Owori v UMA Savings & Credit Cooperative Society Limited (Miscellaneous Application 2860 of 2023)
Observed later treatment
No later-treatment classification is recorded for this judgment.
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Holding
An application for leave to appear and defend a summary suit must be filed within 10 days from service of summons. Where a defendant's authorized legal representatives receive summons on his behalf, this constitutes valid service. An application filed 13 days after service, without justification for the delay, is incompetent and must be struck off. Summary judgment follows automatically under Order 36 Rule 5 of the Civil Procedure Rules.
Outcome
Application struck off as incompetent; summary judgment entered for the plaintiff/respondent for loan arrears with interest
Facts
The applicant was a member of the respondent SACCO and obtained a loan of UGX 520,000,000 in March 2018, secured by residential and land properties. The loan was to be repaid with 16% interest over 36 months. The respondent filed a summary suit (Civil Suit No. 1341 of 2023) to recover loan arrears. The applicant's legal representatives, Nyombi & Co. Advocates, received service of the summons and plaint on 14 November 2023. The applicant filed this application for leave to appear and defend on 27 November 2023, 13 days after service. The applicant contended there were disputes about the quantum owed, inclusion of penalty interest, and that the respondent had given him until September 2024 to clear the loan. The respondent opposed, asserting the application was filed out of time and that the claimed amount was acknowledged by the applicant's former lawyers.
Issues
- Whether this application is competent.
- Whether the Applicant has a bonafide defence which raises a triable issue in the Civil Suit No. 1341 of 2023.
Orders
- Application struck off the Court record.
- Summary judgment entered in Civil Suit No. 1341 of 2023 in favour of the Respondent/Plaintiff against the Applicant/Defendant under Order 36 Rule 5 of the Civil Procedure Rules S.I. 71-1.
- Applicant/Defendant to pay UGX 189,068,114 being the outstanding loan arrears to the Respondent/Plaintiff.
- Applicant/Defendant to pay interest to the Respondent on the sum at the rate of 15% per annum from 1st October 2023 until payment in full.
- Costs of this application and those of Civil Suit No. 1341 of 2023 awarded to the Respondent/Plaintiff.
Rules and key headnotes
Legislation cited (7)
Cases cited (1)
- Sirasi Bitaitana v Emmanuel Kananura (1977) HCB 34
Full judgment
The original judgment as reported. Read the original PDF before relying on any passage.