Court name
High Court of Uganda
Case number
Miscellaneous Application-2001/338
Judgment date
15 December 2002

Jubilee Insurance Co (U) Ltd v Krediet Geneve Inc (Miscellaneous Application-2001/338) [2002] UGHC 30 (15 December 2002);

Cite this case
[2002] UGHC 30

 

THE REPUBLIC OF UGANDA
IN THE HIGH COURT OF UGANDA, AT KAMPALA
 MISC. APPLICATION NO.338 OF 2001.
(Arising From C.S.No.333, of 2001)
THE JUBILE INSURANCE COMPANY OF UGANDA LTD::::::::::::::::
: APPLICANT
VERSUS
 
KREDIET GENEVE INC::::::::::::::::::::::::::::::::::::::::::::::::;:::::::::::::RESPONDENT
BEFORE:
V.F.MUSOKE-KIBUUKA (JUDGE)
RULING


The Applicant, by way of chamber summons under Order 23 rules 1 and 3, seeks, from this court, an order for security for costs against the respondent. Both parties are companies. The application is based upon a single ground, that the respondent is a foreign company with no known assets in Uganda.

In brief, the background to the application is as set out below.
The applicant is a limited liability company incorporated in Uganda. It operates insurance business in the country. The respondent appears to be a financial institution of some sort.

On 24th April, 2001, the respondent instituted a suit against the applicant jointly with one Paulo Kalule Kagodo. In that suit the respondent sought to recover a sum of shs. 20,063,900/= in special damages which the respondent alleged to have arisen out of an alleged deceitful presentation of facts to him. The respondent claimed to have acted upon the presentation to his detriment.

The details of the alleged presentations are that the respondent, in 1998, agreed with one Julius Kwanya to enter into a credit arrangement. Julius Kwanya offered the property of Paulo Kalule Kagodo, the first defendant in Civil Suit 333 of 2001, as security for the loan. The property offered was plots 136 and 137, Block 192, at Ngandu Kigombya in Mukono District. Paulo Kabule Kagoda is said to have presented his property as being worth Shs. 14,000,000/.

For the same transaction, and in addition to the property mentioned above, the applicant is said to have provided an insurance policy which was a fire policy over the security. The fire policy presented the property as worth Shs. 14,000,000/=.

Julius Kwanya defaulted in repaying the loan of US $ 6,000 advanced to him by the respondent. It was then that the respondent found out that the property was worth much less than the value that is alleged to have been presented to him by Paulo Kalule Kagodo and the applicant. Hence the institution of civil suit 333 of 2001 to recover the loss.

The application was argued before me by Mr. David Mpanga, learned counsel for the applicant, and Mr. David Bagorogoza, learned counsel for the respondent.

Mr.