Wakilii

Hermon Tesfalidet v Mehari Habtemicheal (Miscellaneous Application No. 384 of 2018)

High Court · [2018] UGCOMMC 33 · 2018 Application Granted AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Application for unconditional leave to appear and defend arising from summary suit for loan recovery
Decision
Applicant granted unconditional leave to defend and directed to file defence within ten days

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

The court granted the applicant leave to appear and defend a summary suit for loan recovery. The applicant claimed to have repaid the loan in two installments, one allegedly acknowledged in a document stolen from her, the other banked to an account she claimed belonged to the respondent's brother's company. The court found these claims raised triable issues requiring full hearing.

Outcome

Applicant granted unconditional leave to defend and directed to file defence within ten days

Facts

The applicant obtained a credit facility of USD 150,000 from the respondent on 15 July 2016 to execute subcontract road works through her company Tokor Engineering Limited. The loan was to be repaid in two installments by 31 August 2016 (USD 100,000) and 30 September 2016 (USD 50,000). The parties agreed to share profits from the subcontracts equally (50-50) with payment due by 31 October 2016. The respondent disbursed USD 150,000 to the applicant's KCB account through two transfers. The respondent sued claiming non-repayment. The applicant alleged she repaid UGX 360,000,000 in cash on 24 January 2017, acknowledged but the document was stolen, and UGX 100,000,000 on 8 November 2017 banked to an account she claimed belonged to the respondent's brother's company on the respondent's instructions.

Issues

  1. Whether the applicant has demonstrated triable issues sufficient to warrant leave to appear and defend the suit.
  2. Whether the applicant has a meritorious defence to the claim for loan repayment.

Orders

  • Application granted.
  • Applicant granted leave to appear and defend Civil Suit No. 333 of 2018.
  • Defence to be filed within ten days from the date of ruling.
  • Costs of this application to abide the decision of the suit.

Rules and key headnotes

Civil Procedure — Summary Procedure — Leave to Defend — Test for Granting Leave
Where an applicant seeking leave to defend a summary suit raises questions as to the identity of the account to which payment was made, the genuineness of alleged acknowledgments, and produces banking records showing transfers to a named company, such matters constitute triable issues warranting the grant of leave to appear and defend.

Full judgment

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

Hermon Tesfalidet v Mehari Habtemicheal (Miscellaneous Application No. 384 of 2018) [2018] UGCommC 33 (20 September 2018)
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.