Wakilii

Nuwe Amanya Alex and Others v Ebo SACCO Ltd (Miscellaneous Application 213 of 2023)

High Court · [2026] UGHC 354 · 2026 Application Granted AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Application for unconditional leave to appear and defend a summary suit for recovery of loan debt
Decision
Applicants granted unconditional leave to defend the summary suit; matter to proceed to full trial

Observed later treatment

No later-treatment classification is recorded for this judgment.

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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

  1. Whether the applicants ought to be granted unconditional leave to appear and defend Civil Suit No. 40 of 2023.
  2. Whether the deponent to the affidavit in reply swore the affidavit without written authority from the respondent.
  3. Whether the affidavit in reply is tainted with falsehood.
  4. 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

Summary Suits — Leave to Appear and Defend — Test for Grant of Unconditional Leave
Unconditional leave to appear and defend a summary suit will be granted where the applicant demonstrates that there are issues or questions of fact or law in dispute which ought to be tried, or shows a state of facts which leads to the inference that at trial he may be able to establish a defence to the plaintiff's claim.
Summary Suits — Scope of Summary Procedure — When Summary Disposal Inappropriate
Summary procedure should only apply where there is no reasonable doubt that the plaintiff is entitled to judgment. 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 said to fall squarely within the limited scope of summary procedure.
Affidavits — Competence of Deponent — Knowledge or Belief
What is required in affidavits is the knowledge or belief of the deponent. A deponent who is the head of a department and fully aware of the facts of the case is competent to depose to the contents of an affidavit without obtaining separate written authority from the party, provided the deponent has personal knowledge of the facts or discloses the source of information.
Affidavits — Disclosure of Source of Information
Where an affidavit is based on information, the deponent must disclose the source of that information. Disclosure is satisfied where the deponent refers to and attaches a document as the source of the information.
Summary Suits — Frivolous Defences — What Constitutes a Bona Fide Triable Issue
A bona fide triable issue means any matter raised by the defendant which would require interrogation by the court during full trial. It need not be an issue that would succeed but one that warrants further interrogation. Mere denials of the plaintiff's claim are insufficient; the defendant must clearly disclose the nature and extent of the defence in clear language.

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

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

Nuwe Amanya Alex and Others v Ebo SACCO Ltd (Miscellaneous Application 213 of 2023) [2026] UGHC 354 (16 March 2026)
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.