Dalaus Katongole t a Ngoleda Stores v Stanbic Bank Uganda Ltd (Miscellaneous Application No. 1057 of 2025)
Observed later treatment
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Holding
The court held that the applicant raised triable issues of law and fact regarding the validity of the mortgage, alleged fraud and illegal deductions, and entitlement to set-off. The applicant was granted unconditional leave to appear and defend the summary suit, as the facts placed the matter outside the ambit of Order 36 of the Civil Procedure Rules.
Outcome
Applicant granted unconditional leave to appear and defend the main suit
Facts
The applicant, a customer of the respondent bank since 2012, obtained 52 loan facilities between 2016 and 2022. The latest facility of UGX 544,938,649 was disbursed on 31 October 2022. The applicant requested information about his loan accounts in August 2024 and commissioned an investigative audit which allegedly revealed fraud, illegal deductions, and overcharges totalling UGX 2,153,715,049. The applicant halted loan repayments and demanded a refund. The respondent filed a summary suit seeking recovery of UGX 427,593,725. The applicant contended that the mortgage was void because the certificate of title had been cancelled in Civil Suit No. 62 of 2010, that his wife's spousal consent forms were forged, and that he was entitled to set-off against the alleged overcharges. The respondent denied the allegations and argued that the applicant had no meritorious defence.
Issues
- Whether the Applicant has raised sufficient grounds to warrant the grant of unconditional leave to appear and defend High Court Civil Suit No. 430 of 2025.
- What remedies are available to the parties.
Orders
- The Applicant is hereby granted unconditional leave to appear and defend High Court Civil Suit No. 430 of 2025.
- The Applicant is ordered to file and serve his Written Statement of Defence within fifteen (15) days from the date of this Ruling.
- Costs of this application shall be in the cause.
Rules and key headnotes
Legislation cited (5)
Cases cited (6)
- Oriental Insurance Brokers Limited v Transocean (U) Limited (Supreme Court Civil Appeal No. 55 of 1995)
- Maluku Interglobal Trade Agency Ltd v Bank of Uganda [1985] HCB 65
- Children of Africa v Sarick Construction Limited (High Court Miscellaneous Application No. 134 of 2016)
- Jamil Ssenyonjo v Jonathan Bunjo (Civil Suit No. 180 of 2012)
- Twentsche Overseas Trading Co. Ltd v Bombay Garage [1958] EA 741
- Churanjilal & Co. v A.H Adam (1) [1950] 17 EACA 92
Cases citing this judgment (3)
How later Ugandan judgments in the Wakilii corpus have cited this case. Treatment labels come from Sequitur — Uganda’s citator — each backed by a verbatim span from the citing judgment, and are not an assertion that this case is, or is not, good law.
Full judgment
The original judgment as reported. Read the original PDF before relying on any passage.