Beatrice Nyakaisiki Byenkya v Rayo Holdings Limited (Miscellaneous Application 1430 of 2025)
Observed later treatment
No later-treatment classification is recorded for this judgment.
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Holding
The court held that a part-payment made toward a debt renews the limitation period under section 22(4) of the Limitation Act, even where the original loan agreement is time-barred. The payment of UGX 140,000,000 in August 2020 constituted a fresh accrual of the cause of action, making the counterclaim filed in November 2024 within the statutory six-year limit. Judgment on admission was refused because the admission of receipt must be read in the context of the broader pleadings, and a triable issue remained as to whether the estate owed the balance claimed.
Outcome
Application for judgment on admission dismissed; counterclaim not barred by limitation and may proceed to trial
Facts
The Applicant paid the Respondent UGX 140,000,000 under the mistaken belief that her late husband's estate owed a debt of UGX 607,000,000. She sued to recover the payment. The Respondent contended that the payment was voluntary and made pursuant to a 2020 agreement to settle a legitimate debt arising from a 2011 loan secured by land titles. The Respondent filed a counterclaim seeking the balance of UGX 467,000,000. The Applicant argued that the original 2011 loan was statute-barred and that the 2020 payments did not revive the claim. The Respondent argued that the 2020 part-payment refreshed the limitation period under section 22(4) of the Limitation Act.
Issues
- Whether the Respondent's counterclaim is barred by limitation.
- Whether the Applicant is entitled to judgment on admission.
Orders
- Application dismissed.
- Costs shall be in the cause.
Rules and key headnotes
Legislation cited (7)
Cases cited (6)
- Shire v Thabiti Finance Co Ltd [2002] 1 EA 279
- Bush v Stevens [1963] 1 QB 1
- Choitram v Nazari [1984] KLR 327
- Wright Kirke v North [1895] Ch 747
- Opia Moses v Chukia Lumago Roselyn & 5 Others (HCCS No. 22 of 2013)
- Lake Oil Uganda Limited v Don (U) Limited (Miscellaneous Application No. 685 of 2024)
Full judgment
The original judgment as reported. Read the original PDF before relying on any passage.