Wakilii

Bugiri High School Ltd & 2 Ors v DFCU Bank Ltd (Miscellaneous Application No. 984 of 2015)

High Court · [2017] UGCOMMC 144 · 2017 Application Dismissed AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Application to set aside ex parte default judgment in civil suit for loan recovery
Decision
Default judgment in Civil Suit No. 750 of 2014 remains in force against the applicants

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

The court held that service of summons on a director of a corporate defendant constitutes effective service on the corporation under Order 29 of the Civil Procedure Rules. The applicants failed to demonstrate that the second applicant, a director, was not duly served, or that they were prevented by sufficient cause from appearing. The application to set aside the default judgment was dismissed with costs.

Outcome

Default judgment in Civil Suit No. 750 of 2014 remains in force against the applicants

Facts

DFCU Bank Ltd sued Bugiri High School Ltd and two directors for recovery of UGX 108,730,848 being outstanding loan arrears. An ex parte default judgment was entered when the defendants failed to file a defence. The applicants then sought to set aside the default judgment, alleging non-effective service of summons on the third applicant and claiming they had repaid the loan. The respondent contended that the second applicant, a director, acknowledged receipt of summons on 27 October 2014 by signing and affixing the company stamp. An affidavit of service by the process server confirmed service at the school's administration block to the Director, Basalirwa Moses.

Issues

  1. Whether the applicants were effectively served with summons to file a defence.
  2. Whether the applicants were prevented by any sufficient cause from appearing when the suit was called for hearing.
  3. Whether the default judgment in Civil Suit No. 750 of 2014 should be set aside.

Orders

  • Application dismissed.
  • Costs awarded to the respondent.

Rules and key headnotes

Civil Procedure — Service of Process — Service on Corporations — Effective Service on Directors
Service of summons on a director of a corporation constitutes effective service on the corporation under Order 29 rule 2 of the Civil Procedure Rules, which provides that service may be effected on the secretary, any director, or any other principal officer of the corporation.
Civil Procedure — Setting Aside Default Judgment — Grounds under Order 9 Rule 27
Under Order 9 rule 27 of the Civil Procedure Rules, an ex parte default judgment may be set aside if the defendant satisfies the court that summons was not duly served or that the defendant was prevented by any sufficient cause from appearing when the suit was called for hearing.
Civil Procedure — Sufficient Cause — Requirements for Demonstrating Sufficient Cause
Sufficient cause for failure to appear must relate to the inability or failure to take the particular step in time and may include mistake by an advocate, ignorance of procedure by an unrepresented defendant, or illness of a party. A defendant seeking to set aside a default judgment must demonstrate such circumstances to the court.

Legislation cited (8)

  • Civil Procedure Rules O.9 r.27
  • Civil Procedure Rules O.9 r.12
  • Civil Procedure Rules O.52 r.1
  • Civil Procedure Rules O.52 r.3
  • Civil Procedure Rules O.36 r.11
  • Civil Procedure Rules O.29 r.1
  • Civil Procedure Rules O.29 r.2
  • Civil Procedure Act s.98

Cases cited (5)

  • Saggu v Roadmaster Cycles (U) Limited (EA) (2002) 1 EA LR 258
  • Mbogo and Another v Shah [1968] EA 93
  • Kiguundu v Kasujja [1971] HCB 164
  • Rosette Kizito v Administrator General and Others (Supreme Court Civil Application No. 9 of 1986)
  • Nicholas Roussos v Gulamhussein Habib Virani and Another (Civil Application No. 6 of 1995)

Full judgment

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

Bugiri High School Ltd & 2 Ors v DFCU Bank Ltd (Miscellaneous Application No. 984 of 2015) [2017] UGCommC 144 (2 November 2017)
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.