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The Micro Finance Support Centre Limited v Namanyonyi Cooperative Savings & Credit (Miscellaneous Application 50 of 2024)

High Court · [2024] UGHC 957 Application Granted AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Application to set aside ex-parte judgment and interlocutory judgment arising from Civil Suit No. 23 of 2019
Decision
Both ex-parte judgment and interlocutory judgment set aside; Applicant granted leave to file defence out of time

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

Held that summons to file defence was not duly served on the Applicant corporation because although the process bore the company stamp, it was not signed by the recipient, and the identity and authority of the person who received service could not be established. Order 29 rule 2 of the Civil Procedure Rules requires service on a principal officer, not a receptionist-level secretary. The court found the Applicant had sufficient cause for non-appearance. Both the interlocutory judgment and ex-parte judgment were set aside and leave granted to file defence out of time.

Outcome

Both ex-parte judgment and interlocutory judgment set aside; Applicant granted leave to file defence out of time

Facts

The Respondent filed Civil Suit No. 23 of 2019 against the Applicant. Summons to file defence was allegedly served on 29 July 2019. The Applicant failed to appear and the matter proceeded ex-parte under Order 9 rules 10 and 11(2). Interlocutory judgment was entered on 14 November 2019 and ex-parte judgment entered on 24 January 2024. The Applicant only learned of the suit on 15 March 2024 when a bailiff arrived with a warrant of attachment to execute the decree. The Applicant filed the instant application to set aside both judgments, asserting it was never properly served. The affidavit of service indicated service was effected on a secretary who stamped the summons but did not sign for it. The Applicant denied receiving the summons and stated no summons was brought to the attention of any principal officer.

Issues

  1. Whether the summons to file defence in Civil Suit No. 23 of 2019 was duly served on the Applicant.
  2. Whether the Applicant had sufficient cause for failing to file a written statement of defence.
  3. Whether the ex-parte judgment and interlocutory judgment should be set aside.

Orders

  • The interlocutory judgment entered on 14 November 2019 against the Applicant is set aside.
  • The ex-parte judgment and decree entered on 24 January 2024 against the Applicant is set aside.
  • Leave is granted to the Applicant to file its written statement of defence to Civil Suit No. 23 of 2019 within 15 days from the date of this ruling.
  • Costs shall be in the cause.

Rules and key headnotes

Service of Process on Corporations — Requirements under Order 29 Rule 2
Service of summons on a corporation must be effected on the secretary, director, or other principal officer of the corporation, not on a receptionist-level secretary. The secretary envisaged in Order 29 rule 2(a) of the Civil Procedure Rules must be a principal officer responsible for the management of the corporation and in a position to take action on behalf of the corporation.
Service of Process — Proof of Service and Duty of Process Server
Where a document bearing a company stamp is tendered as proof of service but the recipient has not signed to acknowledge receipt, the court cannot establish whether service was properly effected. It is the duty of the process server to ensure that whoever receives court documents indicates their name and signature. The stamp alone, without a signature, is insufficient proof of service as it could be mistaken for a fraudulent stamp.
Setting Aside Ex-Parte Judgments — Grounds
An ex-parte judgment may be set aside where the defendant satisfies the court that the summons was not duly served or that the defendant was prevented by any sufficient cause from appearing when the suit was called for hearing. Where the identity and authority of the person who received service cannot be established, the defendant has been prevented by sufficient cause from filing a defence.
Setting Aside Ex-Parte Judgments — Merit in Defence
Before setting aside an ex-parte judgment, the court must be satisfied not only that the defendant had a reasonable excuse for failing to appear but also that there is merit in the defence case.

Legislation cited (7)

Cases cited (6)

  • Kyambogo University v The Heights Ltd (HCMA No. 0954 of 2015)
  • Attorney General & Anor v James Mark & Anor (Civil Appeal No. 08 of 2004)
  • Hakima Kyamanya v Sajjabi Chris (CACA No. 1 of 2006)
  • Kamo Enterprise Ltd v Krystalline Salt Ltd (Civil Appeal No. 8 of 2018)
  • Kampala City Council v Apollo Hotel Corporation (1985) HCB 77
  • S. Kyobe Senyange v Naks Ltd (1980) HCB 31

Full judgment

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

The Micro Finance Support Centre Limited v Namanyonyi Cooperative Savings & Credit (Miscellaneous Application 50 of 2024) [2024] UGHC 957 (14 October
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.