Haco Industries (K) Ltd v Ddungu FW (HCT-00-CC-MA 253 of 2005) [2005] UGCommC 21 (11 May 2005)

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\par }}{\*\ftnsepc \pard\plain \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0 \fs24\lang1024\langfe1024\cgrid\noproof\langnp2057\langfenp1033 {\insrsid15993568 \chftnsepc \par }}{\*\aftnsep \pard\plain \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0 \fs24\lang1024\langfe1024\cgrid\noproof\langnp2057\langfenp1033 {\insrsid15993568 \chftnsep \par }}{\*\aftnsepc \pard\plain \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0 \fs24\lang1024\langfe1024\cgrid\noproof\langnp2057\langfenp1033 {\insrsid15993568 \chftnsepc \par }}\sectd \linex0\endnhere\titlepg\sectlinegrid360\sectdefaultcl\sectrsid3738066\sftnbj {\footer \pard\plain \s15\ql \li0\ri0\widctlpar\tqc\tx4320\tqr\tx8640\pvpara\phmrg\posxc\posy0\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid15993568 \fs24\lang1024\langfe1024\cgrid\noproof\langnp2057\langfenp1033 {\field{\*\fldinst {\cs16\insrsid335503 PAGE }}{\fldrslt {\cs16\insrsid8025761 2}}}{\cs16\insrsid335503 \par }\pard \s15\ql \li0\ri0\widctlpar\tqc\tx4320\tqr\tx8640\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0 {\insrsid335503 \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 \qc \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9185877 \fs24\lang1024\langfe1024\cgrid\noproof\langnp2057\langfenp1033 {\b\insrsid13922703\charrsid3738066 THE REPUBLIC OF UGANDA \par \par IN THE HIGH COURT OF UGANDA AT KAMPALA}{\b\insrsid4594768\charrsid3738066 \par }{\b\insrsid13922703\charrsid3738066 \par (COMMERCIAL DIVISION) \par \par HTCT-00-CC-MA-0253 OF 2005 \par \par }{\b\i\insrsid13922703\charrsid3738066 (Arising from HCT-00-CC-CS-0248-2005) \par }{\b\insrsid13922703\charrsid3738066 \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0 {\b\insrsid13922703\charrsid3738066 HACO INDUSTRIES (K) LTD APPLICANT \par \par }\pard \qc \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid3738066 {\b\insrsid13922703\charrsid3738066 VERSUS \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0 {\b\insrsid13922703\charrsid3738066 \par DDUNGU W. F RESPONDENT \par }{\insrsid13922703 \par \par \par }{\b\ul\insrsid13922703\charrsid9185877 BEFORE: THE HONOURABLE MR. JUSTICE F}{\b\ul\insrsid3738066 .}{\b\ul\insrsid13922703\charrsid9185877 M}{\b\ul\insrsid3738066 .}{\b\ul\insrsid13922703\charrsid9185877 S}{\b\ul\insrsid3738066 .}{ \b\ul\insrsid13922703\charrsid9185877 EGONDA-NTENDE \par \par RULING \par }{\insrsid13922703 \par {\listtext\pard\plain\lang1024\langfe1024\noproof\langnp2057\insrsid335503 \hich\af0\dbch\af0\loch\f0 1.\tab}}\pard \ql \fi-360\li720\ri0\sl360\slmult1\widctlpar\jclisttab\tx720\aspalpha\aspnum\faauto\ls1\adjustright\rin0\lin720\itap0\pararsid1326977 { \insrsid335503 The applicant}{\insrsid13922703 is a manufacturer under licence from Societic Bic of France}{\insrsid3738066 ,}{\insrsid13922703 of Bic pens. Through a network of distributors and agents it sells the said }{\insrsid3738066 B}{ \insrsid13922703 ic pens in Uganda. The applicant alleges that 72 cartoons of counterfeit Bic pens }{\insrsid12469216 were impounded by the Special Revenue Protection Services. The applicant alleges that the said goods wer e being imported into Uganda by the respondent. The applicant filed an action in this court seeking, inter alia, an injunction against the respondent to restrain him or his agents and servants from importing, selling or offering for sale Bic pens not of t he Applicant\rquote s manufacture and that 72 cartoons of counterfeit }{\insrsid3738066 p}{\insrsid12469216 ens seized by Special Revenue Protection Services be delivered up for destruction.}{\insrsid13922703 \par {\listtext\pard\plain\lang1024\langfe1024\noproof\langnp2057\insrsid12469216 \hich\af0\dbch\af0\loch\f0 2.\tab}}{\insrsid12469216 The Respondent in his written statement of defence denies that he was the importer or dealer in the 72 cartoon s of counterfeit Bic pens seized as alleged by the applicant. He states that he is the importer of pens but of other brands other than Bic pens. These include the PIANO, BEIFA and CRYSTAL. He denied any connection with the counterfeit pens seized as afore said. \par {\listtext\pard\plain\lang1024\langfe1024\noproof\langnp2057\insrsid12469216 \hich\af0\dbch\af0\loch\f0 3.\tab}The applicant seeks now a temporary injunction to issue to restrain}{\insrsid4596385 the respondent from taking custody of, taking over, disposing of}{\insrsid335503 ,}{\insrsid4596385 or in any way have and deal whatsover with the 72 cartoons of counterfeit Bic pens now in the Custody of the Special Revenue Protection Services until final disposal of the Head suit or until further orders of this court.}{\insrsid3744367 Secondly that this court order the detention or preservation of the said goods by the }{\insrsid335503 Special Revenue Protection Services}{\insrsid3744367 until the final disposal of the head suit or until further orders of this court.}{\insrsid4596385 The application was supported by an affidavit sworn by Mr. John Muthenga}{\insrsid3744367 . }{ \insrsid12469216 \par {\listtext\pard\plain\lang1024\langfe1024\noproof\langnp2057\insrsid3744367 \hich\af0\dbch\af0\loch\f0 4.\tab}}{\insrsid3744367 The hearing of this application proceeded }{\i\insrsid3744367\charrsid335503 ex parte}{\insrsid3744367 as the respondent did not turn up at the hearing or file any papers with regard thereto, in spite of service of the application and notification of its hearing. Mr. Mutawe}{\insrsid335503 ,}{\insrsid3744367 learned counsel for the applicant}{ \insrsid335503 ,}{\insrsid3744367 submitted that principally this application was about preservation of the status quo until the head suit is heard. He stated that }{\insrsid6759956 the applicant wishes to preserve its market for genuine Bic pens in Uganda which would suffer immeasurebly if counterfeit pens were sold in the same court. The balance of convenience lies with the applicant, the manufacturer and dealer in the said pen s. As the respondent denied importing these pens, this is a question to investigated by evidence at the trial. The applicant did not manufacture these goods. And so there are counterfeit goods, manufactured in China. He prayed that in the interests of jus tice these goods be preserved until the matter is disposed of.}{\insrsid3744367 \par {\listtext\pard\plain\lang1024\langfe1024\noproof\langnp2057\insrsid6759956 \hich\af0\dbch\af0\loch\f0 5.\tab}}{\insrsid6759956 It is now well established that before a temporary injunction may be granted,}{\insrsid4991246 the applicant must have an argueable case put forth, would be likely to suffer irrepairable harm if the injunction is not granted, and}{\insrsid210729 in case of doubt,}{\insrsid4991246 the balance of convenience should lie with the grant rather than the denial of the application. These three factors have been established in this case. On the pleadings an argueable case is made out. Sale of counterfeit Bic pens would irrepairably injure the applicant\rquote s market as damages would hardly atone for such damage as may be inflicted by sale of counterfeit goods, especially those alleged to be of poor quality.}{\insrsid210729 \par {\listtext\pard\plain\lang1024\langfe1024\noproof\langnp2057\insrsid210729 \hich\af0\dbch\af0\loch\f0 6.\tab}The application for a temporary injuction to issue ag ainst the respondent to restrain him, or his agents and servants, from taking possession and dealing in any way whatsover, with the 72 cartoons of allegedly counterfeit }{\insrsid335503 B}{\insrsid210729 ic pens, currently in possession of the Special Revenue Protection Services,}{\insrsid1326977 is allowed, and will subsist}{\insrsid210729 for a period of 4 months from the date hereof. }{\insrsid6759956 \par {\listtext\pard\plain\lang1024\langfe1024\noproof\langnp2057\insrsid210729 \hich\af0\dbch\af0\loch\f0 7.\tab}}{\insrsid210729 The application for a preservation order against the Special Revenue Protection Service is denied. The application does not show the particulars of this organisation, and whether it is a s tatutory organisation or not or its status in the law. I am not sure what its functions are, and whether or not it is part or independent of the Uganda Revenue Authority, the statutory board dealing with customed goods, which presumably would have the aut hority to impound goods of these nature.}{\insrsid3738066 It is not a party to these proceedings.}{\insrsid1326977 In those circumstances I am not inclined to make any orders purporting to bind it.}{\insrsid210729 \par {\listtext\pard\plain\lang1024\langfe1024\noproof\langnp2057\insrsid9185877 \hich\af0\dbch\af0\loch\f0 8.\tab}}{\insrsid9185877 Costs of this application to abide the outcome of the head suit. \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9185877 {\insrsid3738066 \par }{\insrsid9185877 Dated at Kampala this 11}{\super\insrsid9185877\charrsid9185877 th}{\insrsid9185877 day of May 2005 \par \par \par \par \par \par }{\b\insrsid9185877\charrsid3738066 FMS Egonda-Ntende \par Judge \par }}