Wakilii

Towerco Of Africa v Sowi Limited [2025] UGHC 1579

High Court · 2025 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 civil suit for breach of contract
Decision
Applicant granted unconditional leave to defend; matter to proceed to trial

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Holding

The High Court granted the Applicant unconditional leave to appear and defend the suit. The court held that the Applicant had satisfied the threshold by demonstrating bona fide triable issues including challenges to the validity and authorization of the Tax Advisory Contract, allegations that the contract was void for mistake, disputes over scope of services and fees, and contentions regarding quantum of deferred tax. The court emphasized that at this interlocutory stage it is not required to weigh evidence or determine veracity of claims, but to ensure a party is not denied opportunity to be heard on substantial questions of law or fact.

Outcome

Applicant granted unconditional leave to defend; matter to proceed to trial

Facts

The Respondent instituted Civil Suit No. 1463 of 2024 against the Applicant for breach of contract and recovery of UGX 103,025,540 alleged to be owed under a Tax Advisory Contract dated 24 August 2022. The Applicant challenged the validity of the contract, asserting it was not subjected to internal approval processes and was signed by an unauthorized person. The Applicant alleged the contract was void for mistake, arguing that tax saving initiatives implied discharge of tax obligations whereas only tax deferment was obtained. The Applicant disputed the quantum claimed and the Respondent's entitlement to fees, noting that required fee review and confirmation had never been conducted. The Respondent maintained the contract was duly authorized and performed, resulting in significant tax benefits. The Applicant filed the present application seeking unconditional leave to file a defence.

Issues

  1. Whether the Applicant has shown good cause to be granted unconditional leave to appear and defend the suit.
  2. Whether the Applicant has disclosed a bona fide triable defence to the Respondent's claim for breach of contract and recovery of fees.

Orders

  • The Applicant is granted unconditional leave to appear and defend Civil Suit No. 1463 of 2024.
  • The Applicant shall file their written statement of defence within the next 15 days.
  • Preliminary processes will ensue thereafter.
  • Costs shall be in the cause.

Rules and key headnotes

Civil Procedure — Summary Suits — Leave to Appear and Defend — Test for Grant of Leave
Before leave to appear and defend is granted, the defendant must show by affidavit or otherwise that there is a bona fide triable issue of fact or law. The defendant is not bound to show a good defence on the merits but should satisfy the court that there is an issue or question in dispute which ought to be tried.
Civil Procedure — Summary Suits — Leave to Appear and Defend — Purpose of Application
In an application for leave to appear and defend a summary suit, the court is not required to determine the merits of the suit. The purpose of the application is not to prove the applicant's defence to the suit but to ask for the opportunity to prove it through a trial. What the court has to determine is whether the defendant has shown good cause to be given leave to defend, which courts have consistently held to mean evidence that the defendant has a triable defence to the suit.
Civil Procedure — Summary Suits — Leave to Appear and Defend — Requirements for Disclosure
In an application for leave to appear and defend, there must be sufficient disclosure by the applicant of the nature and grounds of his or her defence and the facts upon which it is founded. The defence so disclosed must be both bona fide and good in law. The applicant cannot merely rely on conclusions in law but must set out actual evidence.
Civil Procedure — Summary Suits — Leave to Appear and Defend — Role of Court at Interlocutory Stage
At the interlocutory stage of determining an application for leave to appear and defend, it is not the role of the court to weigh evidence or determine the veracity of the parties' claims, but to ensure that a party is not denied an opportunity to be heard on substantial questions of law or fact.

Legislation cited (4)

Cases cited (3)

  • Maluku Inter Global Trade Agency v Bank of Uganda [1985] HCB 65
  • Geoffrey Gatete & Anor v William Kyobe (Supreme Court Civil Appeal No. 7 of 2005)
  • UAP Old Mutual Insurance UG Ltd v Rwenzori Hydro (PVT) Ltd (Miscellaneous Application No. 446 of 2024)

Full judgment

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

Towerco Of Africa v Sowi Limited 2025 UGHC 1579 (21 August 2025)
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.