Wakilii

Micro -Power Group Limited v Re -Union Estates Limited (Civil Miscellaneous Application No. 1046 of 2020)

High Court · [2021] UGHCLD 72 · 2021 Application Dismissed AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Application to set aside substituted service and any orders or judgment passed in absence of applicant, arising from High Court Civil Suit No. 487 of 2015
Decision
Application to set aside substituted service dismissed; substituted service held to be effective

Observed later treatment

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Holding

The court held that substituted service was effective where a company director was personally served with summons but refused to acknowledge receipt, and subsequent substituted service orders remained unchallenged for over two years. Service on a director under Order 29 rule 2 of the Civil Procedure Rules constitutes personal service to the company itself. The application to set aside the substituted service and any orders passed in the applicant's absence was dismissed.

Outcome

Application to set aside substituted service dismissed; substituted service held to be effective

Facts

The respondent filed Civil Suit No. 487 of 2015 against Uganda Land Commission, the Attorney General, and the applicant company. The first two defendants were served ordinarily and filed defences. Multiple attempts to serve the applicant at its registered address failed. A search at the company registry revealed that Enoth Mugabi Advocates & Solicitors were the company secretaries. When the process server attempted service at that firm, Mr. Mugabi (who was also a director and shareholder of the applicant company) received the documents but refused to acknowledge service. The respondent then obtained court orders for substituted service, which was effected through publication in the Daily Monitor on 15 October 2015 and again on 18 June 2020. The applicant failed to file a defence. Mr. Mweru Michael, claiming to be the managing director, stated he only learned of the 18 June 2020 substituted service on 19 August 2020 through a colleague at the Ministry of Justice. The applicant then filed this application to set aside the substituted service and any orders passed in its absence.

Issues

  1. Whether there was effective service of summons by way of substituted service on the applicant/3rd defendant to merit the prayer sought.

Orders

  • Application dismissed.
  • Costs awarded to the respondent.

Rules and key headnotes

Service of Process — Substituted Service on Companies — Service on Company Director
Under Order 29 rule 2 of the Civil Procedure Rules, service of summons on a company may be effected by serving a secretary, any director, or other principal officer of the corporation. Service on a director constitutes personal service to the company itself and is effective even if the director refuses to acknowledge receipt.
Service of Process — Effective Service — Meaning and Test
Effective service of summons means service that produces the desired or intended result, which is to make the defendant aware of the suit brought against him so that he has the opportunity to respond by either defending the suit or admitting liability and submitting to judgment. Service is effective if it achieves this result, regardless of whether the defendant actually becomes aware of it.
Service of Process — Substituted Service — Effect and Presumption
According to Order 5 rule 18(2) of the Civil Procedure Rules, substituted service is as effectual as if it has been made on the defendant personally. Whenever court directs that a party be served with summons by way of substituted service, that service is deemed proper and effective if the party does not file a defence, and it remains effective as long as it is not challenged.
Service of Process — Substituted Service — Time of Knowledge Irrelevant
The law presumes that the moment notice of substituted service is published, the party for whom it is intended is effectively served, regardless of when or whether the affected party became aware of it. The time when the served party learns about the proceedings becomes inconsequential once substituted service has been properly effected.
Service of Process — Requirements for Hearing Notices — Distinction from Summons to File Defence
Order 5 rule 2 of the Civil Procedure Rules, which requires service of summons to include the plaint, brief summary of evidence, list of witnesses, documents and authorities, does not apply to service of hearing notices on a party who has already been served with summons to file a defence but has refused to comply. A party who refuses to file a defence after being served ousts himself of the jurisdiction of court.

Legislation cited (13)

Cases cited (4)

  • Kyambogo University v The Heights Limited (Miscellaneous Application No. 954 of 2015)
  • Geoffrey Gatete and Angela Maria Nakigonya v William Kyobe (SCCA No. 7 of 2005)
  • Valery Alia v Allionzi John [2012] UGCOMMC 20
  • Didi v Namakajjo (1989) 1 KALR 180

Full judgment

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

Micro_-Power_Group_Limited_v_Re_-Union_Estates_Limited_(Civil_Miscellaneous_Application_No._1046_of_2020)_[2021]_UGHCLD_72_(8_April_2021)
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.