R.L.Jain v Kasozi G.Michael & Anor (High Court Miscellaneous Application No. 585 of 2007) [2007] UGCommC 85 (24 October 2007)

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{\insrsid6385716 \chftnsepc \par }}\sectd \pgnid\linex0\headery708\footery708\colsx708\endnhere\sectlinegrid360\sectdefaultcl\sectrsid13394390\sftnbj {\footer \pard\plain \s15\ql \li0\ri0\widctlpar \tqc\tx4320\tqr\tx8640\pvpara\phmrg\posxc\posy0\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid7032302 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\field{\*\fldinst {\cs16\insrsid15802220 PAGE }}{\fldrslt { \cs16\lang1024\langfe1024\noproof\insrsid16070235 - 1 -}}}{\cs16\insrsid15802220 \par }\pard \s15\ql \li0\ri0\widctlpar\tqc\tx4320\tqr\tx8640\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0 {\insrsid15802220 \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 \qc \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid14571629 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\b\insrsid11799812\charrsid14571629 THE REPUBLIC OF UGANDA \par \par IN THE HIGH COURT OF UGANDA AT KAMPALA \par COMMERCIAL COURT DIVISION \par \par }{\insrsid11799812\charrsid14571629 \par HCT-00-CC-MA-0585-2007 \par (Arising from HCT-00-CC-CS-0689-2007) \par \par \par }\pard \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid14571629 {\insrsid11799812\charrsid14571629 R. L. }{\insrsid14571629\charrsid14571629 JAIN \'85}{\insrsid11799812\charrsid14571629 \'85\'85.\'85\'85\'85 \'85\'85\'85..\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85.. PLAINTIFF \par }\pard \qc \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid14571629 {\insrsid11799812\charrsid14571629 \par }{\b\insrsid11799812\charrsid14571629 VERSUS \par }\pard \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid14571629 {\b\insrsid11799812\charrsid14571629 \par }\pard \qj \li360\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin360\itap0\pararsid14571629 {\insrsid11799812\charrsid14571629 K}{\insrsid10690899\charrsid14571629 AS}{\insrsid11799812\charrsid14571629 OZI G. MICHEAL & ANOTHER\'85 \'85\'85}{\insrsid12465950\charrsid14571629 \'85}{\insrsid11799812\charrsid14571629 \'85. DEFENDANTS \par \par }\pard \qc \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid14571629 {\insrsid11799812\charrsid14571629 \par }{\insrsid12465950\charrsid14571629 \par }{\insrsid11799812\charrsid14571629 BEFORE: HON. MR. JUSTICE LAMECK N. MUKASA \par \par }{\insrsid12465950\charrsid14571629 \par }{\b\insrsid11799812\charrsid14571629 RULING: \par }\pard \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid14571629 {\insrsid467479\charrsid14571629 \par }{\insrsid12465950\charrsid14571629 \par }{\insrsid467479\charrsid14571629 This is an application brought by Notice of Motion under Order 36 rules 3 and 4 Orde}{\insrsid1773402\charrsid14571629 r}{\insrsid467479\charrsid14571629 52 rule}{\insrsid15802220\charrsid14571629 s}{ \insrsid467479\charrsid14571629 1 and 3 of the Civil Procedure Rules for or}{\insrsid10690899\charrsid14571629 ders}{\insrsid467479\charrsid14571629 that:-}{\insrsid10319906\charrsid14571629 \par }{\insrsid467479\charrsid14571629 \par {\listtext\pard\plain\lang1033\langfe1033\langnp1033\langfenp1033\insrsid1773402\charrsid14571629 \hich\af0\dbch\af0\loch\f0 1.\tab}}\pard \qj \fi-390\li750\ri0\sl360\slmult1\widctlpar \jclisttab\tx750\aspalpha\aspnum\faauto\ls1\adjustright\rin0\lin750\itap0\pararsid14571629 {\insrsid1773402\charrsid14571629 The applican}{\insrsid10690899\charrsid14571629 t\rquote s}{\insrsid1773402\charrsid14571629 be granted unconditional leave to appear and defend this suit.}{\insrsid467479\charrsid14571629 \par {\listtext\pard\plain\lang1033\langfe1033\langnp1033\langfenp1033\insrsid5654526\charrsid14571629 \hich\af0\dbch\af0\loch\f0 2.\tab}}{\insrsid5654526\charrsid14571629 Costs}{\insrsid1773402\charrsid14571629 of this application be provides for. \par }\pard \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid14571629 {\insrsid1773402\charrsid14571629 \par }{\insrsid12465950\charrsid14571629 \par \par }{\insrsid1773402\charrsid14571629 The grounds for this application are that: \par \par {\listtext\pard\plain\lang1033\langfe1033\langnp1033\langfenp1033\insrsid1773402\charrsid14571629 \hich\af0\dbch\af0\loch\f0 (a)\tab}}\pard \qj \fi-420\li780\ri0\sl360\slmult1\widctlpar \jclisttab\tx780\aspalpha\aspnum\faauto\ls2\adjustright\rin0\lin780\itap0\pararsid14571629 {\insrsid1773402\charrsid14571629 The Applicants/Defendants received a loan of Uganda Shs39}{\insrsid340414\charrsid14571629 , 000,000}{ \insrsid1773402\charrsid14571629 /= from the Respondent/Plaintiff at 15% interest per month for two months. \par {\listtext\pard\plain\lang1033\langfe1033\langnp1033\langfenp1033\insrsid1773402\charrsid14571629 \hich\af0\dbch\af0\loch\f0 (b)\tab}The 1}{\super\insrsid1773402\charrsid14571629 st}{\insrsid1773402\charrsid14571629 Applicant pledged his Certificate of Title to land comprised in Buddu }{\insrsid10690899\charrsid14571629 B}{\insrsid1773402\charrsid14571629 lock 101 Plot 24 at Kasambya }{\insrsid340414\charrsid14571629 Masaka as}{\insrsid1773402\charrsid14571629 security for the loan. \par {\listtext\pard\plain\lang1033\langfe1033\langnp1033\langfenp1033\insrsid10690899\charrsid14571629 \hich\af0\dbch\af0\loch\f0 (c)\tab}}{\insrsid10690899\charrsid14571629 It was expressly agreed by}{\insrsid1773402\charrsid14571629 both }{ \insrsid340414\charrsid14571629 parties that should}{\insrsid1773402\charrsid14571629 }{\insrsid10690899\charrsid14571629 the}{\insrsid1773402\charrsid14571629 said loan not be paid within two months, the }{\insrsid10690899\charrsid14571629 R}{ \insrsid1773402\charrsid14571629 espondent would go }{\insrsid10690899\charrsid14571629 a }{\insrsid1773402\charrsid14571629 head and sell the security without recourse to Courts of law. \par {\listtext\pard\plain\lang1033\langfe1033\langnp1033\langfenp1033\insrsid1773402\charrsid14571629 \hich\af0\dbch\af0\loch\f0 (d)\tab} The applicants are surprised that the Respondent has never recovered the initial loan amount, which has now attracted a huge interest. \par {\listtext\pard\plain\lang1033\langfe1033\langnp1033\langfenp1033\insrsid1773402\charrsid14571629 \hich\af0\dbch\af0\loch\f0 (e)\tab}It is in the interest of justice that this Honourable Court grants this application. \par }\pard \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid14571629 {\insrsid1773402\charrsid14571629 \par }{\insrsid7410750\charrsid14571629 The main suit was brought by summary procedure. The Respondent thereby seeks to recover shs82}{\insrsid340414\charrsid14571629 , 875,000}{\insrsid7410750\charrsid14571629 /= arising out of a loan of Shs39}{ \insrsid340414\charrsid14571629 , 000,000}{\insrsid7410750\charrsid14571629 /= advanced by the Respondent to the Applicant payable within two months }{\insrsid10690899\charrsid14571629 with interest }{\insrsid7410750\charrsid14571629 at a rate of 15% per month. \par \par The Applicant}{\insrsid10690899\charrsid14571629 s}{\insrsid7410750\charrsid14571629 are seeking }{\insrsid340414\charrsid14571629 leave under}{\insrsid7410750\charrsid14571629 Order 36 rule 3 and 4 of the CPR to defend }{ \insrsid340414\charrsid14571629 the suit}{\insrsid7410750\charrsid14571629 . The law is that }{\insrsid10690899\charrsid14571629 the }{\insrsid7410750\charrsid14571629 applicant for such leave must show by affidavit or otherwise that there is a bonafide }{\insrsid340414\charrsid14571629 triable issue}{\insrsid7410750\charrsid14571629 of fact or law. Any defence raised should be stated with sufficient particulars as to }{\insrsid5654526\charrsid14571629 appear}{\insrsid7410750\charrsid14571629 genuine and not generally vague statements denying liability. See}{\insrsid340414\charrsid14571629 :}{\i\ul\insrsid340414\charrsid14571629 Muluku}{\i\ul\insrsid340414 Interglob}{\i\ul\insrsid13394390\charrsid14571629 al Trade Agencies Vs Bank of Uganda (1985) HCB 65; Tororo District Administration Vs A}{\i\ul\insrsid5454819\charrsid14571629 n}{\i\ul\insrsid13394390\charrsid14571629 dalalap Industries Ltd (1997) IV KALR 126 \par \par }{\insrsid13394390\charrsid14571629 This }{\insrsid340414\charrsid14571629 application is}{\insrsid9912136\charrsid14571629 supported by an }{\insrsid340414\charrsid14571629 affidavit, deponed}{\insrsid9912136\charrsid14571629 to by the 1}{ \super\insrsid9912136\charrsid14571629 st}{\insrsid10690899\charrsid14571629 Applicant Kasozi }{\insrsid1319399\charrsid14571629 G}{\insrsid9912136\charrsid14571629 . Michael. In paragraphs 3 and 4 he state}{\insrsid10690899\charrsid14571629 s}{ \insrsid9912136\charrsid14571629 that he pledge}{\insrsid10690899\charrsid14571629 d his Certificate of T}{\insrsid9912136\charrsid14571629 itle to land at Buddu Block 101 Plot 24 at Kasambya Masaka a}{\insrsid10690899\charrsid14571629 s}{ \insrsid9912136\charrsid14571629 security for the loan. That it was agreed that should the said loan not be paid within two months}{\insrsid340414\charrsid14571629 , the}{\insrsid9912136\charrsid14571629 Respondent would sell the security without recourse to Courts of law. In paragraph 6 he expresses surprise }{\insrsid340414\charrsid14571629 that the}{\insrsid9912136\charrsid14571629 }{\insrsid340414\charrsid14571629 Respondent has}{ \insrsid9912136\charrsid14571629 never sold off the security to recover the loan amount, which he contends has }{\insrsid340414\charrsid14571629 now attracted}{\insrsid9912136\charrsid14571629 a huge interest. He fu}{\insrsid13065409\charrsid14571629 r }{\insrsid9912136\charrsid14571629 ther sta}{\insrsid13065409\charrsid14571629 t}{\insrsid9912136\charrsid14571629 es, in paragraph 5, that he asked for the certificate of }{\insrsid340414\charrsid14571629 title from}{\insrsid13065409\charrsid14571629 the }{\insrsid340414\charrsid14571629 Respondent so}{\insrsid13065409\charrsid14571629 that he could sell off the land to the }{\insrsid340414\charrsid14571629 ready and}{\insrsid13065409\charrsid14571629 willing buyers but that }{ \insrsid340414\charrsid14571629 the Respondent}{\insrsid13065409\charrsid14571629 refused to handover the certificate of title.}{\insrsid7410750\charrsid14571629 \par }{\insrsid13065409\charrsid14571629 \par The Respondent filed an affidavit in reply dated 17}{\super\insrsid13065409\charrsid14571629 th}{\insrsid13065409\charrsid14571629 September 2007. I note that the Respondent does not }{\insrsid340414\charrsid14571629 therein deny}{ \insrsid13065409\charrsid14571629 or }{\insrsid340414\charrsid14571629 rebut}{\insrsid13065409\charrsid14571629 any of the }{\insrsid5654526\charrsid14571629 applicant\rquote s}{\insrsid13065409\charrsid14571629 averments on oath in paragraph}{ \insrsid5454819\charrsid14571629 s}{\insrsid13065409\charrsid14571629 4, 5 and 6 of the affidavit in support.. \par \par In paragraph 4 of his affidavit in reply }{\insrsid340414\charrsid14571629 the Respondent}{\insrsid13065409\charrsid14571629 avers that the Certificate of Title deposited as security by the 1}{\super\insrsid13065409\charrsid14571629 st}{ \insrsid13065409\charrsid14571629 }{\insrsid340414\charrsid14571629 Applicant was}{\insrsid13065409\charrsid14571629 not }{\insrsid340414\charrsid14571629 registered in}{\insrsid13065409\charrsid14571629 the 1}{\super\insrsid13065409\charrsid14571629 st}{\insrsid13065409\charrsid14571629 Applicant\rquote s names. Ms Joy Ntambirweki, counsel for }{\insrsid340414\charrsid14571629 the Respondent}{\insrsid13065409\charrsid14571629 , submitted th}{\insrsid13518549\charrsid14571629 a}{ \insrsid5454819\charrsid14571629 t i}{\insrsid13065409\charrsid14571629 n the circumstances there was no way the }{\insrsid340414\charrsid14571629 Respondent could}{\insrsid13065409\charrsid14571629 sell the land. Annexture \'93A\'94 to }{ \insrsid340414\charrsid14571629 the Respondent\rquote s}{\insrsid13065409\charrsid14571629 affidavit is a photocopy of the Certificate of Title to}{\insrsid7281884\charrsid14571629 t}{\insrsid13065409\charrsid14571629 h}{ \insrsid7281884\charrsid14571629 e}{\insrsid13065409\charrsid14571629 land. The Registered Proprietor is Ausi Mugeny}{\insrsid5454819\charrsid14571629 i, who is none of the Applicant}{\insrsid13065409\charrsid14571629 s}{ \insrsid1319399\charrsid14571629 .}{\insrsid13065409\charrsid14571629 However annexture B is a blank Transfer}{\insrsid1319399\charrsid14571629 }{\insrsid340414\charrsid14571629 Deed signed}{\insrsid1319399\charrsid14571629 by the said Ausi }{ \insrsid13065409\charrsid14571629 Mugenyi. It would appear that this blank transfer deed was }{\insrsid13518549\charrsid14571629 intended}{\insrsid13065409\charrsid14571629 to facilit}{\insrsid1319399\charrsid14571629 ate}{ \insrsid13065409\charrsid14571629 the }{\insrsid340414\charrsid14571629 sale of}{\insrsid13518549\charrsid14571629 }{\insrsid13065409\charrsid14571629 the land. \par \par The above facts }{\insrsid7281884\charrsid14571629 raise th}{\insrsid1319399\charrsid14571629 r}{\insrsid7281884\charrsid14571629 ee issues:-}{\insrsid13065409\charrsid14571629 \par }{\insrsid7281884\charrsid14571629 \par {\listtext\pard\plain\lang1033\langfe1033\langnp1033\langfenp1033\insrsid7281884\charrsid14571629 \hich\af0\dbch\af0\loch\f0 1.\tab}}\pard \qj \fi-360\li720\ri0\sl360\slmult1\widctlpar \jclisttab\tx720\aspalpha\aspnum\faauto\ls3\adjustright\rin0\lin720\itap0\pararsid14571629 {\insrsid7281884\charrsid14571629 What was the effect of the Respondent}{\insrsid1319399\charrsid14571629 \rquote s}{\insrsid7281884\charrsid14571629 failure to exercise his right under the loan agreement to sell the land }{\insrsid340414\charrsid14571629 following the}{\insrsid7281884\charrsid14571629 Applicant\rquote s failure to pay off the loan }{\insrsid1319399\charrsid14571629 within the agreed period of }{\insrsid5454819\charrsid14571629 two months?}{\insrsid7281884\charrsid14571629 \par }\pard \qj \li360\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin360\itap0\pararsid14571629 {\insrsid5454819\charrsid14571629 \par {\listtext\pard\plain\lang1033\langfe1033\langnp1033\langfenp1033\insrsid7281884\charrsid14571629 \hich\af0\dbch\af0\loch\f0 2.\tab}}\pard \qj \fi-360\li720\ri0\sl360\slmult1\widctlpar \jclisttab\tx720\aspalpha\aspnum\faauto\ls3\adjustright\rin0\lin720\itap0\pararsid14571629 {\insrsid7281884\charrsid14571629 What was the effect of }{\insrsid12465950\charrsid14571629 the Respondent\rquote s}{\insrsid7281884\charrsid14571629 failure to release the Certificate of Title for sell to ready and willing buyers}{\insrsid1319399\charrsid14571629 ?}{\insrsid7281884\charrsid14571629 \par }\pard \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid14571629 {\insrsid7281884\charrsid14571629 \par {\listtext\pard\plain\lang1033\langfe1033\langnp1033\langfenp1033\insrsid7281884\charrsid14571629 \hich\af0\dbch\af0\loch\f0 3.\tab}}\pard \qj \fi-360\li720\ri0\sl360\slmult1\widctlpar \jclisttab\tx720\aspalpha\aspnum\faauto\ls3\adjustright\rin0\lin720\itap0\pararsid14571629 {\insrsid7281884\charrsid14571629 Under }{\insrsid12465950\charrsid14571629 wh}{\insrsid1319399\charrsid14571629 at}{\insrsid12465950\charrsid14571629 circumstances}{\insrsid7281884\charrsid14571629 was the Certificate of Title, registered under }{\insrsid12465950\charrsid14571629 the proprietorship}{\insrsid7281884\charrsid14571629 of a stranger to the loan received by the Respondent as security for the }{\insrsid12465950\charrsid14571629 loan to}{\insrsid5454819\charrsid14571629 the Applicants?}{\insrsid7281884\charrsid14571629 \par }\pard \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid14571629 {\insrsid7281884\charrsid14571629 \par In his submission Mr. Matovu, Counsel for the applicant}{\insrsid1319399\charrsid14571629 ,}{\insrsid7281884\charrsid14571629 argued that the Respondent}{\insrsid1319399\charrsid14571629 \rquote }{\insrsid7281884\charrsid14571629 s failure to }{ \insrsid1319399\charrsid14571629 sell }{\insrsid7281884\charrsid14571629 the land had resulted into the accumulation of the interest which }{\insrsid1319399\charrsid14571629 he }{\insrsid7281884\charrsid14571629 now demands. The loan was of Shs39}{ \insrsid340414\charrsid14571629 , 000, 00}{\insrsid7281884\charrsid14571629 /= }{\insrsid340414\charrsid14571629 advanced on}{\insrsid7281884\charrsid14571629 5}{\super\insrsid7281884\charrsid14571629 th}{\insrsid7281884\charrsid14571629 Octobe r 2006 for a period of two months at a monthly interest of 15}{\insrsid1319399\charrsid14571629 %}{\insrsid7281884\charrsid14571629 . There is an issue whether in the circumstances }{\insrsid1319399\charrsid14571629 the }{ \insrsid7281884\charrsid14571629 Respondent is entitled to the accumulated interest. \par \par In view of the above identified traible issues this application is allowed. Applicants are to file }{\insrsid340414\charrsid14571629 their Written}{\insrsid7281884\charrsid14571629 Statements }{\insrsid340414\charrsid14571629 of Defence within 14}{ \insrsid7281884\charrsid14571629 days from the date hereof. The Applicants are awarded costs of this application}{\insrsid1319399\charrsid14571629 . }{\insrsid7281884\charrsid14571629 I so order. \par \par \par \par \par }\pard \ql \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid14571629 {\insrsid7281884\charrsid14571629 \par \par }\pard \qc \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid14571629 {\insrsid7281884\charrsid14571629 HON. MR. JUSTICE LAMECK N. MUKAS}{\insrsid1319399\charrsid14571629 A}{\insrsid7281884\charrsid14571629

\par }{\b\insrsid7281884\charrsid14571629 JUDGE \par }{\insrsid7281884\charrsid14571629 25/10/2007 \par }\pard \ql \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid14571629 {\insrsid7281884\charrsid14571629 \par \par \par }{\insrsid13065409\charrsid14571629 \par \par }{\insrsid11799812\charrsid14571629 \par \par }\pard \qc \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid14571629 {\insrsid11799812\charrsid14571629 \par }\pard \ql \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid14571629 {\insrsid6754790\charrsid14571629 \par }}