Lule Herman v UMA Savings And Credit Co-operative Society Limited (Miscellaneous Application No. 2627 of 2025)

Observed later treatment

No later-treatment classification is recorded for this judgment.

Citator coverage is limited to judgments in the Wakilii corpus and source-matched treatment records. Absence of a signal is not an assertion that the case remains good law.

Holding

The court held that the application was filed within time, overruling the preliminary objection. The applicant demonstrated triable issues regarding the loan amount, disbursement discrepancies, and accounting for payments and deductions. The court granted conditional leave to appear and defend, requiring the applicant to deposit UGX 20,000,000 in court within 30 days as a condition of leave.

Outcome

Applicant granted conditional leave to appear and defend upon depositing UGX 20,000,000 in court within 30 days

Facts

The applicant, a member of the respondent SACCO, applied for a loan of UGX 105,000,000 in 2019 at 16% interest per annum for 3 years. The loan was later rescheduled with interest reduced to 15%. The applicant contended he received only UGX 94,000,000 upon disbursement in December 2020, paid over UGX 20,000,000 toward the loan, and had shares, dividends and accrued interest totaling approximately UGX 1,425,283 applied toward the loan. The respondent filed a summary suit claiming UGX 81,466,201 as outstanding debt. The applicant disputed the amount, asserting inconsistencies in the respondent's accounting and that any indebtedness was less than UGX 80,000,000. The respondent maintained the applicant received UGX 105,000,000, paid only UGX 18,000,000, and that deductions from savings were lawful. The respondent also raised a preliminary objection that the application was filed one day out of time.

Issues

1. Whether the application for leave to appear and defend was filed within the mandatory 10-day period prescribed by Order 36 rule 3 of the Civil Procedure Rules.
2. Whether the applicant ought to be granted unconditional leave to appear and defend Civil Suit No. 0894 of 2025.

Orders

• The preliminary objection is overruled.
• The applicant is granted conditional leave to appear and defend Civil Suit No. 0894 of 2025.
• As a condition of leave being granted, the applicant is to deposit UGX 20,000,000 (Twenty million shillings) in Court within 30 days from this ruling, upon default leave lapses.
• The applicant is to file his defence within ten (10) days from the date of making such deposit.
• The costs of this application are in the cause in case a defence is filed, but upon default they will be borne by the applicant.

Rules and key headnotes

Legislation cited (12)

• Civil Procedure Act Cap. 282 s.98
• Civil Procedure Rules S.I 71-1 Order 36 rule 2
• Civil Procedure Rules S.I 71-1 Order 36 rule 3
• Civil Procedure Rules S.I 71-1 Order 36 rule 4
• Civil Procedure Rules S.I 71-1 Order 36 rule 8
• Civil Procedure Rules S.I 71-1 Order 52 rule 1
• Civil Procedure Rules S.I 71-1 Order 52 rule 2
• Civil Procedure Rules S.I 71-1 Order 52 rule 3
• Civil Procedure Rules S.I 71-1 Order 51 rule 2
• Civil Procedure Rules S.I 71-1 Order 51 rule 8
• Civil Procedure Rules S.I 71-1 Order 15 rule 3
• Interpretation Act Cap. 2 s.34

Cases cited (8)

• Nakumatt (U) Ltd v Mpororo Group Ltd & Ors (Miscellaneous Application No. 379 of 2017)
• MMK Engineering v Mantrust Uganda Ltd (Miscellaneous Application No. 128 of 2012)
• Maluku Interglobal Trade Agency V Bank of Uganda HCB 65
• Geoffrey Gatete & Anor v William Kyobe (Supreme Court Civil Appeal No. 70 of 2005)
• Kotecha Vs. Mohammed 1 EA 112
• Uganda Commercial Bank Vs Mukoome Agencies HCB 22
• William Kyobe v Geoffrey Gatete & Anor (Supreme Court Miscellaneous Application No. 10 of 2005)
• Post Bank (U) Limited v William Barigye (Civil Appeal No. 301 of 2018)

The original judgment as reported. Read the original PDF before relying on any passage.