[2012] UGHC 248

[2012] UGHC 248

The Objector failed to establish actual or constructive possession of the attached property at the date of attachment. The Memorandum of Understanding relied upon was not a legally binding agreement for assignment of sublease or goods, as it was executed before the Objector company was incorporated and lacked the necessary formalities of a deed and registration. The supporting affidavit was void, as it was not sworn on behalf of the Objector company and there was no Board Resolution authorizing the proceedings. The Objector and judgment debtors were found to be essentially the same persons operating through holding companies, and the application was deemed an abuse of court process....

Citation
[2012] UGHC 248
Parties
Applicant: A-TEC Industries (Uganda) Ltd; Applicant: Kilembe Copper Smelter Ltd; Plaintiff: Gunter Piber; Plaintiff: Buwembe Breweries & Distillers Ltd; Defendant: E-Krall Investments Ltd; Defendant: Thomas Eggenburg; Defendant: DRB Mining (U) Ltd
Court
High Court of Uganda
Jurisdiction
Uganda
Judgment Date
20 November 2012
Case Number
Misc. Application No.55/2012
Procedural Posture
Miscellaneous Application / Ruling
Outcome
application dismissed with costs
Judges
Choudry, J
Legal Topics
Attachment and Execution, Company Secretary Authority, Board Resolution Requirement, Memorandum of Understanding, Assignment of Sublease, Wasted Costs Order
Source Language
English
Civil Procedure Commercial and Corporate Attachment and Execution Company Secretary Authority Board Resolution Requirement Memorandum of Understanding Assignment of Sublease Wasted Costs Order

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Parties

A-TEC Industries (Uganda) Ltd

Applicant

Kilembe Copper Smelter Ltd

Applicant

Gunter Piber

Plaintiff

Buwembe Breweries & Distillers Ltd

Plaintiff

E-Krall Investments Ltd

Defendant

Thomas Eggenburg

Defendant

DRB Mining (U) Ltd

Defendant

Procedural Posture

Miscellaneous Application / Ruling

Legal Issues

  1. 1 Whether the Objector was in possession, actual or constructive, of the attached property on the date of attachment.
  2. 2 Whether the Memorandum of Understanding constituted a legally binding agreement for assignment of sublease and goods.
  3. 3 Whether the Objector company had capacity to enter into the MOU at the material time.

Ratio Decidendi

The Objector failed to establish actual or constructive possession of the attached property at the date of attachment. The Memorandum of Understanding relied upon was not a legally binding agreement for assignment of sublease or goods, as it was executed before the Objector company was incorporated and lacked the necessary formalities of a deed and registration. The supporting affidavit was void, as it was not sworn on behalf of the Objector company and there was no Board Resolution authorizing the proceedings. The Objector and judgment debtors were found to be essentially the same persons operating through holding companies, and the application was deemed an abuse of court process....

Court Disposition

application dismissed with costs

Orders

  • Objector's application is dismissed with costs.
  • Wasted costs of this application to be paid to the creditors by Mr. Andrew Bagaye personally.