Wakilii

Planbuild Technical Services Limited v DFCU Bank Limited and Another (H.C.Miscellaneous Application No. 913 of 2018)

High Court · [2021] UGCOMMC 40 · 2021 Application Dismissed AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Application to set aside consent judgment entered in civil suit
Decision
Application to set aside consent judgment dismissed

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

The court dismissed the application to set aside the consent judgment. The applicant failed to prove fraud, duress, or lack of consideration. The court found that the applicant had been provided with bank statements before signing the consent, acknowledged the debt, and made part payment pursuant to the consent. The receivership was terminated by the consent judgment itself. The delay of two years and eleven months in bringing the application was unreasonable and indicated the application was an afterthought.

Outcome

Application to set aside consent judgment dismissed

Facts

The applicant company had obtained credit facilities from the first respondent bank. A civil suit was filed by the applicant against the respondents alleging breach of contract, professional negligence, and fraud. The respondents counterclaimed for unpaid loan money totalling UGX 3,637,871,319. On 20 January 2016, the parties entered into a consent judgment whereby the bank agreed to discount the debt to UGX 2,200,000,000 payable in instalments, and the receivership was terminated. The applicant made part payment in March 2016. Two years and eleven months later, in November 2018, the applicant filed this application seeking to set aside the consent judgment on grounds of fraud, misrepresentation, duress, lack of consideration, and ignorance of material facts.

Issues

  1. Whether the consent judgment should be set aside on grounds of fraud or misrepresentation.
  2. Whether the applicant signed the consent judgment under duress or undue influence.
  3. Whether the consent judgment lacked consideration due to the respondent's alleged failure to terminate the receivership.
  4. Whether the applicant signed the consent judgment in ignorance of material facts relating to the actual status of the loan portfolio.
  5. Whether the application was brought without unreasonable delay.

Orders

  • Application dismissed.
  • Costs awarded to the respondents.

Rules and key headnotes

Consent Judgments — Setting Aside — Grounds
Consent judgments may be set aside on grounds that they were entered into without sufficient material facts, misapprehension or ignorance of material facts, or were actuated by illegality, fraud, mistake, contravention of court policy, or any reason that would enable a court to set aside an agreement.
Fraud — Standard of Proof
Fraud must be pleaded and strictly proved. Although the standard of proof in civil proceedings is not beyond reasonable doubt, it is certainly higher than on a balance of probabilities. Fraud involves acts of deceiving or misleading another party by suggesting something untrue, concealing known facts, or making promises without intention to perform.
Duress — Economic Duress — Requirements
For duress or economic duress to be proved, the claimant must show that they were subjected to illegitimate pressure to do that which they would not otherwise have done. Illegitimate pressure must be distinguished from the rough and tumble of normal commercial bargaining. Relevant factors include whether there was an actual or threatened breach of contract, whether the person exerting pressure acted in good or bad faith, whether the victim had any realistic alternative, whether they protested at the time, and whether they affirmed the contract.
Consent Judgments — Delay in Challenging — Effect
Where a party delays two years and eleven months before seeking to set aside a consent judgment, and makes part payment pursuant to the consent during that period, such delay is unreasonable and indicates that the challenge is an afterthought. A party claiming duress is expected to seek relief immediately upon having the opportunity to do so.
Receivership — Termination by Consent Judgment
Where a consent judgment expressly provides that a receivership is terminated by virtue of the consent, the receivership ceases to exist upon signing of the consent and there is nothing further for the creditor to lift.

Cases cited (2)

  • Edison Kanyabwera v Pastori Tumwebaze (2000-2005) HCB
  • DSND Sub Sea Ltd v Petroleum Geo-Services ASA [2000] BLR 530

Full judgment

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

Planbuild Technical Services Limited v DFCU Bank Limited and Another (H.C.Miscellaneous Application No. 913 of 2018) [2021] UGCommC 40 (24 August 2021)
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.