Kitongo & Another v Lystra Investment Limited (Miscellaneous Application 544 of 2023)
Observed later treatment
No later-treatment classification is recorded for this judgment.
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Holding
The court dismissed the application to set aside a default judgment. The applicants failed to prove sufficient cause under Order 36 Rule 11 of the Civil Procedure Rules. Effective service of summons was admitted. The applicants did not adduce evidence that they instructed counsel who failed to file an application for leave to appear and defend. The default judgment was properly entered by the Registrar in the absence of any timely application for leave to appear and defend within the prescribed ten-day period.
Outcome
Application to set aside default judgment dismissed; default judgment in Civil Suit No. 999 of 2022 stands
Facts
The first applicant obtained a loan of UGX 25,236,000 from the respondent at 20% monthly interest, secured by a motor vehicle. The second applicant was guarantor. The first applicant paid UGX 5,000,000 and defaulted on the balance. The respondent filed Civil Suit No. 999 of 2022. Summons were served on the applicants. The applicants did not file an application for leave to appear and defend within the prescribed ten days. On 20 December 2022, the applicants' lawyers submitted Miscellaneous Application No. 036 of 2023 for extension of time and leave to appear and defend, filed on 11 January 2023. Default judgment was entered on 12 January 2023. On 21 February 2023, the court closed the main suit and observed that M.A. No. 036 of 2023 had been overtaken by events. A similar application appears to have been filed in February 2023, and the present application was filed in April 2023.
Issues
- Whether this is a proper case for setting aside the Judgment/Decree in Civil Suit No. 999 of 2022 and granting the Applicants leave to appear and defend the said suit.
Orders
- Application dismissed.
- Costs awarded to the Respondent.
Rules and key headnotes
Legislation cited (7)
- Civil Procedure Act Cap 71 s.98
- Judicature Act Cap 13 s.33
- Civil Procedure Rules SI 71-1 Order 36 Rule 11
- Civil Procedure Rules SI 71-1 Order 36 Rule 3(2)
- Civil Procedure Rules SI 71-1 Order 52 Rule 1
- Tier 4 Microfinance Institutions Act s.69
- Tier 4 Microfinance Institutions Act s.88
Cases cited (3)
- Pinnacle Projects Limited v Business in Motion (High Court Miscellaneous Application No. 362 of 2010)
- Mugo v Wanjiri [1970] EA 481
- Banco Arabe Espanol v Bank of Uganda (Supreme Court Civil Appeal No. 8 of 1998)
Full judgment
The original judgment as reported. Read the original PDF before relying on any passage.