Abimanya t a 4 Matic Lounge v Sabua t a Ajio Sabua Family Ent (Miscellaneous Application No. 990 of 2019)
Observed later treatment
No later-treatment classification is recorded for this judgment.
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Holding
The court granted unconditional leave to appear and defend where the applicant raised triable issues of fact concerning the amount owed, the status of cheques issued as security versus payment, and the terms of an oral agreement. The defense was not a sham intended to delay recovery but demonstrated genuine disputes requiring witness testimony and full trial determination.
Outcome
Applicant granted unconditional leave to defend; matter to proceed to full trial
Facts
The Respondent sued the Applicant by way of summary procedure for recovery of UGX 58,925,500 arising from breach of contract for supply of drinks and spirits. The Applicant applied for unconditional leave to defend, contending that the dispute arose from an oral agreement with the Respondent's son, Henry Draku, for quarterly payments starting August 2018. The Applicant claimed he had paid two installments totaling UGX 20,000,000 to Henry Draku's bank account and that his business was undergoing renovations during the period April to October 2019, making the suit premature. The Applicant further contended he was indebted to only UGX 38,925,500, not the full amount claimed, and that two undated cheques issued to the Respondent were intended as security, not payment. The Respondent opposed the application, maintaining the Applicant admitted indebtedness and raised no triable issues.
Issues
- Whether the Applicant should be granted unconditional leave to appear and defend Civil Suit No. 838 of 2019.
Orders
- The Applicant is hereby granted unconditional leave to appear and defend Civil Suit No. 838 of 2019.
- The Applicant is ordered to file his defense to Civil Suit No. 838 of 2019 within fifteen (15) days from delivery of this Ruling.
- Costs shall follow the outcome of the main suit.
Rules and key headnotes
Legislation cited (3)
Cases cited (3)
- Africa One Logistics Ltd v Kazi Food Logistics (U) Ltd (Miscellaneous Application No. 964 of 2019)
- Kotecha v Mohammed [2002] 1 EA 112
- Begumisa George v East African Development Bank (Miscellaneous Application No. 451 of 2010)
Full judgment
The original judgment as reported. Read the original PDF before relying on any passage.