Uganda Electricity Board v Bagamuhunda and Ors (Miscellaneous Application No.349 of 2003) [2003] UGHC 17 (23 October 2003) | Garnishee Proceedings | Esheria

Uganda Electricity Board v Bagamuhunda and Ors (Miscellaneous Application No.349 of 2003) [2003] UGHC 17 (23 October 2003)

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{\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\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9661928 \fs28\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\fs24\insrsid5971522\charrsid9661928 THE REPUBLIC OF UGANDA \par }\pard\plain \s16\qc \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9661928 \fs28\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\fs24\insrsid5971522\charrsid9661928 IN THE HIGH COURT OF UGANDA AT KAMPALA

\par }\pard\plain \qc \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9661928 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\b\insrsid4876317 MISCELLENEOUS APPLICATION NO}{ \b\insrsid5971522\charrsid9661928 349 OF 2003 \par (Arising from M. A. NO 396 OF 2003) \par }\pard \ql \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9661928 {\insrsid5971522\charrsid9661928 \par UGANDA ELECTRICITY BOARD}{\insrsid9661928 \'85\'85\'85\'85\'85\'85\'85\'85\'85}{\insrsid5971522\charrsid9661928 APPELLANT \par }\pard \qc \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9661928 {\insrsid5971522\charrsid9661928 VERSUS \par }\pard \ql \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9661928 {\insrsid5971522\charrsid9661928 1. VINCENT BAGAMUHUNDA \par 2. JOHN KATONGOLE \par 3. EDWARD ROGERS}{\insrsid9661928 KIWANUKA \'85\'85\'85\'85\'85\'85\'85}{\insrsid5971522\charrsid9661928 RESPONDENT \par }\pard\plain \s3\qc \li360\ri0\sl360\slmult1\keepn\widctlpar\aspalpha\aspnum\faauto\outlinelevel2\adjustright\rin0\lin360\itap0\pararsid9661928 \b\f1\fs28\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\f0\fs24\insrsid5971522\charrsid9661928 AND

\par }\pard\plain \ql \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9661928 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\insrsid5971522\charrsid9661928 STANDARD CHARTERED BANK (U) LTD ::::::::::::: GARNISHEE \par }{\insrsid4876317 \par }{\b\insrsid4876317\charrsid4876317 23}{\b\super\insrsid4876317\charrsid4876317 rd}{\b\insrsid4876317\charrsid4876317 October 2003}{\b\insrsid5971522\charrsid4876317 \par }{\insrsid4876317\charrsid9661928 \par }\pard\plain \s1\ql \li0\ri0\sl360\slmult1\keepn\widctlpar\aspalpha\aspnum\faauto\outlinelevel0\adjustright\rin0\lin0\itap0\pararsid9661928 \b\fs28\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\fs24\insrsid5971522\charrsid9661928 BEFORE: }{ \fs24\ul\insrsid5971522\charrsid9661928 THE HON. MR. JUSTICE R. O. OKUMU WENGI \par }\pard\plain \ql \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9661928 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\insrsid5971522\charrsid9661928 \par \par }\pard \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9661928 {\b\ul\insrsid5971522\charrsid9661928 JUDGMENT: \par }{\insrsid5971522\charrsid9661928 \par This appeal is for orders that:- \par {\listtext\pard\plain\insrsid5971522\charrsid9661928 \hich\af0\dbch\af0\loch\f0 (a)\tab}}\pard \qj \fi-720\li1080\ri0\sl360\slmult1\widctlpar\jclisttab\tx1080\aspalpha\aspnum\faauto\ls2\adjustright\rin0\lin1080\itap0\pararsid9661928 { \insrsid5971522\charrsid9661928 The ruling of the Registrar delivered on 23/7/2003 be set aside \par }\pard \qj \li360\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin360\itap0\pararsid9661928 {\insrsid5971522\charrsid9661928 (b)\tab The decree absolute therein be discharged. \par {\listtext\pard\plain\insrsid5971522\charrsid9661928 \hich\af0\dbch\af0\loch\f0 (b)\tab}}\pard \qj \fi-720\li1080\ri0\sl360\slmult1\widctlpar\jclisttab\tx1080\aspalpha\aspnum\faauto\ls2\adjustright\rin0\lin1080\itap0\pararsid9661928 { \insrsid5971522\charrsid9661928 Costs of the application. \par }\pard \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9661928 {\insrsid5971522\charrsid9661928 \par The Registrars ruling that is the subject of this appeal resulted in a decree absolute being ordered in garnishee proceedings prosecuted in execution of a decree of this court which was reviewed in Miscellaneous 396 of 2003. The order for review has not been appealed and the sums payable there under was the subject of attachment by the successful party in their proceedings. The grounds for this application are set out in the Notice of Motion filed in court on 24}{\super\insrsid5971522\charrsid9661928 th}{\insrsid5971522\charrsid9661928 July 2003 but basically being that the learned Registrar was wrong in that she did not appreciate that no sum was payable by the Respondent to the appellant and as such the garnishee would not have been ordered to pay any sums to the appellant. Both counsel agreed to file and did file written submissions. However I requested both counsel to make an oral heads of argument presentation which they did. \par \par For the appellant it was submitted that after a decree was passed against it, it proceeded to make computations. It concluded that the decree had been satisfied by virtue of the fact that retrenchment packages had been paid out and these sums were deductible from the decretal sums leaving no sum payable until the year 2008. Seco n dly that the decree was not to be executed by way of garnishee proceedings as pension is paid monthly and no lump sum was now payable. The net effect was therefore to say that the Appellant now owed no money to the Respondents, under a decree, whose burd en had been offset from retrenchment payments. \par \par On his part, the respondent contended that any argument founded on retrenchment packages canceling the decree had been rejected by the trial Judge. Secondly that the Respondent had failed to certify to cour t under order 19 rule 2 of the CPR any adjustment made in the decretal sum using retrenchment packages or any other payment to satisfy it. Counsel cited the case of }{\b\i\ul\insrsid5971522\charrsid4876317 Pobari Vs Meghji Nathoo Shah &}{ \b\i\ul\insrsid5971522\charrsid4876317 }{\b\i\ul\insrsid5971522\charrsid4876317 Others}{\b\i\ul\insrsid5971522\charrsid4876317 (1961) EA 676.}{\insrsid5971522\charrsid9661928 Thirdly that the appeal is res judic ata in so far us it seeks to deny liability of the Appellant settled in the decree in terms of Hon. Justice Egonda Ntende\rquote s Judgment. Counsel for the Respondent also attacked this appeal as being incompetent. \par \par I have read the record of the proceedings being attacked by this appeal. I found that while appearing before the Registrar on 18/7/2003 Mr. Wamala (for Appellant) requested the Registrar as follows:- \par }\pard \qj \li720\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid9661928 {\insrsid5971522\charrsid9661928 \'93}{\ul\insrsid5971522\charrsid9661928 Wamala}{\insrsid5971522\charrsid9661928 : UEB has a right to be heard under section 35 of the CPA. I will avail authorities \endash Kateera & Kagumire Advocates Vs Administrator General & other authorities. It must be decided whether a debt is owing.\'94 \par }\pard \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9661928 {\insrsid5971522\charrsid9661928 \par In other words counsel in garnishee proceedings sought to contest liability under a decree execution of which was in progress. However cle arly no such application under section 35 of the Act was pending nor brought. Also no proceedings to certify adjustment or discharge of the decree was brought or pending and no appeal against the decree was preferred the matter having come for review. N o appeal was also preferred in respect of the order in review of the decree. My understanding of the law is that a decree absolute in garnishee proceedings i.e. if a garnishee is ordered to pay a certain sum to the decree holder such order becomes part an d parcel of the original decree}{\b\i\ul\insrsid5971522\charrsid4876317 . }{\b\i\ul\insrsid5971522\charrsid4876317 Jangli Vs Lal}{\b\i\ul\insrsid5971522\charrsid4876317 A 1934 A 1056.}{\insrsid5971522\charrsid9661928 It is deemed to be a decree against the garnishee }{\b\i\ul\insrsid5971522\charrsid4876317 Lukka Vs Devasia}{\b\i\ul\insrsid5971522\charrsid4876317 A 1965 K 47}{\insrsid5971522\charrsid9661928 and as such is appealable as a decree by the garnishee if for instance such garnishee denies liability or denies the debt: See Sarkar on Code of Civil Procedure 9}{\super\insrsid5971522\charrsid9661928 th}{\insrsid5971522\charrsid9661928 Ed. 2000 at pages 1469, 1471. This appeal is brought not by the garnishee but by the Judgment debtor as an aggrieved person. But the Judgment debtor has not secured any order of adjustment of the decree using the retrenchment packages. Perhaps this was impossible given that the trial Judge specifically considered and rejected the argument that those packages were not to be taken as forming part of payments under or deductible as retirement benefits fro m pension rights of the Judgment creditors. It also seems clear to me that counsel for the Appellants misunderstood my order of review as regards clause 6(1) of the Retirement Benefits scheme, which was subject to the proviso in clause 6(ii). \par \par The first problem with this matter stems from the pleadings themselves. The defendants WSD filed in court on 24/1/2002 did not plead a counterclaim seeking a declaration that sums payable as retrenchment packages be deducted from the respondent\rquote s pension claims. I do not recall seeing any plea of a set off either. So the matter was not framed specifically and at the trial the defendant did not call any witness. In the case of }{\b\i\ul\insrsid5971522\charrsid4876317 Kateera & Kagumire Advocates}{\b\i\ul\insrsid5971522\charrsid4876317 }{\b\i\ul\insrsid5971522\charrsid4876317 Vs Administrator General}{\b\i\ul\insrsid5971522\charrsid4876317 and UCB M/A 829 of 2001}{\insrsid5971522\charrsid9661928 which was cited to me the Principal Judge of this court said:- \par }\pard \qj \li720\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid9661928 {\insrsid5971522\charrsid9661928 \'93 In the first place the argumentative efforts by Mr. Atoke that the respondents Bank Account is not liable to attachment is without merit at this point. If he wished to deny liability to pay he should h ave pleaded in the defence and successfully argued it during the trial in the main suit. \'85 the duty of the garnishee was only to inform court whether or not the account is in the name of the respondent and whether or not there were sufficient funds to pay the applicants claim and if they are sufficient, how much is there.\'94 \par }\pard \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9661928 {\insrsid5971522\charrsid9661928 \par From the proceedings it is clear that the trial court found that the appellant had breached the pension rights of the respondents. Accordingly the court made an award in their favour. Whatever evidence was called on the matter at issue did not include the idea that the packages paid out when respondents were laid off replaced pension or part thereof. The trial court did conclude that the packages were severance payments on account of an abrupt cessation of otherwise permanent employments of the respondents. The court also stated:- \par }\pard \qj \li720\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid9661928 {\insrsid5971522\charrsid9661928 \'93 Unless by agreement of the parties pension rights are specifically imported into this termination package, it cannot be assumed that the package annihilates such pension rights as are existing at the time\'85 And that pensions due under the scheme were not included in the severance or retrenchment packages paid to the plaintiffs by the defendants.\'94 \par }\pard \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9661928 {\insrsid5971522\charrsid9661928 \par The learned Judge then made the declaration that the Respondents \'93were entitled to be paid pension as provided under the standing instruction No.22.\'94 As I stated earlier no appeal was preferred and the application for review that I dealt with did not tackle this issue now being raised. It is my feeling that failure to cross apply for a review on the issue tended to seal the appellants fate in far as the issue of a set off or certification of adjustments using the appellants computation is concerned. Perhaps it would still have been difficult for the appellant to s u ccessfully achieve an endorsement of its computation precisely on account of the pleadings I have mentioned earlier on. But a review is often useful to advance the ends of justice and it would appear that having not raised it then by a cross application t he matter rests in terms of the decree. This is not to say that I do not see the difficulty the appellant is in. I am only saying that it seems it is late in the day. To expect the learned Registrar to go into the matters raised in this appeal would be to stretch her jurisdiction much as it may be possible for an aggrieved party to appeal against an order of the registrar. \par \par Now what appears to be the problem is that by the computation the appellant wishes to adjust the decree and also to implement clause 6(1) of the standing instruction No. 22 which spells out the reckoning of pensionable service but what was paid was severance pay and not part of a retirement benefit. Having also breached the standing instruction the appellant seems to have opted out o f its ambit and left the matter of pension to be enforced against it. The argument that the decree can be adjusted and then stretched to 2008 to the life time benefit of some respondents is clearly a matter which the court from which this appeal arises wo u ld not have dealt with. On the other hand the learned Registrar did exactly what she was expected to do in garnishee proceedings and I am unable to say that she made any errors to warrant the unsettling of her decision. The Registrar seems to have actua l ly been perplexed at realising that the argument she had to deal with was that the decree, execution of which was before her had been discharged in substantial part before it had issued or even before the case was filed! I think this question should have

been made a subject in the pleadings trial and Judgment. The decree or appeal against it would have settled it. Such an appeal is not the one I am dealing with here. I may even suggest that the matter could have been dealt with at the stage of retrench m ent or in the process of divestiture of the appellant utility. The law provides for legal audits to be carried out to determine all questions including the important element of the existing employees. In that process a pension cum retrenchment package c o uld have been arrived at and the pleadings would have set out if they became necessary all the issues that this court is being asked in this appeal to deal with. I do sympathise with the situation of both sides in this dispute. The appellant believes he

had shed off the claimants leaving some manageable pensions to be paid to survivors in 2008. The claimants however feel they have not been weaned off their employers suckle. But legal rights are often wrestled and appropriated subject to the legal judic i al process. In this case I am unable to agree with the appellant that this appeal is either the proper panacea or that it should succeed on the ground that the Respondents have eaten their cake and want to have it and that the Registrar failed to deal wi t h the issue and erroneously made the garnishee order absolute. I do not agree with the arguments ably and strenuously made by J. F. Kanyemibwa, learned counsel for the appellant. In dealing with the questions before her the learned Registrar did what she

had to do and did so in her few words. As a matter of fact the pension formular annexed to the notice of motion contains details that was for the trial court and not for the Registrar or this appeal. In the circumstances I must dismiss this appeal with costs to the Respondents. \par \par R. O. Okumu Wengi \par }\pard\plain \s2\qj \li0\ri0\sl360\slmult1\keepn\widctlpar\aspalpha\aspnum\faauto\outlinelevel1\adjustright\rin0\lin0\itap0\pararsid9661928 \b\f1\fs28\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\f0\fs24\insrsid5971522\charrsid9661928 JUDGE \par }\pard\plain \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9661928 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\insrsid5971522\charrsid9661928 23/10/2003. \par }{\b\insrsid5971522\charrsid9661928 23/10/2003 \par }{\insrsid5971522\charrsid9661928 Kanyemibwa for Appellant \par Board Secretary of appellant present \par Matovu John for Respondent \par Respondent present. \par }{\b\insrsid5971522\charrsid9661928 Court: \par }{\insrsid5971522\charrsid9661928 Judgment read. \par \'85\'85\'85\'85\'85\'85 \par }{\b\insrsid5971522\charrsid9661928 REGISTRAR. \par \par 2.30 p.m. \par }{\insrsid5971522\charrsid9661928 23/10/2003\tab Muhangi Noel of Appellant \par \tab \tab J. F Kanyemibwa for Appellant \par \tab \tab Senabulya Court Clerk. \par \par }{\b\insrsid5971522\charrsid9661928 Kanyemibwa:}{\insrsid5971522\charrsid9661928 \tab Apply for interim order of stay of execution to preserve moneys subject of the orders of garnishee pending filing and disposal of an application for l eave to appeal and an application for stay of execution. The Respondents are former staff of UEB. Recovery of this money from them will be impossible. The money is on the Account is not accessible to Appellants. Pray interim order be granted in the in terest of Justice. \par \par }{\b\insrsid5971522\charrsid9661928 Court:}{\insrsid5971522\charrsid9661928 \tab Is this the entire sum in the decree. \par \par }{\b\insrsid5971522\charrsid9661928 Kanyemibwa:}{\insrsid5971522\charrsid9661928 \tab This is 259 million out of sum of shs. 5 billion. But the garnishee is in respect of this 259 million. I cannot talk of the balance. There are other applications for separate garnishees. This one of course will have a bearing on the other applications.

\par \par }{\b\insrsid5971522\charrsid9661928 Court:}{\insrsid5971522\charrsid9661928 \tab Ruling at 3.00 p.m. \par \par \par R. O. Okumu Wengi] \par }{\b\insrsid5971522\charrsid9661928 JUDGE. \par }{\insrsid5971522\charrsid9661928 23/10/2003. \par \par I am conversant with this matter in dispute. The main decree has not been appealed and this is the reason I re fused this appeal. I would not see how much at this stage a stay of my Judgment on the appeal would do. I do not accept this application therefore. The applicant is free to either file a formal application to be heard inter partes or seek the intervent ion of a higher court. Application dismissed. \par \par \par \par R. O. Okumu Wengi \par }\pard\plain \s2\qj \li0\ri0\sl360\slmult1\keepn\widctlpar\aspalpha\aspnum\faauto\outlinelevel1\adjustright\rin0\lin0\itap0\pararsid9661928 \b\f1\fs28\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\f0\fs24\insrsid5971522\charrsid9661928 JUDGE \par }\pard\plain \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9661928 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\insrsid5971522\charrsid9661928 23/10/2003. \par \par Ruling read in open with presence of the above. \par \par \par R. O. Okumu Wengi \par }\pard\plain \s2\qj \li0\ri0\sl360\slmult1\keepn\widctlpar\aspalpha\aspnum\faauto\outlinelevel1\adjustright\rin0\lin0\itap0\pararsid9661928 \b\f1\fs28\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\f0\fs24\insrsid5971522\charrsid9661928 JUDGE \par }\pard\plain \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9661928 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\insrsid5971522\charrsid9661928 23/10/2003. \par }}