Katto John v Bayonga Jackie (Civil Suit No. 0418 of 2025; Miscellaneous Application No.1074 of 2025)
Observed later treatment
No later-treatment classification is recorded for this judgment.
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Holding
Held that the applicant raised triable issues regarding whether the transaction was a business investment of UGX 100,000,000 or a loan of UGX 200,000,000, warranting leave to defend. However, the applicant's unequivocal admission of owing UGX 45,000,000 entitled the respondent to judgment on admission for that sum under Order 36 Rule 6. Leave to defend granted for disputed claims beyond the admitted amount.
Outcome
Judgment on admission entered for UGX 45,000,000; leave to defend granted for remainder of claim
Facts
The respondent initiated a summary suit seeking recovery of UGX 200,000,000 from the applicant. The applicant applied for leave to appear and defend, denying the alleged indebtedness. The applicant contended that the transaction was a business investment of UGX 100,000,000, not a loan of UGX 200,000,000 as claimed by the respondent. The applicant stated that two post-dated cheques were issued, with the second replacing the first which was allegedly misplaced. The applicant admitted having refunded UGX 55,000,000 in three installments and expressed willingness to pay a balance of UGX 45,000,000. The respondent maintained that she advanced a friendly loan of UGX 200,000,000 and that the applicant had only paid UGX 25,000,000. The parties disputed the nature of the transaction, the amount advanced, the amount repaid, and whether interest at 10% per month was agreed.
Issues
- Whether the Applicant has raised bona fide issues of law and fact sufficient to justify the grant of unconditional leave to appear and defend Civil Suit No. 0418 of 2025.
Orders
- Judgment entered against the Applicant in favor of the Respondent for UGX 45,000,000.
- The Applicant is granted leave to defend the suit with respect to the disputed claims beyond the admitted amount.
- The applicant shall file his written statement of defense within 10 days from this ruling.
- Costs of this application shall be in the main cause.
Rules and key headnotes
Legislation cited (7)
Cases cited (3)
- Maluku Interglobal Trade Agency v Bank of Uganda [1985] HCB 65
- MMK Engineering v Mantrust Uganda Ltd (Miscellaneous Application No. 128 of 2012)
- 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.