Peter Mulira v Mitchell Cotts Ltd (HCT-00-CC-MA 521 of 2008) [2009] UGCommC 37 (2 June 2009)

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)}}{\*\pnseclvl9\pnlcrm\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}\pard\plain \qc \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid10381632 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\b\fs24\insrsid2046930\charrsid10381632 THE REPUBLIC OF UGANDA \par }{\b\fs24\insrsid610067\charrsid10381632 \par }{\b\fs24\insrsid2046930\charrsid10381632 \par }{\fs24\insrsid2046930\charrsid10381632 IN THE HIGH COURT OF UGANDA AT KAMPALA \par COMMERCIAL COURT DIVISION \par \par }{\fs24\insrsid610067\charrsid10381632 \par }{\fs24\insrsid9134564\charrsid10381632 HCT-}{\fs24\insrsid8810091\charrsid10381632 00-}{\fs24\insrsid9134564\charrsid10381632 C}{\fs24\insrsid15544173\charrsid10381632 C}{\fs24\insrsid9134564\charrsid10381632 -}{\fs24\insrsid2046930\charrsid10381632 M}{ \fs24\insrsid9134564\charrsid10381632 A}{\fs24\insrsid2046930\charrsid10381632 -0}{\fs24\insrsid9134564\charrsid10381632 521-}{\fs24\insrsid2046930\charrsid10381632 200}{\fs24\insrsid9134564\charrsid10381632 8}{\fs24\insrsid2046930\charrsid10381632

\par }{\fs24\insrsid610067\charrsid10381632 (ARISING FROM HCT-00-CC-CS-1471-1999) \par \par }{\b\fs24\insrsid2046930\charrsid10381632 \par }{\fs24\insrsid9134564\charrsid10381632 PETER MULIRA \'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85 APPLICANT }{\fs24\insrsid2046930\charrsid10381632 \par }{\fs24\insrsid610067\charrsid10381632 \par }{\fs24\insrsid9134564\charrsid10381632 \par }{\b\fs24\insrsid9134564\charrsid10381632 VERSUS \par }\pard \ql \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid10381632 {\fs24\insrsid9134564\charrsid10381632 \par MITCHELL COTTS LTD \'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85.\'85\'85\'85\'85. RESPONDENT \par \par }\pard \qc \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid10381632 {\fs24\insrsid2046930\charrsid10381632 \par BEFORE}{\i\fs24\insrsid2046930\charrsid10381632 :}{\fs24\insrsid2046930\charrsid10381632 HON. JUDGE LAMECK N. MUKASA \par }{\fs24\insrsid9134564\charrsid10381632 \par }{\fs24\insrsid2046930\charrsid10381632 \par }{\b\fs24\insrsid2046930\charrsid10381632 RULING: \par }\pard \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid10381632 {\fs24\insrsid2046930\charrsid10381632 \par TH}{\fs24\insrsid9134564\charrsid10381632 IS}{\fs24\insrsid2046930\charrsid10381632 is an application by Notice of Motion whereby the Applicant, Mr. Peter Mulira, seeks an order for stay of execution }{\fs24\insrsid15544173\charrsid10381632 in}{ \fs24\insrsid2046930\charrsid10381632 HCT-00-CC-CS-1471-1999 until the disposal of proceedings to re-instate }{\fs24\insrsid9134564\charrsid10381632 }{\fs24\insrsid2046930\charrsid10381632 HCCS No 424 of 2004. }{\fs24\insrsid11354743\charrsid10381632

\par }{\fs24\insrsid2046930\charrsid10381632 \par The grounds for the application are: \par \par {\listtext\pard\plain\insrsid2046930\charrsid10381632 \hich\af0\dbch\af0\loch\f0 1.\tab}}\pard \qj \fi-360\li720\ri0\sl360\slmult1\widctlpar\jclisttab\tx720\aspalpha\aspnum\faauto\ls1\adjustright\rin0\lin720\itap0\pararsid10381632 { \fs24\insrsid2046930\charrsid10381632 The Applicant has instituted proceedings to reinstate HCCS No 424 of 2004 \par {\listtext\pard\plain\insrsid2046930\charrsid10381632 \hich\af0\dbch\af0\loch\f0 2.\tab}HC}{\fs24\insrsid9134564\charrsid10381632 C}{\fs24\insrsid2046930\charrsid10381632 S No 424 of 2004 seeks to set aside the consent judgment and decree in }{ \fs24\insrsid15544173\charrsid10381632 HC}{\fs24\insrsid2046930\charrsid10381632 CS No 1471 of 1999. \par }\pard \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid10381632 {\fs24\insrsid2046930\charrsid10381632 \par {\listtext\pard\plain\insrsid2046930\charrsid10381632 \hich\af0\dbch\af0\loch\f0 3.\tab}}\pard \qj \fi-360\li720\ri0\sl360\slmult1\widctlpar\jclisttab\tx720\aspalpha\aspnum\faauto\ls1\adjustright\rin0\lin720\itap0\pararsid10381632 { \fs24\insrsid2046930\charrsid10381632 The real plaintiff in HCCS No 1471 }{\fs24\insrsid9134564\charrsid10381632 o}{\fs24\insrsid2046930\charrsid10381632 f 1999 has no interest in the execution. \par }\pard \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid10381632 {\fs24\insrsid2046930\charrsid10381632 \par {\listtext\pard\plain\insrsid2046930\charrsid10381632 \hich\af0\dbch\af0\loch\f0 4.\tab}}\pard \qj \fi-360\li720\ri0\sl360\slmult1\widctlpar\jclisttab\tx720\aspalpha\aspnum\faauto\ls1\adjustright\rin0\lin720\itap0\pararsid10381632 { \fs24\insrsid2046930\charrsid10381632 It is just and fair to stay the execution. \par }\pard \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid10381632 {\fs24\insrsid2046930\charrsid10381632 \par When the application came up for hearing Mr. Peter Walubiri, Counsel for the respondent}{\fs24\insrsid15544173\charrsid10381632 ,}{\fs24\insrsid2046930\charrsid10381632 raise two preliminary point}{\fs24\insrsid9134564\charrsid10381632 s}{ \fs24\insrsid2046930\charrsid10381632 of law. }{\fs24\insrsid9916111\charrsid10381632 First that}{\fs24\insrsid2046930\charrsid10381632 }{\fs24\insrsid9916111\charrsid10381632 the Applicant}{\fs24\insrsid2046930\charrsid10381632 could n ot bring an application for stay of execution of the main suit until he set}{\fs24\insrsid9134564\charrsid10381632 s}{\fs24\insrsid2046930\charrsid10381632 aside the consent }{\fs24\insrsid8205502\charrsid10381632 judgment}{ \fs24\insrsid2046930\charrsid10381632 as it is bin}{\fs24\insrsid9134564\charrsid10381632 d}{\fs24\insrsid8205502\charrsid10381632 ing on him. Counsel cited }{\i\fs24\ul\insrsid8205502\charrsid10381632 Peter Mulira Vs Mitchell Cotts Ltd. CACA No 15 of 2002}{\fs24\insrsid8205502\charrsid10381632 . }{\fs24\insrsid2046930\charrsid10381632 \par }{\fs24\insrsid8205502\charrsid10381632 \par The above Court of Appeal ca}{\fs24\insrsid11760609\charrsid10381632 s}{\fs24\insrsid8205502\charrsid10381632 e is good law that parties to a suit are bound by their consent judgment. }{\fs24\insrsid11760609\charrsid10381632 Hon. }{ \fs24\insrsid8205502\charrsid10381632 Justice Kituba, JA stated:- \par \par }\pard \qj \li1440\ri1440\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin1440\lin1440\itap0\pararsid10381632 {\fs24\insrsid9916111\charrsid10381632 \'93}{\fs24\insrsid11760609\charrsid10381632 T}{\fs24\insrsid9916111\charrsid10381632 he}{ \fs24\insrsid2246803\charrsid10381632 law regarding consent judgment is that parties to a Civil Suit are free to }{\fs24\insrsid9916111\charrsid10381632 consent to}{\fs24\insrsid2246803\charrsid10381632 a judgment. They may do so orally before a judge who then records the consent or they may do so in writing and affix their signature}{\fs24\insrsid11760609\charrsid10381632 s}{\fs24\insrsid2246803\charrsid10381632 on the consent. In that case still the Court has to sign}{\fs24\insrsid9717783\charrsid10381632 that judgment. A Consent judgment }{\fs24\insrsid11760609\charrsid10381632 m}{\fs24\insrsid9717783\charrsid10381632 ay }{ \fs24\insrsid11760609\charrsid10381632 not }{\fs24\insrsid9717783\charrsid10381632 be set aside except for fraud, collusion or for ignorance of material fa}{\fs24\insrsid15025503\charrsid10381632 cts}{\fs24\insrsid9717783\charrsid10381632 . See }{ \i\fs24\ul\insrsid9717783\charrsid10381632 Brooke }{\i\fs24\ul\insrsid9916111\charrsid10381632 Bond Liebig}{\i\fs24\ul\insrsid9717783\charrsid10381632 (T) Ltd Vs Mallya (1975) EA 266}{\fs24\insrsid9717783\charrsid10381632 .\'94}{ \fs24\insrsid8205502\charrsid10381632 \par }\pard \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid10381632 {\fs24\insrsid9717783\charrsid10381632 \par Once a consent judgment is recorded or endorsed by court it becomes the courts judgment out of which a decree }{\fs24\insrsid15025503\charrsid10381632 f}{\fs24\insrsid9717783\charrsid10381632 o}{\fs24\insrsid15025503\charrsid10381632 r}{ \fs24\insrsid9717783\charrsid10381632 execution is extracted. Any judgment unless set aside is biding on the parties. Order 22 rule 26 of the Civil Procedure Rules, however, provides:- \par }{\fs24\insrsid9179611\charrsid10381632 \par }\pard \qj \li1440\ri1440\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin1440\lin1440\itap0\pararsid10381632 {\fs24\insrsid9717783\charrsid10381632 \'93 Where a suit is pending in any court against the holder of the decree of the Court in the name of the person against wh}{\fs24\insrsid15025503\charrsid10381632 om}{\fs24\insrsid9717783\charrsid10381632 the decree was passed, the Court may, on such terms as to security or otherwise, as it thinks fit, stay execution of }{\fs24\insrsid15025503\charrsid10381632 t}{\fs24\insrsid9717783\charrsid10381632 he decree until the pending suit has been decided.\'94

\par \par }\pard \qj \li0\ri1440\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin1440\lin0\itap0\pararsid10381632 {\fs24\insrsid9717783\charrsid10381632 The Civil }{\fs24\insrsid9916111\charrsid10381632 Procedure Act}{ \fs24\insrsid9717783\charrsid10381632 defines \'93suit}{\fs24\insrsid9916111\charrsid10381632 \'94 to}{\fs24\insrsid9717783\charrsid10381632 mean }{\fs24\insrsid15025503\charrsid10381632 \'93}{\fs24\insrsid9717783\charrsid10381632 all civil proceedings commenced in any manner prescribed.\'94 \par }\pard \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid10381632 {\fs24\insrsid9717783\charrsid10381632 \par Therefore a miscellaneous application is also a suit. In paragraph }{\fs24\insrsid293578\charrsid10381632 3 of his affidavit in support the Applicant avers:-}{\fs24\insrsid9717783\charrsid10381632 \par }{\fs24\insrsid293578\charrsid10381632 \par }\pard \qj \li1440\ri1440\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin1440\lin1440\itap0\pararsid10381632 {\fs24\insrsid293578\charrsid10381632 \'93 THAT I have instituted proceeds to reinstate HCCS No 424 of 2004 to challenge the said decre}{\fs24\insrsid10626895\charrsid10381632 tal}{\fs24\insrsid293578\charrsid10381632 amount and the said suit is still pending in the Civil Division of the High Court.\'94 \par }\pard \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid10381632 {\fs24\insrsid293578\charrsid10381632 \par It is not disputed that }{\fs24\insrsid10626895\charrsid10381632 an }{\fs24\insrsid293578\charrsid10381632 application by the Applicant against the Respondent, is still pending in the Civil Division of the High Court. The Respondent is the holder }{ \fs24\insrsid9916111\charrsid10381632 of }{\fs24\insrsid10626895\charrsid10381632 the }{\fs24\insrsid9916111\charrsid10381632 decree}{\fs24\insrsid293578\charrsid10381632 which is the subject of this application, and the application before the Civil Division Court is in the name of the Applicant against whom the decree was passed. A party }{\fs24\insrsid9916111\charrsid10381632 against whom}{ \fs24\insrsid293578\charrsid10381632 a consent judgment or decree has been recorded can apply for a stay of its execution if he has a suit in his name against the consent decree holder. \par \par Secondly, in paragraph 6 (d) of the Respondent}{\fs24\insrsid15544173\charrsid10381632 \rquote }{\fs24\insrsid293578\charrsid10381632 s Affidavit in reply it is averred that there are pending application}{\fs24\insrsid10626895\charrsid10381632 s}{ \fs24\insrsid293578\charrsid10381632 for stay of execution in the }{\fs24\insrsid9916111\charrsid10381632 Civil Division}{\fs24\insrsid293578\charrsid10381632 Court. Mr. }{\fs24\insrsid9916111\charrsid10381632 Walubiri referred}{ \fs24\insrsid293578\charrsid10381632 to section 6 of the Civil Procedure Act. The section provides. \par \par }\pard \qj \li1440\ri1440\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin1440\lin1440\itap0\pararsid10381632 {\fs24\insrsid293578\charrsid10381632 \'93No Cou rt shall proceed with the trial of any suit or proceeding in which the matter in issue is also directly and substantially in issue in a previously instituted suit or proceeding between the same parties, or between parties under wh}{ \fs24\insrsid10626895\charrsid10381632 o}{\fs24\insrsid293578\charrsid10381632 m they or any of the}{\fs24\insrsid10626895\charrsid10381632 m}{\fs24\insrsid15544173\charrsid10381632 claim}{\fs24\insrsid293578\charrsid10381632 litigation under the same title, where that suit or proceeding is pending in the same or any other court having jurisdiction in Uganda to the relief claimed.\'94 \par }\pard \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid10381632 {\fs24\insrsid293578\charrsid10381632 \par I agree with Mr. Walubiri that the provisions of that section are }{\fs24\insrsid9179611\charrsid10381632 mandatory and where the existence o}{\fs24\insrsid10626895\charrsid10381632 f}{\fs24\insrsid9179611\charrsid10381632 such a previous}{ \fs24\insrsid10626895\charrsid10381632 ly}{\fs24\insrsid9179611\charrsid10381632 instituted suit has been proved the court has no alternative but to stay the subsequent proceedings before it. }{\fs24\insrsid293578\charrsid10381632 \par }{\fs24\insrsid9179611\charrsid10381632 \par Annexture }{\fs24\insrsid10626895\charrsid10381632 I}{\fs24\insrsid9179611\charrsid10381632 to the Respondent}{\fs24\insrsid10626895\charrsid10381632 \rquote }{\fs24\insrsid9179611\charrsid10381632 s affidavit is a Notice of Motion issued on 19}{ \fs24\super\insrsid9179611\charrsid10381632 th}{\fs24\insrsid9179611\charrsid10381632 September 2008 as Miscellaneous }{\fs24\insrsid10626895\charrsid10381632 A}{\fs24\insrsid9179611\charrsid10381632 pplication No 427 of 200}{ \fs24\insrsid10626895\charrsid10381632 8}{\fs24\insrsid9179611\charrsid10381632 arising from Civil Suit No 424 of 2004}{\fs24\insrsid10626895\charrsid10381632 .}{\fs24\insrsid9179611\charrsid10381632 That Application}{ \fs24\insrsid10626895\charrsid10381632 ,}{\fs24\insrsid9179611\charrsid10381632 is inter alia, for an order that: \par \par }\pard \qj \li1440\ri1440\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin1440\lin1440\itap0\pararsid10381632 {\fs24\insrsid9179611\charrsid10381632 \'93(a}{\fs24\insrsid9916111\charrsid10381632 ) Execution}{ \fs24\insrsid9179611\charrsid10381632 herein be stayed until the disposal of the application for reinstatement of }{\i\fs24\insrsid9179611\charrsid10381632 HCCS No 424 of 2004 \endash Peter }{\i\fs24\insrsid9916111\charrsid10381632 Mulira V}{ \i\fs24\insrsid9179611\charrsid10381632 - Mitchell Cotts Ltd}{\fs24\insrsid9179611\charrsid10381632 .\'94 \par }\pard \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid10381632 {\fs24\insrsid9179611\charrsid10381632 \par Civil Suit No 424 of 2004 is a Civil Division}{\fs24\insrsid10626895\charrsid10381632 Court}{\fs24\insrsid9179611\charrsid10381632 re-numbering of the }{\fs24\insrsid1843300\charrsid10381632 originally}{\fs24\insrsid9179611\charrsid10381632 }{ \fs24\insrsid1843300\charrsid10381632 Commercial}{\fs24\insrsid9179611\charrsid10381632 Division Court Civil Suit No 370 of 2004 which was filed to set aside a consent judgment in }{\fs24\insrsid1843300\charrsid10381632 Commercial}{ \fs24\insrsid9179611\charrsid10381632 }{\fs24\insrsid1843300\charrsid10381632 Division}{\fs24\insrsid9179611\charrsid10381632 Court Civil Suit No 1}{\fs24\insrsid10626895\charrsid10381632 4}{\fs24\insrsid9179611\charrsid10381632 71 of 1999. \par \par The parties to this application are exactly the same as in the previously file}{\fs24\insrsid10626895\charrsid10381632 d}{\fs24\insrsid9179611\charrsid10381632 Misc. App No 427 of 2008. The issue in M}{\fs24\insrsid15544173\charrsid10381632 isc}{ \fs24\insrsid9915940\charrsid10381632 .}{\fs24\insrsid9179611\charrsid10381632 App}{\fs24\insrsid9915940\charrsid10381632 .}{\fs24\insrsid9179611\charrsid10381632 No 427 of 2008 is whether to stay execution pending the disposal of the application to reinstate HCCS 424 of 2004. The execution to be so stayed is that of the Decree in Civil Suit No 424 of 200}{\fs24\insrsid10626895\charrsid10381632 4}{ \fs24\insrsid9179611\charrsid10381632 . The Order or Decree to be executed is annexture A to the Respondent}{\fs24\insrsid10626895\charrsid10381632 \rquote s}{\fs24\insrsid9179611\charrsid10381632 affidavit which is the }{ \fs24\insrsid9916111\charrsid10381632 dismissal of}{\fs24\insrsid9179611\charrsid10381632 that suit under Order 17 rule 6 of the Civil Procedure R}{\fs24\insrsid1843300\charrsid10381632 ules.}{\fs24\insrsid9179611\charrsid10381632 \par }{\fs24\insrsid1843300\charrsid10381632 \par The instant application is seeking stay of execution in HC}{\fs24\insrsid15544173\charrsid10381632 C}{\fs24\insrsid1843300\charrsid10381632 S No 1471 of 1999 pending the disposal of the proceedings to re-instate HCCS No. 424 of 2004. The issue in the instant application is whether to stay the execution of the consent decree in HCCS No 1471 of 1999. An Order staying execution }{ \fs24\insrsid10626895\charrsid10381632 of CS}{\fs24\insrsid1843300\charrsid10381632 No 424 of 2004 does not automatically stay execution of Civil Suit No 1471 of 1999. Similarly stay of execution }{\fs24\insrsid10626895\charrsid10381632 of}{ \fs24\insrsid1843300\charrsid10381632 Civil Suit No 1471 of 1999 does not automatically stay execution of Civil Suit No 424 of 2004. Though the final decree in Civil Suit No 424 of }{\fs24\insrsid9916111\charrsid10381632 2004 will}{ \fs24\insrsid1843300\charrsid10381632 affect the Consent Decree in Civil Suit 14 71 of 1999, whether affirmatively or otherwise, the order in Misc application No 427 of 2008 will only affect the execution of HCCS No 424 of 2004 and the order in th e instant application will only affect execution of HCCS No 1471 of 1999. The two applications are }{\fs24\insrsid10626895\charrsid10381632 independent }{\fs24\insrsid1843300\charrsid10381632 of each other. \par \par The preliminally objections are accordingly rejected and dismissed with }{\fs24\insrsid9916111\charrsid10381632 cost}{\fs24\insrsid10626895\charrsid10381632 s}{\fs24\insrsid9916111\charrsid10381632 .}{\fs24\insrsid1843300\charrsid10381632 }{ \fs24\insrsid10626895\charrsid10381632 H}{\fs24\insrsid1843300\charrsid10381632 earing of the application will proceed on merit. \par \par \par \par }{\fs24\insrsid610067\charrsid10381632 \par \par }{\fs24\insrsid1843300\charrsid10381632 \par }\pard \ql \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid10381632 {\fs24\insrsid1843300\charrsid10381632 \par }\pard \qc \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid10381632 {\fs24\insrsid1843300\charrsid10381632 Hon Mr. Justice Lameck N. Mukasa \par }{\b\fs24\insrsid10626895\charrsid10381632 JUDGE}{\b\fs24\insrsid1843300\charrsid10381632 \par }{\fs24\insrsid1843300\charrsid10381632 3}{\fs24\super\insrsid1843300\charrsid10381632 rd}{\fs24\insrsid1843300\charrsid10381632 June 2009}{\fs24\insrsid8205502\charrsid10381632 \par }}