Wakilii

Kamagero Isabirye v Barclays Bank Uganda Ltd (Miscellaneous Application No. 688 of 2018)

High Court · [2019] UGCOMMC 229 · 2019 Application Granted AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Application for unconditional leave to appear and defend in a summary suit arising from a loan default claim
Decision
Applicant granted unconditional leave to appear and defend; written statement of defence to be filed within 14 days

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

Held that the applicant raised bona fide triable issues of fact regarding liability for the outstanding loan amount, particularly whether the insurance policy covering the salary loan in the event of job loss transferred liability to the insurance company. The intended written statement of defence disclosed sufficient grounds beyond a general denial to justify further inquiry on evidence. Unconditional leave to appear and defend granted.

Outcome

Applicant granted unconditional leave to appear and defend; written statement of defence to be filed within 14 days

Facts

The applicant obtained a personal salary loan of UGX 80,000,000 from the respondent bank in May 2016, repayable in 60 monthly instalments of UGX 2,490,000 at 28% per annum interest. The loan was insured. The applicant subsequently lost his job and defaulted on repayments. As at July 2018, the outstanding balance was UGX 70,198,058. The bank filed a summary suit for recovery. The applicant contended that the loan was insured and that the insurance policy covered the loan in the event of job loss, making the insurance company liable for the outstanding balance. The respondent maintained that the applicant remained personally liable despite the job loss.

Issues

  1. Whether the application raises triable issues to warrant the grant of leave to appear and defend the main suit.

Orders

  • Application succeeds.
  • Applicant granted unconditional leave to appear and defend in Civil Suit No. 653 of 2018.
  • Applicant to file written statement of defence within 14 days from the date of this ruling.
  • Costs of this application to abide the outcome of the suit.

Rules and key headnotes

Civil Procedure — Summary Suits — Leave to Appear and Defend — Test for Grant
Before leave to appear and defend is granted in a summary suit, the defendant must show by affidavit or otherwise that there is a bona fide triable issue of fact or law. The defendant is not bound to show a good defence on the merits but should satisfy the court that there is an issue or question in dispute which ought to be tried, and the court should not enter upon the trial of the issues disclosed at this stage.
Civil Procedure — Summary Suits — Bona Fide Triable Issue — Defence Going Beyond General Denial
Where a defendant's intended written statement of defence goes beyond a general denial and discloses sufficient ground to justify further inquiry on evidence into the matter, the defendant raises bona fide triable questions and issues of fact warranting the grant of unconditional leave to appear and defend.
Insurance — Loan Insurance — Salary Loan Insurance — Loss of Employment — Triable Issue of Liability
Where a defendant raises a material issue regarding liability for an outstanding loan amount on the basis that the loan was insured and the insurance policy covers the loan in the event of job loss, and the plaintiff insists on the claim without debunking this denial of liability, a triable issue arises which can only be determined by adducing evidence at trial to determine whether the defendant or the insurance company is liable for the outstanding amount.
Civil Procedure — Summary Suits — Dispute as to Amount — Need for Reconciliation of Accounts
Where there is a real dispute as to the amount claimed which requires taking an audit or reconciliation of records to determine, unconditional leave to appear and defend the suit must be granted.

Legislation cited (4)

Cases cited (8)

  • Makula Interglobal Trade Agency Ltd v Bank of Uganda [1985] HCB 65
  • Abubakar Kato Kasule v Tomson Muhwezi [1992-93] HCB 212
  • Lucy Katuramu v Virunga Finances Limited (Miscellaneous Application No. 104 of 2016)
  • Jonathan Bunjo v KCB (U) Ltd (Miscellaneous Application No. 174 of 2014)
  • Marsenne (U) Ltd and Others v Stanbic Bank (U) Ltd (Miscellaneous Application No. 482 of 2014)
  • Corporate Insurance Co. Ltd v Nyali Beach Hotel Ltd [1995-1998] EA 7
  • Uganda Commercial Bank v Mukoome Agencies [1982] HCB 22
  • Kotecha Vs. Mohammed

Full judgment

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

Kamagero Isabirye v Barclays Bank Uganda Ltd (Miscellaneous Application No. 688 of 2018) [2019] UGCommC 229 (25 January 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.