Wakilii

The Board of Governors Rwenzori College of Commerce v Muliwabyo (Miscellaneous Application No 83 of 2021)

High Court · [2023] UGHC 17 · 2023 Application Granted AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Application for unconditional leave to appear and defend arising from summary suit
Decision
Leave to appear and defend granted; matter to proceed to full hearing

Observed later treatment

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Holding

Held that the applicant established bona fide triable issues warranting grant of leave to appear and defend. The applicant contended they borrowed UGX 5,000,000 at 15% monthly interest, fully repaid it, and provided a blank signed cheque as security which the respondent later filled with UGX 60,000,000. The respondent claimed payments related to a different transaction. The dispute over whether payments discharged the debt and the circumstances of the cheque completion raised genuine factual questions requiring trial.

Outcome

Leave to appear and defend granted; matter to proceed to full hearing

Facts

The applicant, an educational institution, allegedly borrowed UGX 5,000,000 from the respondent in May 2020 at 15% monthly interest. The parties executed an agreement for UGX 5,750,000 payable in two months. The applicant provided a blank signed cheque as security. Due to COVID-19 lockdown impact, the applicant made payments totalling UGX 8,100,000 between November 2020 and April 2021. The respondent claimed these payments related to a different transaction occurring in March 2020. On 10 February 2021, the respondent received a blank signed cheque and filled in UGX 60,000,000 as payee and amount. The cheque was deposited on 2 August 2021 and bounced on 3 August 2021 marked insufficient funds. The respondent filed a summary suit claiming UGX 60,000,000.

Issues

  1. Whether the Applicant should be granted leave to appear and defend Civil Suit No. 83 of 2021.

Orders

  • Application allowed.
  • Applicant to file and serve Written Statement of Defence within 10 days from date of delivery of ruling.
  • Respondent to file reply to Written Statement of Defence if any within 5 days after service.
  • Costs of the application awarded to the Applicant in the event.

Rules and key headnotes

Civil Procedure — Summary Procedure — Leave to Appear and Defend — Test for Grant of Leave
Unconditional leave to appear and defend will be granted where the applicant shows a good defence on the merits, or that a difficult point of law is involved, or that there is a dispute which ought to be tried, or a real dispute as to the amount claimed which requires taking an account, or any other circumstances showing reasonable grounds of a bona fide defence.
Civil Procedure — Summary Procedure — Leave to Appear and Defend — Standard of Proof
The applicant must demonstrate that there are issues or questions of fact or law in dispute which ought to be tried. The procedure is meant to ensure that a defendant with a triable issue is not shut out. The defendant is not bound to show a good defence on the merits but must satisfy the court that there is an issue or question in dispute which ought to be tried.
Civil Procedure — Summary Procedure — Leave to Appear and Defend — Disclosure Requirement
Before leave to appear and defend is granted, the applicant must disclose the nature of the claim or objections to the plaintiff's claims which could be founded on law or fact or a mixture of both, which are bona fide and merit serious judicial consideration during trial. This must be ascertainable from the pleadings and annexures without going into the merits of the case.

Legislation cited (4)

Cases cited (7)

  • Bunjo v KCB (Uganda) Ltd (Miscellaneous Application No. 174 of 2014)
  • Roko Construction Ltd Vs. of 2020
  • M.M.K Engineering v Mantrust Uganda Ltd (Miscellaneous Application No. 128 of 2012)
  • Bhaker Kotecha v Adam Muhammed [2002] 1 EA 112
  • Maluku Interglobal Trade Agency v Bank of Uganda [1985] HCB 65
  • Children of Africa v Sarick Construction Ltd (Miscellaneous Application No. 134 of 2016)
  • Magric Water General Hardware Ltd v Abasi Balinda Transporters Ltd (Miscellaneous Application No. 67 of 2021)

Full judgment

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

The Board of Governors Rwenzori College of Commerce v Muliwabyo (Miscellaneous Application No 83 of 2021) 2023 UGHC 17 (23 January 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.