[2009] UGCommC 30

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\li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid13924808 \fs28\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\fs24\insrsid16515581\charrsid13924808 PAUL KASAGGA \par ANDREW KASAGGA }{\fs24\insrsid12809895\charrsid13924808 }{\fs24\insrsid16515581\charrsid13924808 \'85\'85\'85\'85\'85..\'85\'85.. \'85\'85\'85.\'85\'85.. APPLICANT}{\fs24\insrsid590968\charrsid13924808 \par }\pard\plain \qc \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid13924808 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\fs24\insrsid590968\charrsid13924808 \par }{\b\fs24\insrsid4157198\charrsid13924808 VERSUS}{\b\fs24\insrsid590968\charrsid13924808 \par }{\fs24\insrsid590968\charrsid13924808 \par }{\fs24\insrsid4157198\charrsid13924808 BARCLAYS BANK (U) LTD \'85\'85\'85\'85}{\fs24\insrsid16515581\charrsid13924808 \'85\'85\'85..}{\fs24\insrsid4157198\charrsid13924808 \'85\'85..\'85 RESPONDENT}{\fs24\insrsid590968\charrsid13924808 \par }{\fs24\insrsid3368282\charrsid13924808 \par }{\fs24\insrsid4157198\charrsid13924808 \par }{\fs24\insrsid590968\charrsid13924808 BEFORE: }{\fs24\insrsid12809895\charrsid13924808 HON MR}{\fs24\insrsid16515581\charrsid13924808 . }{\fs24\insrsid590968\charrsid13924808 JUSTICE LAMECK N. MUKASA \par }{\fs24\insrsid3368282\charrsid13924808 \par }{\fs24\insrsid590968\charrsid13924808 \par }{\fs24\insrsid11601907\charrsid13924808 RULING:}{\fs24\insrsid590968\charrsid13924808 \par }\pard \ql \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid13924808 {\fs24\insrsid11601907\charrsid13924808 \par }\pard \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid13924808 {\fs24\insrsid11601907\charrsid13924808 THAT is an application brought by Notice of Motion under Order 46 rules 1 and 8 of the Civil Procedure Rules and Section 8}{\fs24\insrsid16515581\charrsid13924808 2}{\fs24\insrsid3081083\charrsid13924808 , }{\fs24\insrsid11601907\charrsid13924808 98}{ \fs24\insrsid16515581\charrsid13924808 and}{\fs24\insrsid11601907\charrsid13924808 99 of the Civil Procedure Act for orders that: \par {\listtext\pard\plain\insrsid11601907\charrsid13924808 \hich\af0\dbch\af0\loch\f0 (a)\tab}}\pard \qj \fi-375\li735\ri0\sl360\slmult1\widctlpar\jclisttab\tx735\aspalpha\aspnum\faauto\ls1\adjustright\rin0\lin735\itap0\pararsid13924808 { \fs24\insrsid11601907\charrsid13924808 The Order/Ruling of the Honourable Court made }{\fs24\insrsid2700686\charrsid13924808 o}{\fs24\insrsid11601907\charrsid13924808 n 22/08/08 be }{\fs24\insrsid2700686\charrsid13924808 reviewed by}{ \fs24\insrsid11601907\charrsid13924808 the }{\fs24\insrsid2700686\charrsid13924808 Court to}{\fs24\insrsid11601907\charrsid13924808 the effect that the }{\fs24\insrsid13644282\charrsid13924808 applicant\rquote s}{\fs24\insrsid11601907\charrsid13924808 liability as g}{\fs24\insrsid3368282\charrsid13924808 uarant}{\fs24\insrsid3081083\charrsid13924808 ors}{\fs24\insrsid11601907\charrsid13924808 is subject to the outcome of HCCS No 51 of 2008. \par }\pard \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid13924808 {\fs24\insrsid11601907\charrsid13924808 \par {\listtext\pard\plain\insrsid11601907\charrsid13924808 \hich\af0\dbch\af0\loch\f0 (b)\tab}}\pard \qj \fi-375\li735\ri0\sl360\slmult1\widctlpar\jclisttab\tx735\aspalpha\aspnum\faauto\ls1\adjustright\rin0\lin735\itap0\pararsid13924808 { \fs24\insrsid11601907\charrsid13924808 That this }{\fs24\insrsid2700686\charrsid13924808 is a}{\fs24\insrsid11601907\charrsid13924808 proper case for review. \par {\listtext\pard\plain\insrsid11601907\charrsid13924808 \hich\af0\dbch\af0\loch\f0 (c)\tab}That the applicants be granted unconditional leave to appear and defend the main suit. \par {\listtext\pard\plain\insrsid11601907\charrsid13924808 \hich\af0\dbch\af0\loch\f0 (d)\tab}Costs of this application be }{\fs24\insrsid16207436\charrsid13924808 born by the respondent}{\fs24\insrsid11601907\charrsid13924808 \par }\pard \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid13924808 {\fs24\insrsid16207436\charrsid13924808 The grounds for the applicat}{\fs24\insrsid3081083\charrsid13924808 ion}{ \fs24\insrsid16207436\charrsid13924808 are particularly that:- \par \par {\listtext\pard\plain\insrsid16207436\charrsid13924808 \hich\af0\dbch\af0\loch\f0 1.\tab}}\pard \qj \fi-360\li720\ri0\sl360\slmult1\widctlpar\jclisttab\tx720\aspalpha\aspnum\faauto\ls3\adjustright\rin0\lin720\itap0\pararsid13924808 { \fs24\insrsid16207436\charrsid13924808 From the court rec}{\fs24\insrsid16515581\charrsid13924808 ord/pleadings that the issues f}{\fs24\insrsid16207436\charrsid13924808 o}{\fs24\insrsid16515581\charrsid13924808 r}{\fs24\insrsid16207436\charrsid13924808 determination raised }{\fs24\insrsid2700686\charrsid13924808 triable issues}{\fs24\insrsid16207436\charrsid13924808 and therefore }{\fs24\insrsid16515581\charrsid13924808 could}{\fs24\insrsid16207436\charrsid13924808 not properly fall under a summary suit for a liquidated demand. \par {\listtext\pard\plain\insrsid16207436\charrsid13924808 \hich\af0\dbch\af0\loch\f0 2.\tab}That the court record shows that the applicants were sued as guarantors whose liability only }{\fs24\insrsid16515581\charrsid13924808 arises}{ \fs24\insrsid16207436\charrsid13924808 upon ascertaining of the true and or actual amount payable between the plaintiff and the Defendant Company which was being contested. \par {\listtext\pard\plain\insrsid16207436\charrsid13924808 \hich\af0\dbch\af0\loch\f0 3.\tab}That the procedure adopted required issuance of a decree upon refusal of leave to defend which could not be as there were no amount established to be d}{ \fs24\insrsid16515581\charrsid13924808 u}{\fs24\insrsid16207436\charrsid13924808 e. \par {\listtext\pard\plain\insrsid16207436\charrsid13924808 \hich\af0\dbch\af0\loch\f0 4.\tab}That the applica}{\fs24\insrsid16515581\charrsid13924808 n}{\fs24\insrsid16207436\charrsid13924808 ts could not file a d efence because the court did not allow them to do so. \par {\listtext\pard\plain\insrsid16207436\charrsid13924808 \hich\af0\dbch\af0\loch\f0 5.\tab}The order of court determining liability of the applicants as guarantors for an undetermined sum of money is an error apparent on the face of the record. \par {\listtext\pard\plain\insrsid16515581\charrsid13924808 \hich\af0\dbch\af0\loch\f0 6.\tab}}{\fs24\insrsid16515581\charrsid13924808 T}{\fs24\insrsid16207436\charrsid13924808 hat the applicants have been }{\fs24\insrsid16515581\charrsid13924808 denied }{ \fs24\insrsid16207436\charrsid13924808 audience before court yet the matters in contention are set to determine their liability or right, thereto. \par {\listtext\pard\plain\insrsid16207436\charrsid13924808 \hich\af0\dbch\af0\loch\f0 7.\tab}That it is just and equitable that a review be }{\fs24\insrsid13644282\charrsid13924808 granted in}{\fs24\insrsid16207436\charrsid13924808 the circumstances. \par {\listtext\pard\plain\insrsid16207436\charrsid13924808 \hich\af0\dbch\af0\loch\f0 8.\tab}That the applicants be permitted to file a decree. \par }\pard \qj \li360\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin360\itap0\pararsid13924808 {\fs24\insrsid11558462\charrsid13924808 Order 46 rule 1 of the Civil P rocedure Rules allows any person aggrieved by a decree or order to apply for a review of judgment to the court which passed the decree or made the order on account of discovery of new o}{\fs24\insrsid16515581\charrsid13924808 r}{ \fs24\insrsid11558462\charrsid13924808 important matter or evidence which after the exercise of due diligence, was not within his or her knowledge or could not be produced by him or her at the time when the decr}{\fs24\insrsid16515581\charrsid13924808 ee was passed or order made or o}{\fs24\insrsid11558462\charrsid13924808 n account of some mistake or error apparent on the face of the record or for any other sufficient reason. The factors t o be considered in an application for review were considered by the Court of Appeal of Kenya in }{\i\fs24\ul\insrsid11558462\charrsid13924808 Nyamongo and Nyamongo Advocates Vs Kogo (2001) EA 173}{\fs24\insrsid11558462\charrsid13924808 wherein their Lordships the Justice}{\fs24\insrsid16515581\charrsid13924808 s}{\fs24\insrsid11558462\charrsid13924808 of Appeal held:-}{\fs24\insrsid16207436\charrsid13924808 \par }{\fs24\insrsid11558462\charrsid13924808 \par }\pard \qj \li1440\ri1440\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin1440\lin1440\itap0\pararsid13924808 {\fs24\insrsid11558462\charrsid13924808 \'93An error apparent on the fa}{\fs24\insrsid14892508\charrsid13924808 ce of the record cannot be defined preciously or exhaustively there being an element of indefin}{\fs24\insrsid2700686\charrsid13924808 i}{\fs24\insrsid14892508\charrsid13924808 t}{\fs24\insrsid2700686\charrsid13924808 e}{ \fs24\insrsid14892508\charrsid13924808 ness }{\fs24\insrsid2700686\charrsid13924808 in}{\fs24\insrsid16515581\charrsid13924808 h}{\fs24\insrsid2700686\charrsid13924808 ere}{\fs24\insrsid16515581\charrsid13924808 n}{\fs24\insrsid2700686\charrsid13924808 t in}{\fs24\insrsid14892508\charrsid13924808 }{\fs24\insrsid2700686\charrsid13924808 its very }{\fs24\insrsid16515581\charrsid13924808 n}{\fs24\insrsid2700686\charrsid13924808 ature}{\fs24\insrsid14892508\charrsid13924808 and it must }{ \fs24\insrsid16515581\charrsid13924808 b}{\fs24\insrsid14892508\charrsid13924808 e le}{\fs24\insrsid16515581\charrsid13924808 f}{\fs24\insrsid14892508\charrsid13924808 t to be determined judiciously on the facts of each case. There is a real distinction between a mere erroneous decision and an error apparent on the fac}{\fs24\insrsid16515581\charrsid13924808 e}{\fs24\insrsid14892508\charrsid13924808 of the record. Where an error }{\fs24\insrsid16515581\charrsid13924808 or}{\fs24\insrsid14892508\charrsid13924808 a substantial point of law stares }{\fs24\insrsid16515581\charrsid13924808 one}{\fs24\insrsid14892508\charrsid13924808 in the face, and there could }{\fs24\insrsid13644282\charrsid13924808 reasonably b}{\fs24\insrsid16515581\charrsid13924808 e}{\fs24\insrsid14892508\charrsid13924808 no two opinions, a clear case of error apparent on }{ \fs24\insrsid13644282\charrsid13924808 the face}{\fs24\insrsid1071090\charrsid13924808 of the record}{\fs24\insrsid16515581\charrsid13924808 would be made out. An error which has to be established}{\fs24\insrsid3081083\charrsid13924808 by}{ \fs24\insrsid16515581\charrsid13924808 a long drawn process of reasoning or on points where there may conceivably be two }{\fs24\insrsid6577712\charrsid13924808 opinions, can hardly be said to be an error apparent on the face of the record}{ \fs24\insrsid1071090\charrsid13924808 . Again if a view adopted by the court in the original record is a possible one, it cannot be an error apparent on the }{\fs24\insrsid2700686\charrsid13924808 face of}{\fs24\insrsid1071090\charrsid13924808 the }{ \fs24\insrsid2700686\charrsid13924808 record even}{\fs24\insrsid1071090\charrsid13924808 though another view was also }{\fs24\insrsid2700686\charrsid13924808 possible.}{\fs24\insrsid1071090\charrsid13924808 Mere error or wrong view is certai}{ \fs24\insrsid7688910\charrsid13924808 nl}{\fs24\insrsid1071090\charrsid13924808 y no ground for a review although it may be for an appeal. }{\fs24\insrsid11558462\charrsid13924808 \par }{\fs24\insrsid1071090\charrsid13924808 \par As was said in }{\fs24\insrsid13644282\charrsid13924808 the }{\fs24\insrsid7688910\charrsid13924808 AIR Commentaries on the Code of Civil Procedure by Ch}{\fs24\insrsid6577712\charrsid13924808 i}{\fs24\insrsid7688910\charrsid13924808 taly and Rao (4 ed) Volume 3 at 3227: \lquote A point which may be a good ground of appeal may not be a ground for an application for review. Th}{\fs24\insrsid6577712\charrsid13924808 u}{\fs24\insrsid7688910\charrsid13924808 s an erroneous view of evidence or of law is no ground for review though it may be good ground for an appeal.\'94}{\fs24\insrsid1071090\charrsid13924808 \par }{\fs24\insrsid7688910\charrsid13924808 \par }\pard \qj \li360\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin360\itap0\pararsid13924808 {\fs24\insrsid7688910\charrsid13924808 Applying the above principles to the present case the Respondent, Barclays Bank of Uganda Ltd}{ \fs24\insrsid6577712\charrsid13924808 ,}{\fs24\insrsid7688910\charrsid13924808 by summary procedure under Order 36 of the Civil Procedure Rules}{\fs24\insrsid6577712\charrsid13924808 ,}{\fs24\insrsid7688910\charrsid13924808 filed Civil Suit No 51 of 2008 seeking to recover shs2,211,653,283/05 jointly and severally from M/s Zzimwe }{\fs24\insrsid16400528\charrsid13924808 H}{\fs24\insrsid6577712\charrsid13924808 ardware a}{\fs24\insrsid16400528\charrsid13924808 nd Construction }{\fs24\insrsid6577712\charrsid13924808 Enterprises }{\fs24\insrsid16400528\charrsid13924808 Ltd and the Applicants. The Respondent}{\fs24\insrsid6577712\charrsid13924808 \rquote s}{\fs24\insrsid16400528\charrsid13924808 claim was against the Applicants as guarantors to an overdraft facility granted to Zzimwe Hardware and Construction }{\fs24\insrsid6577712\charrsid13924808 Enterprises }{\fs24\insrsid16400528\charrsid13924808 Ltd.}{\fs24\insrsid7688910\charrsid13924808

\par }{\fs24\insrsid16400528\charrsid13924808 \par Ms Zzimwe Hardware & Construction Enterprises Ltd.}{\fs24\insrsid6577712\charrsid13924808 ,}{\fs24\insrsid16400528\charrsid13924808 vide Miscellaneous Application No. 0114 of 2008}{\fs24\insrsid6577712\charrsid13924808 ,}{ \fs24\insrsid16400528\charrsid13924808 applied for leave to defend the above suit. It disputed the sum of shs2,211,653,282/05 contending that the amount due is only Shs663,182,701/=}{\fs24\insrsid6577712\charrsid13924808 .}{ \fs24\insrsid16400528\charrsid13924808 Leave }{\fs24\insrsid6577712\charrsid13924808 to defend }{\fs24\insrsid16400528\charrsid13924808 was granted for court to determine the amount actually due to the Respondent. \par \par The applicants also}{\fs24\insrsid6577712\charrsid13924808 ,}{\fs24\insrsid16400528\charrsid13924808 vide Miscellaneous Application 0113 of 2008}{\fs24\insrsid6577712\charrsid13924808 ,}{\fs24\insrsid16400528\charrsid13924808 applied for leave to defend the above suit on the grounds, inter alia, that:- \par \par {\listtext\pard\plain\insrsid16400528\charrsid13924808 \hich\af0\dbch\af0\loch\f0 (a)\tab}}\pard \qj \fi-450\li810\ri0\sl360\slmult1\widctlpar\jclisttab\tx810\aspalpha\aspnum\faauto\ls4\adjustright\rin0\lin810\itap0\pararsid13924808 { \fs24\insrsid16400528\charrsid13924808 The Applicant}{\fs24\insrsid6577712\charrsid13924808 \rquote s}{\fs24\insrsid16400528\charrsid13924808 do not owe }{\fs24\insrsid8546163\charrsid13924808 the Respondent any}{\fs24\insrsid16400528\charrsid13924808 money. \par {\listtext\pard\plain\insrsid16400528\charrsid13924808 \hich\af0\dbch\af0\loch\f0 (b)\tab}The guarantee documents attached to the plaint are not related to the Respondents claim of Ugshs}{\fs24\insrsid6577712\charrsid13924808 2}{ \fs24\insrsid16400528\charrsid13924808 ,211,653,287/05 and are not enforceable against the applicants. \par {\listtext\pard\plain\insrsid16400528\charrsid13924808 \hich\af0\dbch\af0\loch\f0 (c)\tab}There has been no demand by the Respondent in respect of any guarantees. \par }\pard \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid13924808 {\fs24\insrsid16400528\charrsid13924808 \par This }{\fs24\insrsid13644282\charrsid13924808 court found}{\fs24\insrsid16400528\charrsid13924808 that the attached guarantee documents related to the claim and that there had }{\fs24\insrsid13644282\charrsid13924808 been appropriate}{ \fs24\insrsid16400528\charrsid13924808 demand. It accordingly dismissed the application. \par }{\fs24\insrsid2700686\charrsid13924808 \par }{\fs24\insrsid11490464\charrsid13924808 I have carefully considered the able submissions of both Counsel and I find that the Applicant}{\fs24\insrsid6577712\charrsid13924808 \rquote }{\fs24\insrsid11490464\charrsid13924808 s case is that by rejecting }{ \fs24\insrsid13644282\charrsid13924808 the}{\fs24\insrsid18040\charrsid13924808 ir}{\fs24\insrsid13644282\charrsid13924808 }{\fs24\insrsid11490464\charrsid13924808 application for leave to }{\fs24\insrsid18040\charrsid13924808 defend their liability was prejudged}{\fs24\insrsid11490464\charrsid13924808 . The applicants contend that the order }{\fs24\insrsid18040\charrsid13924808 o}{\fs24\insrsid11490464\charrsid13924808 f }{\fs24\insrsid18040\charrsid13924808 c}{ \fs24\insrsid13644282\charrsid13924808 ourt determining}{\fs24\insrsid11490464\charrsid13924808 the}{\fs24\insrsid18040\charrsid13924808 ir liability as guarantors for an undetermined }{\fs24\insrsid11490464\charrsid13924808 sum of money is an error apparent on the }{\fs24\insrsid13644282\charrsid13924808 face of}{\fs24\insrsid11490464\charrsid13924808 the record. \par \par I have reviewed the main application and have discovered that }{\fs24\insrsid13644282\charrsid13924808 the issue}{\fs24\insrsid11490464\charrsid13924808 of the Applicant}{\fs24\insrsid3081083\charrsid13924808 \rquote }{ \fs24\insrsid11490464\charrsid13924808 s liability which they were }{\fs24\insrsid6559277\charrsid13924808 contesting in that application was not considered. As observed in the Ruling in the main application a guarantee obligation is secondary and accessory to the obligation the performance of which is guaranteed. The Applicant}{\fs24\insrsid18040\charrsid13924808 \rquote }{\fs24\insrsid6559277\charrsid13924808 s liability as guarantors is co-existence with Ms Zzimwe Hardware and Construction }{\fs24\insrsid18040\charrsid13924808 Enterprises }{\fs24\insrsid13644282\charrsid13924808 Ltd\rquote s obligation}{\fs24\insrsid6559277\charrsid13924808 as the principle debtor. If its obligation turns out not to }{\fs24\insrsid13644282\charrsid13924808 exist or}{\fs24\insrsid6559277\charrsid13924808 is void or dismissed or discharged so is the App}{\fs24\insrsid13590225\charrsid13924808 licant}{ \fs24\insrsid8546163\charrsid13924808 \rquote }{\fs24\insrsid13590225\charrsid13924808 s obligation in }{\fs24\insrsid8546163\charrsid13924808 respect thereof}{\fs24\insrsid6559277\charrsid13924808 . The liability of the }{ \fs24\insrsid8546163\charrsid13924808 guarantor arises}{\fs24\insrsid6559277\charrsid13924808 only upon the }{\fs24\insrsid8546163\charrsid13924808 default of}{\fs24\insrsid6559277\charrsid13924808 the principle debtor and limited to the extent }{ \fs24\insrsid8546163\charrsid13924808 of }{\fs24\insrsid6559277\charrsid13924808 the default}{\fs24\insrsid8546163\charrsid13924808 . T}{\fs24\insrsid6559277\charrsid13924808 he }{\fs24\insrsid8546163\charrsid13924808 extent of default and liability of the principle debtor}{\fs24\insrsid6559277\charrsid13924808 and thus that of the guarantors }{\fs24\insrsid8546163\charrsid13924808 is }{\fs24\insrsid6559277\charrsid13924808 in issue. In light of that I find that it was an error apparent on the record not to allow the applicant}{\fs24\insrsid8546163\charrsid13924808 s}{\fs24\insrsid6559277\charrsid13924808 to defend and ascertain the extent of their liability to the Respondent. }{\fs24\insrsid11490464\charrsid13924808 \par }{\fs24\insrsid6559277\charrsid13924808 \par In the premises the applicat}{\fs24\insrsid8546163\charrsid13924808 ion}{\fs24\insrsid6559277\charrsid13924808 for review succeeds. The order is accordingly reviewed and the Applicants are allowed to appear and defend Civil Suit No 51 of 2008}{ \fs24\insrsid8546163\charrsid13924808 . They must}{\fs24\insrsid6559277\charrsid13924808 file a Written Statement of Defence within }{\fs24\insrsid8546163\charrsid13924808 fourteen days}{\fs24\insrsid6559277\charrsid13924808 fr om the date of this ruling. Costs shall be in the course of the main suit. \par \par I so order. \par \par }\pard \qc \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid13924808 {\fs24\insrsid6559277\charrsid13924808 Hon. Mr. Justice Lameck N. Mukasa \par }{\b\fs24\insrsid3081083\charrsid13924808 JUDGE}{\b\fs24\insrsid6559277\charrsid13924808 \par }{\fs24\insrsid6559277\charrsid13924808 16}{\fs24\super\insrsid6559277\charrsid13924808 th}{\fs24\insrsid6559277\charrsid13924808 June 2009}{\fs24\insrsid11354743\charrsid13924808 \par }}