Kitongo William and Another v Lystra Investments Limited [2023] UGHC 544
Observed later treatment
No later-treatment classification is recorded for this judgment.
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Holding
An application to set aside a default judgment under Order 36 Rule 11 of the Civil Procedure Rules requires proof that service was ineffective or demonstration of good cause. Where applicants admitted effective service, failed to file an application for leave to appear and defend within the prescribed ten days, and provided no evidence that counsel was instructed but negligent, no sufficient cause was shown. An unserved application for extension of time does not suspend the mandatory requirement to apply for leave within the stipulated period. Application dismissed.
Outcome
Application to set aside default judgment dismissed; default judgment and decree in Civil Suit No. 999 of 2022 remain in force
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. After paying UGX 5,000,000, the first applicant defaulted. The respondent filed Civil Suit No. 999 of 2022. Summons were served on both applicants. The ten-day period to apply for leave to appear and defend expired without such application being filed. On 20 December 2022, applicants' lawyers created an application for extension of time (M.A. No. 036 of 2023) on ECCMIS, which was filed on 11 January 2023. On 12 January 2023, the Registrar entered default judgment. On 21 February 2023, the court closed the main suit and observed that M.A. No. 036 of 2023 had been overtaken by events. Applicants then filed the present application in April 2023 seeking to set aside the default judgment and decree.
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 52 Rule 1
- Civil Procedure Rules SI 71-1 Order 36 Rule 3(2)
- Tier 4 Microfinance Institutions Act s.69
- Tier 4 Microfinance Institutions Act s.88
Cases cited (3)
- Pinnacle Projects Limited v Business in Motion (HCMA No. 362 of 2010)
- Mugo v Wanjiri [1970] EA 481
- Banco Arabe Espanol v Bank of Uganda (SCCA No. 8 of 1998)
Full judgment
The original judgment as reported. Read the original PDF before relying on any passage.