[2005] UGCommC 49

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.}}{\*\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 \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0 \fs24\lang2057\langfe1033\cgrid\langnp2057\langfenp1033 {\insrsid10575990 THE REPUBLIC OF UGANDA}{\insrsid15861250 \par }{\insrsid608923 \par IN THE HIGH COURT OF UGANDA HOLDEN AT KAMPALA \par }{\insrsid16594495 \par (COMMERCIAL COURT DIVISION) \par \par }{\insrsid608923 IN THE MATTER OF THE COMPANIES ACT \par \par AND \par \par IN THE MATTER OF THE EAST AFRICAN GENERAL INSURANCE COMPANY LIMITED \par \par HCT-00-CC-MA-0420-2005 \par \par (Arising from HCT-00-CC-MC-0014-2005) \par \par CHANDRAKANT HIRALAL SONPAL APPLICANT \par \par VERSUS \par \par EAST AFRICAN GENERAL INSURANCE CO. LTD RESPONDENT NO.1 \par THE ESTATE OF H. G. GANDESHA RESPONDENT NO.2 \par \par }{\b\ul\insrsid608923\charrsid8850159 \par BEFORE: THE HON. MR. JUSTICE F}{\b\ul\insrsid8850159 }{\b\ul\insrsid608923\charrsid8850159 M}{\b\ul\insrsid8850159 }{\b\ul\insrsid608923\charrsid8850159 S EGONDA-NTENDE \par \par RULING \par }{\insrsid608923 \par {\listtext\pard\plain\lang2057\langfe1033\langnp2057\insrsid608923 \hich\af0\dbch\af0\loch\f0 1.\tab}}\pard \ql \fi-360\li720\ri0\sl360\slmult1\widctlpar\jclisttab\tx720\aspalpha\aspnum\faauto\ls1\adjustright\rin0\lin720\itap0\pararsid12865216 { \insrsid608923 The applicant is seeking to be joined as an applicant to }{\insrsid5995204 miscellaneous}{\insrsid608923 }{\insrsid5995204 c}{\insrsid608923 ause }{\insrsid5995204 n}{\insrsid608923 o. 14 of 2005 in which P A Tharkar and N K Radia are seeking relief in respect of the conversion of East African Gene ral Insurance Co. Ltd from a public limited liability company into a private limited liability company without the consent of the shareholders. The applicant alleges that he is a shareholder in the East African General Insurance Co. Ltd with 40 ordinary s hares. \par {\listtext\pard\plain\lang2057\langfe1033\langnp2057\insrsid9318429 \hich\af0\dbch\af0\loch\f0 2.\tab}}\pard \ql \fi-360\li720\ri0\sl360\slmult1\widctlpar\jclisttab\tx720\aspalpha\aspnum\faauto\ls1\adjustright\rin0\lin720\itap0\pararsid15804025 { \insrsid9318429 This application is made under Order 1 Rule 10(2) of the Civil Procedure Rules. The grounds of this }{\insrsid5995204 application}{\insrsid9318429 are essentially two. Firstly that the presence of the applicant is necessary for t}{ \insrsid5995204 he determination of the issues }{\insrsid9318429 before the court effectively. Secondly that allowing this application would avoid a multiplicity of proceedings.}{\insrsid608923 \par {\listtext\pard\plain\lang2057\langfe1033\langnp2057\insrsid9318429 \hich\af0\dbch\af0\loch\f0 3.\tab}}{\insrsid9318429 The respondents oppose this application. They filed an affidavit in reply. They put several grounds. One is that the applicant is not a shareholder of East African Gen eral Insurance Co. Ltd. Secondly that there are many shareholders of the East African General Insurance Co. Ltd, and rather}{\insrsid12865216 than}{\insrsid9318429 prevent a multiplicity of proceedings, allowing this }{\insrsid12865216 application}{ \insrsid9318429 may lead to }{\insrsid12865216 an influx of shareholders wishing to joined to the }{\insrsid9318429 proceedings. Thirdly that it is not necessary for the applicant to be joined as a party for the determination of the issues in the main application. \par {\listtext\pard\plain\lang2057\langfe1033\langnp2057\insrsid9318429 \hich\af0\dbch\af0\loch\f0 4.\tab}Mr. Peters Musoke, learned counsel for the applicants, submitted that the applicant had shown a proprietar y interest in the subject matter of the main application, and ought therefore to be allowed to be joined as a co-applicant with the other applicants. He had an interest in the relief the applicants were seeking. He referred to the cases of }{ \i\ul\insrsid9318429\charrsid15804025 Dolfus Mieg et }{\i\ul\insrsid15804025 Compagnie S. A. v Bank of England,}{\i\ul\insrsid9318429\charrsid15804025 1 Ch. 33 and Gokladas Baximidas Tanna v Sister Rose Muyinza}{\i\ul\insrsid15804025 ,}{ \i\ul\insrsid9318429\charrsid15804025 High Court Civil Suit No. 707 of 1987 [unreported]}{\insrsid9318429 in support of his submissions. \par {\listtext\pard\plain\lang2057\langfe1033\langnp2057\insrsid9318429 \hich\af0\dbch\af0\loch\f0 5.\tab}Mr. }{\insrsid14829738 Ebert Byenkya, learned counsel for the respondents, submitted that this appl ication should be refused as the applicant was neither a party nor the court which were the only persons authorised by the provision of Order 1 Rule 10(2) of the Civil Procedure Rules to move court or make this decision. The applicant therefore lacked }{ \i\insrsid14829738\charrsid14829738 locus standii}{\insrsid14829738 . Secondly the applicant has failed to show that his presence is necessary for the determination of the main application. Thirdly that the applicant is not deserving as he does not want to accept responsibility for payment of costs.}{\insrsid9318429

\par {\listtext\pard\plain\lang2057\langfe1033\langnp2057\insrsid14829738 \hich\af0\dbch\af0\loch\f0 6.\tab}}{\insrsid14829738 Mr. Byenkya ci ted no authority in support of the proposition that only parties to a matter can apply to add a party to a proceeding. I have not been able to lay my hands on one. I have examined the provisions of Order 1 rule 10(2) of the Civil Procedure Rules, and noth ing in it suggests that the rule bars persons who are not parties to the suits to seek relief under the same. On the contrary the cases referred to by Mr. Musoke, }{\i\ul\insrsid14829738\charrsid15804025 Tanna v Rose Muyinza (supra)}{\insrsid14829738 and }{\i\ul\insrsid14829738\charrsid15804025 Dolfus Mieg et Compagnie S. A. v Bank of England }{\i\ul\insrsid15804025 (su}{\i\ul\insrsid14829738\charrsid15804025 pra)}{\insrsid14829738 poin t to the fact that indeed non-parties could apply successfully to be joined as parties. In both cases the applicants to be joined to the proceedings in question were not parties to the proceedings, and they successfully applied to be joined as parties.

\par {\listtext\pard\plain\lang2057\langfe1033\langnp2057\insrsid9928232 \hich\af0\dbch\af0\loch\f0 7.\tab}}{\insrsid9928232 The applicant has produced a copy of a share certificate indicating that he is the holder of 40 shares in the East African General Insurance Co. Ltd. This company}{\insrsid12865216 ,}{\insrsid9928232 at the instance of }{\insrsid12865216 the }{ \insrsid9928232 respondent no.2}{\insrsid12865216 ,}{\insrsid9928232 was converted into a private limited liability company from a public limited liability company. The applicant claims that this was done without the authority of the shareholders. The main application that he wishes to join is challenging this course of events. \par {\listtext\pard\plain\lang2057\langfe1033\langnp2057\insrsid9928232 \hich\af0\dbch\af0\loch\f0 8.\tab}Obviously if he wished, the applicant could comme nce his own separate proceedings in respect of the same subject matter, and seeking the same relief. He has for the moment chosen not to do so, and is seeking}{\insrsid8850159 ,}{\insrsid9928232 instead}{\insrsid8850159 ,}{\insrsid9928232 to join the existing proceedings, in which}{\insrsid8850159 ,}{\insrsid9928232 arguably}{\insrsid8850159 ,}{\insrsid9928232 he does have an interest. I am sa tisfied that to avoid a multiplicity of proceedings the applicant should be granted leave to join as a co-applicant in }{\insrsid8850159 miscellaneous}{\insrsid9928232 cause number 14 of 2005. \par {\listtext\pard\plain\lang2057\langfe1033\langnp2057\insrsid15804025 \hich\af0\dbch\af0\loch\f0 9.\tab}}{\insrsid15804025 This application is accordingly allowed with costs in the cause. \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid15804025 {\insrsid15804025 \par Dated at Kampala this 31}{\super\insrsid15804025\charrsid15804025 st}{\insrsid15804025 day of August 2005. \par \par \par \par \par FMS Egonda-Ntende \par Judge \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0 {\insrsid608923 \par }}