Buildnet Construction Material and Hardware Limited v Fujian Industries Park Co. Limited (Miscellaneous Application No. 1764 of 2025)
Observed later treatment
No later-treatment classification is recorded for this judgment.
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Holding
The court granted unconditional leave to appear and defend where the applicant raised triable issues concerning multiple separate contracts with distinct terms and obligations, and whether the claim was premature given alleged incomplete performance. The court held that a mere denial of indebtedness is insufficient, but where triable disputes exist regarding the factual basis of the debt and contractual obligations, leave must be granted.
Outcome
Applicant granted unconditional leave to appear and defend the main suit
Facts
The applicant entered into two separate contracts with the respondent. The respondent commenced a summary suit by specially endorsed plaint claiming UGX 146,383,532. The applicant contended that the respondent consolidated all contracts despite each being independent with special terms. The applicant argued that the respondent never notified it regarding completion of obligations, never issued a performance certificate, and did not notify the applicant to carry out tests on completion as provided under the contracts. The respondent maintained that all contractual works were executed and handed over, and that all condominium units which were the subject of the contracts had been sold.
Issues
- Whether the Applicant has proven sufficient grounds to warrant a grant of unconditional leave to appear and defend.
Orders
- The Applicant is given unconditional leave to appear and defend in HCCS 805 of 2025.
- The Applicant shall file and serve its defence in the main suit within ten (10) days from the date of this ruling.
- The Respondent shall file and serve its response to the defence, if any, within ten (10) days from the date of service of the Applicant's defence.
- Thereafter, the Respondent shall undertake the necessary pre-hearing processes inclusive Mediation.
- The costs of this application shall be in the cause.
Rules and key headnotes
Legislation cited (9)
- Civil Procedure Act s.98
- Judicature Act s.37
- 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 36 Rule 5
- Civil Procedure Rules Order 36 Rule 8
- Civil Procedure Rules Order 52 Rules 1, 2, and 3
- Civil Procedure Rules Order 6 Rule 8
Cases cited (11)
- Post Bank (U) Ltd v Abdul Ssozi (Supreme Court Civil Appeal No. 8 of 2015)
- Zola & Another v. Ralli Brothers Ltd. & Another [1969] EA 691, 694
- Kotecha v. Mohammed [2002] 1 EA 112
- Saw v Hakim 5 TLR 72
- Ray v Barker 4 Ex DI 279
- Churanjilal & Co. v. A. H. Adam (1950) 17 EACA, 92
- Hasmani v. Banque du Congo Belge (1938) 5 EACA 89 at 89
- Pamela Anyoti v Root Capital Inc (Miscellaneous Application No. 844 of 2023)
- Photo Focus (U) Ltd v Group Four Security Ltd (Court of Appeal Civil Appeal No. 30 of 2000)
- Ecobank Uganda Limited v Kalson's Agrovet Concern Ltd & Anor (High Court Civil Suit No. 573 of 2016)
- George Begumisa v East African Development Bank (Miscellaneous Application No. 451 of 2010)
Full judgment
The original judgment as reported. Read the original PDF before relying on any passage.