Wakilii

Kato v Crane Bank Ltd (Miscellaneous Application 123 of 2017)

High Court · [2018] UGCOMMC 7 · 2018 Application Dismissed AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Application for leave to appear and defend arising from summary suit for recovery of debt under personal guarantee
Decision
Summary judgment entered against the Defendant for UGX 231,547,352/= with continuing contractual interest

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

The court dismissed the application for leave to defend where the applicant, who had guaranteed a company overdraft, failed to provide evidence of payments allegedly made and conceded liability for the principal sum. The court found no triable issue had been raised and entered summary judgment for UGX 231,547,352/= with continuing contractual interest and costs.

Outcome

Summary judgment entered against the Defendant for UGX 231,547,352/= with continuing contractual interest

Facts

Ascot Associates Ltd obtained an overdraft of UGX 135,000,000/= from Crane Bank Ltd, guaranteed by Emmanuel Kato. The company defaulted on repayment and the debt accumulated to UGX 253,547,352/= including interest and penalties. Crane Bank instituted a suit and obtained summary judgment. Kato applied for leave to appear and defend, claiming that Ascot Associates had paid more than the UGX 22,000,000/= credited by the bank, but could not specify the amounts paid and provided no receipts. In his proposed defence, Kato conceded the principal debt of UGX 135,000,000/= and offered to pay it at 24% interest per annum.

Issues

  1. Whether the Applicant has raised a triable issue warranting leave to appear and defend the suit.
  2. Whether the Applicant has demonstrated a bona fide and meritorious defence to the claim for UGX 253,547,352/=.

Orders

  • Application for leave to appear and defend dismissed with costs.
  • Judgment entered in favour of the Plaintiff in the sum of UGX 231,547,352/=.
  • The sum continues to attract interest as contractually agreed upon until payment in full.
  • The Defendant to bear the costs of the suit.

Rules and key headnotes

Banking & Finance — Personal Guarantees — Burden of Proof on Guarantor Alleging Payment
Where an applicant guarantor claims that payments have been made to reduce the guaranteed debt, the applicant must specify the amounts paid and provide documentary evidence such as receipts; failure to do so means no triable issue is raised.
Civil Procedure — Summary Suits — Leave to Defend — Requirements for Raising Triable Issues
In determining whether to grant leave to defend in a summary suit, the court requires concrete defences supported by evidence, not guesswork or bare assertions; a defence that concedes the principal debt and disputes only the quantum of interest without supporting documentation does not raise a triable issue.

Full judgment

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

Kato v Crane Bank Ltd (Miscellaneous Application 123 of 2017) [2018] UGCommC 7 (1 March 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.