Lease Ventures (U) Limited and Makweta Andrew Wilson v Christone Contractors Limited (Miscellaneous Application No. 2306 of 2025)
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 appear and defend, finding that the applicants failed to raise any triable issue of fact or law. The applicants acknowledged receiving payment for a motor vehicle they failed to deliver, voluntarily executed a refund agreement, and made partial payments under that agreement. Their defence was not bona fide. Judgment was entered for the respondent for UGX 197,000,000 with interest at 20% per annum from the date of default and costs.
Outcome
Application dismissed; judgment entered for respondent for UGX 197,000,000 with interest and costs
Facts
The respondent paid UGX 245,000,000 to the first applicant for the supply of a brand new Toyota Hilux Double Cabin Pick-up under a vehicle sales contract dated 5 March 2024. The applicants failed to deliver the motor vehicle. On 25 February 2025, the second applicant individually and voluntarily executed a refund agreement accepting to repay UGX 245,000,000 by the end of April 2025. By 7 May 2025, the applicants had refunded only UGX 28,000,000. The respondent instituted Civil Suit No. 982 of 2025 seeking recovery of UGX 217,000,000. After the suit was filed, the applicants paid a further UGX 20,000,000 on 15 September 2025, leaving an outstanding balance of UGX 197,000,000. The applicants applied for leave to appear and defend, contending that they had delivered the vehicle but the respondent refused to acknowledge receipt, and that the refund agreement was executed under pressure.
Issues
- Whether the Applicants have raised sufficient grounds to warrant the grant of leave to appear and defend Civil Suit No. 982 of 2025.
- What remedies are available to the parties.
Orders
- Application for leave to appear and defend dismissed.
- Judgment entered for the Respondent/Plaintiff under Order 36 rule 5 of the Civil Procedure Rules.
- The Applicants/Defendants shall pay the Respondent/Plaintiff UGX 197,000,000 being the current outstanding balance due and owing.
- Interest awarded on the sum at the rate of 20% per annum from the date of default until payment in full.
- Costs of the application and the suit awarded to the Respondent/Plaintiff.
Rules and key headnotes
Legislation cited (8)
- Civil Procedure Act Cap. 282 s.26(2)
- Civil Procedure Act Cap. 282 s.27(2)
- Civil Procedure Act Cap. 282 s.98
- Civil Procedure Rules SI 71-1 Order 36 rule 3(1)
- Civil Procedure Rules SI 71-1 Order 36 rule 4
- Civil Procedure Rules SI 71-1 Order 36 rule 5
- Civil Procedure Rules SI 71-1 Order 52 rule 1
- Civil Procedure Rules SI 71-1 Order 52 rule 3
Cases cited (8)
- Maluku Interglobal Trade Agency Ltd v Bank of Uganda [1985] HCB 65
- Jamil Ssenyonjo v Jonathan Bunjo (High Court Civil Suit No. 180 of 2012)
- Bhaker Kotecha v Adam Mohammed [2002] 1 EA 112
- Twentsche Overseas Trading Co. Ltd v Bombay Garage Ltd [1958] EA 741
- Post Bank (U) Limited v Abdu Ssozi (Supreme Court Civil Appeal No. 8 of 2015)
- Ndibazza Naima v Acacia Finance Limited (High Court Miscellaneous Application No. 1144 of 2014)
- Milly Masembe v Sugar Corporation (U) Ltd and Another (Supreme Court Civil Appeal No. 1 of 2000)
- Uganda Development Bank v Muganga Construction Co. Ltd [1981] HCB 35
Full judgment
The original judgment as reported. Read the original PDF before relying on any passage.