Wakilii

Ariho v Standard Chartered Bank Uganda Ltd (H.C.Miscellaneous Application No. 560 of 2021)

High Court · [2021] UGCOMMC 120 · 2021 Application Granted AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Application for unconditional leave to file a defence in a summary suit arising from an unpaid loan facility
Decision
Applicant granted unconditional leave to file defence

Observed later treatment

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Holding

Held that where an applicant raises a bona fide triable issue of fact or law in an application for leave to defend a summary suit, the court must grant unconditional leave and not shut out the defendant. The question of whether the applicant was actually retrenched, which would trigger loan insurance coverage, is a triable issue that goes to the root of the main suit and must be determined at trial after considering all relevant evidence including oral evidence. Application granted.

Outcome

Applicant granted unconditional leave to file defence

Facts

The applicant obtained an unsecured loan facility of UGX 200,000,000 from the respondent bank in March 2017. He complied with loan repayments until April 2018 when his employment with UMC Victoria Hospital was terminated. The applicant contended this termination was due to a retrenchment exercise and that he has remained unemployed since, leading to default on loan instalments. The respondent filed a summary suit claiming UGX 183,587,595 plus interest. The applicant applied for leave to defend, contending the loan was insured against retrenchment and the bank should have recovered the outstanding amount from the insurance company. The respondent accepted the loan was insured against retrenchment but denied the applicant had proven he was actually retrenched, asserting no retrenchment letter had been provided.

Issues

  1. Whether the application raises triable issues such as to warrant the grant of unconditional leave to appear and defend the main suit

Orders

  • The Applicant is hereby granted unconditional leave to defend the main suit.
  • The Applicant is hereby ordered to file and serve his written statement of defence within ten (10) days from delivery of this Ruling.
  • The costs of the application shall abide the outcome of the main suit.

Rules and key headnotes

Civil Procedure — Summary Suits — Leave to Defend — Triable Issues
Unconditional leave to appear and defend a summary suit must be granted to a defendant who shows that his or her defence raises a triable issue or question of fact or law which ought to be determined at trial; to the extent that the defendant raises a triable issue in the affidavit, he or she must not be shut out and should be granted leave to formulate a defence and adduce evidence.
Civil Procedure — Summary Suits — Leave to Defend — Threshold Requirements
Before leave to appear and defend is granted, the defendant must show by affidavit or otherwise that there is a bona fide triable issue of fact or law; the defendant is not bound to show a good defence on the merits but must satisfy the court that there is an issue or question in dispute which ought to be tried, and the court shall not enter upon the trial of issues disclosed at the stage of the application.
Civil Procedure — Summary Suits — Leave to Defend — Nature of Court's Role at Interlocutory Stage
In an application for leave to defend a summary suit, the court is not obligated to carry out investigations as to the triable issues raised; what is to be determined is whether or not an issue is raised which is by its nature triable and therefore warrants consideration and determination through the trial process.
Evidence — Proof — Oral Evidence — Admissibility
All facts except the contents of documents may be proved by oral evidence; retrenchment need not only be proven through documentary evidence such as a retrenchment letter but oral evidence can suffice in the absence of documentary proof, and the question of proof is one to be conclusively determined at trial after the court considers and evaluates all relevant evidence.

Legislation cited (5)

Cases cited (7)

  • Begumisa George v East African Development Bank (Miscellaneous Application No. 451 of 2010)
  • Bunjo v KCB Bank Uganda Ltd (Miscellaneous Application No. 174 of 2014)
  • Corporate Insurance Co. Ltd v Nyali Beach Hotel Ltd [1995-1998] EA
  • MM.K Engineering v Mantrust Uganda Ltd (H.C.Miscellaneous Application No. 128 of 2021)
  • Bhaker Kotecha v Adum Muhammed [2002] 1 EA 112
  • Makulu Interglobal Trade Agency v Bank of Uganda [1985] HCB 65
  • Children of Africa v Sarick Construction Ltd (H.C.Miscellaneous Application No. 134 of 2016)

Full judgment

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

Ariho v Standard Chartered Bank Uganda Ltd (H.C.Miscellaneous Application No. 560 of 2021) [2021] UGCommC 120 (30 November 2021)
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.