Billy Birungi v Tom Timothy Bakainaga (Civil Suit No. 1387 of 2025; Miscellaneous Application No. 3023 of 2025)
Observed later treatment
No later-treatment classification is recorded for this judgment.
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Holding
Held that the applicant was entitled to unconditional leave to appear and defend the main suit. Although the applicant's argument that the suit was premature lacked merit, the respondent's claim included general damages, which is not a liquidated demand and therefore falls outside the scope of Order 36 of the Civil Procedure Rules governing summary procedure. Where a claim does not fall under Order 36, unconditional leave to appear and defend should be granted and the plaint treated as an ordinary plaint.
Outcome
Applicant granted unconditional leave to appear and defend the main suit
Facts
The applicant borrowed UGX 1,600,000,000 from Nsambya Biika Oryeho Obeho Group (NBOOG) on 14 December 2024, with the loan guaranteed by his savings and partly by the respondent to the extent of UGX 400,000,000. The applicant defaulted on repayment and the loan was recovered from both parties' savings. On 15 July 2025, the parties executed a Reimbursement Agreement whereby the applicant undertook to reimburse the respondent's UGX 400,000,000 by 31 July 2025 with 2% interest, and in case of default, 2% interest per month on the outstanding amount. The applicant paid only interest totalling UGX 40,000,000 by 14 December 2025. The respondent instituted Civil Suit No. 1387 of 2025 seeking recovery of the principal sum, interest, general damages and costs. The applicant applied for leave to appear and defend, arguing the suit was premature. The respondent did not file a reply despite being served.
Issues
- Whether the Applicant has raised sufficient grounds to warrant the grant of leave to appear and defend Civil Suit No. 1387 of 2025?
- What remedies are available to the parties?
Orders
- The Applicant is hereby granted unconditional leave to appear and defend Civil Suit No. 1387 of 2025.
- The Applicant shall file and serve his Written Statement of Defence within fifteen (15) days from the date of this Ruling.
- The Respondent shall file and serve his reply to the Written Statement of Defence within fifteen (15) days from the date of service of the Written Statement of Defence.
- Costs of this application shall be in the cause.
Rules and key headnotes
Legislation cited (8)
Cases cited (8)
- Serefaco Consultants Ltd v Euro Consult BV and Another (Civil Application No. 16 of 2007)
- William Akankwasa v Registrar of Titles (HCMA No. 33 of 2008)
- Oriental Insurance Brokers Limited v Transocean (U) Limited (SCCA No. 55 of 1995)
- Maluku Interglobal Trade Agency Ltd v Bank of Uganda [1985] HCB 65
- Uganda Transport Co. Ltd v Count De La Pasture (1924) 24 EACA 163
- Solomon Baganja and Another v Henley Property Developers Limited (HCCS No. 47 of 2012)
- Twentsche Overseas Trading Co. Ltd v Bombay Garage Ltd [1958] EA 741
- Churanjilal & Co. v A.H Adam (1950) 17 EACA 92
Full judgment
The original judgment as reported. Read the original PDF before relying on any passage.