Gatete and Another v Kyobe (Civil Appeal No 57 of 2004)
Observed later treatment
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.
Appeal & case history
Follow this matter from the decision below through each appellate court.
See the court’s words
“C and for the reasons he has ably given, I agree with him that this appeal be allowed.”
AI-generated summary. This summary was generated by AI from the full text of the judgment. It may contain errors or omissions—always read the source judgment before relying on it.
Holding
The Court of Appeal dismissed an appeal against the refusal to set aside a consent judgment entered in a summary suit. It held that service on one partner constituted good service on the firm under O.27 r.3 CPR, and failure to file an affidavit of service was not fatal. A partner had ostensible authority to borrow on behalf of the firm; internal restrictions requiring written consent did not bind a third party without notice (Partnership Act s.9). The alleged illegality under the Money Lenders Act, raised for the first time on appeal, could not be entertained. Fraud was inadequately pleaded and unproved, and the Registrar acted within power under O.46 r.2 in entering the consent judgment.
Outcome
Appeal dismissed; the High Court ruling refusing to set aside the consent judgment stands
Facts
The appellants and Matsiko Kasiimwe were partners in a registered firm, GMT Group, engaged in import and export. By internal agreement, a partner could borrow for the partnership only with the prior written authority of the other partners. By agreement dated 8 February 2002, Matsiko borrowed 17 million shillings from the respondent, William Kyobe, on behalf of the partnership, repayable by 30 March 2002 with interest of 50,000 shillings per day on default. Matsiko defaulted. The respondent filed a summary suit under O.33 CPR against the partnership. Matsiko signed a consent judgment with the respondent's counsel, which the Registrar entered on 18 April 2002. The other partners, claiming they were unaware of the borrowing and the consent judgment until execution, applied to set aside the decree and for leave to defend, alleging lack of service, fraud, and that Matsiko acted in his individual capacity. The High Court dismissed the application, prompting the appeal.
Issues
- Whether the summons in the summary suit was effectively served on the partnership through service on one partner.
- Whether the borrowing partner acted within his ostensible authority in borrowing money on behalf of the partnership.
- Whether the appellate court should entertain the alleged illegality of the loan agreement not raised before the trial court.
- Whether fraud had been sufficiently pleaded and proved to justify setting aside the consent judgment.
- Whether the Registrar had jurisdiction to enter the consent judgment in the summary suit.
Orders
- Appeal dismissed.
- Costs awarded to the respondent in the Court of Appeal and in the High Court.
Rules and key headnotes
Legislation cited (8)
- Civil Procedure Rules O.27 r.3
- Civil Procedure Rules O.33 r.3
- Civil Procedure Rules O.33 r.6
- Civil Procedure Rules O.33 r.11
- Civil Procedure Rules O.46 r.2
- Civil Procedure Rules O.6 r.2
- Partnership Act (Cap 114) s.9
- Money Lenders Act s.3(1)
Cases cited (2)
- Kampala Bottlers Ltd v Dominico (U) Ltd (Civil Appeal No. 22 of 1992)
- Okello-Okello v UNEB (Civil Appeal No. 12 of 1997)
Cases citing this judgment (2)
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.