Godfrey Kamulegeya v Standard Chartered Bank (U) Ltd (Civil Suit No. 0301 of 2025; Miscellaneous Application No. 1075 of 2025)

Observed later treatment

No later-treatment classification is recorded for this judgment.

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.

Holding

The High Court granted the applicant unconditional leave to appear and defend a summary suit for loan recovery. The court held that the applicant established a bona fide defence by raising triable issues concerning the extent of his permanent disability, the insurance policy coverage, and whether the insurer properly waived further payments. The conflicting medical reports assessing disability at 85% versus 12% required full hearing and examination of evidence.

Outcome

Applicant granted unconditional leave to defend the summary suit; matter to proceed to full hearing

Facts

In November 2021, the applicant obtained an insured salary loan of UGX 100,000,000 from the respondent bank at 17.5% interest, repayable over 60 months. The loan was insured by Prudential Assurance Uganda Limited against death, permanent total disability, and retrenchment. In May 2022, the applicant was diagnosed with a spinal illness causing severe back pain and restricted mobility. Medical specialists assessed his disability at 85% and recommended immediate medical retirement. The applicant informed the respondent, who engaged the insurer. The respondent later informed the applicant that the insurer would take over loan repayment. However, the insurer made only partial payments from January 2023 before ceasing payments. The respondent filed a summary suit seeking recovery of UGX 57,626,317. The respondent contended that a medical examination assessed the applicant's disability at only 12%, leading the insurer to waive further payments on grounds that the applicant was not permanently incapacitated. The applicant applied for leave to defend, asserting triable issues regarding the correct disability assessment, the validity of the insurer's waiver, and the need for account reconciliation.

Issues

1. Whether the applicant ought to be granted unconditional leave to defend HCCS No. 0301 of 2025.
2. What remedies are available to the parties?

Orders

• Application allowed.
• Applicant directed to file his defence within 10 days from the date of this ruling.
• Respondent to file and serve reply to the Written Statement of Defence within 5 days from service.
• Respondent to extract summons for directions in accordance with the law.
• No order as to costs.

Rules and key headnotes

Legislation cited (5)

• Civil Procedure Rules S.I 71-1 Order 36 rules 3 and 4
• Civil Procedure Rules S.I 71-1 Order 52 rules 1 and 3
• Civil Procedure Rules S.I 71-1 Order 15 rule 3
• Civil Procedure Rules S.I 71-1 Order 36 rule 4
• Civil Procedure Act Cap. 282 s.27

Cases cited (5)

• Board of Governors Rwenzori College of Commerce v Muliwabyo (Miscellaneous Application No. 83 of 2021)
• M.M.K Engineering v Mantrust Uganda Ltd (Miscellaneous Application No. 128 of 2012)
• Bhaker Kotecha v Adam Muhammed [2002] 1 EA 112
• Maluku Interglobal Trade Agency v Bank of Uganda [1985] HCB 65
• Children of Africa v Sarick Construction Ltd (Miscellaneous Application No. 134 of 2016)

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