Rwashenyi Godfrey v Gosmile Commodities (U) Ltd [2025] UGHC 1583
Observed later treatment
No later-treatment classification is recorded for this judgment.
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Holding
The court held that an applicant seeking leave to defend a summary suit must demonstrate a bona fide triable defence. Where a written contract exists, oral variations are inadmissible without documentary evidence of mutual consent. The applicant's bare assertion of oral amendment, unsupported by any corroboration, does not constitute a plausible defence. The court denied unconditional leave but granted conditional leave requiring the applicant to deposit the full suit amount into court within fourteen days.
Outcome
Applicant granted conditional leave to defend upon depositing the full suit amount into court within fourteen days
Facts
The Respondent company paid the Applicant UGX 71,200,000 under a written contract for the supply of 8000kgs of Arabica coffee to be delivered on 28 December 2023. The Applicant failed to deliver the coffee by the deadline. The Respondent filed a summary suit for recovery of the liquidated sum. The Applicant applied for leave to appear and defend, claiming the written contract was orally amended to reduce the quantity to 6 tons and that performance was transferred to a third party, Bros Coffee (U) Ltd, with the Respondent's consent. The Applicant alleged he remitted the contract sum to Bros Coffee (U) Ltd, which then defaulted due to theft of its coffee. The Respondent denied any oral amendment or consent to substitute performance, asserting the written contract remained intact and the Applicant remained liable.
Issues
- Whether the Applicant has disclosed bona fide triable issues warranting the grant of leave to appear and defend the suit.
- Whether an oral amendment to a written contract is enforceable in the absence of documentary evidence.
- Whether the alleged transfer of contractual obligations to a third party (Bros Coffee (U) Ltd) constitutes a valid novation.
- Whether the absence of a company board resolution invalidates the institution of proceedings.
- Whether the Respondent's plaint is defective for lack of proper endorsement.
Orders
- Application for unconditional leave to appear and defend HCCS No. 0246 of 2025 denied.
- Applicant granted conditional leave to appear and defend the suit.
- Applicant to deposit UGX 71,200,000 into court within fourteen (14) days from the date of this Ruling.
- In the event the Applicant fails to comply, the Respondent shall be at liberty to apply for Final Judgment against the Applicant for the liquidated sum claimed.
- Costs of this Application to be met by the Applicant.
Rules and key headnotes
Legislation cited (8)
Cases cited (6)
- 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)
- Mujuni Ruhemba v Skanska Jensen (U) Ltd (Court of Appeal Civil Appeal No. 56 of 2000)
- Bugerere Coffee Growers Ltd v Sebadduka & Anor [1970] EA 147
- United Assurance Co. Ltd v Attorney General (Civil Appeal No. 1 of 1998)
Full judgment
The original judgment as reported. Read the original PDF before relying on any passage.