Hima Cement (U) Ltd v Uganda Co-operative Insurance Ltd (High Court Civil Suit No. 619 of 1998) (High Court Civil Suit No. 619 of 1998) [1999] UGHC 11 (6 April 1999)

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-- } {\author Administrator}{\operator kgalenda}{\creatim\yr2009\mo5\dy11\hr14\min54}{\revtim\yr2009\mo5\dy11\hr15\min16}{\version3}{\edmins24}{\nofpages5}{\nofwords1153}{\nofchars6575}{\*\company JSI}{\nofcharsws7713}{\vern24689}}\paperw11906\paperh16838 \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\rsidroot10845580\newtblstyruls\nogrowautofit \fet0{\*\ftnsep \pard\plain \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0 \fs24\lang2057\langfe2057\cgrid\langnp2057\langfenp2057 {\insrsid6033161 \chftnsep \par }}{\*\ftnsepc \pard\plain \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0 \fs24\lang2057\langfe2057\cgrid\langnp2057\langfenp2057 {\insrsid6033161 \chftnsepc \par }}{\*\aftnsep \pard\plain \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0 \fs24\lang2057\langfe2057\cgrid\langnp2057\langfenp2057 {\insrsid6033161 \chftnsep \par }}{\*\aftnsepc \pard\plain \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0 \fs24\lang2057\langfe2057\cgrid\langnp2057\langfenp2057 {\insrsid6033161 \chftnsepc \par }}\sectd \linex0\headery708\footery708\colsx708\endnhere\sectlinegrid360\sectdefaultcl\sectrsid7561991\sftnbj {\footer \pard\plain \s16\ql \li0\ri0\widctlpar \tqc\tx4153\tqr\tx8306\pvpara\phmrg\posxr\posy0\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9652192 \fs24\lang2057\langfe2057\cgrid\langnp2057\langfenp2057 {\field{\*\fldinst {\cs17\insrsid6033161 PAGE }}{\fldrslt { \cs17\lang1024\langfe1024\noproof\insrsid4283637 1}}}{\cs17\insrsid6033161 \par }\pard \s16\ql \li0\ri360\widctlpar\tqc\tx4153\tqr\tx8306\aspalpha\aspnum\faauto\adjustright\rin360\lin0\itap0\pararsid6033161 {\insrsid6033161 \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 \s15\qc \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1 \widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid5190572 \fs24\lang2057\langfe2057\cgrid\langnp2057\langfenp2057 {\b\ul\lang1033\langfe2057\langnp1033\insrsid10845580\charrsid6033161 THE REPUBLIC OF UGANDA \line }{ \b\ul\lang1033\langfe2057\langnp1033\insrsid10845580\charrsid5190572 IN}{\ul\lang1033\langfe2057\langnp1033\insrsid10845580\charrsid6033161 }{\b\ul\lang1033\langfe2057\langnp1033\insrsid10845580\charrsid5190572 THE}{ \ul\lang1033\langfe2057\langnp1033\insrsid10845580\charrsid6033161 }{\b\ul\lang1033\langfe2057\langnp1033\insrsid10845580\charrsid6033161 HIGH COURT OF UGANDA AT KAMPALA \line HIGH COURT CIVIL SUIT NO. 619/98 }{ \b\lang1033\langfe2057\langnp1033\insrsid10845580\charrsid6033161 \line Hima Cement (U) Ltd :::::::::::::}{\b\lang1033\langfe2057\langnp1033\insrsid5190572 ::::::::::::::::::::::::::}{\b\lang1033\langfe2057\langnp1033\insrsid10845580\charrsid6033161 ::::::::::::::::::::::: Plaintiff versus \line Uganda Co-operative Insurance Ltd :::}{\b\lang1033\langfe2057\langnp1033\insrsid5190572 :::::::::::::::::::::::::::::::::}{\b\lang1033\langfe2057\langnp1033\insrsid10845580\charrsid6033161 :::::: Defenda}{ \b\lang1033\langfe2057\langnp1033\insrsid5190572 n}{\b\lang1033\langfe2057\langnp1033\insrsid10845580\charrsid6033161 t \line }{\b\lang1033\langfe2057\langnp1033\insrsid5190572 \par }\pard \s15\ql \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid5190572 {\b\lang1033\langfe2057\langnp1033\insrsid10845580\charrsid6033161 Before: }{ \b\ul\lang1033\langfe2057\langnp1033\insrsid10845580\charrsid6033161 The Hon. Principal Judge Mr. Justice J. H. Ntabgoba }{\b\ul\lang1033\langfe2057\langnp1033\insrsid5190572 \par }{\b\ul\lang1033\langfe2057\langnp1033\insrsid10845580\charrsid6033161 RULING }{\b\lang1033\langfe2057\langnp1033\insrsid10845580\charrsid6033161 \line }{\lang1033\langfe2057\langnp1033\insrsid10845580\charrsid6033161 Hima Cement (U) Ltd, the plaintiff in this case brought an action against Uganda Co-operative Insurance Li}{\lang1033\langfe2057\langnp1033\insrsid5190572 mited, the defendant seeking an }{\lang1033\langfe2057\langnp1033\insrsid10845580\charrsid6033161 order for payment to the plaintiff by the defe}{\lang1033\langfe2057\langnp1033\insrsid5190572 ndant of }{\lang1033\langfe2057\langnp1033\insrsid10845580\charrsid6033161 a sum of Shs. 21,943,200/= termed, in the plaint, the contractual sum. An order is also sought for general damages for breach of contract and interest on the decretal amount at the rate of 49% per cent per annum, together with the costs of the suit. \line }{\lang1033\langfe2057\langnp1033\insrsid5190572 \par }\pard \s15\ql \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid6033161 {\lang1033\langfe2057\langnp1033\insrsid10845580\charrsid6033161 It is the case for the plaintiff that, upon a guarantee by the defendant for the payment of Shs. }{\lang1033\langfe2057\langnp1033\insrsid10845580\charrsid14763209 50}{\i\lang1033\langfe2057\langnp1033\insrsid10845580\charrsid6033161 }{ \lang1033\langfe2057\langnp1033\insrsid10845580\charrsid6033161 million shillings signed by the defendant in favour of the plaintif}{\lang1033\langfe2057\langnp1033\insrsid5190572 f, the latter supplied to N. K.}{ \lang1033\langfe2057\langnp1033\insrsid14763209 Paints Cem}{\lang1033\langfe2057\langnp1033\insrsid10845580\charrsid6033161 ent worth Shs. 21,943 ,200/}{\lang1033\langfe2057\langnp1033\insrsid14763209 =}{ \lang1033\langfe2057\langnp1033\insrsid10845580\charrsid6033161 ; that when N. K. Paint failed to pay th}{\lang1033\langfe2057\langnp1033\insrsid4283637 is debt, the plaintiff resorted}{\lang1033\langfe2057\langnp1033\insrsid10845580\charrsid6033161 to the defendant for its payment relying }{\lang1033\langfe2057\langnp1033\insrsid14763209 on the guarantee but that N. K. P}{\lang1033\langfe2057\langnp1033\insrsid10845580\charrsid6033161 aint, Ltd defaulted in payment despite }{ \lang1033\langfe2057\langnp1033\insrsid14763209\charrsid6033161 demands by}{\lang1033\langfe2057\langnp1033\insrsid10845580\charrsid6033161 the plaintiff. The alleged guarantee was written on the official document of the defendant bearing its logo, the}{ \lang1033\langfe2057\langnp1033\insrsid14763209 }{\lang1033\langfe2057\langnp1033\insrsid10845580\charrsid6033161 letter head, and it was signed by two persons for the General Manager of the defendant. Their signatures are under the seal of the defendant. }{\lang1033\langfe2057\langnp1033\insrsid14763209 A}{ \lang1033\langfe2057\langnp1033\insrsid10845580\charrsid6033161 lthough Mr. Kinyera P\rquote Lodi, learned Counsel for the defendant }{\lang1033\langfe2057\langnp1033\insrsid14763209\charrsid6033161 concedes}{ \lang1033\langfe2057\langnp1033\insrsid10845580\charrsid6033161 that the two persons who signed the alleged guarantee were employees of the defendant, he contends that they were too junior to bind the defendant }{ \lang1033\langfe2057\langnp1033\insrsid14763209\charrsid6033161 in view}{\lang1033\langfe2057\langnp1033\insrsid10845580\charrsid6033161 of S.48 of the defendants\rquote Bye-Laws (annexture \'93C\'94 of the W. S}{ \lang1033\langfe2057\langnp1033\insrsid14763209 . D)}{\lang1033\langfe2057\langnp1033\insrsid10845580\charrsid6033161 \lquote That section provides that:- \line }{\lang1033\langfe2057\langnp1033\insrsid14763209 \par }\pard \s15\ql \li720\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\ipgp1\pararsid14763209 {\lang1033\langfe2057\langnp1033\insrsid10845580\charrsid6033161 \'93Docum ents and contracts shall be signed by two of the following:- Chairman or Secretary and General Manager except documents and contracts relating to the day to-day business of the Society and all cheques which shall be signed by the General Manager and one of the following:- Accountant or Secretary.\'94 \line }{ \lang1033\langfe2057\langnp1033\insrsid14763209 \par }\pard \s15\ql \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid14763209 {\lang1033\langfe2057\langnp1033\insrsid10845580\charrsid6033161 There seems to be no dispute that}{ \lang1033\langfe2057\langnp1033\insrsid14763209 the two persons who signed the }{\lang1033\langfe2057\langnp1033\insrsid10845580\charrsid6033161 alleged guarantee do not ordinarily qualify to sign a guarantee issued by the defendant. Mr. Kinyera p \rquote Lodi argues that the defendant\rquote s bye-laws ar e a public record since they were registered at the Registry of Documents for everyone to see and be informed of the contents thereof. He argues that the plaintiff is presumed to have been aware of S.48 of the defendant and that it should not have relied on the so called guarantee having been issued by non}{\lang1033\langfe2057\langnp1033\insrsid14763209 -}{\lang1033\langfe2057\langnp1033\insrsid10845580\charrsid6033161 authorised persons: \line }{\lang1033\langfe2057\langnp1033\insrsid14763209 \par }\pard \s15\ql \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid6033161 {\lang1033\langfe2057\langnp1033\insrsid10845580\charrsid6033161 Ms. Nakabuye Charity, on the other hand, argues that the two persons who signed the guarantee were clothed with ostensible authority to so sign in view of the fact that they were allowed access to the company\rquote s seal which must be kept by the General Manager of the defen}{\lang1033\langfe2057\langnp1033\insrsid14763209 dant. S .47 of the defendant\rquote s }{\lang1033\langfe2057\langnp1033\insrsid10845580\charrsid6033161 bye laws provides:- \line }{ \lang1033\langfe2057\langnp1033\insrsid14763209 \par }\pard \s15\ql \li720\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\ipgp1\pararsid14763209 {\lang1033\langfe2057\langnp1033\insrsid10845580\charrsid6033161 \'93 The Society shall have a seal on which its name registered number \line shall be engraved in legible characters with the device of a crested\rquote \line crane. }{\ul\lang1033\langfe2057\langnp1033\insrsid10845580\charrsid6033161 It shall be kept by the General Manager and shall be used only \line by the officers who have authority to sign documents under Bye-Law }{\lang1033\langfe2057\langnp1033\insrsid10845580\charrsid6033161 \line 48\'94 \line }{ \lang1033\langfe2057\langnp1033\insrsid14763209 \par }\pard \s15\ql \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid14763209 {\lang1033\langfe2057\langnp1033\insrsid10845580\charrsid6033161 Ms. Nakabuye contends that by the General Manager making available the \line company\rquote s seal t}{\lang1033\langfe2057\langnp1033\insrsid14763209 o the signatories on the guaran}{\lang1033\langfe2057\langnp1033\insrsid10845580\charrsid6033161 tee, they were clothed with \line authority to sign documents such as the guarantee under the defendants\rquote seal. \line }{\lang1033\langfe2057\langnp1033\insrsid14763209 \par }{\lang1033\langfe2057\langnp1033\insrsid10845580\charrsid6033161 Mr. Kinyera p\rquote Lodi also contends that the type of guarantee al1eedly issued \line by the defendant is only suitab le as a Bank guarantee and not as an insurance guarantee whose technical term he says is \'93performance guarantee bond.\'94 In paragraph 9 of the W. S. D. the defendant pleads: \line }{\lang1033\langfe2057\langnp1033\insrsid14763209 \par }\pard \s15\ql \li720\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\ipgp1\pararsid14763209 {\lang1033\langfe2057\langnp1033\insrsid10845580\charrsid6033161 \'93An insurance company by its ver}{ \lang1033\langfe2057\langnp1033\insrsid14763209 y nature does not issue credit }{\lang1033\langfe2057\langnp1033\insrsid10845580\charrsid6033161 guarantees but performance guarantee}{\lang1033\langfe2057\langnp1033\insrsid14763209 bonds where a contract should }{\lang1033\langfe2057\langnp1033\insrsid10845580\charrsid6033161 have been executed by the ins}{\lang1033\langfe2057\langnp1033\insrsid14763209 urance company and N. K. Paints }{ \lang1033\langfe2057\langnp1033\insrsid10845580\charrsid6033161 assuring the plaintiff that N. K. Paints }{\lang1033\langfe2057\langnp1033\insrsid14763209\charrsid6033161 would perform}{\lang1033\langfe2057\langnp1033\insrsid10845580\charrsid6033161 .\'94 \line In paragraph }{\lang1033\langfe2057\langnp1033\insrsid10845580\charrsid14763209 5(B)}{\i\lang1033\langfe2057\langnp1033\insrsid10845580\charrsid6033161 }{\lang1033\langfe2057\langnp1033\insrsid14763209 of the W. S. D}{ \lang1033\langfe2057\langnp1033\insrsid10845580\charrsid6033161 }{\lang1033\langfe2057\langnp1033\insrsid14763209\charrsid6033161 one}{\lang1033\langfe2057\langnp1033\insrsid10845580\charrsid6033161 }{\lang1033\langfe2057\langnp1033\insrsid14763209 of the particulars of fraud }{\lang1033\langfe2057\langnp1033\insrsid10845580\charrsid6033161 pleaded by the \line defendant is that:}{\lang1033\langfe2057\langnp1033\insrsid14763209 - \par }\pard \s15\ql \li1440\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin1440\itap0\ipgp1\pararsid14763209 {\lang1033\langfe2057\langnp1033\insrsid14763209 \'93(b) }{ \lang1033\langfe2057\langnp1033\insrsid10845580\charrsid6033161 The plaintiff throug}{\lang1033\langfe2057\langnp1033\insrsid14763209 h Colombus Kiragga made availab}{\lang1033\langfe2057\langnp1033\insrsid10845580\charrsid6033161 le to the \line defendant\rquote s junior officers a Bank Guarantee No. TBUL/97/LG - 006 \line dated 29}{\lang1033\langfe2057\super\langnp1033\insrsid10845580\charrsid14763209 th}{\lang1033\langfe2057\langnp1033\insrsid10845580\charrsid6033161 day of May 1997 at Kampala to enable them to copy and produce what they called \'93Insurance Guarantee\'94 dated the 2}{\lang1033\langfe2057\super\langnp1033\insrsid10845580\charrsid14763209 nd}{ \lang1033\langfe2057\langnp1033\insrsid10845580\charrsid6033161 day of October 1997 at Kampala.\'94 \line }{\lang1033\langfe2057\langnp1033\insrsid14763209 \par }\pard \s15\ql \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid14763209 {\lang1033\langfe2057\langnp1033\insrsid10845580\charrsid6033161 Mr. Kinyera p\rquote Lodi informed the Court from the Bar, and he was not challenged, that his client, the defendant reported Colombus Kiragga to the Police for the fabrication of the so called guarantee. He was arrested by the Police and as a result, he drew up and signed the memorandum of understanding annexed to the W. S. D. as Annexture \lquote I\rquote . Counsel says that the copy of the annexture was obtain}{\lang1033\langfe2057\langnp1033\insrsid14763209 ed by him from the Police, the }{\lang1033\langfe2057\langnp1033\insrsid10845580\charrsid6033161 memorandum was signed by the plaintiff and Colombus Kiragga aid therein it is provided}{\lang1033\langfe2057\langnp1033\insrsid14763209 that Colombus Kiragga would pay }{\lang1033\langfe2057\langnp1033\insrsid10845580\charrsid6033161 the}{\lang1033\langfe2057\langnp1033\insrsid14763209 decretal sum to}{\lang1033\langfe2057\langnp1033\insrsid10845580\charrsid6033161 the plaintiff by }{ \lang1033\langfe2057\langnp1033\insrsid14763209\charrsid6033161 installments}{\lang1033\langfe2057\langnp1033\insrsid10845580\charrsid6033161 . \line }{\lang1033\langfe2057\langnp1033\insrsid14763209 \par }{\lang1033\langfe2057\langnp1033\insrsid10845580\charrsid6033161 I disqualified the so called memorandum of understanding because it contravenes the provisions of S.66 of the Advocates Act. I struck it out of the pleadings. \line }{ \lang1033\langfe2057\langnp1033\insrsid14763209 \par }{\lang1033\langfe2057\langnp1033\insrsid10845580\charrsid6033161 In view of the preliminary points raised by Counsel for the defendant challe}{\lang1033\langfe2057\langnp1033\insrsid14763209 nging the guarantee document I }{ \lang1033\langfe2057\langnp1033\insrsid14763209\charrsid6033161 adjourned}{\lang1033\langfe2057\langnp1033\insrsid14763209 }{\lang1033\langfe2057\langnp1033\insrsid10845580\charrsid6033161 the hearing }{ \lang1033\langfe2057\langnp1033\insrsid4283637\charrsid6033161 of}{\lang1033\langfe2057\langnp1033\insrsid10845580\charrsid6033161 the main suit in order to give my ruling before deciding to proceed with the hearing of the suit. These are th erefore my rulings}{\lang1033\langfe2057\langnp1033\insrsid14763209\charrsid6033161 : -}{\lang1033\langfe2057\langnp1033\insrsid10845580\charrsid6033161 \line }{\lang1033\langfe2057\langnp1033\insrsid14763209 \par }\pard \s15\ql \fi-720\li720\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\ipgp1\pararsid4283637 {\lang1033\langfe2057\langnp1033\insrsid10845580\charrsid6033161 1. }{ \lang1033\langfe2057\langnp1033\insrsid14763209 \tab }{\lang1033\langfe2057\langnp1033\insrsid10845580\charrsid6033161 I have scrutinised the so called g}{\lang1033\langfe2057\langnp1033\insrsid14763209 uarantee (Annexture \'93D\'94 to the }{ \lang1033\langfe2057\langnp1033\insrsid4283637 W. S. D)}{\lang1033\langfe2057\langnp1033\insrsid10845580\charrsid6033161 . I have compared }{\lang1033\langfe2057\langnp1033\insrsid4283637 it with Annexture \lquote C\rquote which is Bank }{ \lang1033\langfe2057\langnp1033\insrsid10845580\charrsid6033161 Guarantee No. TBUL/97/LG - 0006. I}{\lang1033\langfe2057\langnp1033\insrsid4283637 am satisfied that but for the }{\lang1033\langfe2057\langnp1033\insrsid10845580\charrsid6033161 particulars of their respe}{\lang1033\langfe2057\langnp1033\insrsid4283637 ctive letter heads and logo}{\lang1033\langfe2057\langnp1033\insrsid10845580\charrsid6033161 , the two documents are similar word for word. \line }{ \lang1033\langfe2057\langnp1033\insrsid4283637 \par }{\lang1033\langfe2057\langnp1033\insrsid10845580\charrsid6033161 2. }{\lang1033\langfe2057\langnp1033\insrsid4283637 \tab }{\lang1033\langfe2057\langnp1033\insrsid10845580\charrsid6033161 I have looked at the so called guarantee annexture \'93D\'94 to the W. S. D. and at so called guarantee that was signed by the junior officers of the defendant. They are exactly similar. \line }{\lang1033\langfe2057\langnp1033\insrsid4283637 \par }\pard \s15\ql \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid6033161 {\lang1033\langfe2057\langnp1033\insrsid10845580\charrsid6033161 3.}{ \lang1033\langfe2057\langnp1033\insrsid4283637 \tab }{\lang1033\langfe2057\langnp1033\insrsid10845580\charrsid6033161 I have read SS.47 and 48 of the Bye-Laws of the defendant. Clearly, no person, employee of the defendant is authorised to sign a }{ \lang1033\langfe2057\langnp1033\insrsid4283637\charrsid6033161 document}{\lang1033\langfe2057\langnp1033\insrsid10845580\charrsid6033161 of the Calibre of the \'93guarantee\'94 being reli}{\lang1033\langfe2057\langnp1033\insrsid4283637 ed on by the defendant. It does}{\lang1033\langfe2057\langnp1033\insrsid10845580\charrsid6033161 not matter whether or not the document bears the Company\rquote s letter head, its logo and was signed under seal. Clearly the bye-law (S.48) excludes any other person of the rank of those who signed the document. They should not have signed it for to do so is illegal. The doctrine and plea of }{ \lang1033\langfe2057\langnp1033\insrsid4283637\charrsid6033161 ostensible}{\lang1033\langfe2057\langnp1033\insrsid10845580\charrsid6033161 authority cannot be pleaded by the plaintiff where such authority is feigned and illegally assumed. It does not matter that S.47 of the bye-laws instructs that the seal should be kept by the General Manager and was made available to the two junior o fficers to use it. Besides, it was up to the plaintiff to prove }{\lang1033\langfe2057\langnp1033\insrsid4283637\charrsid6033161 that}{\lang1033\langfe2057\langnp1033\insrsid10845580\charrsid6033161 the General Manager deliberately made the seal available to those officers to use \line it. S.48 is strict. No other person can }{\lang1033\langfe2057\langnp1033\insrsid4283637 sign a pe}{\lang1033\langfe2057\langnp1033\insrsid10845580\charrsid6033161 r} {\lang1033\langfe2057\langnp1033\insrsid4283637 forman}{\lang1033\langfe2057\langnp1033\insrsid10845580\charrsid6033161 ce guarantee bond apart from either the General Manager jointly with the Chairman \'e7 the General Manager jointly with the Secretary. To accept Ms. Nakabuye\rquote s argument is to accept that even if the two junior officers had stolen the company\rquote s seal to use it their use would be lawful and justify ostensible authority. \line In view of my }{\lang1033\langfe2057\langnp1033\insrsid4283637 foregoing decisions, I hold the so }{\lang1033\langfe2057\langnp1033\insrsid4283637\charrsid6033161 called}{\lang1033\langfe2057\langnp1033\insrsid10845580\charrsid6033161 guarantee illegal as I also hold that there was thus no guarantee. And in view of such conclusions, it is clear that no suit can be sustained against the defendant since the guarantee which is the suit\rquote s substratain is struck out. \line In the result, I uphold the }{\lang1033\langfe2057\langnp1033\insrsid4283637\charrsid6033161 defendant\rquote s}{\lang1033\langfe2057\langnp1033\insrsid10845580\charrsid6033161 defence that the plaintiff has no cause of action against the defendant. The su}{\lang1033\langfe2057\langnp1033\insrsid4283637 it is accordingly struck out in}{\lang1033\langfe2057\langnp1033\insrsid10845580\charrsid6033161 }{ \lang1033\langfe2057\langnp1033\insrsid4283637\charrsid6033161 its}{\lang1033\langfe2057\langnp1033\insrsid10845580\charrsid6033161 entirety with costs to defendant. \line J. H. Ntabgoba \line }{ \ul\lang1033\langfe2057\langnp1033\insrsid10845580\charrsid6033161 Principal Judge }{\lang1033\langfe2057\langnp1033\insrsid10845580\charrsid6033161 \line }{\lang1033\langfe2057\langnp1033\insrsid4283637 6/4/99}{ \lang1033\langfe2057\langnp1033\insrsid10845580\charrsid6033161 \par }\pard\plain \ql \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid6033161 \fs24\lang2057\langfe2057\cgrid\langnp2057\langfenp2057 {\lang1033\langfe2057\langnp1033\insrsid10845580\charrsid6033161 \par }}