[2002] UGCommC 9

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\mnaryLim1}{\info{\title THE REPUBLIC OF UGANDA }{\author Administrator}{\operator skivumbi}{\creatim\yr2010\mo3\dy12\hr12\min41}{\revtim\yr2010\mo6\dy1\hr12\min45}{\version4}{\edmins8}{\nofpages3}{\nofwords713}{\nofchars3598}{\nofcharsws4303} {\vern32859}}{\*\xmlnstbl {\xmlns1 http://schemas.microsoft.com/office/word/2003/wordml}}\paperw12240\paperh15840\margl1440\margr1440\margt1440\margb1440\gutter0\ltrsect \widowctrl\ftnbj\aenddoc\trackmoves1\trackformatting1\donotembedsysfont0\relyonvml0\donotembedlingdata1\grfdocevents0\validatexml0\showplaceholdtext0\ignoremixedcontent0\saveinvalidxml0\showxmlerrors0\noxlattoyen \expshrtn\noultrlspc\dntblnsbdb\nospaceforul\formshade\horzdoc\dgmargin\dghspace180\dgvspace180\dghorigin1440\dgvorigin1440\dghshow1\dgvshow1 \jexpand\viewkind1\viewscale100\pgbrdrhead\pgbrdrfoot\splytwnine\ftnlytwnine\htmautsp\nolnhtadjtbl\useltbaln\alntblind\lytcalctblwd\lyttblrtgr\lnbrkrule\nobrkwrptbl\snaptogridincell\allowfieldendsel\wrppunct 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\af0\afs24\alang1025 \ltrch\fcs0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid3497766\charrsid2111289 THE REPUBLIC OF UGANDA \line IN THE HIGH COURT OF UGANDA }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid2111289 AT KAMPALA \line (COMMERCIAL COURT) \par CIVIL SUIT NO. 506/2001 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid3497766\charrsid2111289 YUDA LUTTA MUSOKE }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid2111289 \'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85.}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid3497766\charrsid2111289 APPLICANT \line VERSUS \line GREENLAND BANK}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid2111289 (IN LIQUIDATION) }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid2111289\charrsid2111289 \'85}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid2111289 \'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85DEFENDANT \par }\pard \ltrpar\s15\ql \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid2111289 {\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid3497766\charrsid2111289 BEFORE: }{\rtlch\fcs1 \af0 \ltrch\fcs0 \ul\insrsid3497766\charrsid2111289 THE HONOURABLE MR. JUSTICE JAMES OGOOLA }{\rtlch\fcs1 \af0 \ltrch\fcs0 \ul\insrsid2111289 \par }\pard \ltrpar\s15\qc \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid2111289 {\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \b\ul\insrsid3497766\charrsid2111289 RULING}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid2111289\charrsid2111289 \par }\pard \ltrpar\s15\qj \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid2111289 {\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid3497766\charrsid2111289 Plaintiff challenges Defendant \rquote s WSD and counterclaim on the grounds that they are both premised on a wrong presumption of law \emdash namely, that Defendant holds a banker\rquote s lien and/or an equitable mortg}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid2111289 age over the suit property. \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid3497766\charrsid2111289 The facts of the case are stated to be as follows. Pursuant to J. Lutta Inc.\rquote s indebtedness to the Defendant Bank, Jamada Lutta Musoke (joint proprietor with his wife: of the suit property), offered his part of the land as security \emdash see para 5(b) of the Counterclaim. Plaintiff contends that Jamada did so without the consent of his wife and co-proprietor; and that, accordingly, no lien or mortgage could have been thereby created in this joint property. For his authority, Plainti ff relied on the case of }{\rtlch\fcs1 \af0 \ltrch\fcs0 \b\insrsid3497766\charrsid2111289 Figuerido v Talbot [1962] }{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \b\insrsid3497766\charrsid2111289 EA }{\rtlch\fcs1 \af0 \ltrch\fcs0 \b\insrsid3497766\charrsid2111289 167 }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid3497766\charrsid2111289 in which it was held that:}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid2111289 \par }\pard \ltrpar\s15\qj \li720\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\ipgp1\pararsid2111289 {\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\insrsid3497766\charrsid2111289 \'93where more tha}{ \rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\insrsid2111289 n one person is registered as }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\insrsid3497766\charrsid2111289 proprietor, unless all join in the deposit of the title deed, a deposit by one is }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\insrsid2111289 ineff}{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\insrsid3497766\charrsid2111289 ective to create an equitable mortgage or to make the other party (parties) liable.\'94 }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\insrsid2111289 \par }\pard \ltrpar\s15\qj \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid2111289 {\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \b\insrsid3497766\charrsid2111289 See also Lutaya v Striling International }{\rtlch\fcs1 \af0 \ltrch\fcs0 \b\insrsid3497766\charrsid2111289 Civil Engineering Ltd, }{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \b\insrsid3497766\charrsid2111289 Court of Appeal Civil Appeal N o. 62199; and also United Bank of Kuwait v. Sahib & Ors [1995] 2 ALLER 973. \line }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid3497766\charrsid2111289 While conceding to the above case authorities, learned counsel for the Defendant (Mr. Mpanga) contended that this Court cannot determine as a matter of law that the co-proprietor\rquote s consent was not obtained. Any such determination would require the adducing of evidence by the parties and their witnesses; consideration of that evidence by the Court; and the application of the law to that evidence. In short, the instant application i s premature. It has been brought too early in the process of hearing this mailer. For his authority, learned counsel relied on the case of }{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \b\insrsid3497766\charrsid2111289 Mukisa }{\rtlch\fcs1 \af0 \ltrch\fcs0 \b\insrsid3497766\charrsid2111289 Biscuit }{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \b\insrsid3497766\charrsid2111289 v Western Distributors [1969] EA 696 }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid3497766\charrsid2111289 in which SIR CHARLES NEWBOLD, P held that a preliminary objection raises a pure point of law which is argued on the assumption that all the facts pleaded by the other side are correct. It cannot be raised if any fact has to be ascertained or if what is sought is the exe}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid2111289 rcise of judicial discretion.\'94 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid3497766\charrsid2111289 In the light of the above opposing contentions, it is evident that the real issue at hand is whether this Court should determine the preliminary objection now, or should wait for the substantive hearings to take off, in the course of which evidence would be adduced on the particular issue(s) now in contention. On this, I think Court should be guided by the observations of SIR CHARLES NEWBOLD P which he made in the }{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \b\insrsid3497766\charrsid2111289 Mukisa Biscuit }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid3497766\charrsid2111289 case }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\insrsid3497766\charrsid2111289 (supra) }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid3497766\charrsid2111289 at p.701 \emdash }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid2111289 namely: \par }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\insrsid3497766\charrsid2111289 \'93The first matter relates }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid3497766\charrsid2111289 to }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\insrsid3497766\charrsid2111289 the increasing practice of raising points, which }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\insrsid2111289 should be argued in the normal }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\insrsid3497766\charrsid2111289 manner, quite improperly by way of preliminary objection. A preliminary objection is in the nature of what used to be a demurrer. It raises a pure point of law which is argued on the assumption that all the facts pleaded by the other side are correct. }{ \rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\ul\insrsid3497766\charrsid2111289 It cannot be raised if any fact has to be ascertained or if what is sought is the exercise of}{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\ul\insrsid2111289\charrsid2111289 j}{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\ul\insrsid3497766\charrsid2111289 udicial discretion. }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\insrsid3497766\charrsid2111289 The improp}{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\insrsid2111289 er raising of points by way of }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\insrsid3497766\charrsid2111289 preliminary objection }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\insrsid2111289 does nothing but unnecessarily }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\insrsid3497766\charrsid2111289 increase costs and, on}{ \rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\insrsid2111289 occasion, confuse the issues. }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\insrsid3497766\charrsid2111289 This improper practice should stop.\'94 }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid2111289 [emphasis added]

\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid3497766\charrsid2111289 In the instant case, I can conceive of no prejudice, mischief, or }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid2111289\charrsid2111289 injustice that}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid3497766\charrsid2111289 would attend the Plaintiff if his contentions are determined by the Court after a proper evaluation of the facts to be ascertained by evidence properly adduced}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid2111289 on bo th sides of the dispute. \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid3497766\charrsid2111289 Accordingly, the preliminary point of law now raised is overruled. It will be entertained in the course of the substantive proceedings as and when evidence is adduced in that behalf. In other words, it is quite premature to entertain the matter at this stage. }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid2111289 \par }{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \b\insrsid3497766\charrsid2111289 Ordered accordingly. }{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \b\insrsid2111289 \par }\pard \ltrpar\s15\qc \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid2111289 {\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid3497766\charrsid2111289 James Ogoola \line }{\rtlch\fcs1 \af0 \ltrch\fcs0 \ul\insrsid3497766\charrsid2111289 JUDGE }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid2111289 \line 27/06/02 \par }\pard \ltrpar\s15\ql \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid2111289 {\rtlch\fcs1 \af0 \ltrch\fcs0 \ul\insrsid3497766\charrsid2111289 DELIVERED IN OPEN COURT, BEFORE: }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid3497766\charrsid2111289 \line John Kiwuwa, }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid2111289\charrsid2111289 Esq.}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid3497766\charrsid2111289 \emdash Counsel for the Plaintiff \line David Mpanga, }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid2111289\charrsid2111289 Esq.}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid3497766\charrsid2111289 \emdash Counsel for the Defendant \line J. M. 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