Wakilii

Rwenzori Hydro (Pvt) Ltd and Another v UAP Old Mutual Insurance Uganda Limited (Civil Suit No. 233 of 2024)

High Court · [2024] UGCOMMC 440 · 2024 Judgment for Plaintiffs AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Summary judgment application following refusal of defendant's application for leave to appear and defend
Decision
Judgment entered for both plaintiffs for sums owed under performance bonds with interest and costs

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

Where the court refuses a defendant's application for leave to appear and defend a suit under Order 36 rule 5 of the Civil Procedure Rules, the plaintiff is entitled to judgment. The plaintiffs obtained judgment severally for sums owed under performance bonds, with interest at 4% per annum from the date of judgment and costs of the suit.

Outcome

Judgment entered for both plaintiffs for sums owed under performance bonds with interest and costs

Facts

The plaintiffs brought suit against the defendant insurance company for sums owed under two performance bonds. The first plaintiff claimed US $2,577,020 under Performance Bond No. 010/132/1/001055/2017 dated 29th July 2021. The second plaintiff claimed US $1,322,150 under Performance Bond No. 010/132/1/001054/2017 dated 25th May 2021. The defendant applied for leave to appear and defend the suit. The court heard the application and refused to grant the defendant leave to defend.

Issues

  1. Whether the plaintiffs are entitled to summary judgment following the court's refusal to grant the defendant leave to appear and defend the suit

Orders

  • Judgment entered for the plaintiffs severally against the defendant.
  • First plaintiff awarded US $2,577,020 owed on Performance Bond No. 010/132/1/001055/2017 dated 29th July 2021.
  • Second plaintiff awarded US $1,322,150 owed on Performance Bond No. 010/132/1/001054/2017 dated 25th May 2021.
  • Both awards to bear interest at 4% per annum from date of judgment until payment in full.
  • Costs of the suit awarded to the plaintiffs.

Rules and key headnotes

Summary Judgment — Refusal of Leave to Defend — Entitlement to Decree
Under Order 36 rule 5 of the Civil Procedure Rules, where the court refuses to grant a defendant leave to appear and defend the suit, the plaintiff is entitled as against the defendant to a decree.
Performance Bonds — Enforcement — Summary Judgment
A plaintiff entitled to judgment on a performance bond claim may recover the principal sum with interest running from the date of judgment at the rate ordered by the court.

Legislation cited (1)

Full judgment

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

Rwenzori Hydro (Pvt) Ltd and Another v UAP Old Mutual Insurance Uganda Limited (Civil Suit No. 233 of 2024) [2024] UGCommC 440 (26 June 2024)
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.