Wakilii

CEDA Financial Services Ltd v Q-Services Ltd & 3 Ors (Miscellaneous Application No. 6 of 2015)

High Court · [2016] UGCOMMC 86 · 2016 Application Dismissed AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Application to set aside default judgment entered in summary suit
Decision
Application dismissed with costs to the respondents

Observed later treatment

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Holding

The court dismissed an application to set aside a default judgment entered in a summary suit. The court held that service of summons was effective, that the application for leave to appear and defend was filed two days late (after the default judgment motion was already filed), and that entry of a default judgment during court vacation does not require a certificate of urgency. The applicant failed to demonstrate good cause under Order 36 rule 11 for setting aside the judgment.

Outcome

Application dismissed with costs to the respondents

Facts

The respondents instituted a summary suit against the applicant (CEDA Financial Services Limited) and obtained a default judgment for UGX 195,890,000. The applicant's Managing Director was served with court documents on 4 July 2014 (according to the process server's affidavit, though the Managing Director claimed service on 8 July). The applicant forwarded documents to lawyers on 10 July. On 16 July 2014, during court vacation, the applicant filed Miscellaneous Application No. 603 of 2014 seeking leave to appear and defend. However, a default judgment had already been entered on 7 August 2014. The applicant then filed this application on 6 January 2015 seeking to set aside the default judgment, decree and proceedings, arguing that the judgment was entered during court vacation without a certificate of urgency, was entered despite a pending application, and was based on an affidavit containing falsehoods about the service date.

Issues

  1. Whether the default judgment should be set aside on the ground that it was entered during court vacation without a certificate of urgency.
  2. Whether the default judgment should be set aside on the ground that it was entered when the applicant had filed an application for leave to appear and defend.
  3. Whether the default judgment should be set aside on the ground that it was based on an affidavit containing falsehoods about the date of service.
  4. Whether the applicant demonstrated good cause for setting aside the default judgment under Order 36 rule 11 of the Civil Procedure Rules.

Orders

  • Application dismissed.
  • Costs awarded to the respondents.

Rules and key headnotes

Civil Procedure — Setting Aside Default Judgment — Requirements Under Order 36 Rule 11
Under Order 36 rule 11 of the Civil Procedure Rules, before a court can set aside a default judgment, it must be satisfied either that service of summons was not effective or that the applicant has shown any other good cause that prevented them from applying for leave to appear and defend the suit.
Civil Procedure — Court Vacation — Entry of Default Judgment Without Certificate of Urgency
A default judgment is not defective merely because it was entered during court vacation. Where the presiding judge considers the matter urgent, the judge has discretion to dispose of it during vacation even without a certificate of urgency having been obtained, provided the matter is of an urgent nature within the meaning of rule 4 of the Judicature (Court Vacation) Rules.
Civil Procedure — Summary Suits — Computation of Time for Filing Defence
In summary suits under Order 36 of the Civil Procedure Rules, time for filing an application for leave to appear and defend begins to run from the date the defendant is served with summons, not from the date the suit was filed.
Civil Procedure — Good Cause — Definition and Application
Good cause under Order 36 rule 11 means a legally sufficient reason and must relate to the inability or failure to take the particular step in time. Circumstances that may amount to good cause include mistake by an advocate, ignorance of procedure by an unrepresented defendant, and illness of a party.

Legislation cited (9)

Cases cited (9)

  • Britaitana v Kamoga [1977] HCB 34
  • Uganda Telecom Limited v Airtel Uganda Limited (Miscellaneous Application No. 30 of 2011)
  • Makula International v Cardinal Nsubuga (Civil Appeal No. 4 of 1981)
  • Zamzam Noel & Others v Post Bank Limited (Miscellaneous Application No. 530 of 2008)
  • Noor Mohammed v Jaffrey Wanami (Civil Revision No. 2 of 2007)
  • Maluku Interglobal Trade Agency Ltd v Bank of Uganda [1985] HCB 65
  • Kingstone Enterprises Ltd v Metropolitan Properties (HCMA 341 of 2012)
  • Rosette Kizito v Administrator General & Others (Supreme Court Civil Application No. 9 of 1986)
  • Nicholas Roussos v Gulamhussein Habib Virani & Another (Civil Appeal No. 9 of 1993)

Full judgment

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CEDA Financial Services Ltd v Q-Services Ltd & 3 Ors (Miscellaneous Application No. 6 of 2015) [2016] UGCommC 86 (10 March 2016)
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.