Musinguzi Alwyn Carl Garuga v Muhebwa Benson (Civil Revision No. 5 of 2024)
Observed later treatment
No later-treatment classification is recorded for this judgment.
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Holding
The High Court partly allowed the revision application. The court held that the Chief Magistrate's Court had jurisdiction to hear the small claims matter as it did not involve a contract of service or for service. However, the award of expenses to the respondent contravened Rule 29 of the Judicature (Small Claims Procedure) Rules 2011, which requires each party to bear their own expenses. The court revised the judgment by setting aside the awards of UGX 200,000 for service expenses and UGX 79,000 for filing fees, and removed the interest component, but upheld the principal refund order of UGX 4,000,000.
Outcome
Revision application partly allowed; principal refund order upheld but expenses and interest awards set aside
Facts
The applicant and respondent were negotiating a mortgage transaction whereby the applicant would advance UGX 147,000,000 to the respondent as a loan secured by the respondent's certificate of title. The respondent paid UGX 4,000,000 to the applicant to facilitate the loan: UGX 1,000,000 for valuation and UGX 3,000,000 for stamp duty. The transaction did not materialize because the applicant discovered the security was encumbered and already used in another loan transaction. The respondent was not refunded the UGX 4,000,000. The respondent filed a small claim in the Chief Magistrate's Court of Nakawa seeking recovery of the money. The Chief Magistrate found in favour of the respondent on the principle of money had and received, ordering refund of UGX 4,000,000 plus interest at 8% per annum, and awarded UGX 200,000 for service expenses and UGX 79,000 for filing fees. The applicant sought revision of this judgment.
Issues
- Whether the Affidavit in reply is competently filed before this Honourable Court.
- Whether the application discloses grounds for revision.
Orders
- The applicant refunds the respondent UGX 4,000,000 being monies for a loan processing activity which never materialized.
- Each party bears its own costs.
- The award of UGX 200,000 as expenses spent on service of court process is set aside.
- The award of UGX 79,000 as filing fees is set aside.
- The award of interest at 8% per annum on the decretal sum is set aside.
Rules and key headnotes
Legislation cited (17)
- Civil Procedure Act Cap. 282 s.83
- Civil Procedure Act Cap. 282 s.98
- Judicature (Small Claims Procedure) Rules 2011 r.5
- Judicature (Small Claims Procedure) Rules 2011 r.29
- Judicature (Small Claims Procedure) Rules 2011 r.33
- Civil Procedure Rules S.I 71-1 Order 8 r.1(2)
- Civil Procedure Rules S.I 71-1 Order 12 r.3(2)
- Civil Procedure Rules S.I 71-1 Order 5 r.10
- Civil Procedure Rules S.I 71-1 Order 5 r.14
- Civil Procedure Rules S.I 71-1 Order 5 r.16
- Civil Procedure Rules S.I 71-1 Order 15 r.3
- Evidence Act Cap. 8 s.101
- Evidence Act Cap. 8 s.102
- Evidence Act Cap. 8 s.103
- Sale of Goods and Supply of Services Act s.3
- Magistrates Courts Act Cap. 19 s.207(1)(b)
- Constitution of Uganda Article 126(2)(e)
Cases cited (18)
- Sserunjoji Bernard v Sekyanzi Adrian (Miscellaneous Cause No. 28 of 2024)
- Serefaco Consults Ltd v Euro Consult BV (Civil Application No. 16 of 2007)
- Prof. Baryamureeba Venansius v St. Augustine International University Ltd & Anor (Civil Suit No. 295 of 2018)
- Makula International Ltd v His Eminence Cardinal Nsubuga & Anor (1982) HCB 11
- Auto Garage v Motokov [1971] 514
- Kensheka v Uganda Development Bank (High Court Civil Suit No. 469 of 2011)
- Edison Kanyabwera v Pastori Tumwebaze [2001-2005] HCB 98
- Stop and See (U) Ltd v Tropical Africa Bank Ltd (High Court Miscellaneous Application No. 333 of 2010)
- Senyonjo v Wakiso District Local Government Council & Another (Miscellaneous Cause No. 232 of 2023)
- Dr. Lam Lagoro James v Muni University (High Court Miscellaneous Cause No. 7 of 2016)
- Munobwa Mohamed v Uganda Moslem Supreme Council (Civil Revision No. 1 of 2006)
- Kisame Samson v Ali Kiyinkibi [2010] UGHC 21
- Twine Amos v Tamusuza James (Civil Revision No. 11 of 2009)
- Arimazan Zziwa v Angella Kintu (High Court Miscellaneous Application No. 7 of 1993)
- Natukunda and Another v Kato (Review Cause No. 11 of 2019)
- Okullu and Another v Ocepa (Labour Dispute Reference No. 9 of 2022)
- Isaac Aluoch Polo Aluochier v The Senate & 2 Ors Petition No. E014 of 2025
- Raila Odinga & another v Independent Electoral and Boundaries Commission & 2 others; Aukot & another (Interested Parties); Attorney General & another (Amicus Curiae) (Presidential Election Petition 1 of 2017) [2017] KESC 42 (KLR)
Full judgment
The original judgment as reported. Read the original PDF before relying on any passage.