Elizabeth Muganza and Ors v Ecumenical Church Loan Fund Ltd (HCT-00-CC-MA 177 of 2005)
Observed later treatment
No later-treatment classification is recorded for this judgment.
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Holding
The court dismissed the application for leave to appear and defend, finding that the applicants failed to raise a triable issue. While the applicants admitted receiving a loan, they provided evasive and vague denials regarding the amount borrowed and outstanding, without disclosing particulars. Their denial of a contractual term was demonstrably false. A mere denial without particulars does not suffice to raise a triable issue. Judgment was entered for the respondent for the sum claimed.
Outcome
Judgment entered for the respondent with interest at court rate
Facts
The applicants, trading as Makabu Women's Association, were defendants in a suit for recovery of a loan advanced by the respondent. In June 2000, the respondent loaned money to the applicants for their businesses. The respondent claimed Shs. 21,000,000 was advanced with repayment in six instalments, and that Shs. 5,117,600 remained outstanding. The applicants applied for leave to appear and defend, denying they received Shs. 21,000,000 and disputing the outstanding amount. They claimed the agreement provided for repayment after one year rather than in six instalments, and alleged that some members had paid their portions under a subsequent agreement. The respondent did not attend the hearing despite proof of service.
Issues
- Whether the applicants raised a triable issue sufficient to warrant leave to appear and defend the suit.
- Whether a mere denial of the quantum of a loan claim is sufficient to establish a good defence.
- Whether the applicants' affidavit evidence disclosed sufficient particulars to raise a triable issue.
Orders
- Application for unconditional leave to appear and defend dismissed.
- Judgment entered for the respondent in the sum claimed in the plaint.
- No order as to costs (proceedings were ex parte).
- Interest at court rate from the date of filing the suit until payment in full.
Rules and key headnotes
Legislation cited (2)
Cases cited (2)
- Photo Focus (U) Ltd v Group Four Security Ltd (Court of Appeal Civil Appeal No. 30 of 2000)
- Zola and Another v Ralli Brothers Limited and Another [1969] EA 691
Full judgment
The original judgment as reported. Read the original PDF before relying on any passage.