Wakilii

Chamil International Limited and Another v Barongo (Miscellaneous Application 3 of 2023)

High Court · [2024] UGHC 875 · 2024 Application Granted AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Application for unconditional leave to appear and defend summary suit for recovery of loan balance
Decision
Matter to proceed to full trial on the merits

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

The High Court granted the applicants unconditional leave to appear and defend a summary suit for recovery of a loan balance. The court found triable issues existed regarding the disputed amounts: the total sum borrowed (whether UGX 33,000,000 or UGX 130,000,000), the amount paid (whether UGX 40,000,000 or UGX 48,000,000), and the balance due. Summary judgment is appropriate only where no substantial disputes exist as to facts or law.

Outcome

Matter to proceed to full trial on the merits

Facts

The respondent/plaintiff filed a specially endorsed plaint under Order 36 seeking recovery of UGX 90,000,000 as balance of a friendly loan allegedly totaling UGX 130,000,000 advanced to the applicants/defendants. The parties had a verbal agreement for repayment within six months. The 2nd applicant contended he borrowed only UGX 33,000,000 and repaid UGX 48,000,000 in two installments (UGX 8,000,000 cash and UGX 40,000,000 by bank transfer). The respondent acknowledged receipt of only UGX 40,000,000. No written agreement existed between the parties. The applicants sought unconditional leave to appear and defend, claiming they had audio evidence and a triable defence.

Issues

  1. Whether the applicants have disclosed a good defence on the merits to warrant unconditional leave to appear and defend the summary suit.
  2. Whether there is a real dispute as to the amount of the loan advanced and the balance due that requires a full trial.

Orders

  • The 1st and 2nd Applicants are granted unconditional leave to appear and defend Civil Summary Suit No. 003 of 2023.
  • The Applicants/Defendants are given 15 days to file their joint written statement of defence from the date of delivery of this ruling.
  • The costs shall abide the outcome in the main suit.

Rules and key headnotes

Summary Suits — Leave to Appear and Defend — Test for Grant of Unconditional Leave
Unconditional leave to appear and defend a summary suit will be granted where the applicant shows a good defence on the merits, or that a difficult point of law is involved, or that there is a dispute which ought to be tried, or a real dispute as to the amount claimed which requires taking an account to determine, or any other circumstances showing reasonable grounds of a bona fide defence.
Summary Suits — Sufficient Disclosure of Defence — Requirement
In an application for leave to appear and defend a summary suit, there must be sufficient disclosure by the applicant of the nature and grounds of the defence and the facts upon which it is founded, and the defence so disclosed must be both bona fide and good in law.
Summary Suits — Scope of Summary Procedure — Substantial Disputes
Summary judgment under Order 36 of the Civil Procedure Rules can only be properly made in cases in which there are no substantial disputes as to the facts or law.

Legislation cited (3)

Cases cited (3)

  • M.M.K Engineering v Man Trust Uganda Ltd (Miscellaneous Application No. 128 of 2012)
  • Maluku Interglobal Trade Agency v Bank of Uganda [1985] HCB 65
  • Children of Africa v Sarick Construction Ltd (Miscellaneous Application No. 134 of 2016)

Full judgment

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

Chamil International Limited and Another v Barongo (Miscellaneous Application 3 of 2023) [2024] UGHC 875 (26 July 2024)
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.