Cause of action

Non-Performing Asset Recovery Trust v Kapeeka Coffee Works Ltd. and Anor (Civil Appeal No. 8 of 2001) [2002] UGSC 21 (23 April 2002);


Search Summary: 

The appellant a statutory body with a duty to recover defaulted loans;
transferred to it for recovery by government agencies which included a
loan extended to the respondents, proceedings were instituted in the
appellant’s tribunal and the respondents raised a preliminary objection
that the appellant’s plaint showed no cause of action against the
respondents. The tribunal found the respondents liable. The court of
Appeal upheld the respondent’s preliminary point and overturned the
tribunal’s decision hence the appeal.

Headnote and Holding: 

The court observed that immediately any non-performing asset is
transferred to the Trust, all assets, rights and liabilities attaching to that
non-performing asset vested in the appellant and the annexure to the
plaint of the Deed of Assignment was sufficient pleading of the contents of
the deed and of the assignment itself.


Subscribe to RSS - Cause of action