Hamza Motors (U) Ltd v Damanico Ltd (High Court Miscellaneous Application No. 602 of 2008) [2008] UGCommC 56 (26 November 2008)

{\rtf1\ansi\ansicpg1252\uc1\deff0\stshfdbch0\stshfloch0\stshfhich0\stshfbi0\deflang2057\deflangfe2057{\fonttbl{\f0\froman\fcharset0\fprq2{\*\panose 02020603050405020304}Times New Roman{\*\falt Times New Roman};} {\f239\froman\fcharset238\fprq2 Times New Roman CE{\*\falt Times New Roman};}{\f240\froman\fcharset204\fprq2 Times New Roman Cyr{\*\falt Times New Roman};}{\f242\froman\fcharset161\fprq2 Times New Roman Greek{\*\falt Times New Roman};} {\f243\froman\fcharset162\fprq2 Times New Roman Tur{\*\falt Times New Roman};}{\f244\froman\fcharset177\fprq2 Times New Roman (Hebrew){\*\falt Times New Roman};}{\f245\froman\fcharset178\fprq2 Times New Roman (Arabic){\*\falt Times New Roman};} {\f246\froman\fcharset186\fprq2 Times New Roman Baltic{\*\falt Times New Roman};}{\f247\froman\fcharset163\fprq2 Times New Roman (Vietnamese){\*\falt Times New Roman};}}{\colortbl;\red0\green0\blue0;\red0\green0\blue255;\red0\green255\blue255; \red0\green255\blue0;\red255\green0\blue255;\red255\green0\blue0;\red255\green255\blue0;\red255\green255\blue255;\red0\green0\blue128;\red0\green128\blue128;\red0\green128\blue0;\red128\green0\blue128;\red128\green0\blue0;\red128\green128\blue0; \red128\green128\blue128;\red192\green192\blue192;}{\stylesheet{\ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 \snext0 \styrsid14629457 Normal;}{\*\cs10 \additive \ssemihidden Default Paragraph Font;}{\*\ts11\tsrowd\trftsWidthB3\trpaddl108\trpaddr108\trpaddfl3\trpaddft3\trpaddfb3\trpaddfr3\trcbpat1\trcfpat1\tscellwidthfts0\tsvertalt\tsbrdrt\tsbrdrl\tsbrdrb\tsbrdrr\tsbrdrdgl\tsbrdrdgr\tsbrdrh\tsbrdrv \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0 \fs20\lang1024\langfe1024\cgrid\langnp1024\langfenp1024 \snext11 \ssemihidden Normal Table;}{\s15\ql \li0\ri0\widctlpar \tqc\tx4320\tqr\tx8640\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 \sbasedon0 \snext15 \styrsid4860950 footer;}{\*\cs16 \additive \sbasedon10 \styrsid4860950 page number;}} {\*\latentstyles\lsdstimax156\lsdlockeddef0}{\*\rsidtbl \rsid14681\rsid276933\rsid464972\rsid1066538\rsid1728471\rsid2974829\rsid3112665\rsid3371667\rsid3887156\rsid4090229\rsid4552129\rsid4744882\rsid4860950\rsid7545974\rsid7617033\rsid9247205 \rsid9443001\rsid10634911\rsid12191970\rsid13123207\rsid14313821\rsid14621954\rsid14629457\rsid15470200\rsid16216620\rsid16389411}{\*\generator Microsoft Word 11.0.5604;}{\info{\title THE REPUBLIC OF UGANDA}{\author jabalo}{\operator jchemeri} {\creatim\yr2009\mo4\dy17\hr9\min22}{\revtim\yr2009\mo4\dy17\hr9\min22}{\printim\yr2008\mo11\dy26\hr22\min26}{\version2}{\edmins0}{\nofpages4}{\nofwords879}{\nofchars5016}{\*\company Courts of Judicature}{\nofcharsws5884}{\vern24689}}\margr1440 \widowctrl\ftnbj\aenddoc\noxlattoyen\expshrtn\noultrlspc\dntblnsbdb\nospaceforul\formshade\horzdoc\dgmargin\dghspace180\dgvspace180\dghorigin1800\dgvorigin1440\dghshow1\dgvshow1 \jexpand\viewkind1\viewscale100\pgbrdrhead\pgbrdrfoot\splytwnine\ftnlytwnine\htmautsp\nolnhtadjtbl\useltbaln\alntblind\lytcalctblwd\lyttblrtgr\lnbrkrule\nobrkwrptbl\snaptogridincell\allowfieldendsel\wrppunct \asianbrkrule\rsidroot14629457\newtblstyruls\nogrowautofit \fet0{\*\ftnsep \pard\plain \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\insrsid14313821 \chftnsep \par }}{\*\ftnsepc \pard\plain \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\insrsid14313821 \chftnsepc \par }}{\*\aftnsep \pard\plain \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\insrsid14313821 \chftnsep \par }}{\*\aftnsepc \pard\plain \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\insrsid14313821 \chftnsepc \par }}\sectd \linex0\endnhere\sectlinegrid360\sectdefaultcl\sectrsid14629457\sftnbj {\footer \pard\plain \s15\ql \li0\ri0\widctlpar\tqc\tx4320\tqr\tx8640\pvpara\phmrg\posxr\posy0\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid3112665 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\field{\*\fldinst {\cs16\insrsid464972 PAGE }}{\fldrslt {\cs16\lang1024\langfe1024\noproof\insrsid16389411 4}}}{\cs16\insrsid464972 \par }\pard \s15\ql \li0\ri360\widctlpar\tqc\tx4320\tqr\tx8640\aspalpha\aspnum\faauto\adjustright\rin360\lin0\itap0\pararsid4860950 {\insrsid464972 \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\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid16389411 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\b\insrsid14629457\charrsid16389411 THE REPUBLIC OF UGANDA \par \par IN THE HIGH COURT OF UGANDA AT KAMPALA \par (COMMERCIAL DIVISION) \par \par HCT-00-CC}{\b\insrsid1728471\charrsid16389411 -MA}{\b\insrsid14629457\charrsid16389411 -602/08 \par }{\insrsid2974829\charrsid16389411 (ARISING FROM HCT-00-CC-MA-498-2008)}{\insrsid464972\charrsid16389411 \par }{\insrsid2974829\charrsid16389411 (ARISING FROM HCT-00-CC-CS-250-2008) \par }{\b\insrsid14629457\charrsid16389411 \par }\pard \ql \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid16389411 {\b\insrsid14629457\charrsid16389411 HAMZA MOTORS (U) LTD\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85APPLICANT \par \par }\pard \qc \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid16389411 {\b\insrsid14629457\charrsid16389411 VS \par }\pard \ql \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid16389411 {\b\insrsid14629457\charrsid16389411 \par DAMANICO LIMITED \'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85. RESPONDENT \par \par \par }{\ul\insrsid2974829\charrsid16389411 BEFORE: HONOURABLE JUSTICE MR. ANUP SINGH}{\ul\insrsid14629457\charrsid16389411 CHOUDRY \par }{\b\insrsid14629457\charrsid16389411 \par }\pard \qc \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid16389411 {\b\insrsid14629457\charrsid16389411 \par }{\b\insrsid14681\charrsid16389411 \par }{\b\insrsid10634911\charrsid16389411 R U L I N G}{\b\insrsid14629457\charrsid16389411 : \par }\pard \ql \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid16389411 {\b\insrsid14629457\charrsid16389411 \par }\pard \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid16389411 {\insrsid10634911\charrsid16389411 This is an application under Sec. 35 of the Judicature Act, Section 98 Civil Procedure Act and Order 46 Rule 1 (a) and (b), }{\insrsid13123207\charrsid16389411 Rule }{\insrsid10634911\charrsid16389411 1 & 8 of Civil Procedure Rules by the Applica}{ \insrsid14621954\charrsid16389411 nts Hamza Motors (U) Limited for}{\insrsid10634911\charrsid16389411 review of the order made by this court on 21}{\super\insrsid10634911\charrsid16389411 st}{\insrsid10634911\charrsid16389411 October 2008 on the grounds that there was mistake apparent on the face of the record when the Judge relied on the rent figure of }{\insrsid14621954\charrsid16389411 US}{\insrsid10634911\charrsid16389411 $10}{\insrsid14621954\charrsid16389411 ,}{ \insrsid10634911\charrsid16389411 00}{\insrsid14621954\charrsid16389411 0 a}{\insrsid10634911\charrsid16389411 nd that the Judge erred in findin g that the Applicant ought to pay US$ 10,000 per month until they vacate the premises at the end of November 2008 and that this would amount to}{\insrsid14621954\charrsid16389411 unj}{\insrsid3887156\charrsid16389411 ust enrichment. \par \par The Respondents are the lessees of the premises know}{\insrsid14621954\charrsid16389411 n as LRV 2888 Folio 5 Plot 36 Mu}{\insrsid3887156\charrsid16389411 kabya Road Kampala and the Applicants are the Sub lessees operating a Car Bond. The }{ \insrsid276933\charrsid16389411 Car bond licens}{\insrsid3887156\charrsid16389411 e expires in December 2008}{\insrsid276933\charrsid16389411 .}{\insrsid10634911\charrsid16389411 \par }{\insrsid276933\charrsid16389411 At the hearing on 21}{\super\insrsid276933\charrsid16389411 st}{\insrsid276933\charrsid16389411 October this court made an order ex-parte that the applicants do pay the Respondent loss of rent of US$10,000 per month which the Respondents would have received if the Applicants had vacated the premises }{\insrsid14621954\charrsid16389411 under }{\insrsid7545974\charrsid16389411 the terms}{\insrsid276933\charrsid16389411 and cond}{\insrsid7545974\charrsid16389411 itions of the sub lea}{\insrsid14621954\charrsid16389411 s}{\insrsid7545974\charrsid16389411 e}{\insrsid14621954\charrsid16389411 dated 18}{\super\insrsid14621954\charrsid16389411 th}{\insrsid14621954\charrsid16389411 September 2003.}{ \insrsid276933\charrsid16389411 \par \par The Court had before it the Affidavit of Jyoti Daman sworn on 13}{\super\insrsid276933\charrsid16389411 th}{\insrsid276933\charrsid16389411 October 2008 which stated in Paragraph 7 that on the 7}{\super\insrsid276933\charrsid16389411 th}{ \insrsid276933\charrsid16389411 July 2008 the Responde}{\insrsid14621954\charrsid16389411 nts let the Sub-lease to one Ta}{\insrsid276933\charrsid16389411 dashi (U) Ltd and the sub lease was to run from 1}{\super\insrsid276933\charrsid16389411 st}{ \insrsid276933\charrsid16389411 October 2008. The Applicants were supposed to have vacated by 30}{\super\insrsid276933\charrsid16389411 th}{\insrsid276933\charrsid16389411 September 2008. \par \par Mr. Sembatya learned Counsel for the Respondents submitted to the court (See transcript of hearing p.3 last paragraph) that the}{\insrsid14621954\charrsid16389411 y were claiming loss of earnings }{\insrsid276933\charrsid16389411 from the period 1}{ \super\insrsid276933\charrsid16389411 st}{\insrsid276933\charrsid16389411 October when the Applicants were still in the premises. \par \par The Agreement dated 7}{\super\insrsid276933\charrsid16389411 th}{\insrsid1066538\charrsid16389411 July 2008 with }{\insrsid14621954\charrsid16389411 Tada}{\insrsid276933\charrsid16389411 sh}{\insrsid14621954\charrsid16389411 i}{ \insrsid13123207\charrsid16389411 (U) Ltd stated that the tenancy}{\insrsid276933\charrsid16389411 would commence on 1}{\super\insrsid276933\charrsid16389411 st}{\insrsid13123207\charrsid16389411 October (as reiterated}{\insrsid276933\charrsid16389411 by the learned Counsel) and }{\insrsid7545974\charrsid16389411 the rent was }{\insrsid276933\charrsid16389411 payable 12 months in advance. \par \par The Respondents confirmed that they }{\insrsid14621954\charrsid16389411 were}{\insrsid276933\charrsid16389411 }{\insrsid4552129\charrsid16389411 paid but the proposed }{\insrsid14621954\charrsid16389411 sub -lessee \endash Tada}{ \insrsid4552129\charrsid16389411 shi (U) Ltd were seeking refund of the rent paid }{\insrsid14621954\charrsid16389411 because under sub \endash lease}{\insrsid4552129\charrsid16389411 they have not obtained control of the premises notwithstanding that they have nearly 100 vehicles on the premises occupying over half of the let area.}{\insrsid276933\charrsid16389411 \par }{\insrsid4552129\charrsid16389411 \par }{\insrsid14621954\charrsid16389411 Mr. Bob Kasango }{\insrsid4744882\charrsid16389411 learned Counsel for the App}{\insrsid4090229\charrsid16389411 licant submits tha}{\insrsid4744882\charrsid16389411 t}{\insrsid4090229\charrsid16389411 the ex-parte order should not ha}{\insrsid14621954\charrsid16389411 ve been made because it amounts}{\insrsid4090229\charrsid16389411 to error on the face of the record and the Judge erred in awarding 10,000 US dollars being the rent payable. They }{ \insrsid14621954\charrsid16389411 Applicants }{\insrsid4090229\charrsid16389411 submit that the Respondents were already in receipt }{\insrsid14621954\charrsid16389411 of the rent, and payments of similar amount by the Applicants would amount to unjust enrichment. \par }{\insrsid4090229\charrsid16389411 \par }{\insrsid14621954\charrsid16389411 The learned Counsel}{\insrsid14681\charrsid16389411 Mr. Kasango}{\insrsid14621954\charrsid16389411 }{\insrsid4860950\charrsid16389411 submits}{\insrsid4090229\charrsid16389411 that the Respondent\rquote s failure to attend the hearing on 21}{\super\insrsid4090229\charrsid16389411 st}{\insrsid4090229\charrsid16389411 October was caused by confusion over the }{\insrsid14621954\charrsid16389411 listing }{\insrsid4090229\charrsid16389411 of 2 Applications that is application No. 499 and 498 at the same time one before the Judge and the other before the Registrar although the Application before the Judge had taken p}{\insrsid14621954\charrsid16389411 recedent}{ \insrsid4090229\charrsid16389411 . That was a bad point because the Respondent\rquote s Lawyers ought to have contacted the court and sought clarification as to the status of the two applications. \par \par Mr. Sembatya sub}{\insrsid4744882\charrsid16389411 mits that the Application under Order 46 Rule 1(a)}{\insrsid14621954\charrsid16389411 and (b) }{\insrsid4744882\charrsid16389411 is misconceived as there is no ground for review and the appeal should have been preferred.}{\insrsid14621954\charrsid16389411 He submits that the App}{\insrsid13123207\charrsid16389411 licants have not shown any new}{\insrsid14621954\charrsid16389411 or important matter or evidence which was not within their knowledge}{\insrsid13123207\charrsid16389411 after due diligence}{\insrsid14621954\charrsid16389411 when the order was made and no sufficient reason has been shown for the application. And the} {\insrsid13123207\charrsid16389411 y}{\insrsid14621954\charrsid16389411 state that the Affidavit of Jyoti Damani formed part of the court record.}{\insrsid4090229\charrsid16389411 \par }{\insrsid14621954\charrsid16389411 \par The issue before the court is whether the order made ex-parte gave sufficient reasons to apply for review if and whether the Applicants ha}{\insrsid12191970\charrsid16389411 ve under Rule 46 1 (a) & (b) s}{\insrsid13123207\charrsid16389411 hown}{ \insrsid12191970\charrsid16389411 any new}{\insrsid13123207\charrsid16389411 }{\insrsid12191970\charrsid16389411 matter or ev}{\insrsid13123207\charrsid16389411 idence after due diligence which}{\insrsid12191970\charrsid16389411 was not within their knowledge when order was made or shown error on the face of the record. }{\insrsid14621954\charrsid16389411 \par }{\insrsid12191970\charrsid16389411 \par In my jud}{\insrsid13123207\charrsid16389411 gment the mak}{\insrsid12191970\charrsid16389411 ing of ex-parte order was sufficient reason to apply for review wh}{\insrsid13123207\charrsid16389411 ere the confusion was caused}{ \insrsid12191970\charrsid16389411 by the listing of 2 applications, and if the }{\insrsid13123207\charrsid16389411 party }{\insrsid12191970\charrsid16389411 was }{\insrsid13123207\charrsid16389411 aggrieved.}{\insrsid12191970\charrsid16389411 \par \par }{\insrsid14681\charrsid16389411 Jyoti Damani\rquote s Affidavit and}{\insrsid12191970\charrsid16389411 Counsel}{\insrsid13123207\charrsid16389411 \rquote s}{\insrsid12191970\charrsid16389411 request for loss of earnin}{ \insrsid13123207\charrsid16389411 gs }{\insrsid12191970\charrsid16389411 was c}{\insrsid13123207\charrsid16389411 learly misleading the court into making}{\insrsid12191970\charrsid16389411 the order which was made on 21}{ \super\insrsid12191970\charrsid16389411 st}{\insrsid12191970\charrsid16389411 October 2008. There was error on the face of the court record. \par The Respondents cannot seek to be paid twice as that would be making profit on rent and amount}{\insrsid13123207\charrsid16389411 ing}{\insrsid12191970\charrsid16389411 to unjust enrichment. The rent by Tadashi is in consideration of the vehicles par}{ \insrsid13123207\charrsid16389411 ked there and enjoying the bond}{\insrsid12191970\charrsid16389411 operation license }{\insrsid13123207\charrsid16389411 even }{\insrsid12191970\charrsid16389411 if the premises are not under their control. \par \par }{\insrsid4860950\charrsid16389411 The Judge}{\insrsid12191970\charrsid16389411 }{\insrsid4860950\charrsid16389411 has}{\insrsid12191970\charrsid16389411 therefore erred in }{\insrsid4860950\charrsid16389411 finding that the Applicant ought to pay US $ 10,000 per month.}{\insrsid12191970\charrsid16389411 \par }{\insrsid4860950\charrsid16389411 \par The Applicants have raised an important matter which was not before the court. And which came to their knowledge after due diligence on learning the contents of the order made ex-parte. \par \par The learned Counsel for the Respondent cited 2 cases in support of his argument: \par }\pard \qj \li720\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid16389411 {\b\i\ul\insrsid4860950\charrsid16389411 Abias Balinda \endash vs- Frederich Kangwamu & Others}{\i\insrsid4860950\charrsid16389411 where a review was not allowed as it was a matter of review of costs and the case of }{\b\i\ul\insrsid4860950\charrsid16389411 T}{\b\i\ul\insrsid13123207\charrsid16389411 antitalia Ltd. \endash vs- Mawe Handels}{\b\i\ul\insrsid4860950\charrsid16389411 Austalt}{\i\insrsid4860950\charrsid16389411 where the case concerned a consent judgment and where the court exercised its discretion}{\i\insrsid13123207\charrsid16389411 to award costs on higher scale.}{\i\insrsid4860950\charrsid16389411 \par }\pard \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid16389411 {\b\i\ul\insrsid4860950\charrsid16389411 \par }{\insrsid4860950\charrsid16389411 These cases can be distinguished from the case before the court where the court was misled and there was mistake apparent on the face of the record. The Application is granted with costs and the order of 21}{ \super\insrsid4860950\charrsid16389411 st}{\insrsid4860950\charrsid16389411 October is amended to rescind the figure of US$ 10,000 and substituted by the current rent of US$ 2,300 plus VAT}{\insrsid15470200\charrsid16389411 .}{ \insrsid4860950\charrsid16389411 \par \par }{\insrsid14681\charrsid16389411 \par }{\insrsid9443001\charrsid16389411 \par }\pard \qc \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid16389411 {\b\insrsid4860950\charrsid16389411 Anup Singh Choudry \par Judge \par }{\b\insrsid14681\charrsid16389411 27/11/2008}{\b\insrsid4860950\charrsid16389411 \par }}