Madodi Abdullah and Others v Marikom Investments Ltd (Civil Appeal No. 126 of 2024)
Observed later treatment
No later-treatment classification is recorded for this judgment.
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Holding
An appeal from an order refusing leave to appear and defend in summary suit proceedings under Order 36 rule 5 of the Civil Procedure Rules does not lie as of right. Leave of court must first be obtained under Order 44 rule 2 before instituting such an appeal. Where leave is not obtained, the appeal is incompetent and must be dismissed.
Outcome
Appeal dismissed as incompetent for failure to obtain leave of court
Facts
The Respondent, a money lending company, sued the Appellants under a summary plaint for recovery of UGX 32,000,000 arising from a loan agreement dated 31 August 2023. The 1st Appellant had borrowed UGX 20,000,000 repayable in three months at 20% monthly interest, with the 2nd and 3rd Appellants as guarantors. The Appellants applied for unconditional leave to appear and defend, arguing the transaction violated the Tier 4 Microfinance Money Lenders Act 2016 and the Contracts Act 2010. The trial magistrate refused leave and entered judgment for the Respondent. The Appellants appealed directly to the High Court without first obtaining leave to appeal.
Issues
- Whether the appeal was competent without first obtaining leave of court to appeal from an order refusing leave to appear and defend
Orders
- First preliminary objection upheld.
- Appeal dismissed.
- Costs awarded to the Respondent.
Rules and key headnotes
Legislation cited (7)
Cases cited (8)
- Banco Arabe Espanol v Bank of Uganda (Supreme Court Civil Appeal No. 8 of 1998)
- Pandya v. R. [1957] 336
- Nakato Kyabanji Katusiime v Kenroy Investments Limited (Court of Appeal Civil Appeal No. 177 of 2014)
- Nakato Kyabanji Katusiime v Kenroy Investment Limited (Court of Appeal Civil Appeal No. 177 of 2014)
- Lukwago Erias v KCCA (Supreme Court Civil Application No. 6 of 2014)
- Dr Sheik Ahmed Mohamed Kisuule v Greenland Bank (in liquidation) (Supreme Court Civil Appeal No. 11 of 2010)
- Makhangu vs Kibwana (1995-1998) 1 EA 175
- Baku Raphael Obudra and Obiga Kania v Attorney General (Supreme Court Constitutional Appeal No. 1 of 2005)
Full judgment
The original judgment as reported. Read the original PDF before relying on any passage.