[1999] UGHC 10

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{\insrsid5643588 \chftnsepc \par }}\sectd \linex0\headery708\footery708\colsx708\endnhere\sectlinegrid360\sectdefaultcl\sectrsid6161773\sftnbj {\footer \pard\plain \s16\ql \li0\ri0\widctlpar \tqc\tx4153\tqr\tx8306\pvpara\phmrg\posxr\posy0\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9652192 \fs24\lang2057\langfe2057\cgrid\langnp2057\langfenp2057 {\field{\*\fldinst {\cs17\insrsid5643588 PAGE }}{\fldrslt { \cs17\lang1024\langfe1024\noproof\insrsid8000242 1}}}{\cs17\insrsid5643588 \par }\pard \s16\ql \li0\ri360\widctlpar\tqc\tx4153\tqr\tx8306\aspalpha\aspnum\faauto\adjustright\rin360\lin0\itap0\pararsid5643588 {\insrsid5643588 \par }}{\*\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 \s15\qc \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1 \widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid3105343 \fs24\lang2057\langfe2057\cgrid\langnp2057\langfenp2057 {\ul\lang1033\langfe2057\langnp1033\insrsid2188023\charrsid5643588 THE R}{ \ul\lang1033\langfe2057\langnp1033\insrsid3105343 EP}{\ul\lang1033\langfe2057\langnp1033\insrsid2188023\charrsid5643588 UBLIC OF UGANDA \line IN}{\ul\lang1033\langfe2057\langnp1033\insrsid3105343 THE HIGH COURT OF UGANDA AT KAM}{ \ul\lang1033\langfe2057\langnp1033\insrsid2188023\charrsid5643588 PALA \line CIVIL SUIT NO. 7 OF 1998 }{\lang1033\langfe2057\langnp1033\insrsid2188023\charrsid5643588 \line DAVID MPANGA AND ANOTHER}{\lang1033\langfe2057\langnp1033\insrsid3105343 :::::::::::::::::::::::::::::::::::::::::::::::::}{\lang1033\langfe2057\langnp1033\insrsid2188023\charrsid5643588 PLAINTIFF \line \emdash versus \emdash }{\lang1033\langfe2057\langnp1033\insrsid3105343 \line ROLIAT PROPERTY AGENCY LTD:}{ \lang1033\langfe2057\langnp1033\insrsid2188023\charrsid5643588 :}{\lang1033\langfe2057\langnp1033\insrsid3105343 :::::::::::::::::::::::::::::::::::::}{\lang1033\langfe2057\langnp1033\insrsid2188023\charrsid5643588 :::::: D}{ \lang1033\langfe2057\langnp1033\insrsid3105343 EFENDANT \line \par }\pard \s15\ql \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid3105343 {\lang1033\langfe2057\langnp1033\insrsid3105343 BE}{ \lang1033\langfe2057\langnp1033\insrsid2188023\charrsid5643588 FORE:- }{\ul\lang1033\langfe2057\langnp1033\insrsid8000242 HON. THE PRINCIPAL JUDGE -}{\ul\lang1033\langfe2057\langnp1033\insrsid2188023\charrsid5643588 MR. JUSTICE J. H. NTABGOBA \line RULING }{\lang1033\langfe2057\langnp1033\insrsid2188023\charrsid5643588 \line This is an application by Chamber Summons brought under 5.352 of the Companies Act, Cap.85 of the Laws of Uganda and Order 34A Rule 6(r) of the Civil Procedure Rules. Subsection (1) of }{\lang1033\langfe2057\langnp1033\insrsid3105343 S}{ \lang1033\langfe2057\langnp1033\insrsid2188023\charrsid3105343 .352}{\i\lang1033\langfe2057\langnp1033\insrsid2188023\charrsid5643588 }{\lang1033\langfe2057\langnp1033\insrsid3105343 of the Companies Act provides: -}{ \lang1033\langfe2057\langnp1033\insrsid2188023\charrsid5643588 \line }{\lang1033\langfe2057\langnp1033\insrsid3105343 \par }\pard \s15\ql \li720\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\ipgp1\pararsid3105343 {\lang1033\langfe2057\langnp1033\insrsid2188023\charrsid5643588 \'93 A receiver or manager of th}{ \lang1033\langfe2057\langnp1033\insrsid3105343 e property of }{\lang1033\langfe2057\langnp1033\insrsid2188023\charrsid5643588 a Company appointed under the }{\lang1033\langfe2057\langnp1033\insrsid3105343 powers contained }{ \lang1033\langfe2057\langnp1033\insrsid2188023\charrsid5643588 in any instrum}{\lang1033\langfe2057\langnp1033\insrsid3105343 ent may apply to the Court for }{\lang1033\langfe2057\langnp1033\insrsid2188023\charrsid5643588 directions in rel}{ \lang1033\langfe2057\langnp1033\insrsid3105343 ation to any particular matter }{\lang1033\langfe2057\langnp1033\insrsid2188023\charrsid5643588 arising in connection with the performance of his }{ \lang1033\langfe2057\langnp1033\insrsid3105343\charrsid5643588 functions}{\lang1033\langfe2057\langnp1033\insrsid2188023\charrsid5643588 , and on any such application the Court}{\lang1033\langfe2057\langnp1033\insrsid3105343 }{ \lang1033\langfe2057\langnp1033\insrsid2188023\charrsid5643588 may give such directions, or may make such order declaring the rights of persons before the Court or otherwise, as the Court thinks just\'94. \line }{ \lang1033\langfe2057\langnp1033\insrsid3105343 \par }\pard \s15\ql \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid5643588 {\lang1033\langfe2057\langnp1033\insrsid2188023\charrsid5643588 Order }{ \lang1033\langfe2057\langnp1033\insrsid2188023\charrsid3105343 34A}{\i\lang1033\langfe2057\langnp1033\insrsid2188023\charrsid5643588 }{\lang1033\langfe2057\langnp1033\insrsid2188023\charrsid5643588 rule 6(r) simply directs the manner in which an application under }{\lang1033\langfe2057\langnp1033\insrsid2188023\charrsid3105343 S.352}{\i\lang1033\langfe2057\langnp1033\insrsid2188023\charrsid5643588 }{ \lang1033\langfe2057\langnp1033\insrsid2188023\charrsid5643588 of the Companies Act aforementio}{\lang1033\langfe2057\langnp1033\insrsid3105343 ned takes. \line The applicant number 1}{\b\i\lang1033\langfe2057\langnp1033\insrsid2188023\charrsid5643588 }{ \lang1033\langfe2057\langnp1033\insrsid2188023\charrsid5643588 David Mpanga is the receiver appointed by M/S. Development Finance Company of Uganda Ltd (DFCU) under a mortgage execut}{\lang1033\langfe2057\langnp1033\insrsid3105343 ed between the said DFCU and M/}{\lang1033\langfe2057\langnp1033\insrsid2188023\charrsid5643588 S. Beaton Bakery & Confectionery }{\lang1033\langfe2057\langnp1033\insrsid3105343\charrsid5643588 Ltd (}{ \lang1033\langfe2057\langnp1033\insrsid2188023\charrsid5643588 the second applicant). \line }{\lang1033\langfe2057\langnp1033\insrsid3105343 \par }{\lang1033\langfe2057\langnp1033\insrsid2188023\charrsid5643588 The respondent, M/S. Roliat Estate Agency Ltd, was t4be landlord to the second applicant when the said second applicant was put under receivership by the first applicant, under the aforementioned debenture. The second applicant was indebted to the respo ndent in respect of rents which had fallen into arrears. The respondent }{\lang1033\langfe2057\langnp1033\insrsid3105343 was}{\b\lang1033\langfe2057\langnp1033\insrsid2188023\charrsid5643588 }{ \lang1033\langfe2057\langnp1033\insrsid2188023\charrsid5643588 stil}{\lang1033\langfe2057\langnp1033\insrsid3105343 l holding some property of the }{\lang1033\langfe2057\langnp1033\insrsid2188023\charrsid5643588 second applicant and the respondent has been denying the first applicant access to such property. The first applicant advised the respondent to submit its claim against the second applicant to the receiver as Creditor for settlement, should there be sufficient funds in the estate of the second }{\lang1033\langfe2057\langnp1033\insrsid3105343\charrsid5643588 applicant}{ \lang1033\langfe2057\langnp1033\insrsid2188023\charrsid5643588 . The respondent wanted to go straight for}{\lang1033\langfe2057\langnp1033\insrsid3105343 the property of its creditor, }{\lang1033\langfe2057\langnp1033\insrsid2188023\charrsid5643588 the second applicant. \line \line When this application came before me}{\lang1033\langfe2057\langnp1033\insrsid3105343 }{\lang1033\langfe2057\langnp1033\insrsid3105343\charrsid5643588 the applicants were}{ \lang1033\langfe2057\langnp1033\insrsid3105343\charrsid3105343 }{\lang1033\langfe2057\langnp1033\insrsid3105343 see}{\lang1033\langfe2057\langnp1033\insrsid3105343\charrsid5643588 king}{\lang1033\langfe2057\langnp1033\insrsid3105343 }{ \lang1033\langfe2057\langnp1033\insrsid2188023\charrsid5643588 orders, in}{\lang1033\langfe2057\langnp1033\insrsid3105343 ter alia, that this Court gave:-}{\lang1033\langfe2057\langnp1033\insrsid2188023\charrsid5643588 \line }{ \lang1033\langfe2057\langnp1033\insrsid3105343 \par }\pard \s15\ql \fi-720\li1440\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin1440\itap0\ipgp1\pararsid3105343 {\lang1033\langfe2057\langnp1033\insrsid2188023\charrsid5643588 (a) }{ \lang1033\langfe2057\langnp1033\insrsid3105343 \tab }{\lang1033\langfe2057\langnp1033\insrsid2188023\charrsid5643588 Directions that the respondent be restrained from obstructing and/or interfering with the lawful management and receivership of the \line second applicant; \line }{\lang1033\langfe2057\langnp1033\insrsid3105343 \par }{\lang1033\langfe2057\langnp1033\insrsid2188023\charrsid5643588 (b) }{\lang1033\langfe2057\langnp1033\insrsid3105343 \tab }{\lang1033\langfe2057\langnp1033\insrsid2188023\charrsid5643588 Directions to be made by Court in regard to the notice made by the respondent in the New Vision dated 12th Augu}{\lang1033\langfe2057\langnp1033\insrsid3105343 st 1998 alleging that property }{ \lang1033\langfe2057\langnp1033\insrsid2188023\charrsid5643588 belonging to th}{\lang1033\langfe2057\langnp1033\insrsid3105343 e second applicant was removed }{\lang1033\langfe2057\langnp1033\insrsid2188023\charrsid5643588 from the re}{ \lang1033\langfe2057\langnp1033\insrsid3105343 spondent\rquote s premises under very ambiguous circumstances and that the receiver}{\lang1033\langfe2057\langnp1033\insrsid2188023\charrsid5643588 ship of the Company was }{ \lang1033\langfe2057\langnp1033\insrsid3105343\charrsid14886227 \'93irregular}{\lang1033\langfe2057\langnp1033\insrsid2188023\charrsid14886227 \'94;}{\lang1033\langfe2057\langnp1033\insrsid2188023\charrsid5643588 \line }{ \b\lang1033\langfe2057\langnp1033\insrsid14886227 \par }{\lang1033\langfe2057\langnp1033\insrsid2188023\charrsid5643588 (c) }{\lang1033\langfe2057\langnp1033\insrsid14886227 \tab }{\lang1033\langfe2057\langnp1033\insrsid2188023\charrsid5643588 Orders }{ \lang1033\langfe2057\langnp1033\insrsid14886227\charrsid5643588 that}{\lang1033\langfe2057\langnp1033\insrsid2188023\charrsid5643588 the respondent retracts the false and unfounded statements made in the said Notice in the New Vision of 12}{ \lang1033\langfe2057\super\langnp1033\insrsid2188023\charrsid14886227 th}{\lang1033\langfe2057\langnp1033\insrsid2188023\charrsid5643588 August, 1998; \line }{\lang1033\langfe2057\langnp1033\insrsid14886227 \par }{\lang1033\langfe2057\langnp1033\insrsid2188023\charrsid5643588 (d) }{\lang1033\langfe2057\langnp1033\insrsid14886227 \tab }{\lang1033\langfe2057\langnp1033\insrsid2188023\charrsid5643588 Any other Orders or}{ \lang1033\langfe2057\langnp1033\insrsid14886227 directions declaring the rights of the applicants as }{\lang1033\langfe2057\langnp1033\insrsid2188023\charrsid5643588 this Honourable Court may think just; \line }{ \lang1033\langfe2057\langnp1033\insrsid14886227 \par }{\lang1033\langfe2057\langnp1033\insrsid2188023\charrsid5643588 (e) }{\lang1033\langfe2057\langnp1033\insrsid14886227 \tab }{\lang1033\langfe2057\langnp1033\insrsid2188023\charrsid5643588 Costs and incidental to this application be paid by the respondent. \line }{\lang1033\langfe2057\langnp1033\insrsid14886227 \par }\pard \s15\ql \li720\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\ipgp1\pararsid14886227 {\lang1033\langfe2057\langnp1033\insrsid2188023\charrsid5643588 At the commencement of the hearing the Counsel for both parties made a consent order for }{\lang1033\langfe2057\langnp1033\insrsid14886227 the Court to endorse as a pre-}{\lang1033\langfe2057\langnp1033\insrsid2188023\charrsid5643588 emptive measure which would be adhered to by both parties. The consent order dated 11}{\lang1033\langfe2057\super\langnp1033\insrsid2188023\charrsid14886227 th}{\lang1033\langfe2057\langnp1033\insrsid14886227 November 1998 states:-}{ \lang1033\langfe2057\langnp1033\insrsid2188023\charrsid5643588 }{\lang1033\langfe2057\langnp1033\insrsid14886227 \par }{\b\lang1033\langfe2057\langnp1033\insrsid2188023\charrsid5643588 \'93}{\lang1033\langfe2057\langnp1033\insrsid2188023\charrsid5643588 THIS matter coming for mention on this 11}{\lang1033\langfe2057\super\langnp1033\insrsid2188023\charrsid14886227 th}{ \lang1033\langfe2057\langnp1033\insrsid14886227 day }{\lang1033\langfe2057\langnp1033\insrsid2188023\charrsid5643588 of November, 1998 before the Honourable Principal Judge in the p}{\lang1033\langfe2057\langnp1033\insrsid14886227 resence of Christopher Bwanika }{\lang1033\langfe2057\langnp1033\insrsid2188023\charrsid5643588 (Counsel }{\lang1033\langfe2057\langnp1033\insrsid14886227 for the Applicants) and Kiyemba-}{\lang1033\langfe2057\langnp1033\insrsid2188023\charrsid5643588 Mutale (Counse}{\lang1033\langfe2057\langnp1033\insrsid14886227 l for the respondents), \line \par }\pard \s15\ql \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid14886227 {\lang1033\langfe2057\langnp1033\insrsid2188023\charrsid5643588 IT IS ORDERED by Consent that:}{ \lang1033\langfe2057\langnp1033\insrsid14886227 - \par }\pard \s15\ql \fi-720\li720\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\ipgp1\pararsid14886227 {\lang1033\langfe2057\langnp1033\insrsid14886227 (a)\tab }{ \lang1033\langfe2057\langnp1033\insrsid2188023\charrsid5643588 The respondent}{\lang1033\langfe2057\langnp1033\insrsid14886227 undertakes not to obstruct or }{\lang1033\langfe2057\langnp1033\insrsid14886227\charrsid5643588 interfere}{ \lang1033\langfe2057\langnp1033\insrsid14886227 with the lawful management and }{\lang1033\langfe2057\langnp1033\insrsid2188023\charrsid5643588 receivership of }{\lang1033\langfe2057\langnp1033\insrsid14886227 the second applicant until the }{ \lang1033\langfe2057\langnp1033\insrsid2188023\charrsid5643588 hearing and final disposal of the main applications pending before the Principal Judge. \line }{\lang1033\langfe2057\langnp1033\insrsid14886227 \par }{\lang1033\langfe2057\langnp1033\insrsid2188023\charrsid5643588 (b) }{\lang1033\langfe2057\langnp1033\insrsid14886227 \tab }{\lang1033\langfe2057\langnp1033\insrsid2188023\charrsid5643588 The }{ \lang1033\langfe2057\langnp1033\insrsid14886227\charrsid5643588 respondent}{\lang1033\langfe2057\langnp1033\insrsid2188023\charrsid5643588 presents its claims to the first applicant for consideration. \line }{ \lang1033\langfe2057\langnp1033\insrsid14886227 \par }{\lang1033\langfe2057\langnp1033\insrsid2188023\charrsid5643588 (c) }{\lang1033\langfe2057\langnp1033\insrsid14886227 \tab }{\lang1033\langfe2057\langnp1033\insrsid2188023\charrsid5643588 Costs shall be in the cause\'94. \line }{ \lang1033\langfe2057\langnp1033\insrsid14886227 \par }\pard \s15\ql \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid14886227 {\lang1033\langfe2057\langnp1033\insrsid2188023\charrsid5643588 The consent order was sig}{ \lang1033\langfe2057\langnp1033\insrsid14886227 ned by both Counsel and counter-}{\lang1033\langfe2057\langnp1033\insrsid2188023\charrsid5643588 signed by the Principal Judge(the trial judge). Consequently, the application was fixed for a full hearing on 11/1/99. \line }{\lang1033\langfe2057\langnp1033\insrsid14886227 \par }\pard \s15\ql \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid5643588 {\lang1033\langfe2057\langnp1033\insrsid2188023\charrsid5643588 At the commencement of the hearing, Mr. David Matovu, learned Counsel for the respondent}{\lang1033\langfe2057\langnp1033\insrsid14886227 raised what he termed }{\lang1033\langfe2057\langnp1033\insrsid2188023\charrsid5643588 a }{ \lang1033\langfe2057\langnp1033\insrsid14886227 p}{\lang1033\langfe2057\langnp1033\insrsid2188023\charrsid5643588 reliminary objection and stated that its determination would finally determine the matters in controversy. He argued that the debenture pursuant to which the first applicant was appointed a receiver of the second applicant was def ective and therefore illegal and, therefore, the ap}{\lang1033\langfe2057\langnp1033\insrsid14886227 pointment of the receiver was unlawful.}{\lang1033\langfe2057\langnp1033\insrsid2188023\charrsid5643588 Counsel relied on the cancellation of the word \'93April\'94 and its replacement by the word \'93July\'94 appearing in the opening words of the debenture at page one which reads}{\lang1033\langfe2057\langnp1033\insrsid14886227 :-}{\lang1033\langfe2057\langnp1033\insrsid2188023\charrsid5643588 }{ \i\lang1033\langfe2057\langnp1033\insrsid2188023\charrsid5643588 \line }{\lang1033\langfe2057\langnp1033\insrsid2188023\charrsid5643588 \'93THIS DEBENTURE is made the 4}{\lang1033\langfe2057\super\langnp1033\insrsid2188023\charrsid14886227 th}{ \lang1033\langfe2057\langnp1033\insrsid14886227 day of }{\lang1033\langfe2057\langnp1033\insrsid2188023\charrsid5643588 July One Thousand}{\lang1033\langfe2057\langnp1033\insrsid14886227 Nine Hundred and Ninety Eight\'85}{ \lang1033\langfe2057\langnp1033\insrsid2188023\charrsid5643588 \'94. \line Counsel argued that the debenture must have been executed in the }{\lang1033\langfe2057\langnp1033\insrsid2188023\charrsid14886227 month of}{ \i\lang1033\langfe2057\langnp1033\insrsid2188023\charrsid5643588 }{\ul\lang1033\langfe2057\langnp1033\insrsid2188023\charrsid5643588 April }{\lang1033\langfe2057\langnp1033\insrsid2188023\charrsid5643588 and that it must }{ \lang1033\langfe2057\langnp1033\insrsid14886227\charrsid5643588 have been}{\lang1033\langfe2057\langnp1033\insrsid2188023\charrsid5643588 presented to the Registrar of Companies later than the 2 days pe}{\lang1033\langfe2057\langnp1033\insrsid14886227 riod stipulated in 6.96 of the Compan}{\lang1033\langfe2057\langnp1033\insrsid2188023\charrsid5643588 ies Act which provides for a debenture or \line charge to be registered within 42 days }{\lang1033\langfe2057\langnp1033\insrsid2188023\charrsid14886227 of}{\i\lang1033\langfe2057\langnp1033\insrsid2188023\charrsid5643588 }{\lang1033\langfe2057\langnp1033\insrsid2188023\charrsid5643588 its }{\lang1033\langfe2057\langnp1033\insrsid14886227\charrsid5643588 execution}{ \lang1033\langfe2057\langnp1033\insrsid2188023\charrsid5643588 . Counsel alleged that instead of applying to Court to extend the period within which the debenture shou}{\lang1033\langfe2057\langnp1033\insrsid14886227 ld be }{ \lang1033\langfe2057\langnp1033\insrsid14886227\charrsid5643588 registered (}{\lang1033\langfe2057\langnp1033\insrsid2188023\charrsid5643588 pursuan}{\lang1033\langfe2057\langnp1033\insrsid14886227 t to S.102 of the Companies }{ \lang1033\langfe2057\langnp1033\insrsid2188023\charrsid5643588 Act) the first applicant must }{\lang1033\langfe2057\langnp1033\insrsid2188023\charrsid14886227 have}{\i\lang1033\langfe2057\langnp1033\insrsid2188023\charrsid5643588 }{ \lang1033\langfe2057\langnp1033\insrsid2188023\charrsid5643588 cancelled the month of April and replaced it with the month of July; and that he must have presented the document to the Registrar of}{\lang1033\langfe2057\langnp1033\insrsid14886227 Companies to be registered on }{\lang1033\langfe2057\langnp1033\insrsid2188023\charrsid5643588 24/7/89. \line }{\lang1033\langfe2057\langnp1033\insrsid14886227 \par }{\lang1033\langfe2057\langnp1033\insrsid2188023\charrsid5643588 Although I understood Counsel Matovu to be }{\lang1033\langfe2057\langnp1033\insrsid14886227\charrsid5643588 alleging}{\lang1033\langfe2057\langnp1033\insrsid2188023\charrsid5643588 forgery or fraud on the part of the first applicant (and this appeared also to be the understanding of Mr. Bwanika lear}{\lang1033\langfe2057\langnp1033\insrsid14886227 ned counsel for the applicants). \line Mr. M}{ \lang1033\langfe2057\langnp1033\insrsid2188023\charrsid5643588 atovu vehemently denied having alleged fraud or forgery on the part of the first applicant. With due respect to Counsel, when he alleges that the word \'93April\'94 in }{ \lang1033\langfe2057\langnp1033\insrsid2188023\charrsid14886227 the}{\i\lang1033\langfe2057\langnp1033\insrsid2188023\charrsid5643588 }{\lang1033\langfe2057\langnp1033\insrsid2188023\charrsid5643588 debenture was cancelled and replaced with the word \'93 July\'94 in order to avoid having to apply for extension of time under S.102 of the Companies Act, }{\lang1033\langfe2057\langnp1033\insrsid2188023\charrsid14886227 and}{\i\lang1033\langfe2057\langnp1033\insrsid2188023\charrsid5643588 }{ \lang1033\langfe2057\langnp1033\insrsid2188023\charrsid5643588 so as to Secure registration of the debenture without first ha}{\lang1033\langfe2057\langnp1033\insrsid14886227 ving to apply for the extension, }{ \lang1033\langfe2057\langnp1033\insrsid2188023\charrsid5643588 he is alleging that the firs}{\lang1033\langfe2057\langnp1033\insrsid14886227 t applicant committed fraud and }{\lang1033\langfe2057\langnp1033\insrsid2188023\charrsid5643588 or forgery. And it is trite law that any fraud or forgery alleged shall be specially pleaded and specifically proved by evidence. Assuming ther}{\lang1033\langfe2057\langnp1033\insrsid14886227 efore that the first defendant }{ \lang1033\langfe2057\langnp1033\insrsid2188023\charrsid5643588 had committed forgery and }{\lang1033\langfe2057\langnp1033\insrsid14886227\charrsid5643588 or fraud}{\lang1033\langfe2057\langnp1033\insrsid2188023\charrsid5643588 , as }{ \lang1033\langfe2057\langnp1033\insrsid14886227\charrsid5643588 counsel}{\lang1033\langfe2057\langnp1033\insrsid2188023\charrsid5643588 }{\lang1033\langfe2057\langnp1033\insrsid14886227\charrsid5643588 for}{\lang1033\langfe2057\langnp1033\insrsid8000242 the }{\lang1033\langfe2057\langnp1033\insrsid8000242\charrsid5643588 respondent}{\lang1033\langfe2057\langnp1033\insrsid8000242 implies, must have specially pleaded them}{\lang1033\langfe2057\langnp1033\insrsid2188023\charrsid5643588 and he would have been expected to}{\lang1033\langfe2057\langnp1033\insrsid8000242 adduce }{\lang1033\langfe2057\langnp1033\insrsid2188023\charrsid5643588 evidence in proof thereof. His failure so to do would be sufficient for the Court to disallow him to make the allegations of fraud and or forgery. But as I have said, my finding is that there was no deliberate cancellation of the word \'93April\'94 and its replacement with the word \'93July\'94 so as to avoid an application for time extension under S.102 of the Companies Act. At any rate, no proof has been made to that effect. The position seems to me to be that the debenture was truly executed on the}{ \lang1033\langfe2057\langnp1033\insrsid8000242 7}{\lang1033\langfe2057\super\langnp1033\insrsid2188023\charrsid8000242 th}{\lang1033\langfe2057\langnp1033\insrsid2188023\charrsid5643588 day of July }{ \lang1033\langfe2057\langnp1033\insrsid2188023\charrsid8000242 19}{\lang1033\langfe2057\langnp1033\insrsid8000242 8}{\lang1033\langfe2057\langnp1033\insrsid2188023\charrsid8000242 9}{\i\lang1033\langfe2057\langnp1033\insrsid2188023\charrsid5643588 }{ \lang1033\langfe2057\langnp1033\insrsid2188023\charrsid5643588 and registered with the Registrar of Companies on the 3}{\lang1033\langfe2057\super\langnp1033\insrsid2188023\charrsid8000242 rd}{ \lang1033\langfe2057\langnp1033\insrsid2188023\charrsid5643588 day of August, 1989 which was within the period of 42 days as stipulated in }{\lang1033\langfe2057\langnp1033\insrsid8000242\charrsid5643588 S.96 (}{ \lang1033\langfe2057\langnp1033\insrsid2188023\charrsid5643588 l) of the Companies Act. The Certificate of Registration of the debenture (Annexture }{\lang1033\langfe2057\langnp1033\insrsid8000242 \'93Z1}{ \lang1033\langfe2057\langnp1033\insrsid2188023\charrsid8000242 \'94}{\i\lang1033\langfe2057\langnp1033\insrsid2188023\charrsid5643588 }{\lang1033\langfe2057\langnp1033\insrsid2188023\charrsid5643588 of the David Mpanga\rquote s affidavit in Rejoinder) bears this conclusion witness. The Certificate not only shows that the debenture was registered on 3}{\lang1033\langfe2057\super\langnp1033\insrsid2188023\charrsid8000242 rd}{ \lang1033\langfe2057\langnp1033\insrsid2188023\charrsid5643588 August, 1989, but it also bears registration number 6328 dated 3.8.89 in it}{\lang1033\langfe2057\langnp1033\insrsid8000242 s top right hand corner. \line }{ \lang1033\langfe2057\langnp1033\insrsid2188023\charrsid5643588 Surely, if }{\lang1033\langfe2057\langnp1033\insrsid8000242 the debenture had }{\lang1033\langfe2057\langnp1033\insrsid8000242\charrsid5643588 been}{ \lang1033\langfe2057\langnp1033\insrsid2188023\charrsid5643588 executed a way back on 4}{\lang1033\langfe2057\super\langnp1033\insrsid2188023\charrsid8000242 th}{\lang1033\langfe2057\langnp1033\insrsid2188023\charrsid5643588 April, 1989, as counsel for the respondent argues, it woul}{\lang1033\langfe2057\langnp1033\insrsid8000242 d have been impossible for the }{\lang1033\langfe2057\langnp1033\insrsid2188023\charrsid5643588 Registrar to give it a 3}{ \lang1033\langfe2057\super\langnp1033\insrsid2188023\charrsid8000242 rd}{\lang1033\langfe2057\langnp1033\insrsid2188023\charrsid5643588 August, 1989 registration number without tampering with the document and it is such ta mpering that should have been proved by the }{\lang1033\langfe2057\langnp1033\insrsid8000242\charrsid5643588 respondent}{\lang1033\langfe2057\langnp1033\insrsid2188023\charrsid5643588 . The fact that the Registrar accepted for registration the debenture without querying its validity is, to me, }{\ul\lang1033\langfe2057\langnp1033\insrsid2188023\charrsid5643588 prima facie }{ \lang1033\langfe2057\langnp1033\insrsid2188023\charrsid5643588 evidence that he accepted its validity and there seems to be no reason for me t o impute on the Registrar any ill motives of accepting an invalid document for registration. In any case, Section 99 of the Companies Act provides that the Certificate of registration of a charge or mortgage under 5.96(1) shall be conclusive evidence that the \'93Requirements of this Part of this Act as to registration have been complied with\'94. \line }{\lang1033\langfe2057\langnp1033\insrsid8000242 \par }{\lang1033\langfe2057\langnp1033\insrsid2188023\charrsid5643588 Come to think }{\lang1033\langfe2057\langnp1033\insrsid8000242 about it, in the absence of }{\lang1033\langfe2057\langnp1033\insrsid2188023\charrsid5643588 challenge of the Val}{ \lang1033\langfe2057\langnp1033\insrsid8000242 idity of the instrument by the }{\lang1033\langfe2057\langnp1033\insrsid2188023\charrsid5643588 Registrar of Companies or by the Company that was placed under receiv ership, which would be better suited to challenge the receivership, what }{\ul\lang1033\langfe2057\langnp1033\insrsid2188023\charrsid5643588 locus standi }{\lang1033\langfe2057\langnp1033\insrsid2188023\charrsid5643588 has the respondent to impugn the validity of the debenture and therefore of the receivership? The respondent is or was only holding the property of the Company under a receivership. \par }{\lang1033\langfe2057\langnp1033\insrsid8000242 I}{\lang1033\langfe2057\langnp1033\insrsid2188023\charrsid5643588 t can resort for its indebtedness against that Company (the applicant) for payment by submitting its claim, as a creditor, to the receiver (the first applicant). In fact the respondent has already acknowledged that fact by signing a cons ent judgment under which it undertook to submit its claim for payment to the receiver. It cannot be allowed to renege }{\lang1033\langfe2057\langnp1033\insrsid8000242 on its consent. It must stick to i}{ \lang1033\langfe2057\langnp1033\insrsid2188023\charrsid5643588 t and I order that it shall submit its claims to the receiver for settlement pursuant to the rules governi ng receivership. Accordingly, I also order that the respondent desists from interfering with the work of the receiver. \line }{\lang1033\langfe2057\langnp1033\insrsid8000242 \par }{\lang1033\langfe2057\langnp1033\insrsid2188023\charrsid5643588 I have read the rest of the orders or directions of this Court being sought by the applicants. I refer, in particular to prayers (b) to (d), inclusive, contained in the Chamber Summons application. I take note of the complaint contained in the affidavit of the receiver deponed on 27}{\lang1033\langfe2057\super\langnp1033\insrsid2188023\charrsid8000242 th}{ \lang1033\langfe2057\langnp1033\insrsid2188023\charrsid5643588 August 1989. I appreciate the complaint that the notice which was }{\lang1033\langfe2057\langnp1033\insrsid8000242\charrsid5643588 published}{\lang1033\langfe2057\langnp1033\insrsid8000242 in the New Vision }{\lang1033\langfe2057\langnp1033\insrsid2188023\charrsid5643588 newspaper by the respondent is damaging to the operations }{\lang1033\langfe2057\langnp1033\insrsid8000242 of the receivership. It casts aspersions }{ \lang1033\langfe2057\langnp1033\insrsid2188023\charrsid5643588 on the exercise, \line and is capable of discouraging would be customers of the first applicant against buying the }{\lang1033\langfe2057\langnp1033\insrsid8000242\charrsid5643588 property}{ \lang1033\langfe2057\langnp1033\insrsid2188023\charrsid5643588 of the second applicant. \par The respondent is therefore ordered to retract }{\lang1033\langfe2057\langnp1033\insrsid2188023\charrsid8000242 its}{\i\lang1033\langfe2057\langnp1033\insrsid2188023\charrsid5643588 }{\lang1033\langfe2057\langnp1033\insrsid2188023\charrsid5643588 publication. It }{\lang1033\langfe2057\langnp1033\insrsid8000242 must publish the retraction in }{\lang1033\langfe2057\langnp1033\insrsid2188023\charrsid5643588 a very distinct spac}{\lang1033\langfe2057\langnp1033\insrsid8000242 e of the newspaper in which it }{\lang1033\langfe2057\langnp1033\insrsid2188023\charrsid5643588 published its discou}{\lang1033\langfe2057\langnp1033\insrsid8000242 raging and damaging innuendos. }{ \lang1033\langfe2057\langnp1033\insrsid2188023\charrsid5643588 I so order. I also orde}{\lang1033\langfe2057\langnp1033\insrsid8000242 r that the respondent pays to }{\lang1033\langfe2057\langnp1033\insrsid2188023\charrsid5643588 the first applic ant the costs of these proceedings. \par }{\ul\lang1033\langfe2057\langnp1033\insrsid8000242 J. H. NTABGOBA }{\ul\lang1033\langfe2057\langnp1033\insrsid2188023\charrsid5643588 PRINCIPAL JUDGE }{ \ul\lang1033\langfe2057\langnp1033\insrsid8000242 3/2/99}{\lang1033\langfe2057\langnp1033\insrsid2188023\charrsid5643588 \par }\pard\plain \ql \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid5643588 \fs24\lang2057\langfe2057\cgrid\langnp2057\langfenp2057 {\lang1033\langfe2057\langnp1033\insrsid2188023\charrsid5643588 \par }}