M/s Sri Jaya Ltd v John Hope Mukasa & Anor (High Court Civil Suit No. 796 of 2000) [2004] UGCommC 17 (27 June 2004)

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{\insrsid11940736 \chftnsepc \par }}\sectd \linex0\headery708\footery708\colsx708\endnhere\sectlinegrid360\sectdefaultcl\sectrsid9509520\sftnbj {\footer \pard\plain \s16\ql \li0\ri0\widctlpar \tqc\tx4153\tqr\tx8306\pvpara\phmrg\posxr\posy0\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid15092311 \fs24\lang2057\langfe2057\cgrid\langnp2057\langfenp2057 {\field{\*\fldinst {\cs17\insrsid11940736 PAGE }}{\fldrslt { \cs17\lang1024\langfe1024\noproof\insrsid14251231 1}}}{\cs17\insrsid11940736 \par }\pard \s16\ql \li0\ri360\widctlpar\tqc\tx4153\tqr\tx8306\aspalpha\aspnum\faauto\adjustright\rin360\lin0\itap0\pararsid11940736 {\insrsid11940736 \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\pararsid11940736 \fs24\lang2057\langfe2057\cgrid\langnp2057\langfenp2057 {\b\lang1033\langfe2057\langnp1033\insrsid4668137\charrsid9509520 THE HIGH COURT OF UGANDA \line COMMERCIAL DIVISION \line HIGH COURT CIVIL}{\b\lang1033\langfe2057\langnp1033\insrsid11940736 SUIT NO. 796 OF 2000 \line \par M/S SRI J}{\b\lang1033\langfe2057\langnp1033\insrsid4668137\charrsid9509520 AYA LTD:::::::::::::::::::::::::::::}{\b\lang1033\langfe2057\langnp1033\insrsid11940736 ::::::::::::::::::::::::::::::: PLAINTIFF}{ \b\lang1033\langfe2057\langnp1033\insrsid4668137\charrsid9509520 \line }{\b\lang1033\langfe2057\langnp1033\insrsid11940736 \par }{\b\lang1033\langfe2057\langnp1033\insrsid4668137\charrsid9509520 VERSUS \line }{\b\lang1033\langfe2057\langnp1033\insrsid11940736 \par }\pard \s15\ql \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid11940736 {\b\lang1033\langfe2057\langnp1033\insrsid4668137\charrsid9509520 1. JOHN HO}{ \b\lang1033\langfe2057\langnp1033\insrsid14251231 PE MU}{\b\lang1033\langfe2057\langnp1033\insrsid4668137\charrsid9509520 KA}{\b\lang1033\langfe2057\langnp1033\insrsid14251231 SA}{\b\lang1033\langfe2057\langnp1033\insrsid4668137\charrsid9509520 ] \line 2. M/S LITHO PACK LIMITED]::::::::::::::::::::}{\b\lang1033\langfe2057\langnp1033\insrsid11940736 :::}{\b\lang1033\langfe2057\langnp1033\insrsid4668137\charrsid9509520 ::::::::::::}{\b\lang1033\langfe2057\langnp1033\insrsid11940736 :::}{ \b\lang1033\langfe2057\langnp1033\insrsid11940736\charrsid9509520 : DEFENDANTS}{\b\lang1033\langfe2057\langnp1033\insrsid4668137\charrsid9509520 \line }{\b\lang1033\langfe2057\langnp1033\insrsid11940736 \par }{\b\lang1033\langfe2057\langnp1033\insrsid4668137\charrsid9509520 BEFORE: }{\b\ul\lang1033\langfe2057\langnp1033\insrsid4668137\charrsid9509520 JUSTICE GEOFFREY KIRYABWIRE \line RULING: }{\b\lang1033\langfe2057\langnp1033\insrsid4668137\charrsid9509520 \line }{\lang1033\langfe2057\langnp1033\insrsid4668137\charrsid9509520 This is a relatively old case that was filed in 2000 and has gone through the hands of 2 lawyers for the Defendant and 2 trial Judges. When the file came before me an interlocutory application for security for costs was first heard by the courts Registrar and an appeal thereafter was heard by and disposed off by myself. \line }{\lang1033\langfe2057\langnp1033\insrsid1317361 \par }\pard \s15\ql \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid8930967 {\lang1033\langfe2057\langnp1033\insrsid4668137\charrsid9509520 Thereafter on the 27}{ \lang1033\langfe2057\super\langnp1033\insrsid4668137\charrsid1317361 th}{\lang1033\langfe2057\langnp1033\insrsid4668137\charrsid9509520 May 2004 the parties to this case agreed with court that the scheduling conference should be held on the 17}{ \lang1033\langfe2057\super\langnp1033\insrsid4668137\charrsid1317361 th}{\lang1033\langfe2057\langnp1033\insrsid4668137\charrsid9509520 June 2004. In a bid to expedite the process it was furt her agreed that the parties file in court in advance of that date their scheduling memoranda. Counsel for the Defendant then informed court that he had a preliminary objection, which he intended}{\lang1033\langfe2057\langnp1033\insrsid1317361 to }{ \lang1033\langfe2057\langnp1033\insrsid4668137\charrsid9509520 file with his memorandum. Court allowed him to do so to allow for the better management of the case. \line }{\lang1033\langfe2057\langnp1033\insrsid1317361 \par }{\lang1033\langfe2057\langnp1033\insrsid4668137\charrsid9509520 The Defendant\rquote s counsel filed in court his scheduling memorandum dated 14}{\lang1033\langfe2057\super\langnp1033\insrsid4668137\charrsid1317361 th}{ \lang1033\langfe2057\langnp1033\insrsid4668137\charrsid9509520 June 2004 on the same date. The said memorandum contained the outline submissions of his preliminary objection. The Plaintiff on the 16}{ \lang1033\langfe2057\super\langnp1033\insrsid4668137\charrsid1317361 th}{\lang1033\langfe2057\langnp1033\insrsid4668137\charrsid9509520 June 2004 filed in court a reply to the preliminary objection dated the same day. On the 17}{ \lang1033\langfe2057\super\langnp1033\insrsid4668137\charrsid1317361 th}{\lang1033\langfe2057\langnp1033\insrsid4668137\charrsid9509520 June 2004 I directed that the scheduling proceed and that I would rule on the preliminary objection on the 28th June 2004 just before the trial. \line }{\lang1033\langfe2057\langnp1033\insrsid1317361 \par }{\lang1033\langfe2057\langnp1033\insrsid4668137\charrsid9509520 The issue as put by counsel for the Defendant to be determined as a preliminary objection was; \line }{\lang1033\langfe2057\langnp1033\insrsid1317361 \par }\pard \s15\ql \fi720\li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid1317361 {\i\lang1033\langfe2057\langnp1033\insrsid1317361 \'93Whether the 1}{ \i\lang1033\langfe2057\super\langnp1033\insrsid1317361\charrsid1317361 s}{\i\lang1033\langfe2057\super\langnp1033\insrsid4668137\charrsid1317361 t}{\i\lang1033\langfe2057\langnp1033\insrsid1317361 Defendant i}{ \i\lang1033\langfe2057\langnp1033\insrsid4668137\charrsid9509520 s wrongly sued?\'94 \line }{\i\lang1033\langfe2057\langnp1033\insrsid1317361 \par }\pard \s15\ql \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid1317361 {\lang1033\langfe2057\langnp1033\insrsid4668137\charrsid9509520 The basic objection is that the dispute in this case is between two companies namely the Plaintiff M/S Sri. Jaya Limited and the 2nd Defendant M/S Litho Pack Limited and therefore it is wrong to join the 1 Defendant Mr. John Hope Mukasa who is a Director of the 2id Defendant as a Defendant in the suit. \line }{\lang1033\langfe2057\langnp1033\insrsid1317361 \par }{\lang1033\langfe2057\langnp1033\insrsid4668137\charrsid9509520 For the Plaintiff it is submitted that the 1st defendant who is the Managing Director of the 2}{\lang1033\langfe2057\super\langnp1033\insrsid1317361\charrsid1317361 nd}{ \lang1033\langfe2057\langnp1033\insrsid4668137\charrsid9509520 defendant, is being sued in his own right and in any event the plaintiff intends to pierc}{\lang1033\langfe2057\langnp1033\insrsid1317361 e the veil of incorporation. \line }{ \lang1033\langfe2057\langnp1033\insrsid4668137\charrsid9509520 \par }\pard \s15\ql \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid8930967 {\lang1033\langfe2057\langnp1033\insrsid4668137\charrsid9509520 The applicable law on the subject of preliminary objections is order 6 rr 27 and 28 of the CPR. These provide as follows: - \line }{\lang1033\langfe2057\langnp1033\insrsid1317361 \par }\pard \s15\ql \li720\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\ipgp1\pararsid1317361 {\i\lang1033\langfe2057\langnp1033\insrsid4668137\charrsid9509520 \'93 27 any party shall be entitled be entitled to raise by his pleadings any point of law, and any point so raised shall be disposed of by the court at or after the hearing. \line }{\i\lang1033\langfe2057\langnp1033\insrsid1317361 \par }\pard \s15\ql \li1440\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin1440\itap0\ipgp1\pararsid1317361 {\i\lang1033\langfe2057\langnp1033\insrsid4668137\charrsid9509520 Provided that by consent of the parties, or by order of the court on the application of either party, the same may be set down for hearing and disposed of at any time before the hearing. \line }{\i\lang1033\langfe2057\langnp1033\insrsid1317361 \par }\pard \s15\ql \li720\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\ipgp1\pararsid1317361 {\i\lang1033\langfe2057\langnp1033\insrsid4668137\charrsid9509520 28 1f In the }{ \i\lang1033\langfe2057\langnp1033\insrsid1317361\charrsid9509520 opinion}{\i\lang1033\langfe2057\langnp1033\insrsid4668137\charrsid9509520 of the court, the decision of such point of law substan tially disposes of the whole suit, or of any distinct cause of action, ground of defence, set }{\i\lang1033\langfe2057\langnp1033\insrsid1317361\charrsid9509520 off}{\i\lang1033\langfe2057\langnp1033\insrsid1317361 countercl}{ \i\lang1033\langfe2057\langnp1033\insrsid4668137\charrsid9509520 aim or reply therein, the court may }{\i\lang1033\langfe2057\langnp1033\insrsid1317361\charrsid9509520 there}{\i\lang1033\langfe2057\langnp1033\insrsid4668137\charrsid9509520 upon dismiss the suit or make such other order }{\i\lang1033\langfe2057\langnp1033\insrsid1317361\charrsid9509520 therein}{\i\lang1033\langfe2057\langnp1033\insrsid4668137\charrsid9509520 as may be just.\'94 \line }{ \i\lang1033\langfe2057\langnp1033\insrsid1317361 \par }\pard \s15\ql \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid1317361 {\lang1033\langfe2057\langnp1033\insrsid4668137\charrsid9509520 The Supreme Court in the case of }{ \ul\lang1033\langfe2057\langnp1033\insrsid4668137\charrsid9509520 Attorney General }{\lang1033\langfe2057\langnp1033\insrsid4668137\charrsid9509520 -}{\lang1033\langfe2057\langnp1033\insrsid1317361\charrsid9509520 vs. -}{ \lang1033\langfe2057\langnp1033\insrsid4668137\charrsid9509520 }{\ul\lang1033\langfe2057\langnp1033\insrsid1317361 Major General David Tiny}{\ul\lang1033\langfe2057\langnp1033\insrsid4668137\charrsid9509520 efuza }{ \lang1033\langfe2057\langnp1033\insrsid4668137\charrsid9509520 Constt Appeal 1/97 gave elaborate guidelines on the procedure for preliminary objections. Justice J. N. Mulenga (JSC) while referring }{\lang1033\langfe2057\langnp1033\insrsid1317361 to order 6 rr 27 and 28 held; \line }{\lang1033\langfe2057\langnp1033\insrsid4668137\charrsid9509520 \par }\pard \s15\ql \li720\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\ipgp1\pararsid1317361 {\i\lang1033\langfe2057\langnp1033\insrsid1317361 \'93}{ \i\lang1033\langfe2057\langnp1033\insrsid4668137\charrsid9509520 Clearly under these provisions, the court has options. It may or may not hear the point of law before the hearing. It may dispose of the point before, at or after the hearing and it may or may not dismiss the suit or make any order it deems just. I would the}{ \i\lang1033\langfe2057\langnp1033\insrsid1317361 refore not hold a court to be }{\i\lang1033\langfe2057\langnp1033\insrsid4668137\charrsid9509520 i}{\i\lang1033\langfe2057\langnp1033\insrsid1317361 n}{ \i\lang1033\langfe2057\langnp1033\insrsid4668137\charrsid9509520 error, which opts to hear a }{\i\lang1033\langfe2057\langnp1033\insrsid1317361\charrsid9509520 preliminary}{\i\lang1033\langfe2057\langnp1033\insrsid4668137\charrsid9509520 objection but postpones its decision to be incorporated in its final judgment, unless it is shown that mater/al prejudice was thereby caused to either party; or that the decision was reached at un }{ \i\lang1033\langfe2057\langnp1033\insrsid1317361\charrsid9509520 judicially}{\i\lang1033\langfe2057\langnp1033\insrsid4668137\charrsid9509520 \rquote \line }{\i\lang1033\langfe2057\langnp1033\insrsid1317361 \par }\pard \s15\ql \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid1317361 {\lang1033\langfe2057\langnp1033\insrsid4668137\charrsid9509520 Clear ly the procedure to be used in handling a preliminary objection is flexible and one of judicial discretion. \line }{\lang1033\langfe2057\langnp1033\insrsid1317361 \par }\pard \s15\ql \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid8930967 {\lang1033\langfe2057\langnp1033\insrsid4668137\charrsid9509520 In the instant case the preliminary objection seeks to strike out the 1}{\lang1033\langfe2057\super\langnp1033\insrsid4668137\charrsid1317361 st}{\lang1033\langfe2057\langnp1033\insrsid4668137\charrsid9509520 Defendant Managing Direct}{ \lang1033\langfe2057\langnp1033\insrsid1317361 or and leave his company as the}{\lang1033\langfe2057\langnp1033\insrsid4668137\charrsid9509520 only Defendant. The 1}{\lang1033\langfe2057\super\langnp1033\insrsid4668137\charrsid1317361 st}{ \lang1033\langfe2057\langnp1033\insrsid4668137\charrsid9509520 Defendant regularly attends court in his own capacity and that of representative of the 2}{\lang1033\langfe2057\super\langnp1033\insrsid4668137\charrsid1317361 nd}{ \lang1033\langfe2057\langnp1033\insrsid4668137\charrsid9509520 Defendant Company. In my view if I were to uphold the preliminary objection at this time it would probably give some comfort to the 1}{ \lang1033\langfe2057\super\langnp1033\insrsid4668137\charrsid1317361 st}{\lang1033\langfe2057\langnp1033\insrsid4668137\charrsid9509520 Defendant on the issue of personal liability but it would not substantially dispos}{ \lang1033\langfe2057\langnp1033\insrsid1317361 ed of the dispute at hand. The 1}{\lang1033\langfe2057\super\langnp1033\insrsid1317361\charrsid1317361 s}{\lang1033\langfe2057\super\langnp1033\insrsid4668137\charrsid1317361 t}{ \lang1033\langfe2057\langnp1033\insrsid4668137\charrsid9509520 Defendant is going to}{\lang1033\langfe2057\langnp1033\insrsid1317361 be a primary witness for the 2}{\lang1033\langfe2057\super\langnp1033\insrsid1317361\charrsid1317361 nd}{ \lang1033\langfe2057\langnp1033\insrsid4668137\charrsid9509520 Defendant and will probably remain in court throughout the tri}{\lang1033\langfe2057\langnp1033\insrsid1317361 al. I do not therefore see any }{ \lang1033\langfe2057\langnp1033\insrsid4668137\charrsid9509520 material prejudice if I postpone my ruling on the objection now to be incorporated in my final judgment on the merits after the hearing. \line I accordingly defer my ruling on the preliminary objection until my final judgment in this case. \line }{\lang1033\langfe2057\langnp1033\insrsid1317361 \par }{\lang1033\langfe2057\langnp1033\insrsid4668137\charrsid9509520 Geo}{\lang1033\langfe2057\langnp1033\insrsid1317361 ffre}{\lang1033\langfe2057\langnp1033\insrsid4668137\charrsid9509520 y Kiryabwire \line }{ \b\lang1033\langfe2057\langnp1033\insrsid4668137\charrsid9509520 Ag JUDGE \line }{\lang1033\langfe2057\langnp1033\insrsid1317361 Date 28/06/04 }{\i\lang1033\langfe2057\langnp1033\insrsid4668137\charrsid9509520 }{ \lang1033\langfe2057\langnp1033\insrsid4668137\charrsid9509520 \par }\pard\plain \ql \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid8930967 \fs24\lang2057\langfe2057\cgrid\langnp2057\langfenp2057 {\lang1033\langfe2057\langnp1033\insrsid4668137\charrsid9509520 \par }}