[2004] UGCA 14
The Court of Appeal held that the trial judge was correct in ordering security for costs, given the appellant's non-residence and lack of property in Uganda. However, the quantum of UGX 80,000,000 was excessive in the absence of an evaluation report and clear evidence of the disputed property's value. The court...
Source-derived case information.
- Citation
- [2004] UGCA 14
- Parties
- Appellant: Ramzanali Mohamed Ali Meghani; Respondent: Kibona Enterprises Limited
- Court
- Court of Appeal of Uganda
- Jurisdiction
- Uganda
- Case Number
- Civil Appeal No. 27 of 2003
- Procedural Posture
- Civil Appeal / Judgment
- Outcome
- appeal_partly_allowed
- Legal Topics
- Security for Costs, Quantum of Security, Non Resident Litigant, Access to Justice
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
Ramzanali Mohamed Ali Meghani
Appellant
Kibona Enterprises Limited
Respondent
Procedural Posture
Civil Appeal / Judgment
Legal Issues
- 1 Whether the trial judge erred in ordering the appellant to furnish security for costs.
- 2 Whether the quantum of security for costs ordered was excessive.
- 3 Whether the appellant's suit had no likelihood of success.
Ratio Decidendi
The Court of Appeal held that the trial judge was correct in ordering security for costs, given the appellant's non-residence and lack of property in Uganda. However, the quantum of UGX 80,000,000 was excessive in the absence of an evaluation report and clear evidence of the disputed property's value. The court found no justification for such a high figure and reduced the amount to UGX 15,000,000. The court also found no evidence to support the assertion that the appellant's suit had no likelihood of success, especially as allegations of fraud and error had not yet been tested at trial. Each party was ordered to bear its own costs.
Court Disposition
appeal_partly_allowed
Orders
- The order for security for costs of UGX 80,000,000 is set aside.
- The appellant is to deposit UGX 15,000,000 as security for costs in the trial court before the hearing of the substantive suit.
Full Case Text
Judgment text and source record
1 paragraphs
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{\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \insrsid10490032\charrsid6892303 \par }\pard \ltrpar\qc \li0\ri0\sl360\slmult1\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid6892303 {\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \b\insrsid10490032\charrsid6892303 IN THE COURT OF APPEAL OF UGANDA AT KAMPLA \par \par }\pard\plain \ltrpar\s3\qc \li0\ri0\sl360\slmult1\keepn\widctlpar\wrapdefault\aspalpha\aspnum\faauto\outlinelevel2\adjustright\rin0\lin0\itap0\pararsid6892303 \rtlch\fcs1 \af0\afs20\alang1025 \ltrch\fcs0 \f39\fs28\ul\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \b\f0\fs24\insrsid10490032\charrsid6892303 \par }\pard\plain \ltrpar\s1\ql \li0\ri0\sl360\slmult1\keepn\widctlpar\wrapdefault\aspalpha\aspnum\faauto\outlinelevel0\adjustright\rin0\lin0\itap0\pararsid6892303 \rtlch\fcs1 \af0\afs20\alang1025 \ltrch\fcs0 \f39\fs28\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \b\f0\fs24\ul\insrsid10490032\charrsid6892303 CORAM:}{\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \b\f0\fs24\insrsid10490032\charrsid6892303 \tab HON. JUSTICE L. E. M MUKASA-KIKONYOGO, DCJ \par }\pard\plain \ltrpar\ql \li0\ri0\sl360\slmult1\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid6892303 \rtlch\fcs1 \af0\afs20\alang1025 \ltrch\fcs0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \b\insrsid10490032\charrsid6892303 \tab \tab HON. JUSTICE S. G. ENGWAU, JA \par }\pard\plain \ltrpar\s4\ql \li0\ri0\sl360\slmult1\keepn\widctlpar\wrapdefault\aspalpha\aspnum\faauto\outlinelevel3\adjustright\rin0\lin0\itap0\pararsid6892303 \rtlch\fcs1 \af0\afs20\alang1025 \ltrch\fcs0 \b\f39\fs28\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \f0\fs24\insrsid10490032\charrsid6892303 \tab \tab HON. JUSTICE C. K. BYAMUGISHA, JA \par }\pard\plain \ltrpar\ql \li0\ri0\sl360\slmult1\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid6892303 \rtlch\fcs1 \af0\afs20\alang1025 \ltrch\fcs0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \insrsid10490032\charrsid6892303 \par \par }\pard\plain \ltrpar\s4\qc \li0\ri0\sl360\slmult1\keepn\widctlpar\wrapdefault\aspalpha\aspnum\faauto\outlinelevel3\adjustright\rin0\lin0\itap0\pararsid6892303 \rtlch\fcs1 \af0\afs20\alang1025 \ltrch\fcs0 \b\f39\fs28\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \f0\fs24\ul\insrsid10490032\charrsid6892303 CIVIL APPEAL NO. 27 OF 2003 \par }\pard\plain \ltrpar\ql \li0\ri0\sl360\slmult1\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid6892303 \rtlch\fcs1 \af0\afs20\alang1025 \ltrch\fcs0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \insrsid10490032\charrsid6892303 \par }{\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \b\insrsid10490032\charrsid6892303 \par RAMZANALI MOHAMED ALI MEGHANI :::::::::::::::: APPELLANT \par \par }\pard\plain \ltrpar\s2\qc \li0\ri0\sl360\slmult1\keepn\widctlpar\wrapdefault\aspalpha\aspnum\faauto\outlinelevel1\adjustright\rin0\lin0\itap0\pararsid6892303 \rtlch\fcs1 \af0\afs20\alang1025 \ltrch\fcs0 \f39\fs28\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \b\f0\fs24\insrsid10490032\charrsid6892303 VERSUS \par }\pard\plain \ltrpar\ql \li0\ri0\sl360\slmult1\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid6892303 \rtlch\fcs1 \af0\afs20\alang1025 \ltrch\fcs0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \b\insrsid10490032\charrsid6892303 \par KIBONA ENTERPRISES }{\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \b\insrsid6892303\charrsid6892303 LIMITED:::::::::::::::::::::: RESPONDENT}{\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \b\insrsid10490032\charrsid6892303 \par \par }\pard \ltrpar\qc \li0\ri0\sl360\slmult1\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid6892303 {\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \b\insrsid10490032\charrsid6892303 (Appeal from the Ruling of the Hon. Justice V. R. Kagaba in the High Court of Uganda Mbarara dated the 4}{\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \b\super\insrsid10490032\charrsid6892303 th}{\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \b\insrsid10490032\charrsid6892303 of August 2000 in Miscellaneous Application No. 42 of 1999 arising from H. C. C. S NO. 10 OF 1999). \par }\pard \ltrpar\ql \li0\ri0\sl360\slmult1\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid6892303 {\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \b\insrsid10490032\charrsid6892303 \par }\pard \ltrpar\qc \li0\ri0\sl360\slmult1\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid6892303 {\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \b\ul\insrsid10490032\charrsid6892303 JUDGEMENT OF HON. LADY JUSTICE L. E. M. \par }\pard\plain \ltrpar\s5\qc \li0\ri0\sl360\slmult1\keepn\widctlpar\wrapdefault\aspalpha\aspnum\faauto\outlinelevel4\adjustright\rin0\lin0\itap0\pararsid6892303 \rtlch\fcs1 \af0\afs20\alang1025 \ltrch\fcs0 \b\f39\fs28\ul\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \f0\fs24\insrsid10490032\charrsid6892303 MUKASA-KIKONYOGO, DCJ \par }\pard\plain \ltrpar\ql \li0\ri0\sl360\slmult1\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid6892303 \rtlch\fcs1 \af0\afs20\alang1025 \ltrch\fcs0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \b\ul\insrsid10490032\charrsid6892303 \par }\pard\plain \ltrpar\s15\qj \li0\ri0\sl360\slmult1\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid6892303 \rtlch\fcs1 \af0\afs20\alang1025 \ltrch\fcs0 \f39\fs28\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 { \rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \f0\fs24\insrsid10490032\charrsid6892303 On perusal of the judgement in draft prepared by Hon Mr. Justice S. G. Engwau I agree that this appeal partly succeeds. I do not have much to add apart from a few comments for emphasis. \par }\pard\plain \ltrpar\qj \li0\ri0\sl360\slmult1\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid6892303 \rtlch\fcs1 \af0\afs20\alang1025 \ltrch\fcs0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \insrsid10490032\charrsid6892303 \par In my view the circumstances of this suit justify payment of security for costs. The learned trial judge cannot be faulted on the findings complained of on grounds 1 and 2. He considered both the appellant\rquote s and respondent\rquote s p leadings together but not in isolation as claimed by the learned counsel for appellant. \par \par The learned trial judge correctly applied the principles governing the liability to furnish security for costs. I agree that this is a proper case in which to grant a n order for security of costs. The appellant does not reside in Uganda and has no known property here. The present case is on almost on all fours with that case of }{\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \i\ul\insrsid10490032\charrsid6892303 Bank of Uganda versus Banco Arabe Espranol S. C. U civil application No. 20/98. }{\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \ul\insrsid10490032\charrsid6892303 }{\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \insrsid10490032\charrsid6892303 It was he ld in that appeal that absence of property within the jurisdiction of the court was sufficient to justify grant of an order for security for costs. \par \par However, it would be wrong to grant an order for security for costs in excess. An order for security for costs should not be used as a weapon to enable the strong to deny the weak access to courts of law or justice -}{\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \i\ul\insrsid10490032\charrsid6892303 See Lindsay Parkison & Co. Ltd versus Triplan (1973) 10. B. M. 609 at page 617.}{\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \ul\insrsid10490032\charrsid6892303 }{\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \insrsid10490032\charrsid6892303 It is conceded that the learned trial judge did not misdirect hi mself. However, the sum of shs. 80.000.000/= in the circumstances of this case was in my view on the high side. In the absence of evaluation report of the disputed property and the disparity between the figures of shs.30million and shs. 300.000.000/= es t imated by the parties there is no justification for payment of that high figure of shs. 80 million. This court is for that reason justified to interfere with the discretion of the trial judge on the quantum of security for costs granted by the lower cour t. \par \par With regard to likelihood of success of the suit I am unable to find evidence to support the learned counsel\rquote s submission that the appellant\rquote s suit has no likelihood of success. It is hard to say that the appellant\rquote s suit has no likelihood of success when among other things it alleged fraud and error on which no evidence had been adduced at the stage the application for security for costs was made. For the aforesaid reasons I would reduce the sum of shs. 80 million to that proposed by Hon. Justice S . G. Engwau, J. A, that is shs. 15 million. Since Hon. Justice Byamugisha, J. A holds a similar view by a unanimous decision of this court the figure of shs. 80 million is set aside and instead substituted with shs. 15.000.000/ to be deposited by the appella nt in the trial court before the hearing of the substantive suit. Each party is to bear its own costs. \par \par DATED at Kampala this\'85}{\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \insrsid12221943\charrsid6892303 22}{\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \super\insrsid12221943\charrsid6892303 nd}{\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \insrsid12221943\charrsid6892303 }{ \rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \insrsid10490032\charrsid6892303 \'85day\'85}{\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \insrsid12221943\charrsid6892303 June}{\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \insrsid10490032\charrsid6892303 \'85\'852004. \par \par \par }{\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \b\insrsid10490032\charrsid6892303 HON. LADY JUSTICE L. E. M. MUKASA-KIKONYOGO \par DEPUTY CHIEF JUSTICE}{\rtlch\fcs1 \af0\afs24 \ltrch\fcs0 \insrsid10490032\charrsid6892303 \par \par \par \par }{\*\themedata 504b030414000600080000002100828abc13fa0000001c020000130000005b436f6e74656e745f54797065735d2e786d6cac91cb6ac3301045f785fe83d0b6d8 72ba28a5d8cea249777d2cd20f18e4b12d6a8f843409c9df77ecb850ba082d74231062ce997b55ae8fe3a00e1893f354e9555e6885647de3a8abf4fbee29bbd7 2a3150038327acf409935ed7d757e5ee14302999a654e99e393c18936c8f23a4dc072479697d1c81e51a3b13c07e4087e6b628ee8cf5c4489cf1c4d075f92a0b 44d7a07a83c82f308ac7b0a0f0fbf90c2480980b58abc733615aa2d210c2e02cb04430076a7ee833dfb6ce62e3ed7e14693e8317d8cd0433bf5c60f53fea2fe7 065bd80facb647e9e25c7fc421fd2ddb526b2e9373fed4bb902e182e97b7b461e6bfad3f010000ffff0300504b030414000600080000002100a5d6a7e7c00000 00360100000b0000005f72656c732f2e72656c73848fcf6ac3300c87ef85bd83d17d51d2c31825762fa590432fa37d00e1287f68221bdb1bebdb4fc7060abb08 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