The Commercial Case Law Index is a collection of judgments from African countries on topics relating to commercial legal practice. The collection aims to provide a snapshot of commercial legal practice in a country, rather than present solely traditionally "reportable" cases. The index currently covers 400 judgments from Uganda, Tanzania, Nigeria, Ghana and South Africa.
Get started on finding judgments that are relevant to you by browsing the topic list on the left of the screen. Click the arrows next to the topic names to reveal a detailed list of sub-topics. Most judgments are accompanied by a short summary written by subject-matter expert postgraduate students from the University of Cape Town.
The plaintiffs instituted a land suit against the defendant praying the court declare that the defendant wrongly demolished the Madrassa building without any authority or order from the authorities. On the other side the defendant filed a written statement of defence stating that the suit was bad in law and ought to be dismissed, for lack of a paragraph invoking the court’s original jurisdiction, contrary to a requirement in law. Additionally, the defendant stated that the monetary claim pleaded was based on general damages and the court had no jurisdiction to entertain the suit.
The main issue determined by the court was whether the court had pecuniary jurisdiction to entertain the suit.
The court held that it was a mandatory requirement under Order VII Rule 1 (j) of the Civil Procedure Code that a plaint should contain a statement on the monetary value of the subject matter. This was not only for the purposes of determining courts' pecuniary jurisdiction, but also for assessing the court fees. Therefore, the failure by the plaintiffs to indicate in the plaint a statement of the value of the subject matter of the suit had an effect on both the jurisdiction and the court fees.
To conclude the court held that it had no jurisdiction and thus had no need to proceed on and to deliberate on other points of the preliminary objection as its hands were tied.
The base of the suit was defamation whereby the plaintiff averred that the defendants defamed him.
The first issue was whether there was defamation and who was defamed among the two defendants. The court states that it is crucial in the commercial arena to inquire whether the published statement concerns the business itself or someone affiliated with the business in his individual capacity. Generally, the defamation must refer to the person defamed. In this case it had to be specifically pleaded whether the alleged defamation referred to the company business or to plaintiff witness individually.
For the second issue of whether the court had jurisdiction to hear the matter, it relied the principle contained in section 13 of the Civil Procedure Code that every suit must be instituted in the court of the lowest grade competent to try it. The object and purpose of the said provision is to prevent overcrowding in the court of higher grade where a suit may be filed in a court of lower grade; to avoid multifariousness of litigation and to ensure that case involving huge amount must be heard by a more experienced court. The suit should have been properly instituted either in the District Court or in the Court of the Resident Magistrate which have competent jurisdiction to try the same.
The court concluded that a cause of action arises when facts on which liability is founded exist of which there were none in this instance. Thus the suit was rejected.