[2005] UGCommC 29

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\li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0 \fs24\lang1024\langfe1024\cgrid\noproof\langnp2057\langfenp1033 {\b\insrsid11545234\charrsid10953202 THE REPUBLIC OF UGANDA}{\b\insrsid4594768\charrsid10953202 \par }{\b\insrsid11545234\charrsid10953202 \par IN THE HIGH COURT OF UGANDA AT KAMPALA \par \par (COMMERCIAL COURT DIVISION) \par \par HCT-00-CC-MA-0}{\b\insrsid6694997\charrsid10953202 305-2005}{\b\insrsid11545234\charrsid10953202 \par }{\insrsid6694997 \par (Arising from HCT-00-CC-CS-0314-2005) \par \par STANBIC BANK UGANDA LIMITED }{\insrsid11340682 APPLICANT}{\insrsid6694997 \par \par Versus \par \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9833894 {\insrsid9833894 JOSEPH AINE}{\insrsid11340682 RESPONDENTS}{ \insrsid6694997 \par }{\insrsid9833894 JIMMY TUMWINE \par DEBORAH TUHIRIRWE TUMWINE \par }{\insrsid11340682 PROVIDER GENERAL ENTERPRISES LIMITED}{\insrsid9833894 \par }{\insrsid7425630 \par \par }{\b\ul\insrsid7425630\charrsid8258957 BEFORE ME: THE HONOURABLE MR. JUSTICE FMS EGONDA-NTENDE \par }{\b\insrsid7425630\charrsid8258957 \par }{\b\ul\insrsid7425630\charrsid8258957 RULING \par }{\insrsid7425630 \par {\listtext\pard\plain\lang1024\langfe1024\noproof\langnp2057\insrsid2780058 \hich\af0\dbch\af0\loch\f0 1.\tab}}\pard \ql \fi-360\li720\ri0\sl360\slmult1\widctlpar\jclisttab\tx720\aspalpha\aspnum\faauto\ls2\adjustright\rin0\lin720\itap0\pararsid13258178 { \insrsid2780058 Stanbic Bank Uganda Limited, hereinafter referred to as the }{\insrsid7341181 A}{\insrsid2780058 pplicant, seeks a temporary injuction to restrain the }{\insrsid7341181 Respondent No.}{\insrsid4927902 4, and its directors, }{ \insrsid7341181 Respondent No.}{\insrsid4927902 2 and }{\insrsid3171397 N}{\insrsid4927902 o. 3, from transfering, selling, }{\insrsid6894389 or otherwise dealing buses registration no. UAF 392N and UAF007J}{\insrsid5454613 , hereinafter referred to as the buses,}{\insrsid6894389 till the final disposal of this}{\insrsid15690863 suit, and that costs of this application be provided for. }{\insrsid9582552 the application is supported by an affidavit sworn by Mr. William Kasozi. }{\insrsid10117765 \par {\listtext\pard\plain\lang1024\langfe1024\noproof\langnp2057\insrsid5454613 \hich\af0\dbch\af0\loch\f0 2.\tab}}{\insrsid5454613 It is alleged that that the buses}{\insrsid3171397 ,}{\insrsid5454613 in equity}{\insrsid3171397 ,}{\insrsid5454613 belong to the plaintiff }{\insrsid4473941 as they are part of the proceeeds of a fraud committed }{\insrsid3171397 by }{\insrsid7341181 Respondent No.}{\insrsid4473941 2 on the plaintiff, and are therefore held by }{\insrsid7341181 Respondent No.}{ \insrsid4473941 4 as constructive trustee for }{\insrsid3171397 the A}{\insrsid4473941 pplicant.}{\insrsid6752306 It is feared that if no restrain}{\insrsid12082629 ing}{\insrsid6752306 order is made against the Respondents No. 2, 3 & 4, the }{ \insrsid12082629 A}{\insrsid6752306 pplicant would suffer irrepairable injury}{\insrsid9395685 with regard its claim to ownership of }{\insrsid15354949 the buses as they would not be available}{\insrsid12082629 , in case the suit succeeds}{ \insrsid15354949 .}{\insrsid9583114 It is further averred that the applicant has high chances of success and that it would be in the interests of justice to grant the injuction. The applicant abandoned }{\insrsid11806705 seeking orders to restrain the use and or running of the buses by the Respondents.}{\insrsid9833894 \par {\listtext\pard\plain\lang1024\langfe1024\noproof\langnp2057\insrsid11806705 \hich\af0\dbch\af0\loch\f0 3.\tab}}{\insrsid11806705 The application was vigorously opposed with the Respondents filing two affidavits in reply sworn by the Respondents No . 2 and 3. }{\insrsid1058888 The Respondents denied that they committed any fraud and asserted that the buses were legitimately procured.}{\insrsid11806705 \par {\listtext\pard\plain\lang1024\langfe1024\noproof\langnp2057\insrsid7896208 \hich\af0\dbch\af0\loch\f0 4.\tab}}{\insrsid7896208 This application is brought under Order 37 Rule 1 & 9 of the Civil Procedure Rules}{\insrsid9403892 . It will be useful to bring Rule 1 in view. I set it out below.}{\insrsid11681502 \par }\pard \ql \li1440\ri1440\widctlpar\aspalpha\aspnum\faauto\adjustright\rin1440\lin1440\itap0\pararsid13767492 {\fs20\insrsid15490381\charrsid11681502 }{\fs20\insrsid9403892\charrsid11681502 \'931. Where in any suit it is proved by affidavit or otherwise \emdash }{\fs20\insrsid15490381\charrsid11681502 }{\fs20\insrsid12674182 \par }\pard \ql \li2160\ri1440\widctlpar\aspalpha\aspnum\faauto\adjustright\rin1440\lin2160\itap0\pararsid5704188 {\fs20\insrsid15490381\charrsid11681502 }{\fs20\insrsid9403892\charrsid11681502 (a) that any property in dispute is in danger of being wasted, damaged, or alienated by any party to the suit, or wrongfully sold in execution o}{\fs20\insrsid11876949 f}{\fs20\insrsid9403892\charrsid11681502 a decree; or }{\fs20\insrsid13767492 }{\fs20\insrsid9403892\charrsid11681502 (b) the defendant threatens or intends to remove or dispose of his property with a veiw to defraud his creditors, }{ \fs20\insrsid15490381\charrsid11681502 }{\fs20\insrsid12674182 \par }\pard \ql \li1440\ri1440\widctlpar\aspalpha\aspnum\faauto\adjustright\rin1440\lin1440\itap0\pararsid5704188 {\fs20\insrsid15490381\charrsid11681502 }{\fs20\insrsid9403892\charrsid11681502 the court may }{\fs20\insrsid1901460\charrsid11681502 by order grant a temporary injunction to restrain such act, or make such other order for the purpose of staying and preventing the wasting, damaging, alienation, sale, removal, or disposition of the property as the court thinks fit until the disposal of the suit or until further orders.\'94}{\fs20\insrsid1058888\charrsid11681502 \par {\listtext\pard\plain\lang1024\langfe1024\noproof\langnp2057\insrsid16208877 \hich\af0\dbch\af0\loch\f0 5.\tab}}\pard \ql \fi-360\li720\ri0\sl360\slmult1\widctlpar\jclisttab\tx720\aspalpha\aspnum\faauto\ls2\adjustright\rin0\lin720\itap0\pararsid13258178 { \insrsid16208877 It would appear to me that it is necessary for any application under this rule to prove by affidavit or otherwise, the existance of the danger of wastage, damage, or alienation}{\insrsid2850106 of }{\insrsid11876949 the }{ \insrsid2850106 property in dispute or the existance of a threat or intention }{\insrsid11946765 by Respondent or adverse party }{\insrsid2850106 to dispose of }{\insrsid11946765 his own}{\insrsid2850106 property with a view to defraud creditors}{ \insrsid1445910 . It is only when the foregoing has been proved to be the case that a court would then have to consider}{\insrsid15494099 the probability of success of the main suit or whether an arguable case has been put forward; the existance of irrepairable injury and if in do}{\insrsid7147839 ubt, the balance of convenience, in order to decide whether or not to grant the order sought.}{\insrsid15490381 \par {\listtext\pard\plain\lang1024\langfe1024\noproof\langnp2057\insrsid7147839 \hich\af0\dbch\af0\loch\f0 6.\tab}}{\insrsid7147839 In the instant case upon examination of both the application and suppor}{\insrsid4595387 ting affidavit of the applicant}{ \insrsid7147839 , it is clear that no allegation is made as to }{\insrsid8593609 the existance of a danger of }{\insrsid7147839 wastage,}{\insrsid8593609 damage or alienation of the buses}{\insrsid16669183 posed by the Respondents No. 2, 3, and 4.}{ \insrsid13372805 }{\insrsid2755677 No case therefore has been made out for the issue }{\insrsid6171132 of }{\insrsid2755677 a temporary injunction under Order 37 Rule 1 of the Civil Procedure Rules.}{\insrsid7147839 \par {\listtext\pard\plain\lang1024\langfe1024\noproof\langnp2057\insrsid13180868 \hich\af0\dbch\af0\loch\f0 7.\tab}}{\insrsid13180868 In the result I dismiss this application with costs.}{\insrsid7800102 \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid13258178 {\insrsid13258178 Dated at Kampala this 1}{\super\insrsid13258178\charrsid13258178 st}{\insrsid13258178 day of June 2005 \par \par \par \par FMS Egonda-Ntende \par Judge \par }}