James Mwangushya Driers v Centenary Rural Development Bank Ltd (Miscellaneous Application No. 1802 of 2024)
Observed later treatment
No later-treatment classification is recorded for this judgment.
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Holding
Held that the application to set aside default judgment failed on preliminary grounds for non-service within 21 days as required by Order 5 Rule 1(2) of the Civil Procedure Rules. On the merits, the court found that service via WhatsApp was effective where the summons was sent to the applicant's registered number and showed blue ticks indicating delivery and reading. The applicant failed to demonstrate a plausible defence by not attaching a draft defence or providing sufficient particulars. Application dismissed with costs.
Outcome
Application dismissed for lack of merit; default judgment in Civil Suit No. 1145 of 2023 stands
Facts
The applicant obtained two loans totalling UGX 328,000,000 from the respondent bank in 2019, securing them with his home valued at UGX 590,000,000. He defaulted during COVID-19 and requested rescheduling, which was denied. The bank foreclosed and sold the property for UGX 350,000,000, leaving an outstanding balance of UGX 128,014,109. The bank filed Civil Suit No. 1145 of 2023 and obtained default judgment. The applicant applied to set aside the judgment, claiming improper service, though the summons had been sent via WhatsApp to his registered number. The application was filed on 13 November 2024 with hearing set for 27 November 2024. The respondent contended that service of the application itself was effected outside the mandatory 21-day period under Order 5 Rule 1(2) of the Civil Procedure Rules.
Issues
- Whether there are sufficient grounds to warrant setting aside the default judgment entered by this Honorable Court in Civil Suit No. 1145 of 2023?
- Whether there are sufficient grounds for leave to appear and defend the suit to be granted?
Orders
- Application dismissed.
- Costs awarded to the Respondent.
Rules and key headnotes
Legislation cited (12)
- Civil Procedure Act s.98
- Civil Procedure Rules Order 36 Rule 11
- Civil Procedure Rules Order 51 Rule 6
- Civil Procedure Rules Order 52 Rules 1 and 2
- Civil Procedure Rules Order 5 Rule 1
- Civil Procedure Rules Order 5 Rule 1(2)
- Civil Procedure Rules Order 5 Rule 2
- Civil Procedure Rules Order 5 Rule 3
- Civil Procedure Rules Order 5 Rule 10
- Civil Procedure Rules Order 9 Rule 27
- Civil Procedure Rules Order 6 Rule 8
- Constitution (Integration of ICT into the Adjudication Processes for Courts of Judicature) (Practice) Directions Rule 7(2)(c)
Cases cited (21)
- Bet City (U) Limited & Jamal Sultan v Swangz Avenue (U) Ltd (Miscellaneous Application No. 1177 of 2020)
- Micheal Mulo Mulagussi v Peter Katabalo (Miscellaneous Appeal No. 006 of 2016)
- Kanyabwera v Tumwebwa (2005) 2 EA 86
- Stop and See (U) Ltd v Tropical Africa Bank Ltd (Miscellaneous Application No. 333 of 2010)
- M.M Sheikh Dawood v Kenshwala and Sons (High Court Civil Suit No. 14 of 2009)
- TUI UK Ltd (Respondents) v Griffiths (Appellant) [2023] UKSC 48
- Mbogo v Shah (1968) EA 93
- Nicholas Rousos Rousos v Gulam Hussein Virani and Another (Supreme Court Civil Appeal No. 9 of 1993)
- Patel v E.A Cargo Handling Services (1974) EA 76
- Abela and others v. Baadarani, Trinity Term (2013) UKSC 44
- Gray v. Hurley [2019] EWHC 1636 (QB)
- Male H. Mabirizi v Attorney General (High Court Miscellaneous Application No. 918 of 2021)
- Musumba Isaac Isanga v Quid Financials Ltd (High Court Miscellaneous Application No. 139 of 2020)
- Nyanzi Fred Sentamu v The Electoral Commission and 2 others (Court of Appeal Miscellaneous Application No. 10 of 2021)
- Peace Barigye v Rosemary Kizza Omamteker (High Court Miscellaneous Application No. 2075 of 2022)
- Saw v Hakim 5 TLR 72
- Ray v Barker 4 Ex DI 279
- Churanjilal & Co. v A. H. Adam (1950) 17 EACA 92
- Hasmani v Banque du Congo Belge (1938) 5 EACA 89
- Pamela Anyoti v Root Capital Inc (High Court Miscellaneous Application No. 844 of 2023)
- Ecobank Uganda Limited v Kalson's Agrovet Concern Ltd & Anor (High Court Civil Suit No. 573 of 2016)
Full judgment
The original judgment as reported. Read the original PDF before relying on any passage.