Judith Abaho v SD Agri-Hitech (U) Ltd (HCT-00-CC-CS 70 of 2005) [2005] UGCommC 63 (19 October 2005)

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Mak}{\creatim\yr2006\mo2\dy7\hr10\min14}{\revtim\yr2006\mo2\dy7\hr10\min14}{\printim\yr2005\mo10\dy5\hr15\min46}{\version2} {\edmins0}{\nofpages3}{\nofwords1002}{\nofchars5715}{\*\company }{\nofcharsws6704}{\vern24579}}\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\rsidroot4812283\newtblstyruls\nogrowautofit \fet0{\*\ftnsep \pard\plain \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0 \fs24\lang2057\langfe1033\cgrid\langnp2057\langfenp1033 {\insrsid11927899 \chftnsep \par }}{\*\ftnsepc \pard\plain \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0 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\li0\ri0\widctlpar\tqc\tx4320\tqr\tx8640\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0 {\insrsid6957732 \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 \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0 \fs24\lang2057\langfe1033\cgrid\langnp2057\langfenp1033 {\insrsid4812283 THE REPUBLIC OF UGANDA}{\insrsid15861250 \par }{\insrsid4812283 \par IN THE HIGH COURT OF UGANDA HOLDEN AT KAMPALA \par \par (COMMERCIAL COURT DIVISION) \par \par HCT-00-CC-CS-0070-2005 \par \par JUDITH ABAHO PLAINTIFF \par \par VERSUS \par \par SD AGRI-HITECH (U) LTD DEFENDANT \par \par \par \par }{\b\ul\insrsid4812283\charrsid10683258 BEFORE: THE HONOURABLE MR. JUSTICE FMS EGONDA-NTENDE \par \par JUDGMENT}{\insrsid4812283 \par \par {\listtext\pard\plain\lang2057\langfe1033\langnp2057\insrsid8549328 \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\pararsid14425928 { \insrsid8549328 The plaintiff brought this action seeking to recover the sum of Shs.15,000,000.00 from the defendant. The plaintiff alleged that s}{\insrsid11934770 he lent t he defendant Shs.15,000.000.00. The defendant attempted to repay with the issue of a cheque for the said amount but it was returned unpaid, and notice of its dishonour was drawn to the attention of the defendant. }{\insrsid4812283 \par {\listtext\pard\plain\lang2057\langfe1033\langnp2057\insrsid11934770 \hich\af0\dbch\af0\loch\f0 2.\tab}}{\insrsid11934770 The defendant denied that it took a loan from the plaintiff.}{\insrsid5714557 Rather the defendant had been approached by the plaintiff with an offer to assist it get paid a grant promised by state house. In furtherance of this objective the plaintiff undertook to procure payment of the said grant on the understa nding that she will be paid some money. As security for payment of the }{\insrsid14425928 plaintiff\rquote s}{\insrsid5714557 expenses and fees in this regard the defendant issued a cheque of Shs.15,000,000.00 which was undated and with no payee. To the defendant\rquote s dismay this cheque was presented for payment. On learning of this the defendant reported this matter to the police.}{\insrsid11934770 \par {\listtext\pard\plain\lang2057\langfe1033\langnp2057\insrsid5714557 \hich\af0\dbch\af0\loch\f0 3.\tab}}{\insrsid5714557 The plaintiff failed to process payment of the grant from state house and was therefore not entitled to the sum she now claims. \par {\listtext\pard\plain\lang2057\langfe1033\langnp2057\insrsid209601 \hich\af0\dbch\af0\loch\f0 4.\tab}}{\insrsid209601 The plaintiff testified in person. She stated that she is }{\insrsid14425928 a }{\insrsid209601 businesswoman. She knew the defendant. It was a company of her friend, }{\insrsid14425928 Denis}{\insrsid209601 }{\insrsid14425928 Makuba}{\insrsid209601 , whom she has known for about 10 years. }{\insrsid14425928 Denis}{\insrsid209601 has been helping her, and likewise she has been helping him. In February 2004, Denis called her, and asked to be lent some money, as he had a problem. He promised to pay the money within six months. The plaintiff gave him Shs.15,000,000.00 at her home.

\par {\listtext\pard\plain\lang2057\langfe1033\langnp2057\insrsid209601 \hich\af0\dbch\af0\loch\f0 5.\tab}Later Denis }{\insrsid14425928 Makuba }{\insrsid209601 went to her place, and gave her a cheque for Shs.15,000,000.00 and told her to bank it on the 2}{ \super\insrsid209601\charrsid209601 nd}{\insrsid209601 November or thereabouts. He told }{\insrsid14425928 her}{\insrsid209601 to fill in her names and date before banking the same.}{\insrsid997446 She banked the cheque and it was returned unpaid. She notified him of the dishonour and he started dodging her. She sought legal advice and commenced these proceedings as well }{\insrsid14425928 as }{\insrsid997446 notifying the police. She seeks repayment of her money and the }{\insrsid14425928 lawyer\rquote s}{\insrsid997446 charges.}{\insrsid4880060 She stated that she does not work in state house.}{\insrsid209601 \par {\listtext\pard\plain\lang2057\langfe1033\langnp2057\insrsid997446 \hich\af0\dbch\af0\loch\f0 6.\tab}}{\insrsid997446 The defendant called one witness, }{\insrsid14425928 Denis}{\insrsid997446 Makuba. He testified that he knew the plaintiff. Sometime in 2003 she was running a bar in Kigowa, which the witness and friends used to patronise. She came to know of the pledge}{\insrsid14425928 the defendant}{\insrsid997446 had from state house, and she offered to assist, as she knew some people who could assist. She introduced those people to }{\insrsid14425928 Denis Makuba}{\insrsid997446 . They asked for logistics and the witness }{\insrsid14425928 provided}{ \insrsid997446 some money. \par {\listtext\pard\plain\lang2057\langfe1033\langnp2057\insrsid997446 \hich\af0\dbch\af0\loch\f0 7.\tab}Later the plaintiff came back and asked for more}{\insrsid482602 money}{\insrsid997446 . They agreed that the witness will pay 10% of the grant sought which came to about Shs.15,000,000.00. }{\insrsid14425928 The}{\insrsid997446 witness issued }{\insrsid6751508 a cheque to the plaintiff without the names of the payee}{\insrsid997446 as the plaintiff said the money was going to someone else. The industrialization Committee promised to pay the grant the following financial year.}{\insrsid4880060 But before this occurred the plaintiff rang and told the w itness she had banked the cheque. The company has never been paid the grant.}{\insrsid997446 \par {\listtext\pard\plain\lang2057\langfe1033\langnp2057\insrsid4880060 \hich\af0\dbch\af0\loch\f0 8.\tab}}{\insrsid4880060 Denis denied ever visiting the home of the plaintiff. He denied that she had paid any money to him. The plaintiff was an intermediary between the defendant and staff in the President\rquote s office. A company cheque was issued because it was in respect of company business. \par {\listtext\pard\plain\lang2057\langfe1033\langnp2057\insrsid4880060 \hich\af0\dbch\af0\loch\f0 9.\tab} At the commencement of the trial the parties framed three issues. Firstly whether there was a valid contract between the parties. Secondly whether the contract was breached and by whom. And lastly remedies available. \par {\listtext\pard\plain\lang2057\langfe1033\langnp2057\insrsid4880060 \hich\af0\dbch\af0\loch\f0 10.\tab} Starting with the first issue, the parties offer a different version of the nature of contract between the two of them. On the one hand the plaintiff on her pleadings asserts that she lent to the defendant Shs.15,000,000.00. On the other the defendant asserts that it agreed to pay the said sum of money in return for services to be rendered by the plaintiff and her associates in state house. \par {\listtext\pard\plain\lang2057\langfe1033\langnp2057\insrsid8461773 \hich\af0\dbch\af0\loch\f0 11.\tab}}{\insrsid8461773 In the testimony of the plaintiff she states that it was a one Denis Makuba, DW1, who requested for a loan, and it was to Denis }{ \insrsid14425928 Makuba}{\insrsid8461773 , that she provided the loan}{\insrsid3161092 to}{\insrsid8461773 . Denis Makuba is not the defendant before court. He was}{\insrsid482602 , initially,}{\insrsid8461773 defendant no.2 in this case but was struck off the action with concurrence of the plaintiff as no cause of action was disclosed against him. \par {\listtext\pard\plain\lang2057\langfe1033\langnp2057\insrsid8461773 \hich\af0\dbch\af0\loch\f0 12.\tab} Obviously Denis Makuba is different from the defendant, a limited liability company. If on the testimony of the plaintiff the loan was extended to Denis Makuba, it is Denis Makuba that ought to be held li able for repayment of the loan, and not any other party, unless such other party stepped into the shoes of Denis Makuba. \par {\listtext\pard\plain\lang2057\langfe1033\langnp2057\insrsid8461773 \hich\af0\dbch\af0\loch\f0 13.\tab}The testimony of the plaintiff is different from the case presented on the plaint. Paragraph 5 of the plaint states, }{\insrsid16717054 \par }\pard \ql \li1440\ri1440\widctlpar\aspalpha\aspnum\faauto\adjustright\rin1440\lin1440\itap0\pararsid16717054 {\insrsid8461773 \lquote 5 The facts giving rise to the Plaintiff\rquote s cause of action arose as follows: }{\insrsid16717054 \par }\pard \ql \li2160\ri1440\widctlpar\aspalpha\aspnum\faauto\adjustright\rin1440\lin2160\itap0\pararsid16717054 {\insrsid8461773 (a) }{\insrsid3161092 Sometime in February 2004, the plaintiff and the 1}{\super\insrsid3161092\charrsid3161092 st}{ \insrsid3161092 Defendant executed a verbal agreement whereby the Defendant obtained an interest free loan of Ug. Shs.15,000,000/= (Fifteen million shillings only) from the plaintiff }{\insrsid16717054 for use in their business repayable }{ \insrsid3161092 within 6 months from the date of receipt. }{\insrsid16717054 }{\insrsid3161092 (b) On the 2}{\super\insrsid3161092\charrsid3161092 nd}{\insrsid3161092 day of November 2004, the 1}{ \super\insrsid3161092\charrsid3161092 st}{\insrsid3161092 Defendant issued to the plaintiff a cheque for the sum of U.shs.15,000,000/= (Fifteen million shillings only), drawn on the 1}{\super\insrsid3161092\charrsid3161092 st}{\insrsid3161092 Defendant \rquote s account at Crane Bank Ltd and signed by the 2}{\super\insrsid3161092\charrsid3161092 nd}{\insrsid3161092 Defendant as the Managing Director.\rquote }{\insrsid8461773 \par {\listtext\pard\plain\lang2057\langfe1033\langnp2057\insrsid3161092 \hich\af0\dbch\af0\loch\f0 14.\tab}}\pard \ql \fi-360\li720\ri0\sl360\slmult1\widctlpar\jclisttab\tx720\aspalpha\aspnum\faauto\ls1\adjustright\rin0\lin720\itap0\pararsid14425928 { \insrsid3161092 Regardless of the case for the defendant, on the testimony of the plaintiff, I am not able to find that the plaintiff lent money to the defendant before the court. On the testimony of the plain}{\insrsid16394219 tiff this money was lent to Denis Makuba, DW1. }{\insrsid16717054 \par {\listtext\pard\plain\lang2057\langfe1033\langnp2057\insrsid16394219 \hich\af0\dbch\af0\loch\f0 15.\tab}}{\insrsid16394219 In the result the plaintiff has failed to prove on a balance of probability that she lent money to the defendant. }{ \insrsid16717054 In answer to i}{\insrsid16394219 ssue No.1}{\insrsid16717054 , on the evidence of the plaintiff alone,}{\insrsid16394219 }{\insrsid16717054 I find that that the contract alleged by the plaintiff between the plaintiff and defendant has not been established.}{\insrsid3161092 \par {\listtext\pard\plain\lang2057\langfe1033\langnp2057\insrsid16717054 \hich\af0\dbch\af0\loch\f0 16.\tab}}\pard \ql \fi-360\li720\ri0\sl360\slmult1\widctlpar\jclisttab\tx720\aspalpha\aspnum\faauto\ls1\adjustright\rin0\lin720\itap0\pararsid482602 { \insrsid16717054 In light of my finding aforesaid, it is unnecessary to consider the other }{\insrsid14425928 issue}{\insrsid482602 s}{\insrsid14425928 as to}{\insrsid482602 whether there was a breach of contract,}{\insrsid14425928 who was in breach of the contract, and remedies thereof, as no contract between the parties has}{\insrsid16717054 been established. \par {\listtext\pard\plain\lang2057\langfe1033\langnp2057\insrsid14425928 \hich\af0\dbch\af0\loch\f0 17.\tab}}\pard \ql \fi-360\li720\ri0\sl360\slmult1\widctlpar\jclisttab\tx720\aspalpha\aspnum\faauto\ls1\adjustright\rin0\lin720\itap0\pararsid14425928 { \insrsid14425928 This is suit is accordingly dismissed with costs. \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid14425928 {\insrsid14425928 Dated at Kampala this day of October 2005 \par \par \par \par \par \par FMS Egonda-Ntende \par }{\insrsid1077514 Judge \par }}