Towerco of Africa v Sowi Limited (Miscellaneous Application No. 344 of 2025)
Observed later treatment
No later-treatment classification is recorded for this judgment.
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Holding
The High Court granted the applicant unconditional leave to appear and defend a summary suit for breach of contract. The court held that the applicant satisfied the threshold by demonstrating bona fide triable issues including challenges to contract validity based on alleged non-compliance with internal procurement procedures, lack of signatory authority, mistake as to the nature of tax services, disputes over quantum and fee calculation, and failure of consideration. The court emphasized that at this interlocutory stage it is not required to weigh evidence or determine veracity but only to ensure a party is not denied an 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 a Tax Advisory Contract dated 24 August 2022, claiming UGX 103,025,540 allegedly owed for tax advisory services. The applicant challenged the validity of the contract, asserting it was not subjected to required internal approval processes and was signed by an unauthorized person. The applicant alleged the contract was void for mistake, arguing that tax deferment obtained by the respondent did not constitute the tax discharge or tax savings contemplated. The applicant disputed the quantum claimed, the scope of services, whether fees were properly reviewed per the contract, and alleged failure of consideration. The respondent maintained the contract was duly authorized by the CEO and Head of Legal Affairs, that it fully performed its obligations resulting in approximately UGX 3.43 billion in deferred import VAT, and that the applicant's denials lacked plausibility.
Issues
- Whether the applicant has shown good cause to be granted unconditional leave to appear and defend the suit.
- Whether the applicant has disclosed a bona fide triable defence to the respondent's claim.
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 15 days.
- Preliminary processes will ensue thereafter.
- Costs shall be in the cause.
Rules and key headnotes
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
The original judgment as reported. Read the original PDF before relying on any passage.