Wakilii

Crane Bank Ltd v Kabuye Victoria (Mrs) (HCT-00-CC-MA 719 of 2007)

High Court · [2007] UGCOMMC 104 · 2007 Application Granted AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Application to set aside exparte judgment entered against the applicant for failure to file defence
Decision
Exparte judgment set aside and applicant granted leave to file defence

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

The court set aside the exparte judgment, holding that service of summons on a receptionist did not constitute effective service on a principal officer under Order 29 rule 2(a) of the Civil Procedure Rules. The court found that service was not proven to have been made at the registered office under rule 2(b), and that effective service only occurred when the Managing Director received the summons on 21 September 2007. The applicant had filed its defence within time from that date and demonstrated a prima facie defence involving serious banking law issues.

Outcome

Exparte judgment set aside and applicant granted leave to file defence

Facts

On 13 September 2007, a process server attempted to serve court summons on Crane Bank Ltd at its premises. The process server left the summons with Agatha Bugenyi, identified as a receptionist, after allegedly consulting with a legal officer, Nalwanga Prosy. The summons were subsequently handed to the Managing Director, A Reza Kalan, on 21 September 2007. The Managing Director instructed lawyers who filed a Written Statement of Defence on 4 October 2007. Meanwhile, the Deputy Registrar had entered exparte judgment on 3 October 2007 based on an affidavit of service stating that service had been effected on a secretary in the legal department on 13 September 2007. The applicant sought to set aside the exparte judgment, arguing that service on the receptionist was ineffective and that the defence had been filed within fifteen days of effective service on 21 September 2007.

Issues

  1. Whether the exparte judgment entered against the applicant should be set aside
  2. Whether there was effective service of summons on the applicant corporation under Order 29 rule 2 of the Civil Procedure Rules
  3. Whether the applicant had a prima facie defence to the respondent's claim

Orders

  • The exparte judgment against the Applicant in H.C.C.S. No. 753 of 2007 is set aside.
  • The Applicant is granted leave to file a Written Statement of Defence.
  • The applicant is awarded costs of this application.

Rules and key headnotes

Service of Process — Corporations — Principal Officer
Service of summons on a receptionist or secretary at the level of a receptionist does not constitute effective service under Order 29 rule 2(a) of the Civil Procedure Rules, which requires service on the secretary, any director or other principal officer of the corporation. A principal officer must be a senior officer responsible for the management of the corporation and in a position to take action on its behalf.
Service of Process — Corporations — Registered Office
Under Order 29 rule 2(b) of the Civil Procedure Rules, where summons are not served on a principal officer, they may be served by leaving them at or sending them by post to the registered office of the corporation. If there is no registered office, service may be effected at the place where the corporation carries on business. The person seeking to rely on service at a place of business must depose to the fact that there is no registered office; otherwise service is ineffective if not made at the registered office.
Setting Aside Exparte Judgment — Requirements
A court has unlimited discretion to set aside an exparte judgment under Order 9 rule 12 of the Civil Procedure Rules, but will only exercise that discretion if the applicant satisfies the court that there is a reasonable explanation why the exparte judgment was entered and has produced evidence of a prima facie defence to the claim.
Exparte Judgment — Justice and Hearing on Merits
Where a defendant has shown an interest in being heard and the case involves serious issues that deserve to be resolved on merit, justice requires that the defendant be given an opportunity to be heard. To deny a subject a hearing should be the last resort of the court.

Legislation cited (9)

Cases cited (7)

  • Masaka Farmers and Produce Ltd v Aloysius Tamale & Anor (HCB 203 of 1992-93)
  • Kampala City Council v Apollo Hotel Corporation (HCB 77 of 1985)
  • Sherali Bandali Jaffer and others v Yefusa Weraga Seggane ([1972] 2 ULR 108)
  • Harriet Nankabirwa v Uganda Ecumerical Church Loan Fund Ltd (Miscellaneous Application No. 241 of 2004)
  • Jannadas Sodha v Gordhandas Hemraj ([1952] 7 ULR 11)
  • Sebei District Administration v Gasuhali & Others ([1968] EA 300)
  • Fr. Francis Payer v Kawalya Mwebe and Others (Civil Suit No. 194 of 1994)

Full judgment

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

Crane Bank Ltd v Kabuye Victoria (Mrs) (HCT-00-CC-MA 719 of 2007) [2007] UGCommC 104 (13 December 2007)
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.