\fs24\insrsid15540893\charrsid6579453 Justice Kato stated that before the veil can be lifted the}{\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \f0\fs24\insrsid12416361\charrsid6579453 r}{\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \f0\fs24\insrsid15540893\charrsid6579453 e must be some fact from which the Court can draw a conclusion that the }{\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \f0\fs24\insrsid9709667\charrsid6579453 Company and a particular individual are one and the same thing. }{\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \f0\fs24\insrsid15540893\charrsid6579453 \par }{\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \f0\fs24\insrsid9709667\charrsid6579453 \par In }{\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \i\f0\fs24\ul\insrsid9709667\charrsid6579453 Salim Jamal & 2 Others Vs Uganda}{\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \i\f0\fs24\ul\insrsid12416361\charrsid6579453 Oxygen Ltd & 2 Others (1997) IIKALR 38}{\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \f0\fs24\insrsid12416361\charrsid6579453 }{\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \f0\fs24\insrsid13715953\charrsid6579453 the}{\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \f0\fs24\insrsid9709667\charrsid6579453 Supreme Court held that Corporate personality cannot be used as a cloak or mask for fraud. Where this is show}{\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \f0\fs24\insrsid12416361\charrsid6579453 n}{\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \f0\fs24\insrsid9709667\charrsid6579453 to be the case the veil of incorporation may be lifted to ensure that Justice is done and the Court does not look helplessly in the face of such fraud. \par \par Applying the law as stated in the above authorities to the instant case, the application was}{\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \f0\fs24\insrsid12416361\charrsid6579453 a}{\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \f0\fs24\insrsid9709667\charrsid6579453 blank et application to lift the corporate veil of the judgment debtor company and issue }{\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \f0\fs24\insrsid12416361\charrsid6579453 a}{\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \f0\fs24\insrsid9709667\charrsid6579453 notice to show ca}{\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \f0\fs24\insrsid12416361\charrsid6579453 u}{\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \f0\fs24\insrsid9709667\charrsid6579453 se to the Directors of the Company. The Directors so intended were not named. The shareholding in the company was not }{\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \f0\fs24\insrsid16597735\charrsid6579453 given.}{\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \f0\fs24\insrsid9709667\charrsid6579453 No evidence was availed to Court to enable it to determining whether the company\rquote s corporate personality was being fraudulently used as a cloak, }{\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \f0\fs24\insrsid13715953\charrsid6579453 sham}{\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \f0\fs24\insrsid9709667\charrsid6579453 or mask to avoid execution of the judgment. The mere fact that the company had closed its business offices is not evidence of frau d on the part of the judgment }{\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \f0\fs24\insrsid16597735\charrsid6579453 debtor\rquote s}{\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \f0\fs24\insrsid9709667\charrsid6579453 directors. No company assets have been shown to be held by the Directors themselves. And who were the}{\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \f0\fs24\insrsid12416361\charrsid6579453 s}{\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \f0\fs24\insrsid9709667\charrsid6579453 e directors}{\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \f0\fs24\insrsid10239302\charrsid6579453 .}{\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \f0\fs24\insrsid13715953\charrsid6579453 \'94}{\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \f0\fs24\insrsid10239302\charrsid6579453 There are no facts before this court to warrant lifting the veil. }{\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \f0\fs24\insrsid9709667\charrsid6579453 \par }{\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \f0\fs24\insrsid10239302\charrsid6579453 The application fails and is dismissed}{\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \f0\fs24\insrsid12416361\charrsid6579453 . }{\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \f0\fs24\insrsid10239302\charrsid6579453 }{\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \f0\fs24\insrsid12416361\charrsid6579453 S}{\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \f0\fs24\insrsid10239302\charrsid6579453 ince it proceed}{\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \f0\fs24\insrsid12416361\charrsid6579453 ed}{\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \f0\fs24\insrsid10239302\charrsid6579453 exparte I make no order as to costs. \par }\pard \ltrpar\ql \li0\ri0\sa200\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid10239302 {\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \f0\fs24\insrsid10239302\charrsid6579453 \par }{\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \f0\fs24\insrsid11085751\charrsid6579453 \par \par }\pard \ltrpar\qc \li1080\ri2160\sa200\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin2160\lin1080\itap0\pararsid10239302 {\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \f0\fs24\insrsid10239302\charrsid6579453 Hon Mr. Justice Lameck N. Mukasa \par }{\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \b\caps\f0\fs24\insrsid10239302\charrsid6579453 Judge \par }{\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \f0\fs24\insrsid10239302\charrsid6579453 3}{\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \f0\fs24\super\insrsid10239302\charrsid6579453 rd}{\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \f0\fs24\insrsid10239302\charrsid6579453 March 2010} {\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \f0\fs24\insrsid9177745\charrsid6579453 \par }\pard \ltrpar\ql \li0\ri2160\sa200\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin2160\lin0\itap0\pararsid2051771 {\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \f0\fs24\insrsid2051771\charrsid6579453 \par }\pard \ltrpar\qc \li2160\ri2160\sa200\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin2160\lin2160\itap0\pararsid4608471 {\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \caps\f0\fs24\insrsid4608471\charrsid6579453 \par }{\*\themedata 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