Wakilii

National Social Security Fund v Byamugisha Advocates (HCT- 00- CC-MC 792 of 2002)

High Court · [2013] UGCOMMC 57 · 2013 Application Dismissed AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Application to set aside default judgment arising from suit for recovery of taxed costs
Decision
Application to set aside default judgment dismissed; default judgment stands

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

Held: Application dismissed. Service on the corporation secretary was proper and effective under O.29 r.2 of the Civil Procedure Rules. The applicant failed to establish any ground to set aside the default judgment entered following proper service. The application for stay of execution failed to satisfy the requirements under O.43 r.4(3), as the applicant did not demonstrate substantial loss, the application was delayed, and no security was offered. Leave to appear and defend was refused where the applicant had consented to taxation of the advocate-client bill of costs before the Deputy Registrar and could not subsequently challenge the taxed amount without authority.

Outcome

Application to set aside default judgment dismissed; default judgment stands

Facts

The National Social Security Fund (applicant) filed Misc. Cause No. 27 of 2011 seeking taxation of the respondent advocate's bill of costs for handling Civil Suit No. 12555 of 1998 and related arbitration. On 19 October 2011, both parties appeared before the Deputy Registrar and consented to taxation. The bill was taxed separately on 28 August 2012 and allowed at UGX 379,817,359. The respondent subsequently filed Civil Suit No. 526 of 2012 for recovery of the taxed costs. Service of summons was effected on the applicant's corporation secretary, David Nambale, on 13 November 2012. The applicant failed to enter appearance or file a defence, and default judgment was entered. The applicant then brought this application seeking to set aside the default judgment, stay execution, and obtain leave to appear and defend, alleging ineffective service and lack of authority from the Attorney General for the legal services contract.

Issues

  1. Whether the default judgment and decree entered in Civil Suit No. 526 of 2012 should be set aside on the ground of ineffective service or other good cause.
  2. Whether execution of the decree in Civil Suit No. 526 of 2012 should be stayed.
  3. Whether the applicant should be granted leave to appear and defend the suit.

Orders

  • Application dismissed with costs.

Rules and key headnotes

Civil Procedure — Service of Process — Service on Corporations
Service of court process on the corporation secretary of a corporate entity is proper and lawful service under O.29 r.2 of the Civil Procedure Rules.
Civil Procedure — Setting Aside Default Judgment — Grounds
A default judgment will not be set aside where service was properly effected on the appropriate officer of a corporation and no other sufficient cause is shown. The person served must be the one to swear an affidavit denying service, not a third party.
Civil Procedure — Stay of Execution — Requirements under O.43 r.4(3)
An applicant seeking stay of execution must satisfy three requirements: that substantial loss may result unless the order is made; that the application has been made without unreasonable delay; and that security has been given for due performance of the decree. Failure to satisfy any requirement is fatal to the application.
Civil Procedure — Stay of Execution — Substantial Loss
Payment for legal services properly rendered and taxed does not constitute substantial loss for purposes of obtaining a stay of execution, as it represents value for money.
Civil Procedure — Leave to Appear and Defend — Consent to Taxation
Where parties have consented before the Deputy Registrar to taxation of an advocate-client bill of costs and the bill has been taxed and a certificate of taxation issued, a party cannot subsequently be granted leave to appear and defend on the ground that there was no authority from the Attorney General for the legal services contract. Having consented to the process, a party cannot make a u-turn and challenge the basis of the retainership.

Legislation cited (6)

  • Judicature Amendment Act 2002 s.14(1)
  • Judicature Amendment Act 2002 s.33
  • Civil Procedure Act s.98
  • Civil Procedure Rules O.36 r.11
  • Civil Procedure Rules O.29 r.2
  • Civil Procedure Rules O.43 r.4(3)

Cases cited (3)

  • Tropical Commodities Suppliers Ltd v International Credit Bank Ltd (In Liquidation) (2004) 2 EA 331
  • Kotecha v Mohamed (2002) 1 EA 112
  • Maluku Interglobal Trade Agency Ltd v Bank of Uganda (1983) HCB 63

Full judgment

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

National Social Security Fund v Byamugisha Advocates (HCT- 00- CC-MC 792 of 2002) [2013] UGCommC 57 (5 April 2013)
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.