KAMPALA, Uganda A company that has been struck off has no legal right to sue or be sued in court, according to a ruling by the High Court’s Civil Division.

In a lawsuit brought by AKT Project Management and Zaitoon Tarmohamed against DFCU Bank, Nationwide Property Services Limited argued that the sale of real estate and mortgages was illegal.

Counsel Richard Nsubuga and Counsel Monica Namuli of Nsubuga & Co. Advocates and legal consultants represented the plaintiffs (AKT Project Management), while Counsel Richard Bibangambah of K&K Advocates represented the first defendant (DFCU Bank), and Counsel Yese Mugenyi of Mugenyi & Co. Advocates represented the second respondent (National Wide Property Services).

DFC Bank argued that it had taken the required actions after discovering the alleged striking off and that the company lacked the legal capacity to file the lawsuit at the time it was filed.
In keeping with the case, the defendant further argued that it is now widely acknowledged that a nonexistent person cannot be sued or file a lawsuit. Learnt counsel further contended that the only person with the legal standing to file a lawsuit is a legal person.

According to a notice from the Registrar of Companies, AKT Project Management was among the businesses removed from the company register for failing to file annual returns for five years.

Judge Patience Rubagumya was informed that on August 14, 2023, the first plaintiff, registration number 80010003391193, had been removed from the company register for failing to file its annual returns for five years, according to court documents.

Additionally, Justice Rubagumya stated that any company that wanted to be added back to the register had to do so by August 30, 2024, and there was no proof that AKT Management Limited had applied for restoration by then.

“Given the aforementioned ruling, I conclude that the plaintiffs’ actions of postponing the filing of their written submissions as directed by this court and requesting the restoration of the first plaintiff’s objection were intended to remedy a clearly visible injustice.” Per Judge Rubagumya’s ruling,

The administratrix can initiate legal proceedings in the case under her own name since she has been formally appointed by the court. In Judge Rubagumya’s opinion.

“The High Court civil suit No. 397 of 2020 is hereby dismissed with costs to the defendants since all of the defendants’ preliminary objections were upheld.” Under the direction of Justice Rubagumya