Wakilii

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

High Court · [2019] UGCOMMC 13 · 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 arising from summary suit for loan recovery
Decision
Applicant granted unconditional leave to defend the main suit

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

Held that an applicant who denies liability for an outstanding loan amount on the basis that the loan was insured against loss of employment raises a bona fide triable issue. Where the respondent bank does not rebut this defence, the applicant is entitled to unconditional leave to defend the summary suit to determine who bears the outstanding liability.

Outcome

Applicant granted unconditional leave to defend the main suit

Facts

The applicant obtained a personal loan of UGX 80,000,000 from the respondent bank in May 2016, repayable in 60 monthly instalments at 28% per annum. The applicant defaulted on repayments and the bank instituted a summary suit claiming UGX 70,198,058 as at July 2018. The applicant applied for unconditional leave to appear and defend, contending that the loan was insured against loss of employment and that since he lost his job, the insurance company should pay the outstanding balance. The bank maintained that the applicant was personally liable for the debt.

Issues

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

Orders

  • Application granted.
  • 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 shall 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 was an issue or question in dispute which ought to be tried.
Civil Procedure — Summary Suits — Denial of Liability — Sufficiency
Where a defendant in a loan recovery suit raises a material issue regarding liability based on loan insurance covering the claimed amount and the plaintiff does not rebut this defence, the defendant raises a bona fide triable issue entitling them to unconditional leave to defend.
Civil Procedure — Summary Suits — Real Dispute as to Amount
Where there is a real dispute as to the amount claimed which requires taking an audit or reconciliation to determine, the defendant is entitled to unconditional leave to appear and defend the suit.

Legislation cited (4)

Cases cited (8)

  • Maluku 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 Ors 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 v Barclays Bank (U) Ltd (Miscellaneous Application No. 688 of 2018) [2019] UGCommC 13 (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.