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Life Pharma Africa Ltd v Matovu & Anor (Miscellaneous Application No. 328 of 2016)

High Court · [2017] UGCOMMC 13 · 2017 Application Granted AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Application to set aside ex parte default judgment and for leave to file defence out of time, arising from Civil Suit No. 998 of 2015
Decision
Default judgment set aside; applicant granted leave to file defence subject to depositing US$20,040 in court as security within 30 days

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Holding

The High Court set aside a default judgment on the ground that there was no evidence that an authorised officer of the applicant company capable of receiving court process had been served. The process server failed to identify the person served or establish whether they were a director, secretary, or principal officer as required by Order 29 rule 2 of the Civil Procedure Rules, read with Order 5 rule 16 requiring particulars of the person served. The court granted leave to file a defence but required the applicant to deposit US$20,040 in court as security within 30 days.

Outcome

Default judgment set aside; applicant granted leave to file defence subject to depositing US$20,040 in court as security within 30 days

Facts

The applicant company Life Pharma Africa Ltd was sued in Civil Suit No. 788 of 2015 for US$80,000. A default judgment was entered on 1st February 2016 after the applicant failed to file a defence. The applicant discovered the suit only on 20th April 2016 when served with a notice to show cause why execution should not issue. The applicant alleged that summons were served on a staff member named Saleem who was not a director and who failed to forward the summons to responsible officers. The process server's affidavit stated service was effected on one of the defendant company directors but did not name this person, while the return of summons showed receipt by Saleem with the company seal dated 12th December 2015. The applicant claimed to have paid US$59,960 of the decretal sum according to receipts dated January-April 2014.

Issues

  1. Whether the default judgment issued on 1st February 2016 should be set aside on grounds of defective service of summons.
  2. Whether the applicant should be granted leave to file a written statement of defence out of time.
  3. Whether service of summons on a staff member who is not a director, secretary, or principal officer of a corporation constitutes effective service under Order 29 rule 2 of the Civil Procedure Rules.

Orders

  • Default decree and judgment entered on 1st February 2016 set aside on the ground that there is no evidence that the authorised officer of the applicant capable of receiving court process had been served.
  • Applicant shall deposit in court a sum of US$20,040 as security for payment of the respondent pending the hearing of the suit.
  • The deposit shall be made within 30 days from the date of this order.
  • Applicant shall file a defence within 14 days from the date of this order and serve the respondents.
  • Costs of the application shall abide the outcome of the main suit.

Rules and key headnotes

Service of Process — Corporations — Requirements for Valid Service
Service of summons on a corporation must be effected on a secretary, any director, or other principal officer of the corporation, or by leaving it or sending it by post addressed to the corporation at the registered office. The serving officer must identify the person served and indicate whether that person is a director, secretary, or principal officer. Failure to establish the capacity of the person served renders service defective.
Service of Process — Affidavit of Service — Particulars Required
Order 5 rule 16 of the Civil Procedure Rules requires the serving officer to state in the affidavit of service the time when and manner in which summons was served, and the name and address of the person served. When read with Order 29 rule 2, this requirement extends to indicating the calibre of the person served if the defendant is a corporation. The burden is on the process server to indicate whether a principal officer, director, or secretary has been served.
Default Judgments — Setting Aside — Defective Service
Where there is no evidence that an authorised officer of a corporation capable of receiving court process has been served with summons, the court will set aside a default judgment entered for failure to file a defence. The provisions as to service support the fundamental rule of fair trial, which includes due notice of summons on the defendant.
Default Judgments — Leave to Defend — Conditions
Where a default judgment is set aside due to defective service but the applicant acknowledges partial liability by evidence of payments made to the plaintiff, the court may grant leave to file a defence subject to the condition that the applicant deposit the difference between the decretal sum and admitted payments as security for the plaintiff pending trial.

Legislation cited (11)

Cases cited (9)

  • Emiru Angose v Jas Projects Limited (High Court Miscellaneous Application No. 429 of 2005)
  • Henry Kawalya v J Kinyakwanzi (1975) HCB 372
  • Africana Clays Limited v Harriet Arinaitwe (High Court Miscellaneous Application No. 367 of 2013)
  • Livingstone Nsumba Membe v Fibiano Mayoga (High Court Civil Appeal No. 632 of 2007)
  • Nicholas Roussos v Gulamhussein Viran (Supreme Court Civil Appeal No. 9 of 1993)
  • Re Vic Groves & Co Ltd [1964] 2 All ER 839
  • Kampala City Council v Apollo Hotel Corporation [1985] HCB 77
  • Remco Ltd v Mistry Jadva Parbat and Co Ltd and others [2002] 1 EA 233
  • Augustine Okurut v Gerald Lwasa and Produce Marketing Board [1988-1990] HCB 164

Full judgment

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Life Pharma Africa Ltd v Matovu & Anor (Miscellaneous Application No. 328 of 2016) [2017] UGCommC 13 (20 January 2017)
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.