Wakilii

Roko Construction Limited v Ruhweza Transpoetation and Construction (u) Limited (Civil Miscellaneous Application No. 831 of 2020)

High Court · [2021] UGCOMMC 8 · 2021 Application Granted AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Application for unconditional leave to appear and defend summary suit arising from debt claim for materials supplied
Decision
Applicant granted unconditional leave to defend 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 court granted unconditional leave to defend where the applicant raised triable issues regarding the quantum of debt allegedly owed. Without clear evidence of total contract sum, payments made in cash and in-kind, and the outstanding balance, a full trial was necessary to establish whether and to what extent the applicant was indebted. The court held that an accounts reconciliation was required to determine the true position between the parties.

Outcome

Applicant granted unconditional leave to defend summary suit; matter to proceed to full trial

Facts

Between 2018 and December 2019, the respondent supplied sand and transported stones to the applicant's construction sites under an oral contract. The respondent alleged that the applicant failed to pay the outstanding sum of UGX 426,500,568 and instituted a summary suit. The applicant contended that it made cash payments and in-kind deliveries of construction materials that offset the claimed debt. The applicant disputed the quantum claimed, noting that invoices attached totalled over one billion shillings, and sought accounts reconciliation. The respondent stated that after partial payments in cash and in-kind, the outstanding balance was UGX 457,135,268. The applicant filed an application for leave to appear and defend the summary suit.

Issues

  1. Whether the Applicant has raised triable issues of fact or law warranting the grant of unconditional leave to appear and defend the summary suit.
  2. Whether the Applicant has a bona fide defence on the merits to the claim for payment of UGX 426,500,568.
  3. Whether the claim for interest in a summary suit where no interest was agreed between the parties constitutes a triable issue.

Orders

  • The Applicant is granted unconditional leave to defend the main suit.
  • The Applicant shall file a Written Statement of Defence within 15 days from the date of this Ruling.
  • The costs of the application shall abide the result of the main suit.

Rules and key headnotes

Civil Procedure — Summary Suits — Leave to Appear and Defend — Test for Grant of Leave
Under Order 36 Rule 4 of the Civil Procedure Rules, unconditional leave to appear and defend a summary suit will be granted where the applicant shows a good defence on the merits, a difficult point of law, a real dispute as to the amount claimed requiring accounts to be taken, or any other circumstances showing reasonable grounds of a bona fide defence. The applicant must demonstrate triable issues or questions of fact or law in dispute which ought to be tried.
Civil Procedure — Summary Suits — Quantum in Dispute — Accounts Reconciliation
Where there is no clear and conclusive evidence regarding the total contract sum, total payments made in cash and in-kind, and the outstanding balance, the court cannot make a finding as to whether and to what extent a debt is owed. A call for accounts reconciliation in such circumstances raises a bona fide triable issue of fact requiring investigation through a full trial and constitutes reasonable grounds of defence entitling the defendant to unconditional leave to defend.
Civil Procedure — Summary Suits — Interest Claims — Effect on Summary Procedure
Under summary procedure, a liquidated claim within the meaning of Order 36 Rule 2 of the Civil Procedure Rules can only be accompanied with interest where interest was part of the parties' agreement. Where a claim including interest is brought under summary procedure and the document sued upon includes no agreement on interest, such claim of interest constitutes a triable issue. However, if the liquidated claim is properly brought and proved, the court may give judgment on the liquidated claim and allow the action to proceed in respect of the claim for interest.
Commercial Law — Debt Claims — Proof of Indebtedness — Burden on Plaintiff
In a summary suit for debt, contradictory figures claimed by the plaintiff in the plaint and in reply affidavits, absent clear documentary evidence, raise triable issues as to the true quantum of indebtedness. The court cannot enter summary judgment where the plaintiff's own pleadings contain material inconsistencies regarding the amount claimed.

Legislation cited (2)

Cases cited (11)

  • Benon Tomusange & Another Vs Exim Bank (U) Ltd
  • Maluku Interglobal Trade Agency v Bank of Uganda [1985] HCB 65
  • Shipping GL (U) Limited v P.N Mashru Limited (High Court Miscellaneous Application No. 1099 of 2017)
  • Begumisa George v East African Development Bank (High Court Miscellaneous Application No. 451 of 2010)
  • Post Bank (U) Limited v Abdul Kasozi (Supreme Court Civil Appeal No. 08 of 2015)
  • MMK Engineering v Mantrust Uganda Ltd (High Court Miscellaneous Application No. 128 of 2012)
  • Bhaker Kotecha v Adam Muhammed [2002] 1 EA 112
  • Children of Africa v Sarick Construction Ltd (High Court Miscellaneous Application No. 134 of 2016)
  • Uganda Transport Co Ltd v Count de la Pasture (3) (1954) 21 EACA 163
  • Arjabu Kasule v F T Kawesa [1957] EA 611
  • E M Cornwell & Co Ltd v Shantaguari Dahyabhai Desai (1941) 6 ULR 103

Full judgment

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

Roko Construction Limited v Ruhweza Transpoetation and Construction (u) Limited (Civil Miscellaneous Application No. 831 of 2020) [2021] UGCommC 8 (19 March 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.