Wakilii

Asante International Trading Co. Ltd v Value Link Limited (Miscellaneous Application No. 2368 of 2025)

High Court · [2026] UGCOMMC 143 · 2026 Application Dismissed AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Application to set aside ex parte judgment and stay taxation proceedings arising from Civil Suit No. 789 of 2021
Decision
Application to set aside ex parte judgment dismissed; taxation proceedings to continue

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

The court dismissed the application to set aside an ex parte judgment. The applicant failed to establish either non-service of summons or sufficient cause for non-appearance. Evidence showed the applicant's director was personally served with summons and acknowledged receipt, and the applicant attempted to file a defence, demonstrating awareness of the suit. The court declined to stay taxation proceedings, finding no legitimate purpose for the stay and that the application was intended merely to delay enforcement.

Outcome

Application to set aside ex parte judgment dismissed; taxation proceedings to continue

Facts

The respondent obtained an ex parte judgment against the applicant in Civil Suit No. 789/2021 on 29th April 2024, awarding UGX 35,000,000 as the decretal sum, UGX 20,000,000 in general damages, interest at 24% per annum, and costs. The judgment arose from a distribution agreement dated 30th January 2020 between the parties for Brookside and Fresh Diary products. The applicant claimed it never received service of summons and only learned of the judgment when served with a taxation hearing notice in September 2025. The applicant contended it had entered a joint venture with Intare Investments Ltd, which had contracted with the respondent, and that Intare was responsible for settling the debt. The respondent produced evidence that the applicant's director, Rodney Mukula, was personally served with summons on 2nd December 2021 and signed acknowledging receipt. Court records showed the applicant attempted to file a defence on 15th December 2021.

Issues

  1. Whether the applicant has sufficient grounds to warrant setting aside the judgment dated 29th April 2024 delivered in Civil Suit No. 789/2021.
  2. Whether the applicant should be granted leave to appear and defend in Civil Suit No. 789/2021.
  3. Whether there are sufficient grounds to stay subsequent execution proceedings/taxation proceedings vide Taxation Application No. 295/2025.

Orders

  • Application dismissed.
  • Costs awarded to the respondent to be borne by the applicant.

Rules and key headnotes

Civil Procedure — Setting Aside Ex Parte Judgments — Service of Summons — Effective Service
For an application to set aside an ex parte judgment to succeed under Order 9 rule 27 of the Civil Procedure Rules, the applicant must satisfy the court either that summons were not duly served or that the applicant was prevented by sufficient cause from appearing. Effective service means service that produces the intended result of making the defendant aware of the suit so that the defendant has the opportunity to respond.
Civil Procedure — Service of Summons on Corporate Bodies — Service on Directors
Under Order 29 rule 2(a) of the Civil Procedure Rules, where a suit is against a corporation, summons may be served on the secretary or on any director or other principal officer of the corporation. Personal service on a director who acknowledges receipt constitutes effective service on the corporate defendant.
Civil Procedure — Setting Aside Ex Parte Judgments — Sufficient Cause — Scope of Inquiry
When considering an application to set aside an ex parte judgment under Order 9 rule 27, the court is restricted from going into the merits of the case. The inquiry is limited to whether summons were duly served or whether sufficient cause prevented the defendant from appearing.
Civil Procedure — Stay of Execution — Grounds for Grant
An order for stay of execution must be intended to serve a legitimate purpose. The court's discretion to grant a stay must be exercised judiciously and where it appears equitable to do so, with a view to temporarily preserve the status quo. Mere requirement to comply with a court decision cannot be grounds for a stay unless all other grounds for grant of a stay in the applicable law exist.

Legislation cited (6)

  • Civil Procedure Act Cap 282 s.98
  • Civil Procedure Rules SI No. 71-1 Order 9 rule 27
  • Civil Procedure Rules SI No. 71-1 Order 51 rule 6
  • Civil Procedure Rules SI No. 71-1 Order 52 rule 1
  • Civil Procedure Rules SI No. 71-1 Order 5
  • Civil Procedure Rules SI No. 71-1 Order 29 rule 2(a)

Cases cited (11)

  • Capt. Philip Ongom v Nyero Owota (Civil Appeal No. 14 of 2001)
  • Geoffrey Gatete and Another v William Kyobe (Civil Appeal No. 7 of 2005)
  • Nicholas Roussos v Gulam Hussein Habib and Another (Civil Appeal No. 9 of 1993)
  • Shabin Din v Ram Farkash Anand (1955) 22 EACA 48
  • Zirabamuzaale v Correct (1962) EA 694
  • Patel v Star Mineral Water and Ice Factory (1961) EA 454
  • Mitha v Ladak [1960] EA 1054
  • Ahairwe v Standard Chartered Bank (U) Limited (Miscellaneous Application No. 185 of 2023)
  • National Enterprises Corporation v Mukisa Foods Limited (Miscellaneous Civil Application No. 07 of 1998)
  • Tahar Fourati Hotels Ltd v Nile Hotel International Ltd (Miscellaneous Application No. 614 of 2003)
  • Kaddu v Tebusweke & Anor (Miscellaneous Application No. 1620 of 2016)

Full judgment

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

Asante International Trading Co. Ltd v Value Link Limited (Miscellaneous Application No. 2368 of 2025) [2026] UGCommC 143 (1 April 2026)
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.