Conduct of proceedings

DFCU Ltd v Begmohamed Ltd ((CIVIL APPLICATION NO. 65 OF 2005)) [2005] UGCA 2 (17 January 2005);


Search Summary: 

The application was brought for stay of proceedings in the High court. The
applicant bank gave loan facilities to the respondent company which filed a
suit in the High Court to determine its level of indebtedness thereafter an
independent auditor was appointed by the parties and on the basis of the
report, the applicant sought leave to amend its defence which was not
granted. The applicant filed a winding up petition.
The main issue was whether the court should entertain and grant a stay of

Headnote and Holding: 

The court observed the legal mandate in exercise of its discretion and
observed that the respondent company was not insolvent but willing to
pay its debts and wanted to determine the level of its indebtedness and
stated that the High court should be given an opportunity to investigate
the questions involved in the case without creating unnecessary backlog.
The application was thus dismissed.


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