[2000] UGHC 52

[2000] UGHC 52

The court found that the receivers, appointed by East African Development Bank as debenture holders, were in possession of the attached properties not on their own account or in trust for the judgment debtor, but for the benefit of the debenture holders. The investigation under the Civil Procedure Rules is limited to possession and does not extend to complicated questions of title or trust. Since the receivers were duly appointed and in possession at the time of attachment, the properties were not liable to attachment in execution of the judgment. The application was allowed and the properties ordered to be released from attachment.

Citation
[2000] UGHC 52
Parties
Applicant: Simon Kalenzi; Applicant: John Kiruthu; Applicant: Andrew Gregory; Applicant: Sheikh Abdul Zahir; Respondent: John Verjee; Respondent: Samaki Industries (N) Ltd
Court
High Court of Uganda
Jurisdiction
Uganda
Judgment Date
1 November 2000
Case Number
MISC. APPLICATION NO. 897 OF 2000
Procedural Posture
Miscellaneous Application / Ruling
Outcome
application allowed
Judges
Byamugisha, j
Legal Topics
Attachment of Property, Receivership, Debenture Holders Rights, Execution of Judgments
Source Language
English
Civil Procedure Commercial and Corporate Attachment of Property Receivership Debenture Holders Rights Execution of Judgments

Case Brief

Summary, issues, holding and outcome

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Parties

Simon Kalenzi

Applicant

John Kiruthu

Applicant

Andrew Gregory

Applicant

Sheikh Abdul Zahir

Applicant

John Verjee

Respondent

Samaki Industries (N) Ltd

Respondent

Procedural Posture

Miscellaneous Application / Ruling

Legal Issues

  1. 1 Whether the movable and immovable properties of the judgment debtor are liable to attachment given the appointment of receivers by East African Development Bank.
  2. 2 Whether the receivers hold the property on their own account or in trust for the judgment debtor.
  3. 3 Whether the existence or lapse of a legal mortgage affects the scope of the court's inquiry under Order 19 rules 55, 56, 57 and 89 of the Civil Procedure Rules.

Ratio Decidendi

The court found that the receivers, appointed by East African Development Bank as debenture holders, were in possession of the attached properties not on their own account or in trust for the judgment debtor, but for the benefit of the debenture holders. The investigation under the Civil Procedure Rules is limited to possession and does not extend to complicated questions of title or trust. Since the receivers were duly appointed and in possession at the time of attachment, the properties were not liable to attachment in execution of the judgment. The application was allowed and the properties ordered to be released from attachment.

Court Disposition

application allowed

Orders

  • The movable and immovable properties of the judgment debtor are released from attachment.
  • The costs of the application are to be provided for by the respondents.