JIT MAT Uganda Limited v Oryx Energies Uganda Limited (Miscellaneous Application No. 2177 of 2025)
Observed later treatment
No later-treatment classification is recorded for this judgment.
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Holding
The High Court granted the applicant unconditional leave to appear and defend a summary suit for debt recovery. The court held that where an applicant demonstrates bona fide triable issues of fact or law, leave must be granted. The applicant raised a genuine dispute as to whether the debt had been fully settled through foreclosure of mortgaged property pursuant to a consent judgment in separate proceedings, creating a triable issue requiring full hearing.
Outcome
Applicant granted unconditional leave to defend the summary suit; matter to proceed to full hearing
Facts
The respondent supplied petroleum products to the applicant under a fuel supply agreement dated 8 June 2020. The applicant was to pay within 45 days of invoice. As security, the applicant provided land comprised in Plot 4, Block 287 at Mukonga, Singo in Mityana District registered in the name of Kyobe Jeremiah Kigundu. A mortgage was registered on 11 August 2020. The applicant defaulted on payment. In separate proceedings (Mubende High Court Civil Suit No. 120 of 2024), a consent judgment was entered on 12 March 2025 whereby 120 acres of the mortgaged land were to be transferred to the respondent in settlement of the mortgage debt. The applicant claimed this constituted full settlement of the debt. The respondent commenced summary suit proceedings (Civil Suit No. 0678 of 2025) claiming UGX 2,744,444,656 remained outstanding. Default judgment was granted on 17 September 2025 but set aside on 6 October 2025. The applicant then sought unconditional leave to defend, contending the debt had been fully settled through foreclosure.
Issues
- Whether the applicant ought to be granted unconditional leave to defend Civil Suit No. 0678 of 2025.
Orders
- The applicant is hereby granted unconditional leave to appear and defend Civil Suit No. 0678 of 2025.
- The applicant is directed to file his defence in respect of the respondent's claim within 10 days from the date of this ruling.
- The respondent is to file and serve his reply to the Written Statement of Defence within 5 days from service of the Written Statement of Defence.
- The respondent should extract summons for directions in accordance with the law.
- The costs of this application are in the cause if a defence is filed, but upon default they will be borne by the applicant.
Rules and key headnotes
Legislation cited (7)
Cases cited (6)
- 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
- Kinyanjui and another v Thande and another [1995-1998] 2 EA 159
- Provincial Insurance Co. of East Africa Ltd v Kivuti [1995-1998] 1 EA 283
- Children of Africa v Sarick Construction Ltd (Miscellaneous Application No. 134 of 2016)
Full judgment
The original judgment as reported. Read the original PDF before relying on any passage.