Edwin Baruma Twinomuhwezi v Ellis Biryahwaho (Miscellaneous Application No. 457 of 2026)
Observed later treatment
No later-treatment classification is recorded for this judgment.
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Holding
The High Court granted the applicant unconditional leave to appear and defend a summary suit for breach of contract. The court found sufficient cause for the late filing of the application, as the applicant had been admitted to a health facility at the time of substituted service. The court held that triable issues of law and fact existed, including whether funds were disbursed, whether an alleged agent was authorized to receive money, and whether the corporate veil could be lifted to impose personal liability on the applicant as a director.
Outcome
Applicant granted unconditional leave to appear and defend the main suit
Facts
The respondent instituted Civil Suit No. 876 of 2025 against the applicant and DI International Limited seeking recovery of USD 480,000 allegedly advanced as loans between September 2019 and January 2022. The respondent claimed that on 12 September 2019, October 2019, and December 2021, he advanced interest-free loans totaling USD 480,000 to the applicant, and that on 20 January 2022, DI International Limited, acting through the applicant, executed a loan agreement and promissory note. The applicant was served by substituted service via newspaper publication on 8 January 2026. The applicant averred that at the time of service, he was admitted at Focus on Recovery Health Facility for mental health treatment from 9 January 2026 to 6 March 2026, and therefore did not learn of the suit. The applicant denied entering into any loan agreement in his individual capacity, denied appointing Jeremiah Emmanuel to receive money on his behalf, and stated that no money was exchanged when DI International Limited refused to approve the loan borrowing.
Issues
- Whether the time within which to file the application for leave to appear and defend Civil Suit No. 876 of 2025 should be extended?
- Whether the Applicant has raised sufficient grounds to warrant the grant of unconditional leave to appear and defend Civil Suit No. 876 of 2025?
- What remedies are available to the parties?
Orders
- The Applicant is hereby granted unconditional leave to appear and defend Civil Suit No. 876 of 2025.
- The Applicant shall file and serve his Written Statement of Defence within fifteen (15) days from the date of this Ruling.
- The Respondent shall file and serve his reply to the Written Statement of Defence within fifteen (15) days from the date of service of the Written Statement of Defence.
- Costs of this application shall be in the cause.
Rules and key headnotes
Legislation cited (11)
- Civil Procedure Act Cap. 282 s.98
- Judicature Act Cap. 16 s.37
- Civil Procedure Rules SI 71-1 Order 36 rule 3(1)
- Civil Procedure Rules SI 71-1 Order 36 rule 3(4)
- Civil Procedure Rules SI 71-1 Order 36 rule 3(8)
- Civil Procedure Rules SI 71-1 Order 52 rule 1
- Civil Procedure Rules SI 71-1 Order 52 rule 3
- Civil Procedure Rules SI 71-1 Order 6 rule 28
- Civil Procedure Rules SI 71-1 Order 15 rule 3
- Civil Procedure Rules SI 71-1 Order 51 rule 6
- Constitution of the Republic of Uganda 1995 Article 126(2)(e)
Cases cited (10)
- Oriental Insurance Brokers Limited v Transocean (U) Limited (Supreme Court Civil Appeal No. 55 of 1995)
- Uganda Telecom Limited v ZTE Corporation (Supreme Court Civil Appeal No. 03 of 2017)
- Kasaala Growers Co-operative Society v Kakooza Jonathan and Another (Supreme Court Civil Appeal No. 19 of 2010)
- Banco Arabe Espanol v Bank of Uganda (Supreme Court Civil Appeal No. 8 of 1998)
- Hadondi Daniel v Yolamu Egondi (Court of Appeal Civil Appeal No. 67 of 2003)
- Nicholas Roussos v Gulam Hussein Habib Virani and Another (Supreme Court Civil Appeal No. 9 of 1993)
- Maluku Interglobal Trade Agency Ltd v Bank of Uganda [1985] HCB 65
- Jamil Ssenyonjo v Jonathan Bunjo (High Court Civil Suit No. 180 of 2012)
- Twentsche Overseas Trading Co. Ltd v Bombay Garage Ltd [1958] EA 741
- Churanjilal & Co. v A.H Adam (1950) 17 EACA 92
Full judgment
The original judgment as reported. Read the original PDF before relying on any passage.