Company Law

Kalibbala v Kaggwa & 3 Ors (HCT-00-CV-MISC APPEAL- 09 -2015) [2016] UGHCCD 45 (19 May 2016);


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This was an appeal by notice of motion brought under Order
50 Rule 8 of the Civil Procedure Rules and Section 79 (2) of
the Civil Procedure Act against the decision of the Acting
Deputy Registrar His Worship Festo Nsenga granting an
Interim Order to the 1st and 2nd respondent stopping the
appellant, 3rd and 4th respondents or their
agents/servants/employees or any person claiming under them
or acting on their behalf from operating and withdrawing
money from the 4th respondent’s bank account with standard
chartered Bank.
Court considered whether the trial Deputy Registrar erred in
law and fact when he failed to consider the preliminary
objection raised before him by the applicant.

Court held that from the record of appeal it was clear that the
4th respondent is a going concern. Therefore, freezing the
company’s account automatically put its activities at a
standstill and this would end up crippling the company as a
separate entity from the individual members.

Court also noted from the record of proceedings that there
seemed to be ongoing internal fighting between the individual
shareholders and members and if this court was to be used to
issue orders to cripple a separate entity from individuals
without hearing its side of the story, it would be unjust and
Court accordingly refused to allow such orders to stand.


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