Nuwe Amanya Alex and Others v Ebo SACCO Ltd (Miscellaneous Application 213 of 2023)
Observed later treatment
No later-treatment classification is recorded for this judgment.
Citator coverage is limited to judgments in the Wakilii corpus and source-matched treatment records. Absence of a signal is not an assertion that the case remains good law.
AI-generated summary. This summary was generated by AI from the full text of the judgment. It may contain errors or omissions—always read the source judgment before relying on it.
Holding
The High Court granted the applicants unconditional leave to appear and defend a summary suit for loan recovery. The court held that where an applicant challenges the existence of any indebtedness and provides evidence of payment, and where the respondent fails to attach a statement of account showing the claimed debt, the claim cannot be disposed of summarily. The nature of the facts and triable issues required full trial with oral evidence and cross-examination, not summary disposal.
Outcome
Applicants granted unconditional leave to defend the summary suit; matter to proceed to full trial
Facts
The respondent filed a summary suit against the applicants for recovery of UGX 85,579,789 being unpaid principal loan and accrued interest, based on a loan agreement dated 3 February 2022. The 1st applicant was the borrower and the 2nd to 4th applicants were guarantors. The applicants denied being indebted, contending that the 1st applicant had fully paid the loan. They challenged the validity of service of summons, alleged the loan agreement was illegal due to misrepresentation of interest rates (claimed to be 3% but allegedly 36% per annum), and asserted they were never issued with notice of default. The applicants attached evidence of payment to their affidavit. The respondent maintained the debt existed and that the loan agreement clearly stated 3% monthly interest (36% per annum).
Issues
- Whether the applicants ought to be granted unconditional leave to appear and defend Civil Suit No. 40 of 2023.
- Whether the deponent to the affidavit in reply swore the affidavit without written authority from the respondent.
- Whether the affidavit in reply is tainted with falsehood.
- Whether the deponent to the affidavit in reply disclosed the source of information.
Orders
- Unconditional leave to appear and defend Civil Suit No. 40 of 2023 is granted.
- The applicants are ordered to file written statement(s) of defence within 15 days from the date of this ruling.
- Costs of this application shall be in the cause.
Rules and key headnotes
Legislation cited (7)
Cases cited (11)
- Makerere University v St. Mark Education Institute and Others (Court of Appeal Civil Appeal No. 40 of 1992)
- Taremwa Kantishani and Others v Attorney General and 2 Others (Miscellaneous Cause No. 13 of 2012)
- Bankone Limited v Simbamanyo Estates Limited (Miscellaneous Application No. 13 of 2020)
- Post Bank Uganda Ltd v Abdu Ssozi (Supreme Court Civil Appeal No. 8 of 2021)
- Maluku Intersglobal Trade Agency v Bank of Uganda [1985] HCB 65
- The Board of Governors Nebbi Town S.S.S v Jaker Food Stores Limited (Miscellaneous Civil Application No. 0062 of 2016)
- Visare Uganda Limited v Muwema and Co. Advocates and Solicitors (Miscellaneous Application No. 0826 and 0822 of 2021)
- Dr. Gabriel Waswa v Makerere University (HCMA No. 253/2015)
- Kinyanjui and Another v Thande and Another [1995-1998] 2 EA 159
- Allen Isinsoma Vs Alex Muhirwe and others Criminal Case No of 2012
- Standard Foods Corporation Ltd v Harakchard Nahus & Co. [1950] 17 EACA
Full judgment
The original judgment as reported. Read the original PDF before relying on any passage.