Suladev Finance Solutions Limited v Munaniro and Another (Miscellaneous Civil Application No. 1909 of 2022)
Observed later treatment
No later-treatment classification is recorded for this judgment.
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Holding
Held that the ex-parte decree must be set aside where substituted service was obtained through misinformation and falsehoods, and where the service was not effective in making the applicant aware of the proceedings. Due diligence requires genuine efforts to locate and serve a defendant before resorting to substituted service. The right to be heard is constitutionally guaranteed and cannot be denied on account of ineffective substituted service.
Outcome
Ex-parte decree set aside; main suit transferred to High Court of Luwero for hearing inter partes
Facts
The applicant company was the registered owner of land comprised in Block 60 plots 543 and 544 at Nampunge and Kalwe. The respondents filed Civil Suit No. 1707 of 2021 against the applicant concerning the same land. The respondents obtained an order for substituted service by advertisement after alleging they could not locate the applicant or its directors. The applicant was never made aware of the proceedings and an ex-parte decree was entered against it. The applicant only learned of the judgment on 9 November 2022 from counsel representing another party claiming interest in the land. The applicant then applied to set aside the ex-parte decree, arguing that the order for substituted service was obtained through falsehoods and that no genuine effort was made to serve the company in the ordinary way.
Issues
- Whether the applicant was duly served with court process in the main suit.
- Whether due diligence was done before the order for substituted service was granted.
- Whether the substituted service was effective in informing the applicant of the existence of the suit.
- Whether the ex-parte decree should be set aside.
Orders
- Application allowed.
- Ex-parte decree and judgment in Civil Suit No. 1707 of 2021 set aside.
- Main suit transferred to the High Court of Luwero.
- Miscellaneous Application No. 1910 of 2022 overtaken by events.
- No order as to costs.
Rules and key headnotes
Legislation cited (5)
Cases cited (3)
- Geoffrey Gateete and Angela Maria Nakigonga v William Kyobe (Supreme Court Civil Appeal No. 07 of 2005)
- Franco Mugumya v Total (U) Ltd (Miscellaneous Application No. 28 of 2013)
- Rwabuganda Godfrey v Bitamissi Namudu (Court of Appeal Civil Appeal No. 87 of 2010)
Full judgment
The original judgment as reported. Read the original PDF before relying on any passage.