Board of governors Rwenzori Collage of Commerce v Muliwabyo (Miscellaneous Application No. 83 of 2021)
Observed later treatment
No later-treatment classification is recorded for this judgment.
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Holding
Held that the applicant demonstrated bona fide triable issues warranting leave to appear and defend. The dispute over whether payments made related to the transaction in question, and whether the respondent improperly filled in a blank cheque, raised genuine questions of fact requiring trial. Leave to appear and defend was granted under Order 36 rule 4 of the Civil Procedure Rules.
Outcome
Applicant granted unconditional leave to appear and defend the main suit
Facts
The applicant, an educational institution, applied for leave to appear and defend a summary suit. The respondent claimed the applicant owed UGX 60,000,000 based on a cheque. The applicant contended it borrowed only UGX 5,000,000 at 15% monthly interest in May 2020, issued a blank signed cheque as security, and fully repaid the loan through instalments totalling UGX 8,100,000 between November 2020 and April 2021. The applicant alleged the respondent improperly filled in the blank cheque with UGX 60,000,000. The respondent countered that the payments related to a different transaction from March 2020, and that the cheque for UGX 60,000,000 represented a separate loan advanced in February 2021. The cheque bounced in August 2021 for insufficient funds.
Issues
- Whether the Applicant should be granted leave to appear and defend Civil Suit No. 83 of 2021.
Orders
- Application allowed.
- Applicant granted leave to appear and defend.
- Applicant to file and serve Written Statement of Defense within 10 days from date of ruling.
- Respondent to file reply to Written Statement of Defense if any within 5 days after service.
- Costs of the application awarded to the Applicant in the event.
Rules and key headnotes
Legislation cited (4)
Cases cited (7)
- Bunjo v KCB (Uganda) Ltd (Miscellaneous Application No. 174 of 2014)
- Roko Construction Ltd Vs. of 2020
- M.M.K Engineering v Mantrust Uganda Ltd (Miscellaneous Application No. 128 of 2012)
- Bhaker Kotecha v Adam Muhammed [2002] 1 EA 112
- Maluku Interglobal Trade Agency v Bank of Uganda [1985] HCB 65
- Children of Africa v Sarick Construction Ltd (Miscellaneous Application No. 134 of 2016)
- Magric Water General Hardware Ltd v Abasi Balinda Transporters Ltd (Miscellaneous Application No. 67 of 2021)
Full judgment
The original judgment as reported. Read the original PDF before relying on any passage.