Kasango v Voice of Toro Ltd (HCT-00-CV-CS-0147 of 2001) [2004] UGHC 37 (15 December 2004)

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{\pntxtb (}{\pntxta )}}{\*\pnseclvl9\pnlcrm\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}\pard\plain \s15\qc \li0\ri0\sl480\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9780910 \b\fs28\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\insrsid9780910 THE REPUBLIC OF UGANDA \par }\pard\plain \qc \li0\ri0\sl480\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9780910 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\b\fs28\insrsid9780910 IN THE HIGH COURT OF UGANDA AT KAMPALA \par CASE NO. HCT-00-CV-CS-0147 OF 2001 \par }\pard\plain \s1\ql \li0\ri0\sl480\slmult1\keepn\widctlpar\aspalpha\aspnum\faauto\outlinelevel0\adjustright\rin0\lin0\itap0\pararsid9780910 \b\fs28\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\insrsid9780910 KASANGO PETER ::::::::::::::::::::::::::::::::::::::::: PLAINTIFF \par }\pard\plain \s2\qc \li0\ri0\sl480\slmult1\keepn\widctlpar\aspalpha\aspnum\faauto\outlinelevel1\adjustright\rin0\lin0\itap0\pararsid9780910 \b\fs28\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\insrsid9780910 VERSUS \par }\pard\plain \s1\ql \li0\ri0\sl480\slmult1\keepn\widctlpar\aspalpha\aspnum\faauto\outlinelevel0\adjustright\rin0\lin0\itap0\pararsid9780910 \b\fs28\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\insrsid9780910 VOICE OF TORO LTD. ::::::::::::::::::::::::::::::::: DEFENDANT \par }\pard\plain \ql \li0\ri0\sl480\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9780910 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\b\fs28\ul\insrsid9780910 BEFORE: HON. MR. JUSTICE J. B. A. KATUTSI: \par \par JUDGMENT: \par \par }\pard \qj \li0\ri0\sl480\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9780910 {\fs28\insrsid9780910 This is an appeal from a Judgment and decree of the Chief Magistrate s}{\fs28\insrsid9127636 i}{\fs28\insrsid9780910 tting at Mengo dismissing a suit brought by the Appellant. Before this court, both the Appellant and the Respondents have given conflicting facts alleged to have given rise to the Appeal. \par \par For the Appeal}{\fs28\insrsid9127636 lant}{\fs28\insrsid9780910 it is contended that on 22}{\fs28\super\insrsid9780910\charrsid9780910 nd}{\fs28\insrsid9780910 of March 2001, the Appeal}{\fs28\insrsid9127636 lant}{\fs28\insrsid9780910 sued Respondents by summary procedure for the recovery of a sum of Ushs.5,000,000/= drawn upon a dishonoured cheque issued by the respondents. On the 9}{\fs28\super\insrsid9780910\charrsid9780910 th}{\fs28\insrsid9780910 of April 2001, so it is claimed, the Respondents applied for leave to defend the suit, which leave was granted summarily and a written statement of defence was filed on the 23}{\fs28\super\insrsid9780910\charrsid9780910 rd}{\fs28\insrsid9780910 of May 2001. It is contended by the Appellant that at the trial only the evidence of the Appellant and that of the Deputy Managing Director of the respondent was recorded. On the 2}{\fs28\super\insrsid9780910\charrsid9780910 nd}{\fs28\insrsid9780910 of October, 2002 Judgment was entered for the Respondents. \par \par For the Respondent it is contended that Mr. Chris Katuramu the Deputy Managing Director of the Respondent issued the Appellant with a post dated cheque for 15}{\fs28\super\insrsid9780910\charrsid9780910 th}{\fs28\insrsid9780910 October, 2000. Before the cheque could be presented for payment, the respondents stopped payment on 16}{\fs28\super\insrsid9780910\charrsid9780910 th}{\fs28\insrsid9780910 of October 2000. When the Appellant presented the cheq ue for payment it was dishonoured. The Appellant filed }{\fs28\insrsid6371031 a suit before the magistrates court Mengo }{\fs28\insrsid9780910 for the bounced cheque. The suit was dismissed, the court holding that Appellant had not furnished any consideration. \par \par I think for better understanding of what took place in the lower court I }{\fs28\insrsid10772883 n}{\fs28\insrsid9780910 eed to set down the contents of the plaint as it was filed in the court. The relevant part runs as follows: \par }{\fs28\insrsid4349430 \par }{\fs28\insrsid6371031 \par }{\b\caps\fs28\insrsid4349430\charrsid4349430 Kasango Peter :::::::::::::::::::::::::::::::::::::}{\b\caps\fs28\insrsid6371031 :}{\b\caps\fs28\insrsid4349430\charrsid4349430 ::::::: Plaintiff \par }\pard \qc \li0\ri0\sl480\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4349430 {\b\caps\fs28\insrsid4349430\charrsid4349430 vs \par }\pard \ql \li0\ri0\sl480\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4349430 {\b\caps\fs28\insrsid4349430\charrsid4349430 voice of toro limited :::::::::::::::::::::::::}{\b\caps\fs28\insrsid6371031 ::::::}{ \b\caps\fs28\insrsid4349430\charrsid4349430 defendant \par }{\caps\fs28\insrsid4349430 \par }\pard \qc \li0\ri0\sl480\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4349430 {\b\caps\fs28\ul\insrsid4349430 plaint \par \par {\listtext\pard\plain\caps\fs28\insrsid4349430 \hich\af0\dbch\af0\loch\f0 1.\tab}}\pard \qj \fi-720\li1080\ri0\sl480\slmult1\widctlpar\jclisttab\tx1080\aspalpha\aspnum\faauto\ls1\adjustright\rin0\lin1080\itap0\pararsid4349430 {\caps\fs28\insrsid4349430 t} {\fs28\insrsid4349430 he plaintiff is an adult male Uganda citizen of sound mind, and resident of Bweyogerere, whose address of service is C/O Nagemi & Co. Advocates, P. O. Box 7744, KAMPALA.\'94 \par }\pard \qj \li0\ri0\sl480\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4349430 {\fs28\insrsid4349430 \par There is then an affidavit sworn by PETER KASANGO of c/o Box 12046 Kampala which runs as follows: \par }{\fs28\insrsid6371031 \par {\listtext\pard\plain\fs28\insrsid4349430 \hich\af0\dbch\af0\loch\f0 1.\tab}}\pard \qj \fi-360\li720\ri0\sl480\slmult1\widctlpar\jclisttab\tx720\aspalpha\aspnum\faauto\ls2\adjustright\rin0\lin720\itap0\pararsid4349430 {\fs28\insrsid4349430 THAT I am the plaintiff in the above suit and depose the affidavit in the capacity. \par }\pard \qj \li360\ri0\sl480\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin360\itap0\pararsid6371031 {\fs28\insrsid6371031 \par {\listtext\pard\plain\fs28\insrsid4349430 \hich\af0\dbch\af0\loch\f0 2.\tab}}\pard \qj \fi-360\li720\ri0\sl480\slmult1\widctlpar\jclisttab\tx720\aspalpha\aspnum\faauto\ls2\adjustright\rin0\lin720\itap0\pararsid4349430 {\fs28\insrsid4349430 THAT the defendant is indebted to me, in the liquidated sum of Ushs.5,000,000/= as per particulars in the specially endorsed plaint here to attached}{\fs28\insrsid10772883 .}{\fs28\insrsid4349430 \par }\pard \qj \li0\ri0\sl480\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid6371031 {\fs28\insrsid6371031 \par {\listtext\pard\plain\fs28\insrsid4349430 \hich\af0\dbch\af0\loch\f0 3.\tab}}\pard \qj \fi-360\li720\ri0\sl480\slmult1\widctlpar\jclisttab\tx720\aspalpha\aspnum\faauto\ls2\adjustright\rin0\lin720\itap0\pararsid4349430 {\fs28\insrsid4349430 THAT the defendant has no defence to the suit. \par {\listtext\pard\plain\fs28\insrsid4349430 \hich\af0\dbch\af0\loch\f0 4.\tab}\'85\'85\'85\'85\'85\'85 \par {\listtext\pard\plain\fs28\insrsid4349430 \hich\af0\dbch\af0\loch\f0 5.\tab}\'85\'85\'85\'85\'85\'85\'94. \par }\pard \qj \li0\ri0\sl480\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4349430 {\fs28\insrsid4349430 \par The so called \'93specially endorsed plaint\'94 is what I have reproduced herein above. I sit not a terrible assault on the law to refer to such a plaint, is \'93specially endorsed\'94? \par \par The first ground of appeal complains that the Learned Chief Magistrate misdirected himself by allowing the respondents leave to appear and defend a suit. What is alarming is that the Learned Chief Magistrate could treat a plaint as appear above as \'93 specially endorsed\'94. \par \par There is absolutely no merit in this ground of appeal which stands dismissed. \par \par In the second ground of appeal, Appellant complains that the Learned Chief Magistrate misdirected himself in holding that }{\fs28\insrsid11683983 the appellant sued the respondents, as a wrong party to the suit.}{\fs28\insrsid4349430 \par }{\fs28\insrsid11683983 \par I think with respect, that there is merit in this ground of appeal. In his judgment the learned chief magistrate said: \par \par }\pard \qj \li720\ri0\sl480\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid11683983 {\fs28\insrsid11683983 \'93The plaintiff\rquote s counsel framed two issues, the first of which was whether or not the plain tiff did furnish consideration for issue of the said cheque by the defendant and if so, whether the defendant is liable. The second issue was in respect of the relief available to either party. The defendant\rquote s counsel agreed with the issues framed by the plaintiff\rquote s counsel\'94. \par }\pard \qj \li0\ri0\sl480\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid11683983 {\fs28\insrsid11683983 \par In his judgment the Learned Chief Magistrate quoted the case of INTERFREIGHT FORWARDERS (U) LTD VS. EAST AFRICA DEV}{\fs28\insrsid11882960 ELOPMENT BANK, (1994 \endash 95) HCB 54 where it was held that.}{\fs28\insrsid11683983 \par }{\fs28\insrsid11882960 \par }\pard \qj \li720\ri0\sl480\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid11882960 {\fs28\insrsid11882960 \'93A party is expected to prove the case alleged by him and as covered in the issues framed. He will not be allowed at the trial to change his case or set up a case inconsistent with what he alleged in the pleadings\'94. \par }\pard \qj \li0\ri0\sl480\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid11882960 {\fs28\insrsid11882960 \par }{\fs28\insrsid1118263 \par }{\fs28\insrsid11882960 Then surprisingly the }{\fs28\insrsid1118263 L}{\fs28\insrsid11882960 earned }{\fs28\insrsid1118263 C}{\fs28\insrsid11882960 hief }{\fs28\insrsid1118263 M}{\fs28\insrsid11882960 agistrate said: \par \par }\pard \qj \li720\ri0\sl480\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid11882960 {\fs28\insrsid11882960 \'93With the above holding in mind, court wi shes to rule on whether the plaintiff sued the correct person in this case\'94. \par }\pard \qj \li0\ri0\sl480\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid11882960 {\fs28\insrsid11882960 \par Where then did he derive jurisdiction to discend into a matter that did not neither appear in the pleading nor framed as an issue? \par \par In his judgment the Learned trial chief magistrate said: \par \par }\pard \qj \li720\ri0\sl480\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid9249489 {\fs28\insrsid11882960 \'93At the onset, court wishes to note that although the defendant\rquote s counsel agreed and dealt with the issues as set out by the plaintiff\rquote s view, the latter should have }{\fs28\insrsid9249489 quarried whether the plaintiff actually sued the right party in this case\'94. \par }\pard \qj \li0\ri0\sl480\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9249489 {\fs28\insrsid9249489 \par While under O.13 r5 (1) the court is empowered at any time before passing the decree to amend the issues or frame additional issues, it must do so very sparingly and at any rate the parties must be given an opportunity to address court on such issues. Co nsidering an issue to which appellant had not been called upon to give his view gravely injured his and prejudiced his case. This ground must succeed. The same can be said of ground 4 which also succeeds. \par \par I now}{\fs28\insrsid8086079 turn to ground three of the appeal. Here appellant complains }{\fs28\insrsid14621403 that the learned chief magistrate misdirected himself by failure to evaluate proper}{\fs28\insrsid6753632 l}{\fs28\insrsid14621403 y evidence of implicit and/or explicit consideration furnished by the appellant for the amount issued against the respondent\rquote s dishonoured cheque. \par \par This being the first appeal I am enjoined to evaluate the evidence and come to my own independent decision on the evidence on record. \par \par First the issue of consideration was raised by counsel for the plaintiff. A }{\fs28\insrsid11218059 same reading of the plaint shows that plaintiff was suing on a }{\fs28\insrsid12662102 debt as represented by the dishonoured cheque. One wonders how the issue of consideration }{\fs28\insrsid13377611 came to be raised. Having raised it }{\fs28\insrsid12662102 appellant must succeed or fail }{\fs28\insrsid13377611 by it. }{ \fs28\insrsid12662102 The cheque in question was drawn on the Nile Bank by Voice of Toro of P. O. Box Kampala. On 13/9/2000 it was confirmed by Voice of Toro through Chris Katuramu its Deputy Managing Director as being genuine.}{\fs28\insrsid11882960

\par }{\fs28\insrsid12662102 \par A \'93cheque\'94 is a bill of exchange drawn on a banker and payable on demand. BILLS of exchange Act cap. 68 S. 72 refers. A \'93bill of exchange\'94 is an unconditional order in writing, }{\fs28\insrsid13377611 addressed by one person to another, }{ \fs28\insrsid12662102 signed by the person giving it, r}{\fs28\insrsid15937427 equiring }{\fs28\insrsid13377611 the person to whom it is addressed to }{\fs28\insrsid15937427 pay on demand or at a fixed or determinable future time a sum certain in money to or to the order of a specified person or to bearer. S.2 of the BILLS of }{\caps\fs28\insrsid15937427\charrsid6179017 exchange Act}{\fs28\insrsid15937427 CAP 68 refers. Valuable consideration for a bill may be constituted by-}{\fs28\insrsid12662102 \par }{\fs28\insrsid15937427 \par {\listtext\pard\plain\fs28\insrsid15937427 \hich\af0\dbch\af0\loch\f0 a)\tab}}\pard \qj \fi-720\li1800\ri0\sl480\slmult1\widctlpar\jclisttab\tx1800\aspalpha\aspnum\faauto\ls1\ilvl1\adjustright\rin0\lin1800\itap0\pararsid15937427 {\fs28\insrsid15937427 any consideration sufficient to support a simple contract. \par {\listtext\pard\plain\fs28\insrsid15937427 \hich\af0\dbch\af0\loch\f0 b)\tab}An antecedent debt or liability. Such a debt or liability is deemed valuable consideration whether the bill }{\fs28\insrsid7020817 is payable on demand or at a future time. Section 26 of the BILLS OF EXCHANGE ACT. Refers.}{\fs28\insrsid15937427 \par }\pard \qj \li0\ri0\sl480\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid7020817 {\fs28\insrsid7020817 \par The evidence of the appellant is far from being clear. It is colourless }{\fs28\insrsid6179017 to say the least. It is not only colourless }{\fs28\insrsid7020817 but self destructive as well. In examination in chief he said: \par \par }\pard \qj \li720\ri0\sl480\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid6179017 {\fs28\insrsid7020817 \'93 On 13/9/2000 I had a transaction between me and voice of Toro where I was supposed to be paid by Chris Katuramu on behalf of Toro. He gave me a cheque of 5m/= to be drawn on Voice of Toro account with Nile Bank. The cheque was in my }{ \fs28\insrsid10898530 name and for 5m/= dated 15/10/2000. \'85.. I had rendered the services of money lending. I had lent 5m/= to a gentleman called Bonny Matovu and Katuramu came in as a surety/guarantor for the money\'94.}{\fs28\insrsid7020817 \par }\pard \qj \li0\ri0\sl480\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid7020817 {\fs28\insrsid10898530 \par In cross examination he said: \par \par }\pard \qj \li720\ri0\sl480\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid6179017 {\fs28\insrsid10898530 \'93I lent money to Bony Matovu on 13/9/2000. I don\rquote t know if Bony Matovu was working with Voice of Toro. Bony Matovu came to my office seeking assistance. I told him I could give so long as I got }{\fs28\insrsid1783496 the guarantee . I told him to get someone to stand and he brought Chris Katuramu. (SLC) Bony came with a cheque and wrote it. Chris Katuramu agreed to guarantee the cheque\'94.}{\fs28\insrsid10898530 \par }\pard \qj \li0\ri0\sl480\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid7020817 {\fs28\insrsid1783496 \par From the above, it plain that although the cheque was drawn on the account of the respondent with the Nile Bank, there was no consideration for it. This was with the knowledge of the Appellant. Indeed in cross examination he said\'94 \'93 I did not provide any service to Voice of Toro\'94. \par \par Appellant as payee was no}{\fs28\insrsid6179017 t a holder in due course within}{\fs28\insrsid1783496 the meaning of the BILL of exchange act. \par \par The suit ought to have been dismissed under this contention. As this contention alone is sufficient to resolve this appeal the appeal stands dismissed. As the appellant succeeds on one ground of appeal, respondent will be entitled to \u8532\'3f of the costs of this appeal. I order accordingly. \par }{\fs28\insrsid6179017 \par \par }{\fs28\insrsid1783496 J. B. A. Katutsi \par }{\b\fs28\ul\insrsid1783496 JUDGE \par \par }{\b\fs28\insrsid6179017 \par \par \par \par \par }{\b\fs28\insrsid1783496 15/12/2004 \par }{\fs28\insrsid1783496 Asa Mugenyi for respondent. \par Appellant unrepresented. \par Nabatanzi court clerk. \par Judgment read. \par \par J. B. A. Katutsi \par }{\b\fs28\ul\insrsid1783496 JUDGE \par }{\b\fs28\insrsid1783496 15/12/2004}{\b\fs28\insrsid1783496\charrsid1783496 \par }\pard \qj \li0\ri0\sl480\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4349430 {\fs28\insrsid4349430\charrsid4349430 \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0 {\insrsid12996972 \par }}