Wakilii

Ggingo Mujje v Diamond Trust Bank Uganda Ltd (Miscellaneous Application No. 937 of 2016)

High Court · [2019] UGCOMMC 233 · 2019 Application Granted AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Application for unconditional leave to defend summary suit arising from Civil Suit No. 131 of 2016
Decision
Applicant granted unconditional leave to defend summary suit and ordered to file written statement of defence within 15 days

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

The Court granted the Applicant unconditional leave to defend the summary suit, finding three bona fide triable issues: discrepancies in the loan amounts disbursed and written off; uncertainty about the securities provided to secure the loan facilities; and inconsistencies in the loan balance outstanding. The defence was sufficiently particularised and genuine to warrant a full trial.

Outcome

Applicant granted unconditional leave to defend summary suit and ordered to file written statement of defence within 15 days

Facts

The Respondent bank brought a summary suit against the Applicant. The Applicant sought leave to defend and to file a written statement of defence out of time. Justice Madrama delivered a partial ruling on 31 March 2017 requiring further information. Bank statements showed a loan of UGX 1,880,000,000 issued on 21 September 2012 and another of UGX 2,054,000,000 disbursed on 20 December 2013. Both statements indicated the loan was written off on 29 March 2016 at UGX 1,714,247,146. The Applicant claimed various properties secured the facilities, but the Respondent produced mortgage documents for only some of them. Discrepancies existed between the bank statement figures and the Applicant's pleadings regarding the outstanding balance.

Issues

  1. Whether the Applicant has raised a plausible defence justifying unconditional leave to defend the summary suit.
  2. Whether there are triable issues regarding the exact amount owed by the Applicant to the Respondent.
  3. Whether there are triable issues regarding the securities provided for the loan facilities.
  4. Whether there are triable issues regarding the loan balance outstanding.

Orders

  • Application granted.
  • Applicant granted unconditional leave to defend the summary suit.
  • Applicant to file written statement of defence within 15 days from the date of this order.
  • Costs of this Application to abide the final outcome of Civil Suit No. 131 of 2016.

Rules and key headnotes

Summary Suit — Leave to Defend — Test for Unconditional Leave
A defendant seeking leave to defend a summary suit must show a genuine defence either in fact or in law sufficiently particularised to appear genuine; the defendant need not prove a good defence on the merits but must satisfy the court that there is an issue or question in dispute which ought to be tried.
Loan Facilities — Discrepancies in Loan Statements — Triable Issue
Where bank statements show discrepancies in the amounts disbursed and written off under different loan facilities to the same borrower, a triable issue arises as to the exact amount obtained and the amount owing, warranting leave to defend.
Securities for Loans — Incomplete Documentation — Triable Issue
Where a borrower claims multiple properties were provided as security for loan facilities but the lender produces mortgage documents for only some of them, a triable issue arises as to the existence and status of the other securities, justifying leave to defend.

Legislation cited (2)

Cases cited (1)

  • Isse Shekhnor Roble and Another v M.M.M Agro Dealers Ltd (Miscellaneous Application No. 514 of 2014)

Full judgment

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

Ggingo Mujje v Diamond Trust Bank Uganda Ltd (Miscellaneous Application No. 937 of 2016) [2019] UGCommC 233 (1 March 2019)
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.