Wakilii

Stanbic Bank Uganda v Popina General Supplies (Miscellaneous Cause No. 290 of 2014)

High Court · [2015] UGHCLD 28 · 2015 Application Granted AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Application to enlarge time for filing a counterclaim arising from Civil Suit No. 350 of 2013
Decision
Time enlarged for applicant to file counterclaim in the main suit within seven days

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

The court held that it has wide discretion under Order 51 rule 6 CPR to enlarge time for filing a counterclaim even after the prescribed period has expired, guided by the justice of the case. Where claims by both parties arise from the same transaction, the counterclaim should be heard in the same suit to avoid multiplicity of proceedings. Objections to the merits of a proposed counterclaim should not be determined at the stage of an application to extend time; the responding party will have opportunity to challenge the counterclaim once filed. The application was allowed with costs to be borne by the applicant.

Outcome

Time enlarged for applicant to file counterclaim in the main suit within seven days

Facts

Stanbic Bank granted Popina General Supplies Ltd credit facilities of UGX 3,000,000 on 4 April 2011, guaranteed by Innocent Mugisha and Jackie Bayonga. Following default, the bank sold the second respondent's property on 19 February 2013 and recovered part of the outstanding debt. On 2 August 2013, the respondents filed Civil Suit No. 350 of 2013 challenging the sale and seeking declaratory orders and accountability for rent. The bank filed its defence and amended defence but inadvertently omitted to include a counterclaim for outstanding loan arrears. The bank subsequently applied to enlarge time to file the counterclaim. The respondents opposed the application, contending the counterclaim was misconceived as the main suit challenged the sale on grounds of fraud and illegality.

Issues

  1. Whether the court should enlarge time to permit the applicant to file a counterclaim after expiry of the time prescribed by Order 8 rule 2 CPR.
  2. Whether a counterclaim for outstanding loan arrears is appropriate where the main suit challenges the sale of secured property on grounds of fraud and illegality.

Orders

  • Application allowed.
  • Time within which the applicant/defendant may file a counterclaim in the main suit enlarged.
  • Filing of counterclaim to be concluded within seven days of this order.
  • Respondents may file a response to the counterclaim within the time allowed by statute.
  • Costs of this application to be borne by the applicant.

Rules and key headnotes

Civil Procedure — Extension of Time — Discretion of Court — Order 51 rule 6 CPR
The court has wide discretion under Order 51 rule 6 CPR to enlarge time for taking steps during proceedings even after the expiration of the time appointed or allowed, guided by the justice of the case and with power to set appropriate terms.
Civil Procedure — Counterclaims — Timing — Extension of Time for Filing
Where a defendant inadvertently omits to file a counterclaim within the time prescribed by Order 8 rule 2 CPR, the court may exercise its discretion to enlarge time under Order 51 rule 6 CPR provided the justice of the case requires it and the hearing has not yet commenced.
Civil Procedure — Counterclaims — Merits — Determination at Interlocutory Stage
At the stage of an application to enlarge time for filing a counterclaim, the court should not determine the merits or anticipated merits of the proposed counterclaim. The responding party will have opportunity to challenge the counterclaim on its merits once it is filed, including by way of preliminary objection.
Civil Procedure — Counterclaims — Same Transaction — Avoidance of Multiplicity of Suits
Where claims by both parties arise out of the same transaction, it is appropriate for the counterclaim to be heard in the same suit rather than as a separate action, in order to avoid multiplicity of proceedings and conserve judicial resources.

Legislation cited (4)

Cases cited (3)

  • Leticia Magembe v Uganda Electricity Board (HCCS No. 613 of 1990)
  • Omumbejja Namusis Faridah Naluwembe v Makerere University (HCMA No. 1199 of 2013)
  • Nakanyonyi Development Association (NADA) Ltd and 2 Others v Stanbic Bank (U) Ltd (HCMA No. 61 of 2013)

Full judgment

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

Stanbic Bank Uganda v Popina General Supplies (Miscellaneous Cause No. 290 of 2014) [2015] UGHCLD 28 (24 June 2015)
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.