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Prepaid Meters Limited and Others v Maru Capital Limited (Miscellaneous Application 2628 of 2025)

High Court · [2025] UGCOMMC 535 · 2025 Application Partly Allowed AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Application to set aside ex parte judgment and execution proceedings arising from Civil Suit No. 984 of 2024
Decision
Default judgment upheld; execution proceedings set aside

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 default judgment, finding that service of the summons was effective and the applicants failed to prove good cause for not filing a defence. However, the court set aside the execution proceedings, holding that service of execution notices by email was ineffective where there was no evidence the email address belonged to the applicant or had been used for prior communication between the parties.

Outcome

Default judgment upheld; execution proceedings set aside

Facts

The 1st applicant, Prepaid Meters Limited, obtained a loan of UGX 58,296,000 from the respondent in 2022, repayable in three months with 7% monthly interest. The 2nd and 3rd applicants issued a deed of guarantee. The applicants made payments totalling UGX 60,000,000 but the respondent claimed an outstanding balance of UGX 43,183,920. The respondent filed Civil Suit No. 984 of 2024 claiming UGX 96,231,280. The summons was served on the 2nd applicant personally at KCB Bank Ndeeba on 22 August 2023. The applicants failed to file an application for leave to defend and a default judgment was entered. The respondent proceeded with execution, filing a bill of costs which was taxed after the 2nd applicant attended a pre-taxation meeting and consented to costs of UGX 8,371,554. The respondent then filed Execution Miscellaneous Application No. 0042 of 2025 and served notices to show cause by email. A warrant of arrest was issued for the 2nd and 3rd applicants on 17 March 2025.

Issues

  1. Whether the default judgment should be set aside.
  2. Whether execution of the decree in Civil Suit No. 984 of 2024 should be set aside for failure to serve the hearing notices of Execution Proceedings in EMA No. 0042 of 2025.

Orders

  • Application to set aside default judgment dismissed.
  • Execution proceedings in Execution Miscellaneous Application No. 0042 of 2025 set aside.
  • Execution orders issued under Execution Miscellaneous Application No. 0042 of 2025 set aside.
  • Costs of the application awarded to the applicants.

Rules and key headnotes

Civil Procedure — Setting Aside Default Judgment — Effective Service of Summons
Effective service of summons is service which produces the desired or intended result of notifying a party that a suit has been filed against them and requiring them to file a defence or application for leave to defend within the prescribed time.
Civil Procedure — Setting Aside Default Judgment — Good Cause
Good cause for setting aside a default judgment means a legally sufficient reason that relates to the ability or failure to take a particular step in time. The burden of proving good cause lies on the party seeking to set aside the judgment.
Civil Procedure — Electronic Service — Requirements for Effective Service by Email
For service by email to be considered valid and effective, it must be established that: (a) attempts at personal service were impractical, unsuccessful, or formally waived by court; (b) the email address indisputably belongs to the person being served; (c) there was a history of prior communication between the parties using that email address; and (d) the recipient had expressly or impliedly adopted the email address for official or formal correspondence.
Civil Procedure — Electronic Service — Purpose of Service
The purpose of service, whether physical or electronic, is to ensure that the contents of court documents are brought to the attention of the person to be served and to notify a party of the existence of a suit or hearing date.
Civil Procedure — Preliminary Objections — Citing Wrong Law
Where an application omits to cite any law at all or cites the wrong law, but the court has jurisdiction to grant the order sought, the irregularity or omission can be ignored and the correct law inserted.
Civil Procedure — Affidavits — Defective Affidavits
An affidavit is defective and should be struck off the record where the deponent named at the beginning of the affidavit differs from the person who swore the affidavit before the commissioner of oaths as stated at the end of the document.

Legislation cited (13)

Cases cited (9)

  • Saggu v Road Motor Cycles (U) Ltd [2002] 1 EA 258
  • Ogbagiorgis v Nakaye & 5 Others (Miscellaneous Application No. 2918 of 2024)
  • Post Bank (U) Limited v Abdu Ssozi (Supreme Court Civil Appeal No. 08 of 2015)
  • Busoga Co-operative Union Limited v Dharmesh (Miscellaneous Application No. 408 of 2010)
  • Geoffrey Gatete v William Kyobe (Civil Appeal No. 7 of 2005)
  • Guliano Garigio v Claudio Casadio (Supreme Court Civil Application No. 1 of 2013)
  • Male H. Mabirizi Kiwanuka v Attorney General (Miscellaneous Application No. 843 of 2021)
  • Abela v Baadarani [2013] UKSC 44
  • Barton v Wright Hassall LLP [2018] UKSC 12

Full judgment

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

Prepaid Meters Limited and Others v Maru Capital Limited (Miscellaneous Application 2628 of 2025) [2025] UGCommC 535 (16 December 2025)
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.