Company Law

J.V.Patel v Muyanja M.Mbabaali & Anor ((Civil Appeal No. 63 of 2002)) [2005] UGCA 4 (18 May 2005);

Flynote: 

Search Summary: 

The appellant bought a suit against the respondents to recover money
paid personally to the respondent after his arrest for issuing dishonored
cheques in settlement of contract for supply of goods. The trial judge
dismissed the appellants claim on a preliminary point of law that the
plaint had not disclosed a cause of action against the respondents.

Headnote and Holding: 

The court considered whether the appellant could recover money paid in
personal capacity as director in a company where the government had
shares. The court observed that the appellant was threatened with
imprisonment and the 1 st respondent had not denied payment of the
subject money into his personal account by the appellant; and on
whether the appellant had a cause of action against the respondents for
money paid on behalf of a government entity, the court stated that the
appellant had paid money into the 1 st respondent’s account.
As a result, the court allowed the appeal and ordered re-trial of the case
on its merits.

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