Bitagase and Another v Mugambe (Misc. Application No. 470 of 2012)
Observed later treatment
No later-treatment classification is recorded for this judgment.
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Holding
The court held that the applicants satisfied the test for unconditional leave to defend a summary suit by raising triable issues of fact and law. Procedural objections based on the form of the affidavit, absence of sealing of annexures, and non-compliance with the Contracts Act were overruled as technicalities. The court applied the principle that a defendant who has a stateable and arguable defence must be given the opportunity to present it. Disputes over the principal amount lent, whether interest was charged, whether payment had been made, and the capacity in which the first applicant was sued were held to be matters requiring full adjudication at trial.
Outcome
Applicants granted unconditional leave to appear and defend the summary suit; matter to proceed to full trial.
Facts
The respondent filed a summary suit against the applicants claiming UGX 103,000,000. The first applicant, as Managing Director of the second applicant company, had issued four post-dated cheques to the respondent. The applicants contended that the second applicant borrowed UGX 80,000,000 from the respondent, who charged 30% interest bringing the total to UGX 103,000,000, and that this sum had been paid in cash in June 2012. The respondent denied receiving any payment and asserted he had advanced UGX 103,000,000 to the first applicant as an individual, with the second applicant sued as guarantor. The applicants sought unconditional leave to appear and defend, arguing they were not indebted and that the respondent acted fraudulently in presenting the cheques for payment despite having been paid in full.
Issues
- Whether the summary suit was incompetent for want of a proper affidavit in support of the specially endorsed plaint.
- Whether the contract was void for non-compliance with the writing requirement under the Contracts Act 2010.
- Whether the cheques were improperly annexed to the affidavit without being sealed by the commissioner for oaths.
- Whether the applicants have shown a bona fide triable issue warranting unconditional leave to appear and defend the suit.
Orders
- Application allowed.
- Applicants granted unconditional leave to file a defence in Civil Suit No. 312 of 2012.
- Defence to be filed within 10 days from the date of this order.
- Costs of this application to be in the main cause.
Rules and key headnotes
Legislation cited (17)
- Civil Procedure Rules Order 36 rule 2
- Civil Procedure Rules Order 36 rule 3
- Civil Procedure Rules Order 36 rule 4
- Civil Procedure Rules Order 52 rule 1
- Civil Procedure Rules Order 52 rule 2
- Civil Procedure Rules Order 52 rule 3
- Civil Procedure Rules Order 7 rule 14
- Commissioner for Oaths Rules rule 8
- Contracts Act 2010 s.10(5)
- Contracts Act 2010 s.10(6)
- Contracts Act 2010 s.10(7)
- Contracts Act 2010 s.68
- Evidence Act Cap. 6 s.91
- Evidence Act Cap. 6 s.92
- Evidence Act Cap. 6 s.101
- Bills of Exchange Act Cap. 68
- Constitution of Uganda Article 126(2)(e)
Cases cited (9)
- Horizon Coaches Limited v Edward Rurangaranga & Another [2010] 1 EA 77
- Lugazi Progressive School & Another v Sserunjoji & 4 Others (Misc. Application No. 50 of 2000)
- Uganda Corporation Creameries Ltd and Henry Kawalya v Reamation Ltd
- James Lamont & Co. Ltd v Hyland Ltd [1950] KB 585
- Kotecha v Mohammed [2002] 1 EA 112
- Geoffrey Gatete & Another v William Kyobe (SCCA No. 7 of 2005)
- Churanjilal & Co v A H Adam (1950) 17 EACA 92
- Maluku Interglobal Trade Agency v Bank of Uganda [1985] HCB 65
- Maria Odido v Barclays Bank of Uganda Ltd (HC Misc. Application No. 645 of 2008)
Full judgment
The original judgment as reported. Read the original PDF before relying on any passage.