[2006] UGCommC 37

[2006] UGCommC 37

The court held that before making an order for security or attachment before judgment under Order 36 rule 5(1)(a), it must be satisfied not only that the defendant is about to dispose of property, but also that such disposal is with intent to obstruct or delay execution of any decree. The respondent failed to...

Source-derived case information.

Citation
[2006] UGCommC 37
Parties
Appellant: Uganda Electricity Board (in liquidation); Respondent: Royal Van Zanten (U) Limited
Court
Commercial Court of Uganda
Jurisdiction
Uganda
Case Number
HCT-00-CC-MA 251 of 2006
Procedural Posture
Civil Appeal / Judgment
Outcome
appeal_allowed
Legal Topics
Security for Costs, Attachment Before Judgment, Statutory Bodies Liquidation, Divestiture Liabilities
Source Language
en
Civil Procedure Commercial and Corporate Security for Costs Attachment Before Judgment Statutory Bodies Liquidation Divestiture Liabilities

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Parties

Uganda Electricity Board (in liquidation)

Appellant

Royal Van Zanten (U) Limited

Respondent

Procedural Posture

Civil Appeal / Judgment

  1. 1 Whether the Deputy Registrar erred in ordering the appellant to deposit security or allow attachment before judgment under Order 36 rule 5(1)(a) of the Civil Procedure Rules.
  2. 2 Whether intent to obstruct or delay execution must be proved for attachment before judgment against a statutory body in liquidation.
  3. 3 Whether the respondent's claim is at risk due to the appellant's winding up and asset disposal.

Ratio Decidendi

The court held that before making an order for security or attachment before judgment under Order 36 rule 5(1)(a), it must be satisfied not only that the defendant is about to dispose of property, but also that such disposal is with intent to obstruct or delay execution of any decree. The respondent failed to provide evidence of intent on the part of the appellant, a statutory body in liquidation, to defeat the respondent's claim. The law provides that liabilities of such bodies vest in government and are satisfied from divestiture proceeds, thus giving assurance that any decree would be satisfied. The Deputy Registrar erred in not requiring proof of intent and in ordering...

Court Disposition

appeal_allowed

Orders

  • The order of the Deputy Registrar requiring deposit of security or attachment before judgment is set aside.
  • Each party shall bear its own costs.