MZ Paper Converters Limited v Uganda Pulp & Paper Mills Limited (Miscellaneous Application 176 of 2024)
Observed later treatment
No later-treatment classification is recorded for this judgment.
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Holding
Held that service of summons was effective where the process server delivered summons to the applicant's registered office in Mukono as shown on Company Form 18 and received by a human resource manager. The applicant failed to prove ineffective service or disclose a meritorious defence, having acknowledged indebtedness via WhatsApp communications but merely disputing the quantum without evidence. Application to set aside default judgment dismissed as lacking merit and constituting a delaying tactic.
Outcome
Application dismissed; default judgment in underlying suit remains valid and enforceable
Facts
The respondent filed Civil Suit No. 47 of 2023 as a summary suit claiming USD 107,975.703 for goods supplied on credit to the applicant. Service was effected on 6 November 2023 at the applicant's registered office in Mukono Namanve Industrial Park, received by Anne Nabwire, identified as a human resource manager. The applicant failed to apply for leave to appear and defend within the prescribed period. Default judgment was entered on 20 December 2023. The applicant learned of the judgment through a newspaper advertisement in July 2024 and filed this application on 5 August 2024 seeking to set aside the judgment, alleging non-service and disputing the quantum of the debt. Evidence showed prior WhatsApp communications between the parties discussing the debt and payment terms.
Issues
- Whether or not there was effective service upon the applicant?
- Whether or not the judgment and exparte decree should be set aside in the main suit?
- Whether or not the applicant be granted unconditional leave to appear and defend the main suit?
- What remedies are available to the parties?
Orders
- Application dismissed.
- Judgment and decree in Civil Suit No. 47 of 2023 remain valid and may be executed against the applicant.
- Costs of the application awarded to the respondent.
Rules and key headnotes
Legislation cited (18)
- Judicature Act Cap 13 s.33
- Judicature Act Cap 16 s.37
- Civil Procedure Act Cap 71 s.98
- Civil Procedure Act Cap 282 s.98
- Civil Procedure Rules SI 71-1 Order 36 rule 11
- Civil Procedure Rules Order 52 rule 1
- Civil Procedure Rules Order 5 rule 11(1)
- Civil Procedure Rules Order 5 rule 16
- Civil Procedure Rules Order 9 rule 27
- Civil Procedure Rules Order 36 rule 3
- Civil Procedure Rules Order 36 rule 4
- Civil Procedure Rules Order 6 rule 8
- Civil Procedure Rules Order 29 rule 2(b)
- Electronic Transactions Act Cap 99 s.4(1)
- Electronic Transactions Act Cap 99 s.4(4)
- Electronic Transactions Act Cap 99 s.18
- Evidence Act Cap 8 s.21
- Evidence Act Cap 8 s.22
Cases cited (18)
- Kaahwa Stephen & Another v Kalema Hannington (High Court Civil Appeal No. 7 of 2011)
- Makula International Ltd v Cardinal Emmanuel Nsubuga (HCB 11)
- Shah v Mbogo [1967] EA 116
- Patel v EA Cargo Handling Services Ltd [1974] EA 75
- Kundah Singh Construction Ltd v Tanzania National Roads Agency [2012] EA 104
- Busingye & Others vs Williams Katotsire (2001-2005)
- Wadamba v Mutasa & 2 Others (2017) UGHCLD 213
- Mulira v Cashflow Solutions Ltd (Miscellaneous Application No. 246 of 2017)
- Banco Arabe Espanol v Bank of Uganda [1999] UGSC 1
- Rugasira v Rubarema (Miscellaneous Application No. 464 of 2020)
- Mbabazi Sylvia v Kagoya P. Dinah (Civil Appeal No. 13 of 2020)
- Geoffrey Gatete & Another v William Kyobe (Supreme Court Civil Appeal No. 7 of 2005)
- Zirobwe Agali Awamu Agribusiness Training Association v Uganda Central Cooperative Financial Services & Another [2024] UGCommC 288
- Elizabeth Namazzi v Simon Mugerwa, 2021
- Kasagga v Walusimbi 2019
- Ssetimba vs UDB & another 2020
- Impressa Infortunato v Irene Nabwire (Supreme Court Civil Appeal No. 3 of 2000)
- Mahad Ssentongo v Asia Rizo Nabisere (Miscellaneous Application No. 843 of 2013)
Full judgment
The original judgment as reported. Read the original PDF before relying on any passage.