[2008] UGSC 21

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\widowctrl\ftnbj\aenddoc\noxlattoyen\expshrtn\noultrlspc\dntblnsbdb\nospaceforul\formshade\horzdoc\dgmargin\dghspace180\dgvspace180\dghorigin1440\dgvorigin1440\dghshow1\dgvshow1 \jexpand\viewkind1\viewscale100\pgbrdrhead\pgbrdrfoot\splytwnine\ftnlytwnine\htmautsp\nolnhtadjtbl\useltbaln\alntblind\lytcalctblwd\lyttblrtgr\lnbrkrule\nobrkwrptbl\snaptogridincell\allowfieldendsel\wrppunct \asianbrkrule\rsidroot5204195\newtblstyruls\nogrowautofit \fet0\sectd \linex0\headery708\footery708\colsx708\endnhere\sectlinegrid360\sectdefaultcl\sectrsid12653032\sftnbj {\*\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 \s1\qc \li0\ri0\keepn\widctlpar\aspalpha\aspnum\faauto\outlinelevel0\adjustright\rin0\lin0\itap0\pararsid5204195 \f36\fs28\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\b\f37\fs40\insrsid5204195\charrsid5668387 THE REPUBLIC OF UGANDA \par }\pard\plain \qc \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid5204195 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\b\f37\fs40\insrsid5204195\charrsid5668387 \par IN THE SUPREME COURT OF UGANDA \par AT MENGO \par }{\b\f37\fs28\insrsid5204195\charrsid5668387 \par }\pard\plain \s18\qc \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid5204195 \b\i\f36\fs28\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\f37\insrsid5204195\charrsid5668387 (CORAM:\tab ODOKI, C. J., TSEKOOKO, KANYEIHAMBA, KATUREEBE}{\f37\insrsid5204195 ,}{\f37\insrsid5204195\charrsid5668387 }{\f37\insrsid5204195 OKELLO,}{\f37\insrsid1507884 }{\f37\insrsid5204195\charrsid5668387 JJ. SC) \par }\pard \s18\qc \fi-1440\li2160\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin2160\itap0\pararsid5204195 {\f37\insrsid5204195\charrsid5668387 \par }\pard\plain \qc \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid5204195 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\b\caps\f37\fs28\insrsid5204195\charrsid5668387 Civil APPEAL NO. 12 OF 2007}{ \caps\f37\fs28\insrsid5204195\charrsid5668387 \par }\pard\plain \s3\qc \li0\ri0\sl360\slmult1\keepn\widctlpar\aspalpha\aspnum\faauto\outlinelevel2\adjustright\rin0\lin0\itap0\pararsid5204195 \b\f36\fs28\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\f37\insrsid5204195\charrsid5668387 BETWEEN \par }\pard\plain \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid5204195 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\b\caps\f37\fs28\insrsid5204195\charrsid5668387 }{\b\f37\fs28\insrsid5204195\charrsid5668387

\par }\pard \qc \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid5204195 {\b\caps\f37\fs28\insrsid5204195\charrsid5668387 Bank of UGANDA:}{\b\f37\fs28\insrsid5204195\charrsid5668387 ::::::::::::::::::::: }{ \b\f37\fs28\insrsid5204195 }{\b\f37\fs28\insrsid5204195\charrsid5668387 APPELLANT \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid5204195 {\b\f37\fs28\insrsid5204195\charrsid5668387 \par }\pard\plain \s3\qc \li0\ri0\sl360\slmult1\keepn\widctlpar\aspalpha\aspnum\faauto\outlinelevel2\adjustright\rin0\lin0\itap0\pararsid5204195 \b\f36\fs28\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\f37\insrsid5204195\charrsid5668387 AND \par }\pard\plain \qc \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid5204195 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\b\caps\f37\fs28\lang1024\langfe1024\noproof\insrsid5204195\charrsid5668387 betty tinkamanyire}{\b\f37\fs28\lang1024\langfe1024\noproof\insrsid5204195\charrsid5668387 :::::::::::::::::::::}{\b\f37\fs28\insrsid5204195\charrsid5668387 RESPONDENT \par }\pard\plain \s17\qc \li735\ri720\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin720\lin735\itap0\pararsid5204195 \i\f36\fs28\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\f37\fs22\insrsid5204195\charrsid5668387 \par }\pard \s17\ql \li735\ri720\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin720\lin735\itap0\pararsid5204195 {\f37\fs24\insrsid5204195\charrsid5668387 (Appeal arising from the judgment}{\f37\fs24\insrsid5204195 ,}{ \f37\fs24\insrsid5204195\charrsid5668387 decisions and}{\f37\fs24\insrsid5204195 orders }{\f37\fs24\insrsid5204195\charrsid5668387 of the Court of Appeal (Mukasa- Kikonyogo, D. C.,}{\f37\fs24\insrsid10823252 }{\f37\fs24\insrsid5204195\charrsid5668387 Twinomujuni , Kitumba, JJ. A) in Civil Appeal No.}{\f37\fs24\insrsid10823252 }{\f37\fs24\insrsid5204195\charrsid5668387 49. of 2005, dated 25}{\f37\fs24\super\insrsid5204195\charrsid5668387 th}{\f37\fs24\insrsid5204195\charrsid5668387 of April, 2007)

\par }\pard\plain \qc \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid5204195 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\b\f37\fs36\ul\insrsid5204195\charrsid5668387 \par JUDGMENT OF KANYEIHAMBA, J. S. C \par }\pard \qj \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid5204195 {\b\f37\ul\insrsid5204195\charrsid5668387 \par }\pard \qj \fi720\li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid5204195 {\f37\fs28\insrsid5204195 This is a second appeal from the judgment and orders of the Court of Appeal in Civil Appeal No.}{ \f37\fs28\insrsid10823252 }{\f37\fs28\insrsid5204195 49 of 2005, in which the appellant\rquote s appeal was dismissed with costs. \par The facts of this case are not in dispute. The r espondent was an employee of the appellant at the time she was wrongly dismissed from her employment. The dismissal followed a circular prepared and published to all employees of the appellant and prominently displayed on its notice boards reading as fol lows: \par }\pard \qj \li720\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid5204195 {\b\f37\fs28\insrsid5204195\charrsid12133307 \'93 Staff who are incompetent, poor time managers (particularly late coming), alcoholic, thieves, fraudsters and those who are insubordinate, will no longer be tolerated in the Bank.\'94 }{\f37\fs28\insrsid5204195 \par }\pard \qj \fi720\li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid5204195 {\f37\fs28\insrsid5204195 On the same day that that communication was pinned on the appellant\rquote s notice boards and read by all and sundry, the respondent received a letter signed by a senior member of the appellant\rquote s management namely, the Deputy Governor, informing the respondent that at a meeting held on the 16}{ \f37\fs28\super\insrsid5204195\charrsid9069497 th}{\f37\fs28\insrsid5204195 August 2002, the Board of Directors of the appellant had resolved to retire her from its services with immediate effect. No reasons were given in the termination letter by the Deputy Governor but he offered the respondent three months salary in lieu of notice, commutation of annual leave and pension cash commutation. She was also advised to sort out and clear her outstanding obligations to the appellant. Indeed, when the appellant\rquote s officials disclosed the nature, extent and value of those obligations, her stated terminal benefits were virtually wiped out by the appellant\rquote s claims of the alleged respondent\rquote s obligations to it. \par Subsequently, the respondent filed a suit in the High Court claiming reinstatement and damages or in the alternative, compensation for involuntary or forced retireme nt which she considered to be unfair, unjust, arbitrary, harsh, wrongful and illegal and which resulted in her loss of reputation, employment, all leading her to suffer mental anguish. The appellant denied liability asserting that it was within its right s to terminate the respondent\rquote s employment and claimed that the action was done lawfully. \par After considering counsel\rquote s submissions and arguments on the facts agreed between the parties, the learned trial judge (Okumu Wengi) allowed her claims and awarded com pensatory damages which became the subject of the appeal in the Court of Appeal by the appellant. The learned Justices of Appeal dismissed the appeal and confirmed or varied the orders of the High Court. This appeal is mainly about that confirmation and orders. \par }\pard \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid5204195 {\f37\fs28\insrsid5204195 The Memorandum of Appeal contains five grounds framed as follows: \par {\listtext\pard\plain\b\fs28\lang1033\langfe1033\loch\af37\hich\af37\dbch\af0\langnp1033\langfenp1033\insrsid5204195\charrsid4075258 \hich\af37\dbch\af0\loch\f37 1.\tab}}\pard \qj \fi-360\li720\ri0\sl360\slmult1\widctlpar \jclisttab\tx720\aspalpha\aspnum\faauto\ls1\adjustright\rin0\lin720\itap0\pararsid5204195 {\b\f37\fs28\insrsid5204195\charrsid4075258 The learned Judges of the Court of Appeal erred in law in upholding the award to the Respondent of damages for wrongful dismissal which exceeded the three (3) months salary which would have been payable to her in lieu of notice. \par {\listtext\pard\plain\b\fs28\lang1033\langfe1033\loch\af37\hich\af37\dbch\af0\langnp1033\langfenp1033\insrsid5204195\charrsid4075258 \hich\af37\dbch\af0\loch\f37 2.\tab} The Learned Judges of the Court of Appeal erred in law and in fact in upholding the award}{\b\f37\fs28\insrsid5204195 ed}{\b\f37\fs28\insrsid5204195\charrsid4075258 to the Respondent, as damages for wrongful dismissal, of her salary for the forty four (44) month}{\b\f37\fs28\insrsid5204195 s}{\b\f37\fs28\insrsid5204195\charrsid4075258 period between the date of her termination being the 21}{ \b\f37\fs28\super\insrsid5204195\charrsid4075258 st}{\b\f37\fs28\insrsid5204195\charrsid4075258 August 2002 till the date she}{\f37\fs28\insrsid5204195 }{\b\f37\fs28\insrsid5204195\charrsid4075258 would attain retirement age being April 2006}{ \b\f37\fs28\insrsid5204195 (and)}{\b\f37\fs28\insrsid5204195\charrsid4075258 the sum awarded being}{\f37\fs28\insrsid5204195 }{\b\f37\fs28\insrsid5204195\charrsid15610001 Ug. Shs. 179,740,000}{\b\f37\fs28\insrsid5204195 /=.}{\f37\fs28\insrsid5204195

\par }\pard \qj \li360\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin360\itap0\pararsid5204195 {\f37\fs28\insrsid5204195 \par {\listtext\pard\plain\b\fs28\lang1033\langfe1033\loch\af37\hich\af37\dbch\af0\langnp1033\langfenp1033\insrsid5204195\charrsid4075258 \hich\af37\dbch\af0\loch\f37 3.\tab}}\pard \qj \fi-360\li720\ri0\sl360\slmult1\widctlpar \jclisttab\tx720\aspalpha\aspnum\faauto\ls1\adjustright\rin0\lin720\itap0\pararsid5204195 {\b\f37\fs28\insrsid5204195\charrsid4075258 The Learned Judges of the Court of Appeal erred in law and in fact }{\b\f37\fs28\insrsid5204195 in }{ \b\f37\fs28\insrsid5204195\charrsid4075258 upholding the award to the }{\b\f37\fs28\insrsid5204195 Respondent}{\b\f37\fs28\insrsid5204195\charrsid4075258 as damages for wrongful dismissal}{\b\f37\fs28\insrsid5204195 ,}{ \b\f37\fs28\insrsid5204195\charrsid4075258 her annual bonus}{\b\f37\fs28\insrsid5204195 es}{\b\f37\fs28\insrsid5204195\charrsid4075258 , health club entitlement and annual leave for the forty four (44) month}{\b\f37\fs28\insrsid5204195 s}{ \b\f37\fs28\insrsid5204195\charrsid4075258 period from the date of termination}{\b\f37\fs28\insrsid5204195 ,}{\b\f37\fs28\insrsid5204195\charrsid4075258 being the 21}{\b\f37\fs28\super\insrsid5204195\charrsid4075258 st}{ \b\f37\fs28\insrsid5204195\charrsid4075258 August 2002 till the date she would attain retirement age}{\b\f37\fs28\insrsid5204195 ,}{\b\f37\fs28\insrsid5204195\charrsid4075258 being April 2006,}{\b\f37\fs28\insrsid5204195 (and)}{ \b\f37\fs28\insrsid5204195\charrsid4075258 the sum award}{\b\f37\fs28\insrsid5204195 ed}{\b\f37\fs28\insrsid5204195\charrsid4075258 being Ug. Shs. 60,685,300/=. \par }\pard \qj \li0\ri0\sl240\slmult0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid5204195 {\b\f37\fs28\insrsid5204195\charrsid4075258 \par {\listtext\pard\plain\b\fs28\lang1033\langfe1033\loch\af37\hich\af37\dbch\af0\langnp1033\langfenp1033\insrsid5204195\charrsid4075258 \hich\af37\dbch\af0\loch\f37 4.\tab}}\pard \qj \fi-360\li720\ri0\sl360\slmult1\widctlpar \jclisttab\tx720\aspalpha\aspnum\faauto\ls1\adjustright\rin0\lin720\itap0\pararsid5204195 {\b\f37\fs28\insrsid5204195\charrsid4075258 The Learned Judges of the Court of Appeal erred in law and fact in upholding the award to the Respondent of general damages of Shs. 30,000,000/= and punitive damages of Shs. 20,000,000/= there having been no basis in fact or}{\b\f37\fs28\insrsid5204195 in}{\b\f37\fs28\insrsid5204195\charrsid4075258 law for either of the award and/or for awards in that quantum. \par }\pard \qj \li0\ri0\sl240\slmult0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid5204195 {\b\f37\fs28\insrsid5204195\charrsid4075258 \par {\listtext\pard\plain\b\fs28\lang1033\langfe1033\loch\af37\hich\af37\dbch\af0\langnp1033\langfenp1033\insrsid5204195\charrsid4075258 \hich\af37\dbch\af0\loch\f37 5.\tab}}\pard \qj \fi-360\li720\ri0\sl360\slmult1\widctlpar \jclisttab\tx720\aspalpha\aspnum\faauto\ls1\adjustright\rin0\lin720\itap0\pararsid5204195 {\b\f37\fs28\insrsid5204195\charrsid4075258 The Learned Judges of the Court of Appeal erred in law and in fact in upholding the award to the Respondent of payment of three (3) months salary in lieu of notice in the sum of Ug. Shs. 12, 44,000/= inspite of it having been an agreed fact that these monies had indeed been paid to her by a debt offset. \par }\pard \qj \li0\ri0\sl240\slmult0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid5204195 {\f37\fs28\insrsid5204195 \par }\pard \qj \fi720\li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid5204195 {\f37\fs28\insrsid5204195 It is clear from the pleadings and submissions of the parties in the Courts below and Counsel\rquote s arguments in this court that the dispute revolves around the nature and quantum of the damages awarded to the respondent as shown in each ground of appeal. \par Mr. Masembe - Kanyerezi represented the appellant while Mr. Richard -Okallany represented the respondent in this court Mr. Masembe - Kanyerezi argued grounds 1 and 2 of the appeal together and ground 3, 4 and 5 separately. \par On the first two grounds, counsel for the appellant contended that while conceding that the dismissal was unlawful that the app ellant is only liable to pay such sums of money as the respondent would have received in lieu of notice together with any such other sums including commuted pension as she would have received had the termination of her employment been lawful. Counsel cri ticized the Court of Appeal for confirming the decision of the learned trial Judge who based the respondent\rquote s compensation on the number of months she would have worked and paid for up to the time of her retirement had she not been unlawfully dismissed. Counsel for the appellant cited the cases of }{\b\f37\fs28\insrsid5204195\charrsid16332370 John Eletu }{ \b\f37\fs28\insrsid5204195 v}{\b\f37\fs28\insrsid5204195\charrsid16332370 Uganda Airlines Corporation (1984) H. C. B. 39 and Godfrey Mubiru }{\b\f37\fs28\insrsid5204195 v}{\b\f37\fs28\insrsid5204195\charrsid16332370 Barclays Bank of Uganda Limited, }{ \f37\fs28\insrsid5204195 Civil Appeal No 1 of 1998, (S. C) (Unreported) for his submissions on these grounds. \par Mr. Okallany for the respondent opposed the Appeal and supported the findings and awards of both the Court of Appeal and the High Court. On ground 1, counsel for the respondent contended that at the time the respondent was unlawfully dismissed she was in advancing years with little prospects of finding alternative employment elsewhere but still young enough to work for the appellant for a long period of time. Counsel cited }{\b\f37\fs28\insrsid5204195\charrsid2119304 Nartey Tokoli and Others }{ \b\f37\fs28\insrsid5204195 v}{\b\f37\fs28\insrsid5204195\charrsid2119304 Voltar Aluminum Ltd}{\b\f37\fs28\insrsid5204195 . }{\f37\fs28\insrsid5204195\charrsid2119304 1990}{\f37\fs28\insrsid5204195 , L. R. C. (Comm) P5 79 -604 and }{ \b\f37\fs28\insrsid5204195\charrsid2119304 Coussens v Attorney General}{\f37\fs28\insrsid5204195 (1999) I. E. A.41 in support of his submissions on damages and compensation for unlawful dismissal. \par I will first consider ground 1. it is trite that, a court of law should not use its powers to force an employer to retake an employee it no long er wishes to continue to engage. However, depending on the circumstances, an employee who is unfairly or unlawfully dismissed, as in this case, should be compensated adequately in accordance with the law. Be that as is it may, on dismissal, whether unfa ir or unlawful, this Court has had opportunity to pronounce itself on the matter. \par }\pard \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid5204195 {\f37\fs28\insrsid5204195 In }{\b\f37\fs28\insrsid5204195\charrsid6493908 Barclays Bank of Uganda }{\b\f37\fs28\insrsid5204195 v}{ \b\f37\fs28\insrsid5204195\charrsid6493908 Godfrey Mubiru, }{\f37\fs28\insrsid5204195\charrsid2105667 C. A No.1 of 1998}{\f37\fs28\insrsid5204195 (S. C) (Unreported), I had opportunity to say. \par }\pard \qj \li720\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid5204195 {\b\f37\fs28\insrsid5204195\charrsid4350201 \'93In my opinion, where any cont}{\b\f37\fs28\insrsid5204195 r}{ \b\f37\fs28\insrsid5204195\charrsid4350201 act of employment, like the present}{\b\f37\fs28\insrsid5204195 ,}{\b\f37\fs28\insrsid5204195\charrsid4350201 stipulates that a party may terminate it by giving notice of}{\b\f37\fs28\insrsid5204195 a}{ \b\f37\fs28\insrsid5204195\charrsid4350201 specified period, such contract }{\b\f37\fs28\insrsid5204195 c}{\b\f37\fs28\insrsid5204195\charrsid4350201 an be terminated by giving the stipulated notice for the period. In default of such notice by the employer, the employee is entitled to receive payment in lieu of notice and where no period for notice is stipulated, compensation will be award}{ \b\f37\fs28\insrsid5204195 ed}{\b\f37\fs28\insrsid5204195\charrsid4350201 for reasonable notice which should have been given, depending on}{\b\f37\fs28\insrsid5204195 the}{\b\f37\fs28\insrsid5204195\charrsid4350201 nature and duration of employment. Thus}{\b\f37\fs28\insrsid5204195 ,}{\b\f37\fs28\insrsid5204195\charrsid4350201 in the case of }{\i\f37\fs28\insrsid5204195\charrsid4475981 Lees }{\i\f37\fs28\insrsid5204195 v}{ \i\f37\fs28\insrsid5204195\charrsid4475981 Arthur Greaves Ltd, }{\f37\fs28\insrsid5204195\charrsid4803958 (1974}{\i\f37\fs28\insrsid5204195\charrsid4803958 )}{\f37\fs28\insrsid5204195\charrsid4803958 I. C. R. 501}{ \b\f37\fs28\insrsid5204195\charrsid4350201 , it was held that payment in lieu of notice can be viewed as ordinary giving of notice\'85. The right of the employer to terminate the contract of service}{\b\f37\fs28\insrsid5204195 ,}{ \b\f37\fs28\insrsid5204195\charrsid4350201 whether by giving notice or incurring }{\b\f37\fs28\insrsid5204195 a}{\b\f37\fs28\insrsid5204195\charrsid4350201 penalty of paying compensation in lieu of notice for th e duration stipulated or implied by the contract cannot be fettered by the }{\b\f37\fs28\insrsid5204195 c}{\b\f37\fs28\insrsid5204195\charrsid4350201 ourts. }{\b\f37\fs28\insrsid5204195 An }{\b\f37\fs28\insrsid5204195\charrsid4350201 employee is entitled to}{\b\f37\fs28\insrsid5204195 full}{\b\f37\fs28\insrsid5204195\charrsid4350201 compensation only in those cases where the period of service is fixed without provision for giving notice.\'94 }{\b\f37\fs28\insrsid5204195 \par }\pard \qj \fi720\li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid5204195 {\f37\fs28\insrsid5204195\charrsid4350201 The contention }{\f37\fs28\insrsid5204195 that an employ ee whose contract of employment is terminated prematurely or illegally should be compensated for the remainder of the years or period when they would have retired is unattainable in law. Similarly, claims of holidays, leave, lunch allowances and the like which the unlawfully dismissed employee would have enjoyed had the dismissal not occurred are merely speculative and cannot be justified in law. \par I would confine the compensation for the unlawful dismissal of the appellant to the monetary value of the perio d that was necessary to give proper notice of termination which is commonly known in law as compensation in lieu of notice. The principles established by this court in }{\b\f37\fs28\insrsid5204195\charrsid1844058 Barclays Bank of}{ \f37\fs28\insrsid5204195 }{\b\f37\fs28\insrsid5204195\charrsid1844058 Uganda }{\b\f37\fs28\insrsid5204195 v}{\b\f37\fs28\insrsid5204195\charrsid1844058 Godfrey Mubiru }{\f37\fs28\insrsid5204195 (supra) remain good law that governs the rela tionship between an employer and employees with regard to termination of the latter\rquote s employment. \par I would therefore allow ground 1 of the appeal and limit the appellant\rquote s liability to compensation in lieu of notice of three months. In that respect, couns el for the parties disclosed that compensation in lieu of notice had been offered to, accepted and received by the respondent. Therefore nothing more needs to be said on this matter again. I would therefore hold that ground 1 of the appeal partially suc ceeds. \par My findings and decision on ground 1 effectively nullifies the awards given in ground 2, 3 and 5 which also ought to succeed in this appeal. \par I will now determine ground 4 of the appeal. For the appellant, Mr. Masembe - Kanyerezi criticized the Justi ces of Appeal for confirming the award of general damages in the sum of Sh.30,000,000 and of punitive damages in the sum of Shs. 20,000,000. Counsel contended that a court is only limited to award aggravated damages. In his opinion, the award of the c o mbined sums of 30,000,000 and 20,000,000 to make 50,000,000 is too excessive and has no basis in law and moreover, no reasons were given to justify it. Mr. Masembe - Kanyerezi contended that for a case of this nature general damages should be in the regio n of 10,000,000 shillings. \par For the respondent, Mr. Okallany supported the awards of both aggravated and punitive damages as justified and reasonable. In his view, damages awarded on the facts and evidence heard by a trial judge and confirmed by the first appellate Court ought not to be interfered with by a second appellate court. Counsel contended further that in assessing the general and punitive damages, the courts below carefully analyzed and were guided by the pleadings and evidence in this case. T hus, in her lead judgment, Kitumba, J. A, reviewed the evidence and observed:- \par }\pard \qj \li1440\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin1440\itap0\pararsid5204195 {\b\f37\fs28\insrsid5204195\charrsid621597 \'93Regarding general damages, the respondent was rightly awarded }{\b\f37\fs28\insrsid5204195 these}{\b\f37\fs28\insrsid5204195\charrsid621597 damages. She was a senior }{\b\f37\fs28\insrsid5204195 member of staff and her }{\b\f37\fs28\insrsid5204195\charrsid621597 services were terminated wrongly. }{\b\f37\fs28\insrsid5204195 She}{ \b\f37\fs28\insrsid5204195\charrsid621597 was greatly embarrassed and inconvenienced. She was classified among people who were alcoholics, late comers and fraudsters who were mentioned in Exhibit P. S. }{\i\f37\fs28\insrsid5204195\charrsid12000769 In Kiyingi }{\i\f37\fs28\insrsid5204195 v}{\b\f37\fs28\insrsid5204195\charrsid621597 }{\i\f37\fs28\insrsid5204195\charrsid12000769 National Insurance Corporation}{\b\f37\fs28\insrsid5204195\charrsid621597 , }{\f37\fs28\insrsid5204195\charrsid2580327 (1985) H. CB 4}{\f37\fs28\insrsid5204195 ,}{\f37\fs28\insrsid5204195\charrsid2580327 }{\b\f37\fs28\insrsid5204195\charrsid621597 where a senior member of staff}{\b\f37\fs28\insrsid5204195 \rquote s}{\b\f37\fs28\insrsid5204195\charrsid621597 services }{ \b\f37\fs28\insrsid5204195 we}{\b\f37\fs28\insrsid5204195\charrsid621597 re wrongly terminated, the court awarded him general damages for embarrassment and inconvenience\'94. }{\b\f37\fs28\insrsid5204195 \par }\pard \qj \fi720\li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid5204195 {\f37\fs28\insrsid5204195\charrsid2825762 In a support }{\f37\fs28\insrsid5204195 judgment, the learned Deputy Chief Justice, Mukasa- Kikonyogo observed. \par }\pard \qj \li720\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid5204195 {\b\f37\fs28\insrsid5204195\charrsid9900315 \'93The humiliation suffered by th}{\b\f37\fs28\insrsid5204195 e }{ \b\f37\fs28\insrsid5204195\charrsid9900315 respondent on her return from abroad on official duty only to find her successor seated in her chair, was unacceptable and, hence justified the award of punitive damages}{\f37\fs28\insrsid5204195 .\'94 \par }\pard \qj \fi720\li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid5204195 {\f37\fs28\insrsid5204195 The illegalities and wrongs of the appellant were compounded further by its lack of compassion, callousness and indifference to the good and devoted services the appellant had rendered to the bank. After her unlawful dismissal, the appellant\rquote s officers carried out an inquiry into the respondent\rquote s history of employment and performance. They found that not only had she a clean record but her zeal and performance as an employee of the appellant were exemplary. In the inquiry, her fellow workers expressed praises and commendations of her. The report of the inquiry showed quite clearly that this should have been an excellent case where the respondent should have been reinstated with apologies. Instead, the senior managers of the appellant chose to stand on their high horse of pride and confirmed the illegal termination of her employment. \par In my opinion, the acts of the appellant were not only unlawful, but were degrading and callous. In my view, a good case has been shown for the respondent to be eligible for the award of aggravated damages. \par From the facts and evidence as well as submissions of counsel in this case, the respondent was only fo ur years from the date of retiring with full pension rights. The evidence shows that she would have continued to serve the appellant faithfully, diligently and in an exemplary manner. In my opinion therefore, it would be iniquitous for her to lose any o f her pension rights. Consequently, in conformity with the principles laid down by this Court in }{\b\f37\fs28\insrsid5204195\charrsid14445170 Barclays Bank of Uganda }{\b\f37\fs28\insrsid5204195 v}{\b\f37\fs28\insrsid5204195\charrsid14445170 . Godfrey}{ \f37\fs28\insrsid5204195 }{\b\f37\fs28\insrsid5204195\charrsid14445170 Mubiru,}{\f37\fs28\insrsid5204195 (supra), while the court may not order her reinstatement, it is my view that it can save all her pension rights that she had already earned. \par In my opinion therefore, this appeal partially fails. I would confirm the findings, decisions and orders of the Court of Appeal and High Court and modify them as follows: \par {\listtext\pard\plain\fs28\lang1033\langfe1033\loch\af37\hich\af37\dbch\af0\langnp1033\langfenp1033\insrsid5204195 \hich\af37\dbch\af0\loch\f37 (a)\tab}}\pard \qj \fi-720\li1440\ri0\sl360\slmult1\widctlpar \jclisttab\tx1440\aspalpha\aspnum\faauto\ls2\adjustright\rin0\lin1440\itap0\pararsid5204195 {\f37\fs28\insrsid5204195 I would hold that this appeal substantially fails. \par {\listtext\pard\plain\fs28\lang1033\langfe1033\loch\af37\hich\af37\dbch\af0\langnp1033\langfenp1033\insrsid5204195 \hich\af37\dbch\af0\loch\f37 (b)\tab}I would award the respondent aggravated damages in the sum of Uganda Shillings 100,000,000 (one hundred million) \par {\listtext\pard\plain\fs28\lang1033\langfe1033\loch\af37\hich\af37\dbch\af0\langnp1033\langfenp1033\insrsid5204195 \hich\af37\dbch\af0\loch\f37 (c)\tab}I would order that the respondent be paid her accrued pension and other terminal benefits, if any.

\par {\listtext\pard\plain\fs28\lang1033\langfe1033\loch\af37\hich\af37\dbch\af0\langnp1033\langfenp1033\insrsid5204195 \hich\af37\dbch\af0\loch\f37 (d)\tab}I would order that the appellant pay \'bd the costs of this appeal and of the two courts below. \par }\pard \qj \li720\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid5204195 {\f37\fs28\insrsid5204195 \par }\pard \qc \li-720\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin-720\itap0\pararsid5204195 {\b\f37\fs28\insrsid5204195\charrsid14045395 Dated at Mengo this}{\b\f37\fs28\insrsid5204195 16}{\b\f37\fs28\super\insrsid5204195\charrsid13176801 th}{ \b\f37\fs28\insrsid5204195 }{\b\f37\fs28\insrsid5204195\charrsid14045395 day of}{\b\f37\fs28\insrsid5204195 December }{\b\f37\fs28\insrsid5204195\charrsid14045395 2008 \par }\pard \qc \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid5204195 {\b\f37\insrsid5204195\charrsid15666583 \par \par }{\b\f37\fs36\insrsid5204195\charrsid15666583 G. W. KANYEIHAMBA \par JUSTICE OF THE SUPREME COURT \par }\pard \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid5204195 {\f37\fs28\insrsid5204195\charrsid15666583 \par }\pard \qj \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0 {\insrsid5204195 \page \par }\pard \qc \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid5204195 {\b\f1\fs28\insrsid5204195\charrsid6561660 THE REPUBLIC OF UGANDA \par }{\b\f1\fs28\insrsid5204195 \par }{\b\f1\fs28\insrsid5204195\charrsid6561660 IN THE SUPREME COURT OF UGANDA \par }{\b\f1\fs28\insrsid5204195 \par }{\b\f1\fs28\insrsid5204195\charrsid6561660 AT MENGO \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid5204195 {\insrsid5204195 \par }\pard \qc \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid5204195 {\b\f1\fs28\insrsid5204195\charrsid1274743 (CORAM: ODOKI, CJ, TSEKOOKO, KANYEIHAMBA, KATUREEBE AND OKELLO, JJ. SC) \par \par CIVIL APPEAL NO. 12 OF 2007 \par \par BETWEEN \par BANK OF UGANDA\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85. APPELLANT \par \par AND \par \par BETTY TINKAMANYIRE\'85\'85\'85\'85\'85\'85\'85. RESPONDENT \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid5204195 {\f1\insrsid5204195\charrsid1274743 \par }\pard \qj \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid5204195 {\b\i\f1\fs28\insrsid5204195\charrsid1274743 [An appeal from the decision of the Court of Appeal at Kampala (Mukasa-Kikonyogo DCJ, Twinomunjuni and Kitumba . JJA) in civil Appeal No. 49 of 2005 dated 25}{\b\i\f1\fs28\super\insrsid5204195\charrsid1274743 th}{ \b\i\f1\fs28\insrsid5204195\charrsid1274743 April 2007] \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid5204195 {\f1\insrsid5204195\charrsid1274743 \par \par }{\b\f1\fs28\insrsid5204195\charrsid1274743 JUDGMENT OF ODOKI, CJ \par }{\f1\insrsid5204195\charrsid1274743 \par }\pard \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid5204195 {\f1\fs28\insrsid5204195\charrsid1274743 I have had the advantage of reading in draft the judgment prepared by my learned brother Kanyeihamba JSC, and I agree with it and the orders he has proposed. \par \par As the other members of the court also agree, this appeal is allowed in part with orders in the terms proposed by Kanyeihamba JSC. \par \par Dated at Mengo this 16}{\f1\fs28\super\insrsid5204195\charrsid1274743 th}{\f1\fs28\insrsid5204195\charrsid1274743 day of December 2008 \par }\pard \qj \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid5204195 {\f1\fs28\insrsid5204195 \par }{\f1\fs28\insrsid5204195\charrsid1274743 B J Odoki \par }{\b\f1\fs28\insrsid5204195\charrsid1274743 CHIEF JUSTICE \par }\pard \qj \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0 {\insrsid5204195 \page \par }\pard \qc \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid5204195 {\b\f2\fs36\cgrid0\insrsid5204195\charrsid12517868 THE REPUBLIC OF UGANDA \par }{\b\f2\fs36\cgrid0\insrsid5204195\charrsid6563085 IN THE SUPREME COURT OF UGANDA \par }\pard \qc \li0\ri0\sl360\slmult1\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid5204195 {\b\f2\fs36\cgrid0\insrsid5204195\charrsid6563085 AT MENGO \par }\pard \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid5204195 {\f2\cgrid0\insrsid5204195\charrsid6563085 \par }\pard \ql \fi-1440\li2160\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin2160\itap0\pararsid5204195 {\b\f2\fs28\cgrid0\insrsid5204195\charrsid6563085 (CORAM: \tab }{\b\f2\fs28\cgrid0\insrsid5204195 ODOKI}{ \b\f2\fs28\cgrid0\insrsid5204195\charrsid6563085 ,}{\b\f2\fs28\cgrid0\insrsid5204195 CJ; }{\b\f2\fs28\cgrid0\insrsid5204195\charrsid6563085 TSEKOOKO, KANYEIHAMBA,K}{\b\f2\fs28\cgrid0\insrsid5204195 ATUREEBE }{ \b\f2\fs28\cgrid0\insrsid5204195\charrsid6563085 AND OK}{\b\f2\fs28\cgrid0\insrsid5204195 ELL}{\b\f2\fs28\cgrid0\insrsid5204195\charrsid6563085 O}{\b\f2\fs28\cgrid0\insrsid5204195 , }{\b\f2\fs28\cgrid0\insrsid5204195\charrsid6563085 JJSC.)}{ \b\f2\fs28\cgrid0\insrsid5204195 \par }\pard \ql \fi720\li1440\ri0\sl360\slmult1\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin1440\itap0\pararsid5204195 {\b\f2\fs28\cgrid0\insrsid5204195 \par }\pard \ql \li1440\ri0\sl360\slmult1\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin1440\itap0\pararsid5204195 {\b\f2\fs36\ul\cgrid0\insrsid5204195\charrsid73244 CI}{\b\f2\fs36\ul\cgrid0\insrsid5204195 VI}{ \b\f2\fs36\ul\cgrid0\insrsid5204195\charrsid73244 L APPEAL No. }{\b\f2\fs36\ul\cgrid0\insrsid5204195 12 }{\b\f2\fs36\ul\cgrid0\insrsid5204195\charrsid73244 OF }{\b\f2\fs36\ul\cgrid0\insrsid5204195 2007}{\b\f2\fs36\ul\cgrid0\insrsid5204195\charrsid73244

\par }\pard \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid5204195 {\b\f2\cgrid0\insrsid5204195\charrsid6563085 \par }\pard \qc \li0\ri0\sl360\slmult1\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid5204195 {\b\f2\cgrid0\insrsid5204195\charrsid73244 BETWEEN \par }\pard \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid5204195 {\b\f2\cgrid0\insrsid5204195\charrsid73244 \par }\pard \qc \li0\ri0\sl360\slmult1\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid5204195 {\b\f2\fs28\cgrid0\insrsid5204195 BANK OF UGANDA }{\b\f2\fs28\cgrid0\insrsid5204195\charrsid73244 :::::::::::::}{ \b\f2\fs28\cgrid0\insrsid5204195 :::::::::: }{\b\f2\fs28\cgrid0\insrsid5204195\charrsid73244 APPELLANT \par }\pard \qc \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid5204195 {\b\f2\cgrid0\insrsid5204195\charrsid73244 \par }\pard \qc \li0\ri0\sl360\slmult1\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid5204195 {\b\f2\cgrid0\insrsid5204195\charrsid73244 VERSUS \par }\pard \qc \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid5204195 {\b\f2\cgrid0\insrsid5204195\charrsid73244 \par }{\b\f2\fs28\cgrid0\insrsid5204195 BETTY TINKAMANYIRE }{\b\f2\fs28\cgrid0\insrsid5204195\charrsid73244 :::::::::}{\b\f2\fs28\cgrid0\insrsid5204195 :::::::: }{\b\f2\fs28\cgrid0\insrsid5204195\charrsid73244 RESPONDENT \par }\pard \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid5204195 {\b\f2\cgrid0\insrsid5204195\charrsid73244 \par }\pard \qj \li720\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid5204195 {\b\i\f2\fs22\cgrid0\insrsid5204195\charrsid73244 [APPEAL from }{\b\i\f2\fs22\cgrid0\insrsid5204195 a }{ \b\i\f2\fs22\cgrid0\insrsid5204195\charrsid73244 decision of the Court of Appeal at Kampala}{\b\i\f2\fs22\cgrid0\insrsid5204195 (Mukasa Kikonyogo, DCJ; Twinomujuni }{\b\i\f2\fs22\cgrid0\insrsid5204195\charrsid73244 and Kitumba}{ \b\i\f2\fs22\cgrid0\insrsid5204195 , }{\b\i\f2\fs22\cgrid0\insrsid5204195\charrsid73244 JJ. A}{\b\i\f2\fs22\cgrid0\insrsid5204195 ) }{\b\i\f2\fs22\cgrid0\insrsid5204195\charrsid73244 dated 2}{\b\i\f2\fs22\cgrid0\insrsid5204195 5}{ \b\i\f2\fs22\super\cgrid0\insrsid5204195\charrsid73244 th}{\b\i\f2\fs22\cgrid0\insrsid5204195\charrsid73244 }{\b\i\f2\fs22\cgrid0\insrsid5204195 April, 2007 }{\b\i\f2\fs22\cgrid0\insrsid5204195\charrsid73244 in Ci}{\b\i\f2\fs22\cgrid0\insrsid5204195 v}{ \b\i\f2\fs22\cgrid0\insrsid5204195\charrsid73244 il Appeal No. }{\b\i\f2\fs22\cgrid0\insrsid5204195 49 }{\b\i\f2\fs22\cgrid0\insrsid5204195\charrsid73244 of }{\b\i\f2\fs22\cgrid0\insrsid5204195 2005}{\b\i\f2\fs22\cgrid0\insrsid5204195\charrsid73244 ]

\par }\pard \qj \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid5204195 {\b\cgrid0\insrsid5204195\charrsid73244 \par }\pard \qj \li0\ri0\sl360\slmult1\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid5204195 {\b\cgrid0\insrsid5204195\charrsid73244 \par }\pard \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid5204195 {\b\f2\fs28\ul\cgrid0\insrsid5204195\charrsid9576645 JUDGMENT OF TSEKOOKO, JSC \par }\pard \qj \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid5204195 {\b\f2\fs28\cgrid0\insrsid5204195 \par }\pard \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid5204195 {\f2\fs28\cgrid0\insrsid5204195\charrsid9243114 I have had the advantage of reading in draft the judgment prepared by my learned brother, Kanyei hamba, JSC., which he has just delivered and I agree with his conclusions}{\f2\fs28\cgrid0\insrsid5204195 and orders}{\f2\fs28\cgrid0\insrsid5204195\charrsid9243114 .}{\f2\fs28\cgrid0\insrsid5204195 \par As Mr. Masembe Kanyerezi, counsel for the appellant correctly conceded during the hearing of the appeal, this appeal is essentially on the quantum of damages. The five grounds of the appeal complain about the various awards given by the two courts below. }{\f2\fs28\cgrid0\insrsid5204195\charrsid9243114 \par Th}{\f2\fs28\cgrid0\insrsid5204195 e facts of the case are well summarised in the judgment of my learned brother. Just to emphasise. }{\f2\fs28\cgrid0\insrsid5204195\charrsid9243114 The respondent who had served the appellant}{ \f2\fs28\cgrid0\insrsid5204195 bank}{\f2\fs28\cgrid0\insrsid5204195\charrsid9243114 for ten year}{\f2\fs28\cgrid0\insrsid5204195 s}{\f2\fs28\cgrid0\insrsid5204195\charrsid9243114 in }{\f2\fs28\cgrid0\insrsid5204195 various }{ \f2\fs28\cgrid0\insrsid5204195\charrsid9243114 position}{\f2\fs28\cgrid0\insrsid5204195 s}{\f2\fs28\cgrid0\insrsid5204195\charrsid9243114 and apparently without blemish on her record}{\f2\fs28\cgrid0\insrsid5204195 had only }{ \f2\fs28\cgrid0\insrsid5204195\charrsid9243114 four years }{\f2\fs28\cgrid0\insrsid5204195 left be}{\f2\fs28\cgrid0\insrsid5204195\charrsid9243114 for}{\f2\fs28\cgrid0\insrsid5204195 e her }{\f2\fs28\cgrid0\insrsid5204195\charrsid9243114 normal}{ \f2\fs28\cgrid0\insrsid5204195 retirement. Indeed on 25}{\f2\fs28\super\cgrid0\insrsid5204195\charrsid10504942 th}{\f2\fs28\cgrid0\insrsid5204195 August 2002, the appellant sent the respondent to Germany to understudy the Human Resource Department of the Germany Bank wh ich would imply she was still needed. Surprisingly, upon her return she was handed a letter dated 21/8/2002 retiring her. No reason was assigned for this premature retirement nor was }{\f2\fs28\cgrid0\insrsid5204195\charrsid9243114 she given opportunity to be heard}{\f2\fs28\cgrid0\insrsid5204195 before that retirement. The two courts below correctly found that this amounted to summary unlawful dismissal. \par }{\f2\fs28\cgrid0\insrsid5204195\charrsid9243114 \par }{\f2\fs28\cgrid0\insrsid5204195 Apparently }{\f2\fs28\cgrid0\insrsid5204195\charrsid9243114 the Governor of the appellant }{\f2\fs28\cgrid0\insrsid5204195 had earlier circulated a circular }{\f2\fs28\cgrid0\insrsid5204195\charrsid9243114 w}{ \f2\fs28\cgrid0\insrsid5204195 arning that drunkards, }{\f2\fs28\cgrid0\insrsid5204195\charrsid9243114 lazy}{\f2\fs28\cgrid0\insrsid5204195 , insubordinates, fraudsters and }{\f2\fs28\cgrid0\insrsid5204195\charrsid9243114 incompetent employees would have }{\f2\fs28\cgrid0\insrsid5204195 their }{\f2\fs28\cgrid0\insrsid5204195\charrsid9243114 services terminated. In the absence of any reasons to explai}{\f2\fs28\cgrid0\insrsid5204195 n h}{\f2\fs28\cgrid0\insrsid5204195\charrsid9243114 er dismissal}{ \f2\fs28\cgrid0\insrsid5204195 ,}{\f2\fs28\cgrid0\insrsid5204195\charrsid9243114 it is }{\f2\fs28\cgrid0\insrsid5204195 not un}{\f2\fs28\cgrid0\insrsid5204195\charrsid9243114 reasonable to infer that she was included among th}{ \f2\fs28\cgrid0\insrsid5204195 at }{\f2\fs28\cgrid0\insrsid5204195\charrsid9243114 category }{\f2\fs28\cgrid0\insrsid5204195 of undesirable employees. }{\f2\fs28\cgrid0\insrsid5204195\charrsid9243114 Her case is }{\f2\fs28\cgrid0\insrsid5204195 therefore }{\f2\fs28\cgrid0\insrsid5204195\charrsid9243114 a special one and }{\f2\fs28\cgrid0\insrsid5204195 consequently }{\f2\fs28\cgrid0\insrsid5204195\charrsid9243114 calls for an}{\f2\fs28\cgrid0\insrsid5204195 appropriate}{ \f2\fs28\cgrid0\insrsid5204195\charrsid9243114 award of}{\f2\fs28\cgrid0\insrsid5204195 }{\f2\fs28\cgrid0\insrsid5204195\charrsid9243114 damages}{\f2\fs28\cgrid0\insrsid5204195 and this is what the two courts below emphasised}{ \f2\fs28\cgrid0\insrsid5204195\charrsid9243114 . \par The principle govern}{\f2\fs28\cgrid0\insrsid5204195 ing such an award is well known. Among the cases cited to us, I find the}{\f2\fs28\cgrid0\insrsid5204195\charrsid9243114 }{\f2\fs28\cgrid0\insrsid5204195 decision of the Supreme Court of Ghana in }{ \b\f2\fs28\cgrid0\insrsid5204195\charrsid9243114 Nortey \endash Tokoli & Others Vs. Volta Aluminium Co. Ltd.}{\f2\fs28\cgrid0\insrsid5204195\charrsid9243114 (1990) LRC (Comm) pages 579,}{\f2\fs28\cgrid0\insrsid5204195 at}{ \f2\fs28\cgrid0\insrsid5204195\charrsid9243114 }{\f2\fs28\cgrid0\insrsid5204195 P.}{\f2\fs28\cgrid0\insrsid5204195\charrsid9243114 599}{\f2\fs28\cgrid0\insrsid5204195 apposite. It concerns assessment of }{\f2\fs28\cgrid0\insrsid5204195\charrsid9243114 damages in cases of wrongful termination of employment}{\f2\fs28\cgrid0\insrsid5204195 . It is unnecessary to go into the facts of that case except to say that because of the draught in 1982, the respondent company sto pped some production, sent the 463 appellants and some other workers on leave under certain conditions which included an understanding that if electricity supply to the company were restored, they might be given back their jobs. \par \par There was an agreement whi ch provided that, if they were not recalled by 1 January 1984, they were to be considered redundant and the sum due under the loans would be converted to redundancy payments calculated in accordance with the collective agreement which provided for 2 month s\rquote notice to be given of any dismissal or two months\rquote salary in lieu of notice. Eventually the appellants were not recalled and filed a suit and claimed in the High Court (i) damages for wrongful dismissal, (ii) a declaration that the purported termination was null and void and of no effect and (iii) arrears of all salary, allowances and benefits due from their respective dates of wrongful termination to the date of judgment. Except for (ii) the High Court allowed, inter alia, the claim for damages for wr ongful dismissal and awarded the equivalent of 28 months\rquote salary comprising, in each case two months\rquote salary in lieu of notice, 14 months\rquote salary for the period 31 October 1982 to 1 January 1984, and 12 months\rquote salary in respect of a reasonable period during which the appellants were to look for other employment. On appeal the Court of Appeal upheld the decision of the High Court, except for substituting four months\rquote salary for the 12 months awarded by the High Court as compensation. The appellants and the company appealed to the Supreme Court of Ghana. \par The majority on the court allowed the appeal and dismissed the cross appeal by the respondent company. The majority held that: \par \par The common law in respect of the relationship of master and servant could be applied in the present case to resolve the question of whether the declaration sought should be granted (see p 598, post). \'85\'85\'85\'85\'85\'85\'85 the purported termination of the appellants\rquote employment were null and void and of no effect and the appellants were entitled to a declaration accordingly and their appeal was allowed in that respect. \par }{\f2\fs28\cgrid0\insrsid5204195\charrsid4868646 Two principles regarding the assessment of damages in a case of wrongful termination of employment, both derived from the United Kingdom, competed in Ghana for acceptance. The first was that set out in }{ \b\i\f2\fs28\cgrid0\insrsid5204195\charrsid4868646 Hadley v Baxendale}{\f2\fs28\cgrid0\insrsid5204195\charrsid4868646 (1854) 9 Exch 341, [1843-60] All ER Rep 461, and the second was that which did not confine the award of damages to wages of the dismissed worker. However, in Ghana, the reasoning of the Court of Appeal in }{ \b\i\f2\fs28\cgrid0\insrsid5204195\charrsid4868646 Agbettah v Ghana Cocoa Marketing board}{\f2\fs28\cgrid0\insrsid5204195\charrsid4868646 (1984-86) GLRD 16 should be followed so that the courts were able to award damages which reflected the courts\rquote disapproval of a wrongful dismissal and the sum was not confined to an amount equivalent to the worker\rquote s wages. In the present case the trial judge had awarded, in the exercise of his discretion, a sum equivalent to 12 months\rquote salary, and that order should be restored (see p 604, post). }{\f2\fs28\cgrid0\insrsid5204195 \par }{\f2\fs28\cgrid0\insrsid5204195\charrsid4868646 Taylor, JSC., who wrote the lead judgement expressed his opinion at page 603 as follows: \par }{\f2\fs28\cgrid0\insrsid5204195 \par And so we arrive at a situation where two principles for measuring damages compete for acceptance in our jurisdiction. I think in the selection we must be guided by certain considerations. A Ghanaian who has suffered a wrong expects redress and our law of wrongful dismissal should reflect it. \par \par It seems to me that the Court of Appeal judges have already set the pace in a landmark decision and it will be a retrograde step to discourage and interfere with the progressive precedent they have set. I refer to }{ \b\i\f2\fs28\cgrid0\insrsid5204195\charrsid94034 Agbettoh v Ghana Cocoa Marketing Board}{\f2\fs28\cgrid0\insrsid5204195 (1984-86) GLRD 16. In that case Apaloo CJ, with whom Francois and Abban, JJA, as they then were, concurred, held in a case in which the }{\b\f2\fs28\cgrid0\insrsid5204195\charrsid4868646 plaintiffs had been wrongly retired,}{\f2\fs28\cgrid0\insrsid5204195 }{\b\f2\fs28\cgrid0\insrsid5204195\charrsid5055131 that it would be just and proper for the court to mark its disapproval of the plaintiffs\rquote unconstitutional retirement by ordering}{\f2\fs28\cgrid0\insrsid5204195 that the defendant board pay to each plaintiff an amount equal to two years\rquote salary in addition to receiving their entitlements under their contract of employment. \par \par I respectfully find the above reasoning sound. \par \par I think that the respondent was entitled to fair and decent treatment by the appellant. She should not have been retired in the manner she was. \par \par }{\f2\fs28\cgrid0\insrsid5204195\charrsid9243114 In the result I agree that the appeal succeeds in part but the appellant will pay to the respondent }{\f2\fs28\cgrid0\insrsid5204195 one half of }{\f2\fs28\cgrid0\insrsid5204195\charrsid9243114 the cost}{ \f2\fs28\cgrid0\insrsid5204195 s}{\f2\fs28\cgrid0\insrsid5204195\charrsid9243114 of this appeal and of the two}{\f2\fs28\cgrid0\insrsid5204195 courts below. \par \par Delivered at Mengo this 16}{\f2\fs28\super\cgrid0\insrsid5204195\charrsid8877828 th}{\f2\fs28\cgrid0\insrsid5204195 day of December 2008. \par }\pard \qj \li0\ri0\sl480\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid5204195 {\f2\fs28\cgrid0\insrsid5204195 \par }\pard \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid5204195 {\f2\fs28\cgrid0\insrsid5204195 \par }\pard \qj \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid5204195 {\f2\fs28\cgrid0\insrsid5204195 J. W. N. TSEKOOKO \par }\pard \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid5204195 {\b\f2\fs28\cgrid0\insrsid5204195\charrsid9243114 JUSTICE OF THE SUPREME COURT. }{\b\f2\fs28\cgrid0\insrsid5204195 }{ \b\f2\fs28\cgrid0\insrsid5204195\charrsid16331897 \par }\pard \qc \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid5204195 {\f38\fs36\lang2057\langfe1033\langnp2057\insrsid5204195\charrsid4142047 THE REPUBLIC OF UGANDA \par }{\fs28\lang2057\langfe1033\langnp2057\insrsid5204195\charrsid4142047 \par }{\b\fs28\lang2057\langfe1033\langnp2057\insrsid5204195\charrsid4142047 IN THE SUPREME COURT OF UGANDA \par \par AT MENGO \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid5204195 {\b\fs28\lang2057\langfe1033\langnp2057\insrsid5204195\charrsid4142047 \par }\pard \ql \fi-1440\li1440\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin1440\itap0\pararsid5204195 {\b\fs28\lang2057\langfe1033\langnp2057\insrsid5204195\charrsid4142047 (CORAM:\tab ODOKI, CJ., TSEKOOKO, KANYEIHAMBA, KATUREEBE}{ \b\fs28\lang2057\langfe1033\langnp2057\insrsid5204195 }{\b\fs28\lang2057\langfe1033\langnp2057\insrsid5204195\charrsid4142047 AND OKELLO JJ. SC)}{\b\fs28\lang2057\langfe1033\langnp2057\insrsid5204195 .}{ \b\fs28\lang2057\langfe1033\langnp2057\insrsid5204195\charrsid4142047 \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid5204195 {\b\fs28\lang2057\langfe1033\langnp2057\insrsid5204195\charrsid4142047 \par }\pard \qc \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid5204195 {\b\f38\fs36\lang2057\langfe1033\langnp2057\insrsid5204195\charrsid4142047 CIVIL APPEAL NO. 12 OF 2007 \par \par }{\b\fs28\lang2057\langfe1033\langnp2057\insrsid5204195\charrsid4142047 B E T W E E N \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid5204195 {\fs28\lang2057\langfe1033\langnp2057\insrsid5204195\charrsid4142047 \par }{\b\fs28\lang2057\langfe1033\langnp2057\insrsid5204195\charrsid4142047 BANK OF UGANDA }{\b\fs28\lang2057\langfe1033\langnp2057\insrsid5204195 \tab : : : : : : }{\b\fs28\lang2057\langfe1033\langnp2057\insrsid5204195\charrsid4142047 : : : : : : : : : : :}{ \b\fs28\lang2057\langfe1033\langnp2057\insrsid5204195 : : : : : : }{\b\fs28\lang2057\langfe1033\langnp2057\insrsid5204195\charrsid4142047 APPELLANT \par \par }\pard \qc \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid5204195 {\b\fs28\lang2057\langfe1033\langnp2057\insrsid5204195\charrsid4142047 AND \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid5204195 {\b\fs28\lang2057\langfe1033\langnp2057\insrsid5204195\charrsid4142047 \par }{\b\fs28\lang2057\langfe1033\langnp2057\insrsid5204195 BETTY TIN}{\b\fs28\lang2057\langfe1033\langnp2057\insrsid5204195\charrsid4142047 KAMANYIRE}{\b\fs28\lang2057\langfe1033\langnp2057\insrsid5204195 \tab : : : : : : : : }{ \b\fs28\lang2057\langfe1033\langnp2057\insrsid5204195\charrsid4142047 : : : : :}{\b\fs28\lang2057\langfe1033\langnp2057\insrsid5204195 : : : : }{\b\fs28\lang2057\langfe1033\langnp2057\insrsid5204195\charrsid4142047 RESPONDENT \par \par }\pard \qj \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid5204195 {\b\i\lang2057\langfe1033\langnp2057\insrsid5204195\charrsid4142047 [An appeal from the decision of the Court of Appeal at Kampala (Mukasa-kik onyogo, DCJ., Twinomujuni, and Kitumba JJ. A) in Civil Appeal No 49 of 2005 dated 25}{\b\i\lang2057\langfe1033\super\langnp2057\insrsid5204195\charrsid4142047 th}{\b\i\lang2057\langfe1033\langnp2057\insrsid5204195\charrsid4142047 April 2007]. \par }{\fs28\lang2057\langfe1033\langnp2057\insrsid5204195\charrsid4142047 \par }{\f38\fs36\ul\lang2057\langfe1033\langnp2057\insrsid5204195\charrsid4142047 JUDGMENT OF KATUREEBE, JSC. \par }{\fs28\lang2057\langfe1033\langnp2057\insrsid5204195\charrsid4142047 \par }\pard \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid5204195 {\fs28\lang2057\langfe1033\langnp2057\insrsid5204195\charrsid4142047 I have the benefit of reading in draft the judgment prepared by learned brother, Kanyeihamba, JSC and I concur with his judgment and the orders he has proposed therein. \par }\pard \qj \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid5204195 {\fs28\lang2057\langfe1033\langnp2057\insrsid5204195\charrsid4142047 \par Dated at Mengo this }{\fs28\lang2057\langfe1033\langnp2057\insrsid5204195 16}{\fs28\lang2057\langfe1033\super\langnp2057\insrsid5204195\charrsid7819258 th}{\fs28\lang2057\langfe1033\langnp2057\insrsid5204195 }{ \fs28\lang2057\langfe1033\langnp2057\insrsid5204195\charrsid4142047 day of }{\fs28\lang2057\langfe1033\langnp2057\insrsid5204195 December }{\fs28\lang2057\langfe1033\langnp2057\insrsid5204195\charrsid4142047 2008. \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid5204195 {\fs28\lang2057\langfe1033\langnp2057\insrsid5204195\charrsid4142047 \par \par \par \par Bart M. Katureebe \par }{\b\fs28\lang2057\langfe1033\langnp2057\insrsid5204195\charrsid4142047 Justice of The Supreme Court}{\b\fs28\lang2057\langfe1033\langnp2057\insrsid5204195 \par \par \par }{\insrsid5204195 \par }\pard \qc \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid5204195 {\b\i\fs28\insrsid5204195 THE REPUBLIC OF UGANDA \par IN THE SUPREME COURT OF UGANDA \par AT MENGO \par }\pard \qj \fi-1440\li1440\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin1440\itap0\pararsid5204195 {\b\i\fs28\insrsid5204195 (CORAM:\tab \tab ODOKI, CJ, TSEKOOKO, KANYEIHAMBA, \par }\pard \qj \fi720\li1440\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin1440\itap0\pararsid5204195 {\b\i\fs28\insrsid5204195 KATUREEBE AND OKELLO, JJSC.) \par }\pard \qc \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid5204195 {\b\i\fs28\insrsid5204195 \par CIVIL APPEAL NO. 12 OF 2007 \par B E T W E E N \par }\pard \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid5204195 {\b\i\fs28\insrsid5204195 BANK OF UGANDA:\tab \tab ::::::\tab ::::::\tab ::::::\tab \tab APPELLANT \par }\pard \qc \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid5204195 {\b\i\fs28\insrsid5204195 A N D \par }\pard \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid5204195 {\b\i\fs28\insrsid5204195 BETTY TINKAMANYIRE:\tab ::::::\tab ::::::\tab ::::::\tab \tab RESPONDENT \par }\pard \qj \li864\ri864\widctlpar\aspalpha\aspnum\faauto\adjustright\rin864\lin864\itap0\pararsid5204195 {\b\i\fs28\insrsid5204195 [An appeal from the Judgment and orders of the Court of Appeal (Mukasa-Ki konyogo, DCJ, Twinomujuuni and Kitumba, JJA) dated 25}{\b\i\fs28\super\insrsid5204195\charrsid4218778 th}{\b\i\fs28\insrsid5204195 April 2007, at Kampala in Civil suit No. 49 of 2005]. \par \par }\pard \qj \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid5204195 {\b\i\fs28\insrsid5204195 \par JUDGMENT OF G. M. OKELLO, JSC: \par \par }\pard \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid5204195 {\fs28\insrsid5204195 I have had the opportunity to read in draft, the judgment of my learned brother, Kanyeihamba, JSC, and I agree w ith his reasoning and conclusion. \par }\pard \qj \li0\ri0\sb240\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid5204195 {\fs28\insrsid5204195 I should add, for emphasis, that it is trite law that an appellate court will not interfere with an award of damages made by the trial court unless it has acted upon a wrong principle of law or that the amount awarded is s o high or so low as to make it an entirely erroneous estimate of damages to which the plaintiff is entitled to. This principle was stated by the Court of Appeal for Eastern Africa in }{\b\i\fs28\insrsid5204195 Rambhai Mahjibhai Patel - vs - The Patidor Samaj and Anor (1944) 11 EACA 1.}{\fs28\insrsid5204195 \par \par In the instant case, I accept Mr. Masembe-Kanyerezi\rquote s contention that for a case of this nature, a court is only limited to award of aggravated and not punitive damages. This view is supported by }{\b\i\fs28\insrsid5204195 Esso Standard (U) Ltd. - vs - Semu Amanu Opio, Civil Appeal No. 3 of 1993, }{\fs28\insrsid5204195 where this Court (Platt, JSC, as he then was) stated that the principles of exemplary or punitive damages cannot be extended to breach of contract and that there is no precedent for that extension. \par The Court of Appeal, there fore, erred to confirm the award of Shs. 20,000,000= made by the trial judge as punitive damages. This was based on a wrong principle of the law. Even if the heading of the award were described as aggravated, the amount awarded, was so low as to be an erroneous estimate of the damages to which the respondent is entitled to given the circumstances of this case. \par I, therefore, concur with the award of Shs. 100,000,000= (one hundred million shillings) as aggravated damages proposed by my learned brother, Kanyeihamba, JSC. I also concur with the proposal that the appellant pays one half of the costs of this appeal here and in the two courts below since the appeal succeeded only partially. \par }{\b\i\fs28\insrsid5204195 Dated at Mengo this 16}{\b\i\fs28\super\insrsid5204195\charrsid10575814 th}{\b\i\fs28\insrsid5204195 day of December 2008. \par \par }\pard \qc \li0\ri0\sb240\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid5204195 {\b\i\fs28\insrsid5204195 G. M. OKELLO \par JUSTICE OF THE SUPREME COURT}{\fs28\insrsid5204195 \par }\pard \qj \li0\ri0\sb240\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid5204195 {\fs28\insrsid5204195\charrsid15290137 \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0 {\insrsid12653032 \par }}