Wakilii

AIB International ventures Limited and Another v Abdullah (Miscellaneous Application 1747 of 2002)

High Court · [2023] UGCOMMC 58 · 2023 Application Dismissed AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Application to set aside default judgment arising from Civil Suit No. 0982 of 2022
Decision
Application dismissed with costs; respondent may proceed with execution of decree

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

The court dismissed an application to set aside default judgment where the applicants' supporting affidavit contained material falsehoods. The applicants claimed their bank accounts had been frozen by the Financial Intelligence Agency, preventing payment to the respondent. Bank evidence established that the freeze had been lifted months before the application was filed. The court held that an application supported by a false affidavit fails because the applicant does not come to court with clean hands.

Outcome

Application dismissed with costs; respondent may proceed with execution of decree

Facts

The applicants sought to set aside a default judgment entered against them in Civil Suit No. 0982 of 2022, claiming they owed the respondent USD $998,350. The applicants alleged they could not pay because their bank accounts with Stanbic Bank had been frozen following instructions from the Financial Intelligence Agency in October 2022. The parties consented to the court investigating the status of the bank accounts. The bank's Legal Advisor testified that while a freeze was initiated on 5 September 2022, it was lifted the same day. At the time of the court's inquiry in March 2023, the accounts held only USD $2.52 and UGX 3,244. The application was filed in December 2022, months after the freeze had been lifted. The applicants failed on three occasions to substantiate their defence when given the opportunity by the court.

Issues

  1. Whether the application raises triable issues warranting leave to defend
  2. What other remedies are available to the parties

Orders

  • Application dismissed.
  • Costs awarded to the respondent.
  • Respondent at liberty to proceed with execution of the decree in Civil Suit No. 0982 of 2022.

Rules and key headnotes

Civil Procedure — Applications to Set Aside Default Judgment — False Affidavits — Effect on Application
An application supported by an affidavit containing material falsehoods and untruths renders the entire application unworthy of consideration and must be dismissed because the applicant does not come to court with clean hands.
Civil Procedure — Leave to Defend — Requirements — Triable Issues
An applicant seeking leave to appear and defend under Order 36 rule 4 of the Civil Procedure Rules must show a good defence on the merits, or that a difficult point of law is involved, or that there is a genuine dispute which ought to be tried. The defence must be stated with sufficient particularity to appear genuine; general or vague statements denying liability will not suffice.
Evidence — Affidavits — Falsehoods — Treatment by Court
Where an affidavit contains obvious falsehoods, the entire affidavit becomes suspect. While a court may sever false portions and rely on remaining paragraphs, where the false portions are central to the application and constitute the majority of material paragraphs, severance would be practically impossible and would occasion injustice.

Legislation cited (5)

Cases cited (6)

  • Africa One Logistics Ltd v Kazi Food Logistics (U) Ltd (Miscellaneous Application No. 964 of 2019)
  • MMK Engineering v Mantrust Uganda Limited (HCMA No. 128 of 2021)
  • Bhaker Kotecha v Adum Muhammed [2002] 1 EA 112
  • Maluku Interglobal Trade Agency Ltd v Bank of Uganda [1985] HCB 65
  • Sirasi Bitaitana v Emmanuel Kananura (1977) HCB 34
  • Baryaija Julius v Kikwisire Zaverio and Kabareebe Burazio (CACA No. 324 of 2016)

Full judgment

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The original judgment as reported. Read the original PDF before relying on any passage.

AIB International ventures Limited and Another v Abdullah (Miscellaneous Application 1747 of 2002) [2023] UGCommC 58 (9 August 2023)
Source: this page presents Wakilii’s issue analysis and metadata for a publicly reported Ugandan judgment. Any AI-generated summary is marked as such. Judgment text is sourced from the Uganda Legal Information Institute (ulii.org). Wakilii is not affiliated with ULII.