Equatorial Agencies Ltd & Anor v Attorney General (Civil Suit No. 743 of 1994) [1996] UGHC 2 (17 October 1996)

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{\*\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 \s15\qc \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1 \widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid16061308 \fs24\lang2057\langfe2057\cgrid\langnp2057\langfenp2057 {\b\ul\lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 THE REPUBLIC OF UGANDA }{ \b\lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 \line }{\b\ul\lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 IN THE HIGH COURT OF UGANDA AT }{\b\ul\lang1033\langfe2057\langnp1033\insrsid3564668\charrsid16061308 KAMPAL}{ \b\ul\lang1033\langfe2057\langnp1033\insrsid16061308\charrsid16061308 A}{\ul\lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 \line }{\b\ul\lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 CIVIL SUIT NO.743/94/ }{ \b\lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 \line }{\b\lang1033\langfe2057\langnp1033\insrsid16061308 \par }\pard \s15\ql \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid16061308 {\lang1033\langfe2057\langnp1033\insrsid16061308 EQUATORIAL AGENCIES LTD. }{ \lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 \line THAMES }{\lang1033\langfe2057\langnp1033\insrsid16061308 MERCANTILE SERVICES::::}{\lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 :}{ \lang1033\langfe2057\langnp1033\insrsid16061308 :::::::::::::::::::::::::::::::::::::::::}{\lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 PLAINTIFFS \line }{\lang1033\langfe2057\langnp1033\insrsid16061308 \par }\pard \s15\qc \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid16061308 {\lang1033\langfe2057\langnp1033\insrsid16061308 -versus-}{ \lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 \line ATTORNEY GENERAL ::::::}{\lang1033\langfe2057\langnp1033\insrsid16061308 ::::::::::::::::::::::::::::::::::::::::::::::::::::::::::}{ \lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 DEFENDANT \line BE}{\lang1033\langfe2057\langnp1033\insrsid16061308 FO}{\lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 RE:- }{ \ul\lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 HON. THE PRINCIPAL J}{\ul\lang1033\langfe2057\langnp1033\insrsid16061308 UD}{\ul\lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 GE - MR. JUSTICE J. H. NTABGOBA \line RULING }{ \lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 \line }{\lang1033\langfe2057\langnp1033\insrsid16061308 \par }\pard \s15\ql \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid16061308 {\lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 This is an application by notice of motion brought under Orders 3(1), and 48(1) and (3) of the Civil Procedure Rules, and Sections 6 and 101 of the Civil Procedure Act. It was filed by Katureebe, Twinomukunzi & Co. Advocates on behalf of M/S. Equatorial Agencies Ltd. (herein to be referred to as the applicant), against the Attorney General of Uganda and M/S. Thames Mercantile Services, Ltd (herein to be referred to, respectively, as the first and second respondents). \line }{\lang1033\langfe2057\langnp1033\insrsid16061308 \par }{\lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 The a}{\lang1033\langfe2057\langnp1033\insrsid16061308 pplication seeks orders that:-}{\lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 \line }{ \lang1033\langfe2057\langnp1033\insrsid16061308 \par }\pard \s15\ql \fi-720\li720\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\ipgp1\pararsid16061308 {\lang1033\langfe2057\langnp1033\insrsid16061308 1.\tab }{ \lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 High Court Civil suit No. 743/94 is time-barred by virtue of the Limitation Act, Cap.70 of the Laws of Uganda. \line }{\lang1033\langfe2057\langnp1033\insrsid16061308 \par }{\lang1033\langfe2057\langnp1033\insrsid3564668\charrsid16061308 2.}{\b\lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 }{\b\lang1033\langfe2057\langnp1033\insrsid16061308 \tab }{ \lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 The consent judgment ent}{\lang1033\langfe2057\langnp1033\insrsid16061308 ered into in that suit between }{\lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 the two respondents is a nu}{\lang1033\langfe2057\langnp1033\insrsid16061308 llity and should be set aside. }{\lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 \par 3. }{\lang1033\langfe2057\langnp1033\insrsid16061308 \tab }{\lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 The Decree signed consequent upon the consent judgment is also a nullity and should be set aside. \line }{ \lang1033\langfe2057\langnp1033\insrsid16061308 \par }{\lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 4. }{\lang1033\langfe2057\langnp1033\insrsid16061308 \tab }{\lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 Therefore HCCS.}{\lang1033\langfe2057\langnp1033\insrsid16061308 No.743/94 should be struck out }{\lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 with costs. \line }{\lang1033\langfe2057\langnp1033\insrsid16061308 \par }{\lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 5. }{\lang1033\langfe2057\langnp1033\insrsid16061308 \tab }{\lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 In the alternative}{ \lang1033\langfe2057\langnp1033\insrsid16061308 , but without prejudice to the }{\lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 foregoing, HCCS. No.7}{\lang1033\langfe2057\langnp1033\insrsid16061308 43/94 should be stayed pending }{ \lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 the disposal of HCCS. No. 47/89 which is the earlier suit in terms of S.6 of the Civil Procedure Act. \line }{\lang1033\langfe2057\langnp1033\insrsid16061308 \par }{\lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 6. }{\lang1033\langfe2057\langnp1033\insrsid16061308 \tab }{\lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 A consent judgment be entered in HCCS. No. 47 of 1989 instead in the same terms and a decree extracted and signed accordingly. \line }{\lang1033\langfe2057\langnp1033\insrsid16061308 \par }{\lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 7. }{\lang1033\langfe2057\langnp1033\insrsid16061308 \tab }{\lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 Costs of this application be provided for. \line }{ \lang1033\langfe2057\langnp1033\insrsid16061308 \par }\pard \s15\ql \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid5775792 {\lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 In prayer 6, the application, I understand, to be saying that the consent judgment be entered in HCCS. No.47 of 1989 which is between the applicant and the first respondent. \line \line To understand these prayers, it is necessary to set forth the facts of the case. On 12.3.86 the applicant entered into a shipping agreement with the first respondent (per the Government of Uganda) whereby the applicants were to ship to Kampala from Bombay 2 0 drilling rigs for payment of the sum of US $ 1,826,200.00 payable to the applicant }{\ul\lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 or to its principals }{\lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 upon presentation of the relevant documen}{\lang1033\langfe2057\langnp1033\insrsid16061308 ts stipulated in Clause 3 of }{\lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 the Agreement. The second respondent duly shipped the rigs in accordance with the terms of the agreement and the Government of Uganda, through its Ministry of Minerals & Water Development, acknowledged satisfaction with the contract\rquote s performance. It signed for the receipt but only paid one invoice of US $ 219,300.00 instead of the total contract sum of US $ 1,826,200.00 as aforementioned. On 20.1.89, the}{\lang1033\langfe2057\langnp1033\insrsid16061308 applicant filed an action in thi}{\lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 s}{\lang1033\langfe2057\langnp1033\insrsid16061308 }{\lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 Court to recover the balance of the debt in the sum of US $ 1,260,598.00 }{\lang1033\langfe2057\langnp1033\insrsid16061308 (which should be a sum of US $ 1}{\lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 ,127,993 according to the \lquote three unpaid invoices). HCCS. No. 47/89 was being conducted by }{\lang1033\langfe2057\langnp1033\insrsid16061308 M/}{\lang1033\langfe2057\langnp1033\insrsid3564668\charrsid16061308 S}{\b\i\lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 . }{ \lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 Ariko & Co. Advocates. Because Mr. Stephen Omoding Ariko, the sole partner of the firm died, the conduct of the suit stalled and has never been concluded to date. \line }{ \lang1033\langfe2057\langnp1033\insrsid16061308 \par }{\lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 According to one Charania Noordin Muhame d who deponed on an affidavit that he is a Director and shareholder, as well as Mr. Atul Sumant Patel who also deponed that he is a Director of the second Respondent Company, when HCCS}{\lang1033\langfe2057\langnp1033\insrsid16061308 . No.47 of 1989 stalled, they dec}{\lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 ided to institute HCCS. No. 743 of 1994 }{\lang1033\langfe2057\langnp1033\insrsid16061308 through M/}{ \lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 S. Mwesigwa, Rukutana & Co. Advocates who joined as a Co-plaintiff the second respondent suing the first }{\lang1033\langfe2057\langnp1033\insrsid16061308\charrsid5775792 respondent}{ \lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 . In consequence therewith the second respondent and first respondent came to an out of court settlement and on 11.5.95}{\lang1033\langfe2057\langnp1033\insrsid16061308 .}{ \lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 A consent judgment was signed by this Court and a Decree was accordingly extracted. \line }{\lang1033\langfe2057\langnp1033\insrsid16061308 \par }{\lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 Now the present application is attacking HCCS. No. 743 of 1994 and the consent judgment and Decree ar}{\lang1033\langfe2057\langnp1033\insrsid16061308 rived at, on the grounds that:-}{ \lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 \par {\listtext\pard\plain\s15 \lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 \hich\af0\dbch\af0\loch\f0 (a)\tab}}\pard \s15\ql \fi-360\li720\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar \jclisttab\tx720\aspalpha\aspnum\faauto\ls1\adjustright\rin0\lin720\itap0\ipgp1\pararsid16061308 {\lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 HCCS. No. 743/94 was not supposed to be heard during the pendency of HCCS. No. 47/89 and that the disposal of the former was null and void by virtue of S.6 of the C. P. A. which provides that no Court shall try a subsequent suit during the pendency of an earlier suit if the two suits are similar in the sense that the subject matter is the same and that the parties to either suit are the same or are suing in the names }{\lang1033\langfe2057\langnp1033\insrsid16061308 of the same persons. Hence all }{ \lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 the above }{\lang1033\langfe2057\langnp1033\insrsid16061308 prayers that are being sought. }{\b\lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 \line }{ \b\lang1033\langfe2057\langnp1033\insrsid16061308 \par }\pard \s15\ql \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid16061308 {\lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 On 29.9.95 while ruling on an interlocutory application I framed the following issues to be argued by counsel on both sides, at the resumption of the hearing of this application:}{\lang1033\langfe2057\langnp1033\insrsid16061308 \par }\pard \s15\ql \fi-720\li720\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\ipgp1\pararsid16061308 {\lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 (a). }{ \lang1033\langfe2057\langnp1033\insrsid16061308 \tab }{\lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 that proof should be made o}{\lang1033\langfe2057\langnp1033\insrsid16061308 f principal/agent relationship }{ \lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 between the second respondent and the applicant. \line }{\lang1033\langfe2057\langnp1033\insrsid16061308 \par }{\lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 (b). }{\lang1033\langfe2057\langnp1033\insrsid16061308 \tab }{\lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 evidence to be ad duced why after contracting with the applicant, the first respondent employed the second respondent which it has now agreed to pay the contract money ignoring the }{\lang1033\langfe2057\langnp1033\insrsid16061308\charrsid5775792 applicant}{ \lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 . \line }{\lang1033\langfe2057\langnp1033\insrsid16061308 \par }{\lang1033\langfe2057\langnp1033\insrsid16061308 (c}{\lang1033\langfe2057\langnp1033\insrsid3564668\charrsid16061308 ).}{\b\lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 }{\b\lang1033\langfe2057\langnp1033\insrsid16061308 \tab }{ \lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 to decide, in light of the provisions of S. 6 of the C. P. A. whether the consent judgment and decree of 11.5.95 were a nullity. \line }{\lang1033\langfe2057\langnp1033\insrsid16061308 \par }{\lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 (d). }{\lang1033\langfe2057\langnp1033\insrsid16061308 \tab }{\lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 to decide whether or not HCCS. No. 743 of 1994 was barred by the provisions of the L}{\lang1033\langfe2057\langnp1033\insrsid16061308 imitation Act, Cap.70 of the }{\lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 Laws of Uganda. \line }{ \lang1033\langfe2057\langnp1033\insrsid16061308 \par }{\lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 (e). }{\lang1033\langfe2057\langnp1033\insrsid7486705 \tab }{\lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 the parties to be free to frame any and/or further issues for determination. \line }{\lang1033\langfe2057\langnp1033\insrsid7486705 \par }\pard \s15\ql \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid7486705 {\lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 I gave an order that until the hearing and final determination of this application the first respondent should withhold disbursement of the decretal amount under the consent judgment. \line }{\lang1033\langfe2057\langnp1033\insrsid7486705 \par }{\lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 I will start with issue number (d) whether or not HCCS}{\lang1033\langfe2057\langnp1033\insrsid7486705 . No. 743/94 is barred by the L}{ \lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 imitation Act. The sum of US $ 1,127,993 being a debt the two suits were for the recovery of a debt and a suit for the recovery of a debt is not subject to the provisions of the Limitation Act. Straight away therefore I would answer issue number (d) in the negative. I will then treat issues numbers (a) and (b) together. After much probing of the documents filed on both sides, in particular on the sides of the applicant and the 2}{ \lang1033\langfe2057\super\langnp1033\insrsid3564668\charrsid7486705 nd}{\lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 respondent, I have come to the conclusion that the applicant contracted with the first respondent as an agent of the second respondent and that therefore, in fact, the second respondent was a disclosed principal of the applicant, an}{\lang1033\langfe2057\langnp1033\insrsid7486705 d the first respondent understo}{\lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 od the shipment agreement as involving the applicant as the agent of the second respondent. \line }{\lang1033\langfe2057\langnp1033\insrsid7486705 \par }\pard \s15\ql \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid5775792 {\lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 There is a lot of evidence to show that a principal/agent, relationship between the second respondent and the applicant existed. In the first place th}{\lang1033\langfe2057\langnp1033\insrsid7486705 e 12.3.89 shipping agreement }{ \lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 stipulates that th e first respondent would pay to the applicant or its principals. Later on, in the affidavit of Mr. H. L. Chohan who deponed that he is a Deputy Government Cost Agent at Mombasa, Kenya, it is deponed that he was verbally instructed by S. M. Charania \'93 who is person}{\lang1033\langfe2057\langnp1033\insrsid7486705 ally known to me on behalf of M/}{\lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 S. Transroad to clear various containers of, among others, drilling rigs.\'94 \'93 That our office carried out the clearing after}{\lang1033\langfe2057\langnp1033\insrsid7486705 which we handed the goods to M/}{\lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 S. Transroad in Mornbasa.\'94 \line }{ \lang1033\langfe2057\langnp1033\insrsid7486705 \par \'93}{\lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 That }{\lang1033\langfe2057\langnp1033\insrsid7486705 M/}{\lang1033\langfe2057\langnp1033\insrsid3564668\charrsid7486705 S.}{ \i\lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 }{\lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 Transroad passed on the original Bills of lading for the containers and vehicles to our office}{ \lang1033\langfe2057\langnp1033\insrsid7486705 upon which we prepared the Mom}{\lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 basa Port Release orders (MPRO) documents.\'94 \'93That after carrying out their instructions we invoiced }{ \lang1033\langfe2057\langnp1033\insrsid7486705 M/}{\lang1033\langfe2057\langnp1033\insrsid3564668\charrsid7486705 S.}{\i\lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 }{\lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 Transroad who fully paid for the services.\'94 \line }{\lang1033\langfe2057\langnp1033\insrsid7486705 \par }{\lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 Mr. Charania, in his affidavit of 25.9.95, depones, in paragraph 6 that;}{\lang1033\langfe2057\langnp1033\insrsid7486705 \par }\pard \s15\ql \li720\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\ipgp1\pararsid7486705 {\lang1033\langfe2057\langnp1033\insrsid7486705 \'93That }{ \lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 pursuant to the ag}{\lang1033\langfe2057\langnp1033\insrsid7486705 reement (of 12.3.86) the first }{\lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 respondent Company (i.e. the second resp}{\lang1033\langfe2057\langnp1033\insrsid7486705 ondent in this application) exc}{\lang1033\langfe2057\langnp1033\insrsid7486705\charrsid5775792 lusively}{\lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 and without any \line participation by the applicant Company took over the contractual obligations, financed and handled the transportation, }{\lang1033\langfe2057\langnp1033\insrsid7486705\charrsid5775792 insurance}{ \lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 clearance, forwarding and delivery of the goods to the Government of Uga}{\lang1033\langfe2057\langnp1033\insrsid7486705 nda. The clearing was done by M/}{ \lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 S. Coastal clearing Agency, Ltd. on the instructions of my own Company MIS. Transroad, whi}{\lang1033\langfe2057\langnp1033\insrsid7486705 le the forwarding and delivery }{ \lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 done by my said Company itself\'94 . Whereas Chohan and Charania prove that it was the second respondent which handled the shipment under the agreement with the Government concluded with the appli cant, Charania goes on in his affidavit to explain why the second respondent decided to perform the obligations instead of the applicant, which had contracted with the agreement. \line }{\lang1033\langfe2057\langnp1033\insrsid7486705 \par }\pard \s15\ql \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid7486705 {\lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 In this regard I reproduce paragraphs in Charania \rquote s affidavit:}{\lang1033\langfe2057\langnp1033\insrsid7486705 \par }\pard \s15\ql \li720\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\ipgp1\pararsid7486705 {\lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 \'937. That on delivery, the }{ \lang1033\langfe2057\langnp1033\insrsid7486705 first respondent Company would }{\lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 prepare and serve invoices on the Permanent Secr}{\lang1033\langfe2057\langnp1033\insrsid7486705 etary, Ministry of Water & Minera}{\lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 l Development. The said invoices and the accompanying documents, viz: original bills of lading and dully signed Delivery Notes are a ttached hereto and marked annexture\'94). \line }{\lang1033\langfe2057\langnp1033\insrsid5578626 \par }{\lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 \'938. That the Government of U}{\lang1033\langfe2057\langnp1033\insrsid5578626 ganda only effected payment in }{\lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 respect of our first invo}{\lang1033\langfe2057\langnp1033\insrsid5578626 ice and defaulted in effecting }{\lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 payment in respect of the }{\lang1033\langfe2057\langnp1033\insrsid5578626 other three, thus the basis of }{\lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 this Suit.\'94 \line }{\lang1033\langfe2057\langnp1033\insrsid5578626 \par }\pard \s15\ql \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid5775792 {\lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 Proof that the first invo ice was paid for to the second respondent, not the applicant, is contained in the letter of Sharma of the applicant Company which he addressed on 1.7.86, to the Permanent Secretary, Ministry of Water & Mineral Development, in which he (Sharama) acknowledg ed th}{\lang1033\langfe2057\langnp1033\insrsid5578626 at the applicant company had }{\lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 its principal in the United Kingdom, which was the second respondent, Mr. Sharama stated in paragraph 2 of his said letter addressed for the attention of Mrs. Opio:}{\lang1033\langfe2057\langnp1033\insrsid5578626 - \par }\pard \s15\ql \li720\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\ipgp1\pararsid5578626 {\lang1033\langfe2057\langnp1033\insrsid5578626 \'93As }{ \lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 per our to-days }{\lang1033\langfe2057\langnp1033\insrsid5578626 discussion, we have noted that }{\lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 we ought to regularise the }{ \lang1033\langfe2057\langnp1033\insrsid5578626 discrepancy between }{\lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 the names of the of}{\lang1033\langfe2057\langnp1033\insrsid5578626 ficially appointed Contractors-}{ \lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 Equatorial Agencies, Ltd, and Thames Mercantile Services, ltd, your}{\lang1033\langfe2057\langnp1033\insrsid5578626 principals who have submitted }{ \lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 the invoices for the work done. As required by \line you, we herewith authorise you to issue the payment}{\lang1033\langfe2057\langnp1033\insrsid5578626 of the first invoice No. TMS/9}{ \lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 9/85 in the names of Thames Mercantile Services, Ltd. Further similar letters authorising payment will be ready as to be remitted, to keep matte}{ \lang1033\langfe2057\langnp1033\insrsid5578626 rs}{\lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 in correct order.\'94 \line }{\lang1033\langfe2057\langnp1033\insrsid5578626 \par }\pard \s15\ql \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid5578626 {\lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 And in a le tter by Mrs. Wanyama addressed to the applicant on 18.7.86 she stated:}{\lang1033\langfe2057\langnp1033\insrsid5578626 - \par }\pard \s15\ql \fi720\li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid5578626 {\ul\lang1033\langfe2057\langnp1033\insrsid5578626\charrsid5578626 \'93DRAFT}{ \lang1033\langfe2057\langnp1033\insrsid5578626 }{\ul\lang1033\langfe2057\langnp1033\insrsid5578626 No. 10-00-00}{\ul\lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 TF PAYMENT FOR TRANSPORTATION OF RIGS. }{ \lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 \line }{\lang1033\langfe2057\langnp1033\insrsid5578626 \par }\pard \s15\ql \li720\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\ipgp1\pararsid5578626 {\lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 \'93Enclosed}{ \lang1033\langfe2057\langnp1033\insrsid5578626 herein please find Draft No. 10.-00-00}{\lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 TF for \'a3143,445.83 in the }{\lang1033\langfe2057\langnp1033\insrsid5578626 names of THAMES MERCANTILE }{\lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 SERVICES for the transportation of rigs.\'94 \line }{\lang1033\langfe2057\langnp1033\insrsid5578626 \par }\pard \s15\ql \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid5578626 {\lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 A final piece of evidence -bowing that the second respondent was the principal of the applicant in the transaction is in the letter of Ince & Co, Solicitors which they wrote to the Permanent }{\lang1033\langfe2057\langnp1033\insrsid5578626 Secretary that: -}{\lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 \line }{\lang1033\langfe2057\langnp1033\insrsid5578626 \par }\pard \s15\ql \li720\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\ipgp1\pararsid5578626 {\lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 \'93We are instructed by Equat}{ \lang1033\langfe2057\langnp1033\insrsid5578626 orial Agencies, Ltd, a company }{\lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 incorporated in Uganda with a registered office at P. O. Box 2202 Kampala and its overseas principals, Thames Mercantile Services, Ltd, of London.\'94 \line }{\lang1033\langfe2057\langnp1033\insrsid5578626 \par }\pard \s15\ql \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid5578626 {\lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 This letter written as early as 28.}{ \lang1033\langfe2057\langnp1033\insrsid5578626 5.88 was clear proof that M/S. }{\lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 Thames Mercantile Services, Ltd}{\lang1033\langfe2057\langnp1033\insrsid5578626 were foreign principals to }{ \lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 M/S. Equatorial Agencies Ltd. \line }{\lang1033\langfe2057\langnp1033\insrsid5578626 \par }{\lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 Needless to say there was principal/agent relationship between the second respondent and the applicant. According to the law of agency, if an agent had authority to es tablish privity of contract between the principal and the other contracting parties, as in the case of the applicant, the second respondent and the first respondent, in our instant case, the foreign principal may sue on a contract concluded by a local age nt on its b}{\lang1033\langfe2057\langnp1033\insrsid5578626 ehalf. The law actually states}{\lang1033\langfe2057\langnp1033\insrsid2378265 : -}{\lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 \line }{ \lang1033\langfe2057\langnp1033\insrsid2378265 \par }\pard \s15\ql \li720\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\ipgp1\pararsid2378265 {\lang1033\langfe2057\langnp1033\insrsid2378265 \'93No foreign principal m}{ \lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 ay }{\lang1033\langfe2057\langnp1033\insrsid2378265 sue or be sued on any contract }{\lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 made by a home agent, unless the agent had authority to establish privity of contract between the principal and the other contracting parties and, it cle arly appears from the terms of the contract, or from the surrounding circumstances, that it was the intention of the agent and of the other contracting party to establish such privity}{\lang1033\langfe2057\langnp1033\insrsid2378265 of contract (see Paterson -vs- Gandasequi (1812) 15 }{\lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 East 62; Smyth -vs- Anderson (1849)18 L. J. C. P . 109; Brumburg -vs- Pollizer (}{\lang1033\langfe2057\langnp1033\insrsid12912042 1873) 28 L. T. 470 and Elbinger - vs -}{\lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 Claye (1873) L. R. 8 Q. B. 313). \line }{\lang1033\langfe2057\langnp1033\insrsid12912042 \par }\pard \s15\ql \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid12912042 {\lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 What this amounts to is that either the applicant or the second respondent could sue in either HCCS. No. 47/89 or HCCS. No . 743/94 to recover the debt of US $ 1,127,993 from the first respondent. And in this case in which it was the second respondent which as principal, had pe}{\lang1033\langfe2057\langnp1033\insrsid12912042 rformed the part of the agreeme}{ \lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 nt and had actually received from the first respondent payment in res pect of the first payment instalment, it was more legitimately suited for suing for the balances. Therefore, had it not been for the HCCS. No. 47/89 filed by the applicant, the HC\rquote 1S. No. 743/94 would have had no question about it. The problem is now the p rovisions of S. 6 of the C. P. A. The question is;- Since Court defied the provisions of this section by entertaining the subsequent suit (HCCS. No.743/94) during the pendency of the former suit (HCCS. No.47/89), are the results of the Courts decision a nul lity. It seems to me that they are not. I have been able to come across the commentary on the Indian S.10 of the Code of Civil Procedure which is in parimateria with our S.6 of the C. P. A. It says:}{\lang1033\langfe2057\langnp1033\insrsid12912042 - \par }\pard \s15\ql \li720\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\ipgp1\pararsid12912042 {\lang1033\langfe2057\langnp1033\insrsid12912042 \'93It }{ \lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 has been held that in sp}{\lang1033\langfe2057\langnp1033\insrsid12912042 ite of the provisions of this }{\lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 section, the earlier ins}{\lang1033\langfe2057\langnp1033\insrsid12912042 tituted suit may be stayed and }{\lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 the later one proceeded with in some cases. Thus where the parties have agreed that any suit as to a particular matter must be brought in Court X,}{\lang1033\langfe2057\langnp1033\insrsid12912042 the suit in court Y though }{ \lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 earlier, may be stayed and the suit in court X may be proceeded with. (see (40) 27 AIR 1940 All 241). \line A similar procedure may }{\lang1033\langfe2057\langnp1033\insrsid12912042 also be followed on grounds of }{\lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 convenience and avoidance of the abuse of the process of the Court a part from}{\lang1033\langfe2057\langnp1033\insrsid12912042 the question of any agreement }{\lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 between the parties. In 30 AIR 1943 Bombay 206 (208-209) the High Court of Bombay}{\lang1033\langfe2057\langnp1033\insrsid12912042 restrained by injunction the }{ \lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 defendant from proceeding}{\lang1033\langfe2057\langnp1033\insrsid12912042 with the earlier suit filed }{\lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 in Bnda (U. P) on the ground of convenience and to prevent }{\lang1033\langfe2057\langnp1033\insrsid12912042 a}{\lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 buse of the process of the Court.\'94 \line }{ \lang1033\langfe2057\langnp1033\insrsid12912042 \par }\pard \s15\ql \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid12912042 {\lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 In two }{ \lang1033\langfe2057\langnp1033\insrsid12912042 more recent cases (Sheopat Rai \endash vs-}{\lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 Warak Chand (1919}{\lang1033\langfe2057\langnp1033\insrsid12912042\charrsid5775792 ) A. L}{ \lang1033\langfe2057\langnp1033\insrsid12912042 . 294 and Shanti Swaroop -vs- Abdul Rehm}{\lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 an 1965 A. M. P. 55, 59) it was held that section 10 of the Indian Code enacts merely a rule of procedure and a decree therefore passed in contravention of it is not a nullity and cannot be disregarded in execution proceedings. It can be waived, although the Section is so worded as not to leave any discretion in the Court where its conditions are satisfied. (See Mulla on the Code of Civil Procedure - Act V of 1908 14}{\lang1033\langfe2057\super\langnp1033\insrsid3564668\charrsid12912042 th}{\lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 Edition, 1981 at p. 68). \line }{\lang1033\langfe2057\langnp1033\insrsid12912042 \par }{\lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 From the above analyses and authorities it would seem to me that S. 6 of the C. P. A. is not so inviolable as to render Court decisions in contravention thereof a nullity. This is therefore to answer issue number (c) in the negative. The proceeding with the subsequent suit while the earlier suit was pending, in the circumstances of this case, can be accepted for reasons of balance of conveni}{\lang1033\langfe2057\langnp1033\insrsid12912042 ence for the following reasons:-}{\lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 \line }{\lang1033\langfe2057\langnp1033\insrsid12912042 \par }\pard \s15\ql \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid5775792 {\lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 The first respondent and the second responden}{ \lang1033\langfe2057\langnp1033\insrsid12912042 t have mutually }{\lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 agreed to settle their debt - their debt because facts show that the second respondent is the one which performed the 12.3.86 shipping agreement, that }{\lang1033\langfe2057\langnp1033\insrsid12912042\charrsid5775792 it\lquote s}{ \lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 the second respondent which received the first instalment thereby reaping the first fruits of the contract. Secondly, as I have decided, either the applicant or the second respondent is entitled to file a suit to recover the debt of US $ 1,127,}{\lang1033\langfe2057\langnp1033\insrsid12912042 993.00. Thirdly, according to }{ \lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 Charania and Atul Patel, the conduct of HCCS. No. 47/89 st alled and not knowing that the applicant had filed HCCS. No. 47/89, decided to act for themselves because, in their view, the applicant had failed to recover the debt. And so they filed HCS. No. 743/94 whose outcome is appreciable. Besides, the applicant b eing agent of the second respondent, the latter sought it fit to join the former as Co-plaintiff in HCCS. No. 743/94, meaning that the second respondent is willing to share with the applicant the fruits of the suit, depending on their agent/principal cont ractual relationship. \line }{\lang1033\langfe2057\langnp1033\insrsid12912042 \par }{\lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 It would not be convenient to have to strike out the Decree in HCCS. No. 743/94 and substitute it with a similar Decree but in HCCS. No. 47/89. If anything it looks, on the face of it}{ \lang1033\langfe2057\langnp1033\insrsid12912042 , as if HCCS. No. 743/94 is mor}{\lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 e equitable than HCCS. No. 47/89, in that it enables both principal\rquote s and agent\rquote s mutuality in the d}{\lang1033\langfe2057\langnp1033\insrsid12912042 eb}{\lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 t recovery. \line }{\lang1033\langfe2057\langnp1033\insrsid12912042 \par }{\lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 I do uphold the conduct and results of HCCS. No. 743/94 and dismiss this application with costs. \line }{\lang1033\langfe2057\langnp1033\insrsid12912042 \par }\pard \s15\qr \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid12912042 {\lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 J. H}{ \lang1033\langfe2057\langnp1033\insrsid12912042 . NTABGOBA}{\lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 \line }{\ul\lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 PRINCIPAL JUDGE}{ \ul\lang1033\langfe2057\langnp1033\insrsid12912042 17.10.96}{\lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 \par }\pard\plain \ql \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid5775792 \fs24\lang2057\langfe2057\cgrid\langnp2057\langfenp2057 {\lang1033\langfe2057\langnp1033\insrsid3564668\charrsid5775792 \par }}