Willy Owacha v Ringa Enterprises Co.Ltd & another [1995] UGSC 17 (21 June 1995)

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.}}{\*\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\ql \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1 \widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid5767469 \fs24\lang2057\langfe2057\cgrid\langnp2057\langfenp2057 {\b\lang1033\langfe2057\langnp1033\insrsid5767469\charrsid4463306 }{ \b\lang1033\langfe2057\langnp1033\insrsid3686139\charrsid4463306 }{\b\lang1033\langfe2057\langnp1033\insrsid9916467\charrsid4463306 THE REPUBLIC OF UGANDA }{\b\lang1033\langfe2057\langnp1033\insrsid5767469\charrsid4463306 \par }{\b\lang1033\langfe2057\langnp1033\insrsid7616001 IN TH}{\b\lang1033\langfe2057\langnp1033\insrsid9916467\charrsid4463306 E SUPREME COURT OF UGANDA AT MENGO \line }{\b\lang1033\langfe2057\langnp1033\insrsid5767469\charrsid4463306 (CORAM}{ \b\lang1033\langfe2057\langnp1033\insrsid9916467\charrsid4463306 : ODOKI, J. S. C., ODER, J. S. C.., & TSEKOOKO, J. S. C.)}{\b\lang1033\langfe2057\langnp1033\insrsid5767469\charrsid4463306 \par }{\b\lang1033\langfe2057\langnp1033\insrsid9916467\charrsid4463306 }{\b\lang1033\langfe2057\langnp1033\insrsid5767469\charrsid4463306 }{\b\lang1033\langfe2057\langnp1033\insrsid15301107\charrsid4463306 }{ \b\lang1033\langfe2057\langnp1033\insrsid9916467\charrsid4463306 CIVIL APPEAL 31/1994 }{\b\lang1033\langfe2057\langnp1033\insrsid9916467 \par }{\b\lang1033\langfe2057\langnp1033\insrsid594429 WILLY OWACHA:::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::APPELLANT \par }{\b\lang1033\langfe2057\langnp1033\insrsid13435554 }{\b\lang1033\langfe2057\langnp1033\insrsid594429 VERSUS \par RINGA ENTERPRISESCO. LTD::::::::::::::::::::::::::::::::::1}{\b\lang1033\langfe2057\super\langnp1033\insrsid594429\charrsid594429 ST}{\b\lang1033\langfe2057\langnp1033\insrsid594429 RESPONDENT \par PATRICK. A. OKUMU RINGA::::::::::::::::::::::::::::::::::::::2}{\b\lang1033\langfe2057\super\langnp1033\insrsid594429\charrsid594429 ND}{\b\lang1033\langfe2057\langnp1033\insrsid594429 RESPONDENT}{ \b\lang1033\langfe2057\langnp1033\insrsid594429\charrsid4463306 \par }{\lang1033\langfe2057\langnp1033\insrsid5767469 (Appeal from the judgment and }{\lang1033\langfe2057\langnp1033\insrsid9916467\charrsid5767469 orders of the High Court of \line Uganda, at Kampala}{\lang1033\langfe2057\langnp1033\insrsid5767469 (E. S. Lugayizi }{\lang1033\langfe2057\langnp1033\insrsid9916467\charrsid5767469 Ag. 3.) dated 22nd September,}{\lang1033\langfe2057\langnp1033\insrsid5767469 \line 1994 in Civil Suit No. 21 of }{ \lang1033\langfe2057\langnp1033\insrsid9916467\charrsid5767469 1994). }{\lang1033\langfe2057\langnp1033\insrsid5767469 \par }{\lang1033\langfe2057\langnp1033\insrsid9916467\charrsid5767469 \line }{\b\lang1033\langfe2057\langnp1033\insrsid5767469\charrsid15301107 REASONS FOR THE JUDGEM}{\b\lang1033\langfe2057\langnp1033\insrsid9916467\charrsid15301107 ENT OF THE COURT: }{ \b\lang1033\langfe2057\langnp1033\insrsid5767469\charrsid15301107 \par }{\lang1033\langfe2057\langnp1033\insrsid9916467\charrsid5767469 We heard this appeal and allowed it. We promised to give our reasons which we now give, }{\lang1033\langfe2057\langnp1033\insrsid5767469 \par The secon}{\lang1033\langfe2057\langnp1033\insrsid9916467\charrsid5767469 d respondent is the Chairman and Managing Director of the first respondent which is a holding company of several other companies. One of such subsidiary companies is called Prideyear Motors Ltd., having contact offices in London, in the United Kingdom. }{ \lang1033\langfe2057\langnp1033\insrsid5767469 \par }{\lang1033\langfe2057\langnp1033\insrsid9916467\charrsid5767469 From the pleadings and the evidence of the Plaintiff the facts of this case are simple. The case }{\lang1033\langfe2057\langnp1033\insrsid5767469 was heard exparte for purposes }{ \lang1033\langfe2057\langnp1033\insrsid9916467\charrsid5767469 of assessment of damages only since the respondents never entered appearance nor did they file their defences.}{\lang1033\langfe2057\langnp1033\insrsid5767469 \par }{\lang1033\langfe2057\langnp1033\insrsid9916467\charrsid5767469 In 1981/82 the respondents employed the appellant. In December, 1986 the appellant was confirmed in the employment of the respondents in this country as General Manager (Finance and Administration/Ag. Company Secretary). During 1 989 the respondents appointed the appellant on secondment to their London}{\lang1033\langfe2057\langnp1033\insrsid5767469 contact offi}{\lang1033\langfe2057\langnp1033\insrsid9916467\charrsid5767469 ce - Pride Years Motors Ltd., as Resident Director.. As such Resident Director he was to receive monthly pound sterling 200 and in addition was to be accommodated and mai ntained at the cost of the respondents. He was free to further his education during his free time. }{\lang1033\langfe2057\langnp1033\insrsid5767469 \par }{\lang1033\langfe2057\langnp1033\insrsid9916467\charrsid5767469 For the period 1st January, 1990 to 31st December, 1992, (i.e., for }{\i\lang1033\langfe2057\langnp1033\insrsid9916467\charrsid5767469 36 }{ \lang1033\langfe2057\langnp1033\insrsid9916467\charrsid5767469 months) the appellant was in the London Office of the Respondents performing the respondents\rquote duties. The respondents appear to have paid him the Uganda currency component of his salary but did not pay him the sterling component. He resigned in December 1992 and demanded for his pay. He received none. In January, 1994 he instituted a suit in the Hig}{\lang1033\langfe2057\langnp1033\insrsid804829 h Court praying for, inter alia}{\lang1033\langfe2057\langnp1033\insrsid9916467\charrsid5767469 , }{\lang1033\langfe2057\langnp1033\insrsid5767469 \par }{\lang1033\langfe2057\langnp1033\insrsid15163985 }{\lang1033\langfe2057\langnp1033\insrsid9916467\charrsid5767469 \'93Special damages of the equivalent of U. K. pound sterling 7,200 with interest at the rate }{ \lang1033\langfe2057\langnp1033\insrsid9916467\charrsid15163985 of 30%}{\i\lang1033\langfe2057\langnp1033\insrsid9916467\charrsid5767469 }{\lang1033\langfe2057\langnp1033\insrsid15163985 p.a. from l}{ \lang1033\langfe2057\super\langnp1033\insrsid15163985\charrsid15163985 st}{\lang1033\langfe2057\langnp1033\insrsid9916467\charrsid5767469 January, 1993\'94 }{\lang1033\langfe2057\langnp1033\insrsid15163985 \par }{\lang1033\langfe2057\langnp1033\insrsid9916467\charrsid5767469 Pound Sterling 7,200 represent the total pay due in respect of the }{\i\lang1033\langfe2057\langnp1033\insrsid9916467\charrsid5767469 36 }{ \lang1033\langfe2057\langnp1033\insrsid9916467\charrsid5767469 months. \line The plaintiff was the only witness who testified as the case was heard for purposes of assessment of damages.}{\lang1033\langfe2057\langnp1033\insrsid15163985 \par }{\lang1033\langfe2057\langnp1033\insrsid9916467\charrsid5767469 The learned Judge found as a fact that the respondents owed the appellant a total of pound sterling 7,200 but he dismissed the suit on the ground th at the Minister of Finance had not given consent for payment of the money in foreign currency as required by the provisions of }{\b\ul\lang1033\langfe2057\langnp1033\insrsid9916467\charrsid5767469 Section }{ \b\ul\lang1033\langfe2057\langnp1033\insrsid9916467\charrsid15163985 5 of the }{\b\ul\lang1033\langfe2057\langnp1033\insrsid15163985\charrsid15163985 Exchange Control }{\b\ul\lang1033\langfe2057\langnp1033\insrsid9916467\charrsid15163985 Act (Cap. 108}{ \ul\lang1033\langfe2057\langnp1033\insrsid9916467\charrsid5767469 }{\b\ul\lang1033\langfe2057\langnp1033\insrsid9916467\charrsid5767469 of the Laws of }{\b\ul\lang1033\langfe2057\langnp1033\insrsid15163985\charrsid15163985 Uganda as amended by}{ \b\ul\lang1033\langfe2057\langnp1033\insrsid9916467\charrsid15163985 Decree 18 of 1972.}{\ul\lang1033\langfe2057\langnp1033\insrsid9916467\charrsid5767469 }{\ul\lang1033\langfe2057\langnp1033\insrsid8655074 \par }{\lang1033\langfe2057\langnp1033\insrsid9916467\charrsid5767469 Hence this appeal. \line }{\lang1033\langfe2057\langnp1033\insrsid8655074 \'93}{\lang1033\langfe2057\langnp1033\insrsid9916467\charrsid5767469 The appeal contains only one ground of appeal which states:\'93That the le}{\lang1033\langfe2057\langnp1033\insrsid8655074 arned trial Judge erred in law }{\lang1033\langfe2057\langnp1033\insrsid9916467\charrsid5767469 when he held that Court could not enforce the appellant\rquote s claim because the arrangement between the parties lacked the necessary consent of the Minister.}{\lang1033\langfe2057\langnp1033\insrsid8655074 \'94 \par }{\lang1033\langfe2057\langnp1033\insrsid9916467\charrsid5767469 During the hearing, Mr. Twesigye, learned Counsel for the appellant, conceded that no Ministerial consent was given to the arrangement under which the respondents were to pay the appellant in pounds sterling. But he submitted, and the learned Judge held in his }{\lang1033\langfe2057\langnp1033\insrsid8655074\charrsid5767469 judgment}{\lang1033\langfe2057\langnp1033\insrsid9916467\charrsid5767469 , that }{\lang1033\langfe2057\langnp1033\insrsid8655074\charrsid5767469 the}{ \lang1033\langfe2057\langnp1033\insrsid8655074 arrangement was not illegal abinitio}{\lang1033\langfe2057\langnp1033\insrsid9916467\charrsid5767469 . }{\ul\lang1033\langfe2057\langnp1033\insrsid9916467\charrsid8655074 \par }{\lang1033\langfe2057\langnp1033\insrsid9916467\charrsid5767469 Learned Counsel submitted that it was the respondents who had to seek consent of the Minister before payment and that this the respondents had not done. He submitted that in any c ase the appellant was seeking for payment in Uganda Currency. He }{\lang1033\langfe2057\langnp1033\insrsid8655074\charrsid5767469 submitted}{\lang1033\langfe2057\langnp1033\insrsid9916467\charrsid5767469 that }{ \lang1033\langfe2057\langnp1033\insrsid8655074\charrsid5767469 the}{\lang1033\langfe2057\langnp1033\insrsid9916467\charrsid5767469 decision or this court in}{\ul\lang1033\langfe2057\langnp1033\insrsid9916467\charrsid8655074 }{ \ul\lang1033\langfe2057\langnp1033\insrsid8655074\charrsid8655074 s}{\ul\lang1033\langfe2057\langnp1033\insrsid9916467\charrsid8655074 u}{\ul\lang1033\langfe2057\langnp1033\insrsid8655074\charrsid8655074 p}{ \ul\lang1033\langfe2057\langnp1033\insrsid9916467\charrsid8655074 reme}{\ul\lang1033\langfe2057\langnp1033\insrsid9916467\charrsid5767469 Court }{\ul\lang1033\langfe2057\langnp1033\insrsid8655074 c}{ \ul\lang1033\langfe2057\langnp1033\insrsid8655074\charrsid5767469 ivil}{\ul\lang1033\langfe2057\langnp1033\insrsid9916467\charrsid5767469 }{\ul\lang1033\langfe2057\langnp1033\insrsid8655074\charrsid8655074 Appeal}{ \ul\lang1033\langfe2057\langnp1033\insrsid9916467\charrsid8655074 No. 23}{\b\i\ul\lang1033\langfe2057\langnp1033\insrsid9916467\charrsid5767469 }{\ul\lang1033\langfe2057\langnp1033\insrsid9916467\charrsid5767469 of 1993 (G. W. Katatumba tia Techno}{ \ul\lang1033\langfe2057\langnp1033\insrsid8655074 p}{\ul\lang1033\langfe2057\langnp1033\insrsid9916467\charrsid5767469 lan vs. Uganda }{\ul\lang1033\langfe2057\langnp1033\insrsid8655074\charrsid5767469 Cooperative}{ \ul\lang1033\langfe2057\langnp1033\insrsid8655074 }{\ul\lang1033\langfe2057\langnp1033\insrsid9916467\charrsid5767469 Transport Union Ltd. (unre}{\ul\lang1033\langfe2057\langnp1033\insrsid8655074 po}{ \ul\lang1033\langfe2057\langnp1033\insrsid9916467\charrsid5767469 rted) }{\lang1033\langfe2057\langnp1033\insrsid9916467\charrsid5767469 supports the appellant claim.}{\lang1033\langfe2057\langnp1033\insrsid8655074 \par }{\lang1033\langfe2057\langnp1033\insrsid9916467\charrsid5767469 In our view there was a valid service contract between the appellant and the respondents where under the respondents were obliged to pay the appellant pound sterling 200 per month as salary among other benefits. It was the res ponsibility of the respondents to obtain permission for the payment of the money in pound sterling. It was not the responsibility of the appellant to seek consent. In that regard we agree that the learned Judge erred in dismissing the }{ \lang1033\langfe2057\langnp1033\insrsid8655074\charrsid5767469 appellants}{\lang1033\langfe2057\langnp1033\insrsid9916467\charrsid5767469 claim on the ground the Ministerial permission had not been obtained. The provisions of }{ \ul\lang1033\langfe2057\langnp1033\insrsid9916467\charrsid5767469 S.5 of the}{\ul\lang1033\langfe2057\langnp1033\insrsid8655074 Exch}{\ul\lang1033\langfe2057\langnp1033\insrsid9916467\charrsid5767469 ange Control Act as amended by Decree No 18 of 1972 on which the learned Judge relied state that: }{\ul\lang1033\langfe2057\langnp1033\insrsid8655074 \par }{\lang1033\langfe2057\langnp1033\insrsid8655074\charrsid8655074 5 .}{\lang1033\langfe2057\langnp1033\insrsid9916467\charrsid8655074 Excep}{\lang1033\langfe2057\langnp1033\insrsid8655074\charrsid8655074 t}{ \ul\lang1033\langfe2057\langnp1033\insrsid9916467\charrsid5767469 }{\lang1033\langfe2057\langnp1033\insrsid8655074 with the permission of the }{\lang1033\langfe2057\langnp1033\insrsid9916467\charrsid5767469 Minister, no person shall do any \line of the following, \line (a) }{\lang1033\langfe2057\langnp1033\insrsid8655074 make any payment to or for the }{\lang1033\langfe2057\langnp1033\insrsid9916467\charrsid5767469 credit of a person r}{\lang1033\langfe2057\langnp1033\insrsid8655074 esident \line outside the scheduled }{\lang1033\langfe2057\langnp1033\insrsid9916467\charrsid5767469 territories; or \line }{\lang1033\langfe2057\langnp1033\insrsid8655074 (}{\lang1033\langfe2057\langnp1033\insrsid8655074\charrsid8655074 b)\'85\'85\'85\'85\'85 \'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85..}{\b\lang1033\langfe2057\langnp1033\insrsid9916467\charrsid5767469 \line }{\lang1033\langfe2057\langnp1033\insrsid9916467\charrsid5767469 (c}{\lang1033\langfe2057\langnp1033\insrsid8655074 ) open any account outside the }{\lang1033\langfe2057\langnp1033\insrsid9916467\charrsid5767469 scheduled territories and/or make \line pay}{\lang1033\langfe2057\langnp1033\insrsid8655074 ment to such account held by a }{ \lang1033\langfe2057\langnp1033\insrsid9916467\charrsid5767469 person resident in the schedule \line }{\lang1033\langfe2057\langnp1033\insrsid8655074 territories; \par (d) place any sum to the credit of }{\lang1033\langfe2057\langnp1033\insrsid9916467\charrsid5767469 any person resident outside the \line schedule territories.\'94 \line We find nothing in these provisions which bars the appellant from enforcing his claim. As was held by this Court in }{\ul\lang1033\langfe2057\langnp1033\insrsid9916467\charrsid5767469 Katatumba Case }{ \lang1033\langfe2057\langnp1033\insrsid9916467\charrsid5767469 (supra) Courts can give judgment in foreign currency leaving it to whoever is to pay it to apply for permission to pay the \par money. However in }{\lang1033\langfe2057\langnp1033\insrsid9916467\charrsid8655074 this}{\i\lang1033\langfe2057\langnp1033\insrsid9916467\charrsid5767469 }{\lang1033\langfe2057\langnp1033\insrsid9916467\charrsid5767469 case the appellant had prayed for payment of pound sterling 7,200 to be made in equivalent to Uganda currency. So the question of consent did not arise. That settles the iss}{\lang1033\langfe2057\langnp1033\insrsid8655074 u}{ \lang1033\langfe2057\langnp1033\insrsid9916467\charrsid5767469 e of special damages. The issue of general damages for breach of contract and inconvenience was not dealt with by the learned Judge. In his plaint the plaintiff prayed for gener al damages. He asked for general damages in hi}{\lang1033\langfe2057\langnp1033\insrsid8655074 s testimony. The learned Judge d}{\lang1033\langfe2057\langnp1033\insrsid9916467\charrsid5767469 id not discuss this point although Counsel for the appellant addressed him on it. The memorandum of appeal prayed for general damages to be awarded in the event of succe}{\lang1033\langfe2057\langnp1033\insrsid8655074 ss of the appeal. The appellant \rquote }{\lang1033\langfe2057\langnp1033\insrsid9916467\charrsid5767469 s counsel did not suggest a figure.}{\lang1033\langfe2057\langnp1033\insrsid8655074 \par }{\lang1033\langfe2057\langnp1033\insrsid9916467\charrsid5767469 \line }{\lang1033\langfe2057\langnp1033\insrsid8655074 }{\lang1033\langfe2057\langnp1033\insrsid9916467\charrsid5767469 We think that the assessment of general damages should be made by the trial judge in case, there may be an appeal against such assessment. }{\lang1033\langfe2057\langnp1033\insrsid8655074 \par F}{\lang1033\langfe2057\langnp1033\insrsid9916467\charrsid5767469 or these reasons we held that the learned tr ial Judge erred in dismissing the suit. We accordingly allowed the appeal with costs. This means pound sterling 7,200 will be converted into Uganda Shillings at the rate obtaining on 01/01/}{\lang1033\langfe2057\langnp1033\insrsid8655074 1993. \line The amount found due will}{\lang1033\langfe2057\langnp1033\insrsid9916467\charrsid5767469 carry interest at the rate of 15% p.a. from the date till}{\lang1033\langfe2057\langnp1033\insrsid8655074 payment in full. For purposes o}{ \lang1033\langfe2057\langnp1033\insrsid9916467\charrsid5767469 f general damages the proceedings are remitted to the trial judge for assessment of general damages.}{\lang1033\langfe2057\langnp1033\insrsid8655074 \par }{\lang1033\langfe2057\langnp1033\insrsid9916467\charrsid5767469 Dated}{\lang1033\langfe2057\langnp1033\insrsid8655074 }{\lang1033\langfe2057\langnp1033\insrsid9916467\charrsid5767469 at}{\lang1033\langfe2057\langnp1033\insrsid8655074 }{ \lang1033\langfe2057\langnp1033\insrsid9916467\charrsid5767469 Mengo}{\lang1033\langfe2057\langnp1033\insrsid8655074 this 2l}{\lang1033\langfe2057\super\langnp1033\insrsid8655074\charrsid8655074 st }{ \lang1033\langfe2057\langnp1033\insrsid9916467\charrsid5767469 ..,day of June 1995.}{\lang1033\langfe2057\langnp1033\insrsid8655074 \par }{\lang1033\langfe2057\langnp1033\insrsid9916467\charrsid5767469 \line }{\b\lang1033\langfe2057\langnp1033\insrsid9916467\charrsid15301107 B. J. ODOKI, \line JUSTICE OF THE SUPREME COURT}{ \b\ul\lang1033\langfe2057\langnp1033\insrsid804829\charrsid15301107 \par }{\b\ul\lang1033\langfe2057\langnp1033\insrsid9916467\charrsid15301107 }{\b\lang1033\langfe2057\langnp1033\insrsid8655074\charrsid15301107 A. O}{\b\lang1033\langfe2057\langnp1033\insrsid804829\charrsid15301107 . ODER,}{ \b\lang1033\langfe2057\langnp1033\insrsid9916467\charrsid15301107 \line JUSTICE OF THE SUPREME COURT}{\b\ul\lang1033\langfe2057\langnp1033\insrsid9916467\charrsid15301107 }{\b\ul\lang1033\langfe2057\langnp1033\insrsid804829\charrsid15301107 \par }{\b\lang1033\langfe2057\langnp1033\insrsid804829\charrsid15301107 J. W. N. TSE}{\b\lang1033\langfe2057\langnp1033\insrsid9916467\charrsid15301107 KOOKO \line JUSTICE OF THE SUPREME COURT }{ \b\ul\lang1033\langfe2057\langnp1033\insrsid804829\charrsid15301107 \par }{\b\lang1033\langfe2057\langnp1033\insrsid9916467\charrsid15301107 I CERTIFY THAT THIS IS THE \line TRUE COPY OF THE ORIGINAL. \par E. K. E. TURYAMUBONA, \par }{\b\lang1033\langfe2057\langnp1033\insrsid804829\charrsid15301107 DEPUTY REGISTRAR, THE SUPREME COURT. \par }\pard\plain \ql \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid5767469 \fs24\lang2057\langfe2057\cgrid\langnp2057\langfenp2057 {\lang1033\langfe2057\langnp1033\insrsid14830933\charrsid5767469 \par }}