[2004] UGSC 14
The Supreme Court held that the preliminary objection raised by the appellant was a mere technicality without merit and that the Court of Appeal was justified in dismissing it. The appellant, as director and guarantor, had signed the loan agreement and mortgaged his property as security for the company debt. The...
Source-derived case information.
- Citation
- [2004] UGSC 14
- Parties
- Appellant: Hajj Bumali Kadjingo; Respondent: The Non Performing Assets Recovery Trust
- Court
- Supreme Court of Uganda
- Jurisdiction
- Uganda
- Procedural Posture
- Civil Appeal / Final Judgment
- Outcome
- appeal dismissed
- Legal Topics
- Director Liability, Guarantees and Indemnities, Preliminary Objections, Corporate Debt Recovery
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
Hajj Bumali Kadjingo
Appellant
The Non Performing Assets Recovery Trust
Respondent
Procedural Posture
Civil Appeal / Final Judgment
Legal Issues
- 1 Whether the plaint disclosed a cause of action against the appellant as director and guarantor.
- 2 Whether the preliminary objection raised by the appellant was valid and meritorious.
- 3 Whether the appellant was jointly and severally liable for the company debt.
Ratio Decidendi
The Supreme Court held that the preliminary objection raised by the appellant was a mere technicality without merit and that the Court of Appeal was justified in dismissing it. The appellant, as director and guarantor, had signed the loan agreement and mortgaged his property as security for the company debt. The court found that the differences in company names on documents did not affect the substantive liability, and the appellant was properly sued for the debt. The tribunal was correct to reject the preliminary objection, and the cause of action against the appellant was sufficiently disclosed. The appeal was dismissed as all grounds failed, and the matter was to proceed to trial for...
Court Disposition
appeal dismissed
Orders
- Appeal is dismissed.
- Costs awarded to the respondent.
Full Case Text
Judgment text and source record
5 paragraphs
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}{\cs34\b\ul\expnd2\expndtw10\insrsid12991022\charrsid12991022 AT}{\cs34\b\ul\insrsid12991022\charrsid12991022 }{\cs34\b\ul\expnd2\expndtw10\insrsid12991022\charrsid12991022 MENGO \par }\pard\plain \s24\ql \li0\ri0\sl-240\slmult0\widctlpar\faauto\rin0\lin0\itap0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\insrsid12991022\charrsid12991022 \par }\pard \s24\qc \li0\ri0\sb230\sl-331\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid12991022 {\cs48\b\insrsid12991022\charrsid12991022 CORAM:}{\cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 ODER,}{ \cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 TSEKOOKO,}{\cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 KAROKORA,}{\cs34\b\insrsid12991022\charrsid12991022 }{ \cs48\b\insrsid12991022\charrsid12991022 KANYEIHAMBA, KATO}{\cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 JJ. SC. \par }\pard\plain \s17\qc \li2323\ri2376\sl-240\slmult0\widctlpar\faauto\rin2376\lin2323\itap0\pararsid12991022 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\insrsid12991022\charrsid12991022 \par }\pard \s17\qc \li0\ri-90\sb101\sl-643\slmult0\widctlpar\faauto\rin-90\lin0\itap0\pararsid12991022 {\cs48\b\insrsid12991022\charrsid12991022 CIVIL}{\cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 APPEAL}{ \cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 NO.}{\cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 19}{\cs34\b\insrsid12991022\charrsid12991022 }{ \cs48\b\insrsid12991022\charrsid12991022 OF}{\cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 2002}{\cs48\b\insrsid12991022\charrsid12991022 \par }{\cs34\b\expnd2\expndtw10\insrsid12991022\charrsid12991022 BETWEEN \par }\pard\plain \s24\qc \li0\ri0\sl-643\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid12991022 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\cs48\b\insrsid12991022\charrsid12991022 HAJJ}{\cs34\b\insrsid12991022\charrsid12991022 }{ \cs48\b\insrsid12991022\charrsid12991022 BUMALI}{\cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 KADJINGO}{\cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 ::::::::::::::::::::::::::::::}{\cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 APPELLANT \par }\pard \s24\qc \li0\ri0\widctlpar\faauto\rin0\lin0\itap0\pararsid12991022 {\cs34\b\expnd2\expndtw10\insrsid12991022\charrsid12991022 AND \par }\pard \s24\qc \li0\ri0\sl-240\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid12991022 {\insrsid12991022\charrsid12991022 \par }\pard \s24\qc \li0\ri0\sb130\widctlpar\faauto\rin0\lin0\itap0\pararsid12991022 {\cs48\b\insrsid12991022\charrsid12991022 THE}{\cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 NON}{ \cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 PERFORMING}{\cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 ASSETS \par }\pard \s24\qc \li0\ri0\sb43\widctlpar\faauto\rin0\lin0\itap0\pararsid12991022 {\cs48\b\insrsid12991022\charrsid12991022 RECOVERY}{\cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 TRUST}{ \cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 ::::::::::::::::::::::::::::::::::::::}{\cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 RESPONDENT \par }\pard \s24\ql \li0\ri0\sl-240\slmult0\widctlpar\faauto\rin0\lin0\itap0 {\insrsid12991022\charrsid12991022 \par \par }\pard \s24\ql \li0\ri0\sb168\sl-317\slmult0\widctlpar\faauto\rin0\lin0\itap0 {\cs48\b\insrsid12991022\charrsid12991022 (Appeal}{\cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 from}{ \cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 the}{\cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 judgment}{\cs34\b\insrsid12991022\charrsid12991022 }{ \cs48\b\insrsid12991022\charrsid12991022 of}{\cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 the}{\cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 Court}{ \cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 of}{\cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 Appeal}{\cs34\b\insrsid12991022\charrsid12991022 }{ \cs48\b\insrsid12991022\charrsid12991022 (Berko, Engwau,Kitumba}{\cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 JJ. A)}{\cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 at}{ \cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 Kampala}{\cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 in}{\cs34\b\insrsid12991022\charrsid12991022 }{ \cs48\b\insrsid12991022\charrsid12991022 civil}{\cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 appeal}{\cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 number}{ \cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 62}{\cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 of}{\cs34\b\insrsid12991022\charrsid12991022 }{ \cs48\b\insrsid12991022\charrsid12991022 2000 dated}{\cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 10th.}{\cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 July}{ \cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 2002). \par }\pard \s24\ql \li0\ri0\sl-240\slmult0\widctlpar\faauto\rin0\lin0\itap0 {\insrsid12991022\charrsid12991022 \par \par }\pard \s24\qj \li0\ri0\sb187\widctlpar\faauto\rin0\lin0\itap0\pararsid12991022 {\cs34\b\ul\expnd2\expndtw10\insrsid12991022\charrsid12991022 REASONS}{\cs34\b\ul\insrsid12991022\charrsid12991022 }{ \cs34\b\ul\expnd2\expndtw10\insrsid12991022\charrsid12991022 FOR}{\cs34\b\ul\insrsid12991022\charrsid12991022 }{\cs34\b\ul\expnd2\expndtw10\insrsid12991022\charrsid12991022 JUDGMENT}{\cs34\b\ul\insrsid12991022\charrsid12991022 }{ \cs34\b\ul\expnd2\expndtw10\insrsid12991022\charrsid12991022 OF}{\cs34\b\ul\insrsid12991022\charrsid12991022 }{\cs34\b\ul\expnd2\expndtw10\insrsid12991022\charrsid12991022 THE}{\cs34\b\ul\insrsid12991022\charrsid12991022 }{ \cs34\b\ul\expnd2\expndtw10\insrsid12991022\charrsid12991022 COURT}{\cs48\b\insrsid12991022\charrsid12991022 . \par }\pard\plain \s16\qj \li0\ri0\sb202\sl-475\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid12991022 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\cs35\insrsid12991022\charrsid12991022 This is a second appeal. The appeal is against the decision of the Court of }{\cs48\b\insrsid12991022\charrsid12991022 A}{\cs35\insrsid12991022\charrsid12991022 ppeal which heard the first appeal and dismissed it. The first appeal was against the ruling of the Non-Performing }{\cs48\b\insrsid12991022\charrsid12991022 A}{\cs35\insrsid12991022\charrsid12991022 ssets Recovery Tribunal. On 17/11/2003 w e heard the appeal and dismissed it reserving our reasons for doing so. We now give them.}{\cs35\insrsid12991022\charrsid12991022 \par }{\cs35\insrsid12991022\charrsid12991022 The appellant together with two other defendants: Kapeeka Coffee Works Ltd and }{\cs48\b\insrsid12991022\charrsid12991022 A}{\cs35\insrsid12991022\charrsid12991022 bu Kasozi Kadjingo, were sued by the respondent for}{\cs35\insrsid12991022\charrsid12991022 }{\cs35\insrsid12991022\charrsid12991022 recovery of a sum of 839,030,585/= being part of the money advanced to Kapeeka Coffee Works Ltd. The appellant was sued in his capacity as one of the two directors of the company. When the suit came up for hearing before the Tribunal on 15/2/2000, learned
counsel for the appellant and the other defendants, who are not appellants in this appeal, raised preliminary objections. The appellant's objection was that the plaint did not disclose a cause of action against him. The objection was rejected by the Tribu nal and the Court of Appeal. Hence this appeal. \par }\pard\plain \s22\qj \li720\ri0\sl-240\slmult0\widctlpar\faauto\rin0\lin720\itap0\pararsid12991022 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\insrsid12991022\charrsid12991022 \par \par }\pard \s22\qj \li720\ri0\sb5\widctlpar\faauto\rin0\lin720\itap0\pararsid12991022 {\cs35\insrsid12991022\charrsid12991022 A total of 12 grounds of appeal were framed, namely :- \par {\pntext\pard\plain\s27 \cs35\charrsid12991022 \hich\af0\dbch\af0\loch\f0 1.\tab}}\pard\plain \s27\qj \fi-360\li1075\ri0\sb317\sl-322\slmult0\widctlpar\tx1075{\*\pn \pnlvlbody\ilvl0\ls1\pnrnot0\pndec\pnstart1\pnindent360 {\pntxta .}} \faauto\ls1\rin0\lin1075\itap0\pararsid12991022 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\cs35\insrsid12991022\charrsid12991022 The Hon. Justice of Court of Appeal erred in law when they summarily dismissed the Appellant's appeal having been unfairly biased that the Appellan t was dishonest without taking into account the grounds of appeal that had been presented in memorandum of appeal. \par {\pntext\pard\plain\s27 \cs35\charrsid12991022 \hich\af0\dbch\af0\loch\f0 2.\tab}}\pard \s27\qj \fi-360\li1075\ri0\sb643\sl-312\slmult0\widctlpar\tx1075{\*\pn \pnlvlbody\ilvl0\ls1\pnrnot0\pndec\pnstart1\pnindent360 {\pntxta .}} \faauto\ls1\rin0\lin1075\itap0\pararsid12991022 {\cs35\insrsid12991022\charrsid12991022 The Hon. Justice of Court of Appeal erred when they came to a finding that the appellant signed the loan agreement on behalf of Kapeeka Coffee works Ltd. \par {\pntext\pard\plain\s27 \cs35\charrsid12991022 \hich\af0\dbch\af0\loch\f0 3.\tab}}\pard \s27\qj \fi-360\li1075\ri0\sb648\sl-322\slmult0\widctlpar\tx1075{\*\pn \pnlvlbody\ilvl0\ls1\pnrnot0\pndec\pnstart1\pnindent360 {\pntxta .}} \faauto\ls1\rin0\lin1075\itap0\pararsid12991022 {\cs35\insrsid12991022\charrsid12991022 The Hon. Justices of the Court of Appeal erred when they came to a finding that the Appellant mortgaged his property Mailo Register Block 269, Plot 36 and 37. \par {\pntext\pard\plain\s27 \cs35\charrsid12991022 \hich\af0\dbch\af0\loch\f0 4.\tab}}\pard \s27\qj \fi-360\li1075\ri0\sb624\sl-322\slmult0\widctlpar\tx1075{\*\pn \pnlvlbody\ilvl0\ls1\pnrnot0\pndec\pnstart1\pnindent360 {\pntxta .}} \faauto\ls1\rin0\lin1075\itap0\pararsid12991022 {\cs35\insrsid12991022\charrsid12991022 The Hon. Justices erred when they came to a finding that the Appellant covenanted to pay on demand to the Uganda Commercial Bank the loan granted to Kapeeka Coffee Works Ltd. \par {\pntext\pard\plain\s27 \cs35\charrsid12991022 \hich\af0\dbch\af0\loch\f0 5.\tab}}\pard \s27\qj \fi-360\li1075\ri0\sb638\sl-322\slmult0\widctlpar\tx1075{\*\pn \pnlvlbody\ilvl0\ls1\pnrnot0\pndec\pnstart1\pnindent360 {\pntxta .}} \faauto\ls1\rin0\lin1075\itap0\pararsid12991022 {\cs35\insrsid12991022\charrsid12991022 The Honourable Justices of the Court of Appeal erred when they came to a conclusion that the names Kapeeka Coffee Hulleries were inadvertently put on some documents.
\par {\pntext\pard\plain\s27 \cs35\charrsid12991022 \hich\af0\dbch\af0\loch\f0 1.\tab}\sect }\sectd \marglsxn1701\margrsxn1415\margtsxn1418\sbknone\linex0\colsx60\sectdefaultcl\sectrsid12991022\sftnbj {\footerl \pard\plain \s23\qj \li1719\ri-2563\widctlpar\faauto\rin-2563\lin1719\itap0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\cs43\b\f2\fs26\lang7177\langfe1033\langnp7177\insrsid12991022 }{ \cs43\b\f2\fs26\lang7177\langfe1033\langnp7177\insrsid12991022\charrsid12991022 \par }}{\footerr \pard\plain \ql \li0\ri0\widctlpar\faauto\rin0\lin0\itap0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\insrsid12991022 \par }}\pard\plain \s29\qj \li711\ri0\sb67\sl-322\slmult0\widctlpar\tx1421\faauto\rin0\lin711\itap0\pararsid12991022 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\cs39\insrsid12991022 \par {\pntext\pard\plain\s29 \cs39\f39\charrsid12991022 \hich\af39\dbch\af0\loch\f39 6.\tab}}\pard \s29\qj \fi-710\li1421\ri0\sb67\sl-322\slmult0\widctlpar\tx1421{\*\pn \pnlvlbody\ilvl0\ls2\pnrnot0\pndec\pnf39\pnstart6\pnindent710 {\pntxta .}} \faauto\ls2\rin0\lin1421\itap0\pararsid12991022 {\cs39\insrsid12991022\charrsid12991022 The Honourable Justices of the Court of appeal further erred when they came to a conclusion that the appearance of the names of Kapeeka Coffee Hulleries on some documents does not change the reality of the situation \par {\pntext\pard\plain\s29 \cs39\f39\charrsid12991022 \hich\af39\dbch\af0\loch\f39 7.\tab}}\pard \s29\qj \fi-710\li1421\ri0\sb322\sl-322\slmult0\widctlpar\tx1421{\*\pn \pnlvlbody\ilvl0\ls2\pnrnot0\pndec\pnf39\pnstart6\pnindent710 {\pntxta .}} \faauto\ls2\rin0\lin1421\itap0\pararsid12991022 {\cs39\insrsid12991022\charrsid12991022 The Honourable Justices of the Cour t of appeal further erred when they held that the Appellant knew that the loan was obtained by Kapeeka Coffee Works Ltd for the rehabilitation of Kapeeka Coffee Hulleries and that he was the guarantor. \par {\pntext\pard\plain\s29 \cs39\charrsid12991022 \hich\af0\dbch\af0\loch\f0 8.\tab}}\pard \s29\qj \fi-710\li1421\ri0\sb331\sl-317\slmult0\widctlpar\tx1421{\*\pn \pnlvlbody\ilvl0\ls3\pnrnot0\pndec\pnstart6\pnindent710 {\pntxta .}} \faauto\ls3\rin0\lin1421\itap0\pararsid12991022 {\cs39\insrsid12991022\charrsid12991022 The Honourable Justices of the Court of Appeal erred when they held that the Appellant was dishonest.}{\cs35\insrsid12991022\charrsid12991022 \par {\pntext\pard\plain\s29 \cs39\f39\charrsid12991022 \hich\af39\dbch\af0\loch\f39 9.\tab}}\pard \s29\qj \fi-710\li1421\ri0\sb307\sl-326\slmult0\widctlpar\tx1421{\*\pn \pnlvlbody\ilvl0\ls2\pnrnot0\pndec\pnf39\pnstart6\pnindent710 {\pntxta .}} \faauto\ls2\rin0\lin1421\itap0\pararsid12991022 {\cs39\insrsid12991022\charrsid12991022 The Honourable Justices of Court of Appeal further erred when they came to a conclusion that the appellant was jointly and severely(sic) liable with Kapeeka Coffee Works Ltd for the debt. \par }\pard\plain \qj \li0\ri0\widctlpar\faauto\rin0\lin0\itap0\pararsid12991022 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\insrsid12991022\charrsid12991022 \par {\pntext\pard\plain\s29 \cs39\f39\charrsid12991022 \hich\af39\dbch\af0\loch\f39 10.\tab}}\pard\plain \s29\qj \fi-682\li1421\ri0\sb638\sl-317\slmult0\widctlpar\tx1421{\*\pn \pnlvlbody\ilvl0\ls4\pnrnot0\pndec\pnf39\pnstart10\pnindent682 {\pntxta .}} \faauto\ls4\rin0\lin1421\itap0\pararsid12991022 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\cs39\insrsid12991022\charrsid12991022 The Honourable Justices of the Court of Appeal further erred in law when they held that the preliminary objection was a mere technicality without any merit. \par {\pntext\pard\plain\s29 \cs39\f39\charrsid12991022 \hich\af39\dbch\af0\loch\f39 11.\tab}The Honourable Justices of the Court of Appeal further erred in law when they concluded that the Appellant's objection had been prompted by a dishonest motive. \par {\pntext\pard\plain\s29 \cs39\f39\charrsid12991022 \hich\af39\dbch\af0\loch\f39 12.\tab}}\pard \s29\qj \fi-682\li1421\ri0\sb634\sl-317\slmult0\widctlpar\tx1421{\*\pn \pnlvlbody\ilvl0\ls4\pnrnot0\pndec\pnf39\pnstart10\pnindent682 {\pntxta .}} \faauto\ls4\rin0\lin1421\itap0\pararsid12991022 {\cs39\insrsid12991022\charrsid12991022 The Honourable Justices of the Court of Appeal erred when they awarded the Respondent the costs of the appeal. \par }\pard\plain \s30\qj \fi710\li0\ri0\sl-240\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid12991022 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\insrsid12991022\charrsid12991022 \par \par }\pard \s30\qj \fi710\li0\ri0\sb38\sl-480\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid12991022 {\cs39\insrsid12991022\charrsid12991022 Before we proceeded to hear the submissions in respect of the grounds of appeal, Mr. Ruhindi counsel for the appellant, invited the court to strike out a notice for affirmation of the decision of the Court of Appeal. The}{\cs39\insrsid12991022 }{ \cs35\insrsid12991022\charrsid12991022 notice had been filed by Mr. Kalibal a counsel for the respondent. Mr. Ruhindi's argument was that the notice offended rule 88(1) of the Rules of this court which requires such a copy of the notice to be served within 7 days. According to him, he was served later than the prescribed time.
\par }\pard\plain \s15\qj \fi701\li0\ri0\sl-240\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid12991022 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\insrsid12991022\charrsid12991022 \par \par }\pard \s15\qj \fi701\li0\ri0\sl-485\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid12991022 {\cs35\insrsid12991022\charrsid12991022 A fter hearing both counsel, we upheld Mr. Ruhindi's contention and struck out the notice for affirmation, as Mr. Kalibala conceded that a copy of the notice had been served on the appellant's counsel out of time. \par }\pard \s15\qj \fi706\li0\ri0\sl-240\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid12991022 {\insrsid12991022\charrsid12991022 \par \par }\pard \s15\qj \fi706\li0\ri0\sb5\sl-480\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid12991022 {\cs35\insrsid12991022\charrsid12991022 The respondent's counsel having conceded g rounds 2, 3 and 4 and after ground 12 had been abandoned by appellant's counsel, the remaining grounds were argued in the following order: grounds 1,7,8 and 11 together, grounds 5 and 6 also together but grounds 9 and 10 separately. \par }\pard\plain \s31\qj \fi614\li0\ri0\sl-475\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid12991022 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\cs35\insrsid12991022\charrsid12991022 As for the three ground s which were conceded, we considered them and came to the conclusion that the issues raised in those grounds in fact support the respondent's contention that this case can only be properly decided after hearing evidence from both sides. \par }\pard\plain \s15\qj \fi715\li0\ri0\sb10\sl-475\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid12991022 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\cs35\insrsid12991022\charrsid12991022 On grounds 1,7,8, a nd 11 Mr. Ruhindi submitted that the Court of Appeal was wrong to hold that the appellant was liable to repay the loan and that he was a dishonest person when there was no evidence to that effect. He also argued that the Justices of Appeal failed to consi der the issue of whether or not there was a cause of action. \par }\pard \s15\qj \fi706\li0\ri0\sl-240\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid12991022 {\insrsid12991022\charrsid12991022 \par \par }\pard \s15\qj \fi706\li0\ri0\sb10\sl-480\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid12991022 {\cs35\insrsid12991022\charrsid12991022 On his part, Mr. Kalibala, argued that the Court of appeal did not base its decision on the appellant's dishonesty. In his view, the court considered all the issues presented before it before it dismissed the appeal. \par }\pard \s15\qj \fi720\li0\ri0\sb62\sl-485\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid12991022 {\cs35\insrsid12991022\charrsid12991022 The substance of the judgment of Berko, JA (as he then was) which was the lead judgment of the court reads as follows: \par }\pard\plain \s28\qj \li715\ri0\sl-240\slmult0\widctlpar\faauto\rin0\lin715\itap0\pararsid12991022 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\insrsid12991022\charrsid12991022 \par }\pard \s28\qj \li715\ri0\sb206\sl-322\slmult0\widctlpar\faauto\rin0\lin715\itap0\pararsid12991022 {\cs48\b\insrsid12991022\charrsid12991022 "The}{\cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 loan}{ \cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 agreement}{\cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 was}{\cs34\b\insrsid12991022\charrsid12991022 }{ \cs48\b\insrsid12991022\charrsid12991022 between}{\cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 the}{\cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 Uganda}{ \cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 Commercial}{\cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 Bank and}{\cs34\b\insrsid12991022\charrsid12991022 }{ \cs48\b\insrsid12991022\charrsid12991022 Kapeeka}{\cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 Coffee}{\cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 Works}{ \cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 Ltd.}{\cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 The}{\cs34\b\insrsid12991022\charrsid12991022 }{ \cs48\b\insrsid12991022\charrsid12991022 loan}{\cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 was}{\cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 to}{ \cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 be}{\cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 used exclusively}{\cs34\b\insrsid12991022\charrsid12991022 }{ \cs48\b\insrsid12991022\charrsid12991022 in}{\cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 the}{\cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 financing}{ \cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 and}{\cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 carrying}{\cs34\b\insrsid12991022\charrsid12991022 }{ \cs48\b\insrsid12991022\charrsid12991022 out}{\cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 of}{\cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 the}{ \cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 investment project}{\cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 at}{\cs34\b\insrsid12991022\charrsid12991022 }{ \cs48\b\insrsid12991022\charrsid12991022 Kapeeka}{\cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 coffee}{\cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 factory}{ \cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 which}{\cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 is}{\cs34\b\insrsid12991022\charrsid12991022 }{ \cs48\b\insrsid12991022\charrsid12991022 known}{\cs34\b\insrsid12991022\charrsid12991022 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Kapeeka}{\cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 Coffee}{ \cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 Works}{\cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 Ltd.}{\cs34\b\insrsid12991022\charrsid12991022 }{ \cs48\b\insrsid12991022\charrsid12991022 It}{\cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 is}{\cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 clear}{ \cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 from}{\cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 the}{\cs34\b\insrsid12991022\charrsid12991022 }{ \cs48\b\insrsid12991022\charrsid12991022 agreement}{\cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 that Kapeeka}{\cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 Coffee}{ \cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 Hulleries}{\cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 is}{\cs34\b\insrsid12991022\charrsid12991022 }{ \cs48\b\insrsid12991022\charrsid12991022 the}{\cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 project}{\cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 for}{ \cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 which}{\cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 funding}{\cs34\b\insrsid12991022\charrsid12991022 }{ \cs48\b\insrsid12991022\charrsid12991022 was required. \par }\pard \s28\qj \li701\ri0\sl-240\slmult0\widctlpar\faauto\rin0\lin701\itap0\pararsid12991022 {\insrsid12991022\charrsid12991022 \par \par }\pard \s28\qj \li701\ri0\sb158\sl-317\slmult0\widctlpar\faauto\rin0\lin701\itap0\pararsid12991022 {\cs48\b\insrsid12991022\charrsid12991022 As}{\cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 a}{ \cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 security}{\cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 for}{\cs34\b\insrsid12991022\charrsid12991022 }{ \cs48\b\insrsid12991022\charrsid12991022 the}{\cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 loan}{\cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 the}{ \cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 appellant}{\cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 mortgaged}{\cs34\b\insrsid12991022\charrsid12991022 }{ \cs48\b\insrsid12991022\charrsid12991022 his}{\cs34\b\insrsid12991022\charrsid12991022 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and}{\cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 0.20 acres}{ \cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 respectively}{\cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 at}{\cs34\b\insrsid12991022\charrsid12991022 }{ \cs48\b\insrsid12991022\charrsid12991022 NamaagaBulemezi}{\cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 and}{\cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 covenanted}{ \cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 to}{\cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 pay}{\cs34\b\insrsid12991022\charrsid12991022 }{ \cs48\b\insrsid12991022\charrsid12991022 on demand}{\cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 to}{\cs34\b\insrsid12991022\charrsid12991022 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\cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 Therefore}{\cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 the}{\cs34\b\insrsid12991022\charrsid12991022 }{ \cs48\b\insrsid12991022\charrsid12991022 mere}{\cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 fact}{\cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 that}{ \cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 the names}{\cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 "Kapeeka}{\cs34\b\insrsid12991022\charrsid12991022 }{ \cs48\b\insrsid12991022\charrsid12991022 Coffee}{\cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 Hulleries"}{\cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 have}{ \cs34\b\insrsid12991022\charrsid12991022 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of}{\cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 the}{\cs34\b\insrsid12991022\charrsid12991022 }{ \cs48\b\insrsid12991022\charrsid12991022 situation. The}{\cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 appellant}{\cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 knows}{ \cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 that}{\cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 the}{\cs34\b\insrsid12991022\charrsid12991022 }{ \cs48\b\insrsid12991022\charrsid12991022 loan}{\cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 was}{\cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 obtained}{ \cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 by}{\cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 Kapeeka Coffee}{\cs34\b\insrsid12991022\charrsid12991022 }{ \cs48\b\insrsid12991022\charrsid12991022 Works}{\cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 Ltd}{\cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 for}{ \cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 the}{\cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 rehabilitation}{\cs34\b\insrsid12991022\charrsid12991022 }{ \cs48\b\insrsid12991022\charrsid12991022 of}{\cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 Kapeeka}{\cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 Coffee Hulleries}{ \cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 and}{\cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 that}{\cs34\b\insrsid12991022\charrsid12991022 }{ \cs48\b\insrsid12991022\charrsid12991022 he}{\cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 was}{\cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 the}{ \cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 guarantor.}{\cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 This}{\cs34\b\insrsid12991022\charrsid12991022 }{ \cs48\b\insrsid12991022\charrsid12991022 is}{\cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 a}{\cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 fact}{ \cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 which}{\cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 the appellant}{\cs34\b\insrsid12991022\charrsid12991022 }{ \cs48\b\insrsid12991022\charrsid12991022 cannot}{\cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 deny}{\cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 and}{ \cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 it}{\cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 would}{\cs34\b\insrsid12991022\charrsid12991022 }{ \cs48\b\insrsid12991022\charrsid12991022 be}{\cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 a}{\cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 dishonesty}{ \cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 on}{\cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 his}{\cs34\b\insrsid12991022\charrsid12991022 }{ \cs48\b\insrsid12991022\charrsid12991022 part}{\cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 if attempts}{\cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 to}{ \cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 do}{\cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 so}{\cs34\b\insrsid12991022\charrsid12991022 }{ \cs48\b\insrsid12991022\charrsid12991022 (sic).}{\cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 The}{\cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 Tribunal}{ \cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 correctly}{\cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 saw}{\cs34\b\insrsid12991022\charrsid12991022 }{ \cs48\b\insrsid12991022\charrsid12991022 through}{\cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 the facade}{\cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 of}{ \cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 the}{\cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 falsehood}{\cs34\b\insrsid12991022\charrsid12991022 }{ \cs48\b\insrsid12991022\charrsid12991022 and}{\cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 dishonesty.}{\cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 Therefore}{ \cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 the}{\cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 appellant}{\cs34\b\insrsid12991022\charrsid12991022 }{ \cs48\b\insrsid12991022\charrsid12991022 is jointly}{\cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 and}{\cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 severely}{ \cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 (sic)}{\cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 liable}{\cs34\b\insrsid12991022\charrsid12991022 }{ \cs48\b\insrsid12991022\charrsid12991022 with}{\cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 Kapeeka}{\cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 Coffee}{ \cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 Works}{\cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 Ltd for}{\cs34\b\insrsid12991022\charrsid12991022 }{ \cs35\b\insrsid12991022\charrsid12991022 the debt.}{\cs35\insrsid12991022\charrsid12991022 \par }\pard \s28\qj \li715\ri0\sl-240\slmult0\widctlpar\faauto\rin0\lin715\itap0\pararsid12991022 {\insrsid12991022\charrsid12991022 \par }\pard \s28\qj \li715\ri0\sb77\sl-317\slmult0\widctlpar\faauto\rin0\lin715\itap0\pararsid12991022 {\cs48\b\insrsid12991022\charrsid12991022 In}{\cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 my}{ \cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 view,}{\cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 the}{\cs34\b\insrsid12991022\charrsid12991022 }{ \cs48\b\insrsid12991022\charrsid12991022 preliminary}{\cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 objection}{\cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 was}{ \cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 a}{\cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 mere}{\cs34\b\insrsid12991022\charrsid12991022 }{ \cs48\b\insrsid12991022\charrsid12991022 technicality without}{\cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 any}{\cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 merit.}{ \cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 The}{\cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 Non-Performing}{\cs34\b\insrsid12991022\charrsid12991022 }{ \cs48\b\insrsid12991022\charrsid12991022 assets}{\cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 Recovery}{\cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 Trust Tribunal}{ \cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 was}{\cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 right}{\cs34\b\insrsid12991022\charrsid12991022 }{ \cs48\b\insrsid12991022\charrsid12991022 in}{\cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 rejecting}{\cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 it. \par }\pard \s28\qj \li725\ri0\sl-240\slmult0\widctlpar\faauto\rin0\lin725\itap0\pararsid12991022 {\insrsid12991022\charrsid12991022 \par }\pard \s28\qj \li725\ri0\sb86\sl-312\slmult0\widctlpar\faauto\rin0\lin725\itap0\pararsid12991022 {\cs48\b\insrsid12991022\charrsid12991022 Technical}{\cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 objections}{ \cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 prompted}{\cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 by}{\cs34\b\insrsid12991022\charrsid12991022 }{ \cs48\b\insrsid12991022\charrsid12991022 a}{\cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 dishonest}{\cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 motive}{ \cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 should}{\cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 not be}{\cs34\b\insrsid12991022\charrsid12991022 }{ \cs48\b\insrsid12991022\charrsid12991022 countenanced}{\cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 by}{\cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 the}{ \cs34\b\insrsid12991022\charrsid12991022 }{\cs48\b\insrsid12991022\charrsid12991022 Courts". \par }\pard\plain \s15\qj \fi715\li0\ri0\sb197\sl-480\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid12991022 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\cs35\insrsid12991022\charrsid12991022 It is true that in that judgment his Lordship did not expressly state that there was a cause of action against the appellant. His holding that the Non-}{\cs35\insrsid12991022 }{\cs35\insrsid12991022\charrsid12991022 Performing assets Recovery Trust Tribunal was right in rejecting the preliminary objection, however, clearly shows that he was dealing with the issue of cause of action which was the subject of the tribunal's decision. It is not therefore correct to say that the Court of Appeal did not address its mind to the issue of whether or not there was cause of action. \par }\pard \s15\qj \fi715\li0\ri0\sl-240\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid12991022 {\insrsid12991022\charrsid12991022 \par \par }\pard \s15\qj \fi715\li0\ri0\sb10\sl-480\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid12991022 {\cs35\insrsid12991022\charrsid12991022 On the question of whether or not the Court of Appeal was justified in holding that the appellant was a dishonest man, we agree with Mr. Kalibala's contention that the decision of the court was not based on the appellant's conduct only but also on some do c uments presented before the court and the tribunal. It has all along been the contention of the respondent that during the trial the respondent will adduce evidence to prove the appellant's liability. This cannot be done at this stage of a preliminary obj ection. We agreed with that contention and found no merit in grounds 1,7,8 and 11. They failed. \par }\pard \s15\qj \fi715\li0\ri0\sl-240\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid12991022 {\insrsid12991022\charrsid12991022 \par }\pard \s15\qj \fi715\li0\ri0\sb82\sl-475\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid12991022 {\cs35\insrsid12991022\charrsid12991022 Regarding grounds 5 and 6, Mr. Ruhindi submitted that the Court of Appeal was wrong to find that the name "Kapeeka Coffee Hulleries" was inadvertently put on so me documents when there was no evidence supporting that finding. On the other hand, Mr. Kalibala submitted that the finding did not prejudice the appellant's position since all the documents were indicating that it was Kapeeka Coffee Works Ltd which}{ \cs44\b\insrsid12991022\charrsid12991022 }{\cs35\insrsid12991022\charrsid12991022 borrowed the money and the appellant was one of the directors of the company. \par }\pard \s15\qj \fi706\li0\ri0\sl-240\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid12991022 {\insrsid12991022\charrsid12991022 \par \par }\pard \s15\qj \fi706\li0\ri0\sb5\sl-480\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid12991022 {\cs35\insrsid12991022\charrsid12991022 This is another point which can be properly decided by the tribunal after examining all the available evidence. The issue as to whether Kapeeka Coffee Hulleries exists as an independent body different from Kapeeka}{\cs35\insrsid12991022 }{ \cs35\insrsid12991022\charrsid12991022 Coffee Works Ltd and which of them borrowe d the money is a matter of fact which can only be proved by calling evidence. It cannot be conclusively decided under a preliminary objection. We found no merit in these two grounds which failed. \par }\pard \s15\qj \fi715\li0\ri0\sl-240\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid12991022 {\insrsid12991022\charrsid12991022 \par }\pard \s15\qj \fi715\li0\ri0\sb221\sl-485\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid12991022 {\cs35\insrsid12991022\charrsid12991022 On ground }{\cs40\b\scaps\insrsid12991022\charrsid12991022 9 }{\cs35\insrsid12991022\charrsid12991022 Mr. Ruhindi submitted that it was premature for the Court of appeal to hold that the appellant was jointly and severally liable with the other defendants to pay the debt. Mr. Kalibala, supported the finding of the court because, in his view, paragraph }{ \cs40\b\scaps\insrsid12991022\charrsid12991022 2 }{\cs35\insrsid12991022\charrsid12991022 of the amended plaint shows that the appellant is one of the directors of the first defendant company and therefore liable to be sued. \par }\pard \s15\qj \fi739\li0\ri0\sl-240\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid12991022 {\insrsid12991022\charrsid12991022 \par \par }\pard \s15\qj \fi739\li0\ri0\sl-480\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid12991022 {\cs35\insrsid12991022\charrsid12991022 This ground of appeal is based on the following sentence in the judgment of the Court of Appeal. \par }\pard\plain \s19\qj \li744\ri1037\sl-240\slmult0\widctlpar\faauto\rin1037\lin744\itap0\pararsid12991022 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\insrsid12991022\charrsid12991022 \par \par }\pard \s19\qj \li744\ri1037\sb149\sl-317\slmult0\widctlpar\faauto\rin1037\lin744\itap0\pararsid12991022 {\cs36\b\i\insrsid12991022\charrsid12991022 "Therefore the appellant is jointly and severely (sic) liable with Kapeeka Coffee Works Ltd for the debt".
\par }\pard\plain \s15\qj \fi710\li0\ri0\sb178\sl-480\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid12991022 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\cs35\insrsid12991022\charrsid12991022 On the face of it that sentence may be taken to mean that the court declared the appellant liable to pay the debt. When the passage is read in the context of the whole judgment and the reason why the appeal was lodged, the passage can only mean and must be understood to mean that the appellant was liable to be sued for the debt and that there was cause of action against him. The Court of Appeal could not reasonably hav e found the appellant liable to pay a debt which had not yet been proved against him. Ground nine also failed. \par }\pard \s15\qj \fi715\li0\ri0\sb62\sl-480\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid12991022 {\cs35\insrsid12991022\charrsid12991022 In the tenth ground of appeal, the appellant's counsel complained that the Court of Appeal erred when it held that the preliminary objection was a mere technicality without any merit. \par }\pard\plain \s16\qj \li0\ri0\sl-240\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid12991022 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\insrsid12991022\charrsid12991022 \par \par }\pard \s16\qj \li0\ri0\sb10\sl-480\slmult0\widctlpar\faauto\rin0\lin0\itap0\pararsid12991022 {\cs35\insrsid12991022\charrsid12991022 Considering the history of this case, we are satisfied that the Court of Appeal was justified in treating the preliminary objection as a mere technicality. The arguments by Mr. Ruhindi concerning the issue of a mere t echnicality, were based on his contention that Kapeeka Coffee Works Ltd and Kapeeka Coffee Hulleries were not the same company and that the word 'Kapeka' and 'Kapeeka' were entirely different. In our view the matters complained of did not affect the respo ndent's claim against the appellant and the Court of Appeal rightly referred to them as a mere technicality. There was no merit in this ground, it failed. \par }\pard\plain \s15\qj \li715\ri0\sl-240\slmult0\widctlpar\faauto\rin0\lin715\itap0\pararsid12991022 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\insrsid12991022\charrsid12991022 \par \par }\pard \s15\qj \li715\ri0\sb5\widctlpar\faauto\rin0\lin715\itap0\pararsid12991022 {\cs35\insrsid12991022\charrsid12991022 It was for those reasons that we dismissed the appeal. \par }\pard\plain \s16\qj \li0\ri0\sl-240\slmult0\widctlpar\faauto\rin0\lin0\itap0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\insrsid12991022\charrsid12991022 \par \par \par \par }\pard \s16\qc \li0\ri0\sb38\widctlpar\tx4282\faauto\rin0\lin0\itap0\pararsid12991022 {\cs35\b\i\insrsid12991022\charrsid12991022 Dated at Mengo this 20th day of April 2004 \par }\pard\plain \s28\ql \li0\ri0\sl-240\slmult0\widctlpar\faauto\rin0\lin0\itap0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\insrsid12991022\charrsid12991022 \par \par \par \par \par }\pard \s28\qc \li0\ri0\sb120\widctlpar\faauto\rin0\lin0\itap0\pararsid12991022 {\cs45\b\insrsid12991022\charrsid12991022 A}{\cs34\b\expnd4\expndtw20\insrsid12991022\charrsid12991022 . H. O.}{\cs34\b\insrsid12991022\charrsid12991022 }{ \cs34\b\expnd4\expndtw20\insrsid12991022\charrsid12991022 O}{\cs45\b\insrsid12991022\charrsid12991022 der, \par }\pard \s28\qc \li0\ri0\sb38\widctlpar\faauto\rin0\lin0\itap0\pararsid12991022 {\cs45\b\insrsid12991022\charrsid12991022 Justice of the Supreme Court}{\cs45\b\insrsid12991022 \par \par }{\cs41\b\insrsid12991022\charrsid12991022 J}{\cs45\b\insrsid12991022\charrsid12991022 . N. W. }{\cs41\b\insrsid12991022\charrsid12991022 T}{\cs45\b\insrsid12991022\charrsid12991022 sekooko }{\cs45\b\insrsid12991022 \line }{ \cs45\b\insrsid12991022\charrsid12991022 Justice of the Supreme Court}{\cs45\b\insrsid12991022 \par \par }{\cs34\b\insrsid12991022\charrsid12991022 J. N. Karokora}{\cs34\b\insrsid12991022 \line }{\cs34\b\insrsid12991022\charrsid12991022 Justice of the Supreme Court}{\cs34\b\insrsid12991022 \par \par }{\cs42\b\insrsid12991022\charrsid12991022 G. W. Kanyeihamba}{\cs42\b\insrsid12991022 \line }{\cs34\b\insrsid12991022\charrsid12991022 Justice of the Supreme Court}{\cs34\b\insrsid12991022 \par \par }{\cs34\b\insrsid12991022\charrsid12991022 C. M. Kato}{\cs34\b\insrsid12991022 \line }{\cs34\b\insrsid12991022\charrsid12991022 Justice of the Supreme Court \par }}