Wakilii

Standard Chartered Bank (U) Limited v Kerito (Miscellaneous Civil Application 2267 of 2023)

High Court · [2023] UGCOMMC 133 · 2023 Application Granted; Default Judgment Entered AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Application to set aside dismissal order and enter default judgment in undefended debt recovery suit
Decision
Dismissal order set aside; default judgment entered in favour of plaintiff for principal sum plus contractual interest and costs of the suit

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

The court held that where substituted service was effected through newspaper publication and an affidavit of service was filed on the court record, but the court record did not reflect the filing, there was sufficient cause to set aside the dismissal order made for want of service. Where a defendant fails to file a defence to a liquidated claim within the prescribed time, the plaintiff is entitled to default judgment under Order 9 rule 6 of the Civil Procedure Rules. The court awarded the applicant the principal sum claimed plus contractual interest at 23% per annum but declined to award costs of the application on account of counsel's failure to ensure proper recording of the affidavit of service.

Outcome

Dismissal order set aside; default judgment entered in favour of plaintiff for principal sum plus contractual interest and costs of the suit

Facts

The applicant bank filed Civil Suit No. 574 of 2020 on 13th August 2020 for recovery of UGX 50,444,890 owed by the respondent under a banking facility. Summons to file defence were issued on 17th August 2020. Following failure to personally serve the respondent, the court granted substituted service via newspaper on 15th November 2021. The substituted service was published in the Daily Monitor of 17th November 2021 and an affidavit of service was filed on 25th January 2022. The defendant did not file a defence. The plaintiff filed an application for default judgment on 31st January 2022. On 25th July 2023 the suit was dismissed for lack of service of summons because the court record did not reflect the filed affidavit of service. The plaintiff then applied to set aside the dismissal order and for entry of default judgment.

Issues

  1. Whether there was sufficient cause to set aside the dismissal order in Civil Suit No. 574 of 2020.
  2. Whether the applicant was entitled to default judgment where the defendant failed to file a defence within the prescribed time.

Orders

  • The order for dismissal in Civil Suit No. 0574 of 2020 is set aside.
  • No order as to costs of the application.
  • Default judgment entered in Civil Suit No. 0574 of 2020 in favour of the plaintiff for recovery of UGX 50,444,890.
  • Interest on the principal sum at the commercial bank rate of 23% per annum from 13th August 2020 until payment in full.
  • Costs of the suit awarded to the plaintiff.

Rules and key headnotes

Civil Procedure — Dismissal for Want of Prosecution — Setting Aside — Proof of Service
Where substituted service has been effected in accordance with a court order and an affidavit of service has been filed on the court record, the failure of the court record to reflect the filing constitutes sufficient cause to set aside a dismissal order made for want of service.
Civil Procedure — Default Judgment — Liquidated Demands — Order 9 Rule 6
Order 9 rule 6 of the Civil Procedure Rules entitles a plaintiff to default judgment where the plaint claims a liquidated demand and the defendant fails to file a defence within the prescribed time. A defendant's failure to file a defence leaves the plaintiff's claims undisputed and an undisputed claim is deemed admitted in law.
Civil Procedure — Costs — Misconduct by Successful Party
Where a successful party has been guilty of misconduct, the court may decline to award costs of an application even where the application succeeds. Failure by counsel to ensure that court records properly reflect filed documents may constitute misconduct disentitling the successful party to costs of an application necessitated by that failure.

Legislation cited (6)

Cases cited (5)

  • Standard Chartered Bank v Feta (Miscellaneous Application No. 0331 of 2023)
  • Dembe Trading Enterprise Limited V Uganda Confidential Limited and Another CC-CS-01612-2006
  • Ssempa v Kambagambire (High Court Civil Suit No. 408 of 2014)
  • Iyamuleme v Attorney General (Supreme Court Civil Appeal No. 4 of 2013)
  • Anglo-Cyprian Trade Agencies Ltd v. Paphos Wine Industries Ltd, [1951] 1 All ER 873

Full judgment

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Standard Chartered Bank (U) Limited v Kerito (Miscellaneous Civil Application 2267 of 2023) [2023] UGCommC 133 (8 December 2023)
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.