Wakilii

Roko Construction Limited v Uganda Breweries Limited (Miscellaneous Application 2016 of 2024)

High Court · [2025] UGCOMMC 547 · 2025 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 arising from Civil Suit No. 0989 of 2024
Decision
Applicant granted unconditional leave to defend the summary suit

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

The court granted unconditional leave to appear and defend where the applicant raised bona fide triable issues including whether a construction contract was fully performed, whether the final account reconciliation was disputed, and whether an arbitration clause barred the summary suit. The applicant disputed owing UGX 157,611,127 as unrecovered advance payment, contending it completed the works and the respondent owed it money instead. The court held that these disputes could not be determined without hearing evidence from both parties and were not suitable for summary judgment.

Outcome

Applicant granted unconditional leave to defend the summary suit

Facts

The Respondent contracted the Applicant to carry out construction works for the CAPEX Expansion Foundation of 6 No. DPV Tanks and advanced UGX 578,268,983 to facilitate commencement of works. The advance payment was to be recovered through interim payment certificates as construction progressed. The Respondent alleged the Applicant failed to complete the works within agreed timelines, prompting issuance of a Certificate of Non-Completion dated 13 November 2020. A reconciliation of accounts was conducted with the Applicant's participation, resulting in a final account which the Respondent contended showed an outstanding balance of UGX 157,611,127 as unrecovered advance payment. The Applicant disputed the final account, contending it performed the contract to completion and that the Respondent owed it UGX 45,940,214. The Respondent instituted a summary suit for recovery of the alleged debt, and the Applicant applied for leave to appear and defend.

Issues

  1. Whether the Applicant should be granted unconditional leave to appear and defend Civil Suit No. 0989 of 2024.
  2. Whether the Applicant has demonstrated a bona fide triable issue of fact or law warranting leave to defend.
  3. Whether the suit is barred by section 9 of the Arbitration and Conciliation Act due to an arbitration clause.
  4. Whether the Applicant fully recovered the advance payment through performance of the contract.
  5. Whether the final account is disputed and requires investigation.

Orders

  • The Applicant is granted unconditional leave to appear and defend Civil Suit No. 0989 of 2024.
  • Costs of this application shall abide the outcome of the main suit.

Rules and key headnotes

Civil Procedure — Summary Suits — Leave to Appear and Defend — Test for Grant
Before leave to appear and defend a summary suit is granted, the defendant must show by affidavit or otherwise that there is a bona fide triable issue of fact or law. The defendant is not bound to show a good defence on the merits but should satisfy the court that there is an issue or question in dispute which ought to be tried.
Civil Procedure — Summary Suits — Purpose of Application for Leave to Defend
In an application for leave to appear and defend a summary suit, the court is not required to determine the merits of the suit. The purpose of the application is not to prove the applicant's defence to the suit but to ask for opportunity to prove it through a trial.
Civil Procedure — Summary Suits — Requirements for Leave to Defend — Disclosure and Bona Fides
In an application for leave to appear and defend, there must be sufficient disclosure by the applicant of the nature and grounds of defence and the facts upon which it is founded. The defence so disclosed must be both bona fide and good in law. The applicant cannot merely rely on conclusions in law but must set out actual evidence.
Arbitration & ADR — Arbitration Clause — Effect on Summary Suit — Triable Issue
Where a defendant raises a preliminary objection that a summary suit is barred by section 9 of the Arbitration and Conciliation Act due to the presence of an arbitration clause in the underlying contract, determining whether the arbitration clause is applicable in the circumstances requires parties to adduce evidence and therefore forms a triable issue warranting leave to defend.
Contract Law — Construction Contracts — Advance Payment Recovery — Disputed Final Account
Where a contractor disputes a final account reconciliation and contends that it completed construction works and fully recovered advance payments while the employer contends otherwise and relies on a signed final account showing unrecovered advance, the dispute as to whether the contract was fully performed and whether the final account is accurate constitutes a bona fide triable issue that cannot be determined without hearing evidence from both parties and is not suitable for summary judgment.

Legislation cited (4)

Cases cited (3)

  • Maluku Inter Global Trade Agency v Bank of Uganda [1985] HCB 65
  • Geoffrey Gatete & Anor v William Kyobe (Supreme Court Civil Appeal No. 7 of 2005)
  • UAP Old Mutual Insurance UG Ltd v Rwenzori Hydro (PVT) Ltd (Miscellaneous Application No. 446 of 2024)

Full judgment

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

Roko Construction Limited v Uganda Breweries Limited (Miscellaneous Application 2016 of 2024) [2025] UGCommC 547 (17 June 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.