China National Aero Technology International Engineering Cooperation v Kenam Construction Services Ltd (Miscellaneous Application No. 478 of 2014)

Observed later treatment

No later-treatment classification is recorded for this judgment.

Citator coverage is limited to judgments in the Wakilii corpus and source-matched treatment records. Absence of a signal is not an assertion that the case remains good law.

Holding

The High Court granted the applicant unconditional leave to appear and defend Civil Suit No. 266 of 2014. The court held that the applicant satisfied the threshold for leave by demonstrating bona fide triable issues, including whether the applicant was entitled to UGX 2,285,158,237 arising from an Interim Certificate, whether the respondent performed the contract within the stipulated time, and issues concerning the operation and applicability of the Interim Certificate. The court applied the established principle that a defendant need not show a good defence on the merits but must demonstrate that there is an issue or question in dispute which ought to be tried.

Outcome

Applicant granted leave to defend; matter to proceed to trial on the merits

Facts

The applicant, China National Aero-Technology International Engineering Corporation, executed an Agreement for conditions of External Works for Gem International School Project at Butabika. The respondent, Kenam Construction Services Ltd, was appointed as sub-contractor to carry out works at the site. Under the sub-contract, the respondent was to complete works by 9 April 2013 or be liable for liquidated damages of 1% of the contract sum for each day of continuing default. The applicant claimed the respondent completed works on 29 May 2014, 415 days late, attracting liquidated damages of UGX 2,330,433,330. The applicant issued an Interim Certificate and contended it did not owe the respondent the claimed sum of UGX 68,306,097, but rather the respondent owed the applicant approximately UGX 2,285,158,237. The respondent denied breach and claimed the work was completed on time and handed over to the applicant. The applicant applied for unconditional leave to appear and defend the suit.

Issues

1. Whether the Applicant should be granted unconditional leave to appear and defend Civil Suit No. 266 of 2014
2. Whether the Applicant has demonstrated triable issues of fact or law sufficient to warrant leave to defend

Orders

• The Applicant is granted unconditional leave to appear and defend Civil Suit No. 266 of 2014.
• The Applicant shall file its written statement of defence within 14 days of this order.
• Costs of the application in the cause.

Rules and key headnotes

Legislation cited (4)

• Civil Procedure Rules Order 36 r.3(1)
• Civil Procedure Rules Order 36 r.4
• Civil Procedure Rules Order 52 r.1
• Civil Procedure Rules Order 52 r.3

Cases cited (2)

• Maluku Interglobal Agency Ltd v Bank of Uganda [1985] HCB 65
• Kasule v Muhwezi [1992-93] HCB 212

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