Turyahabwe Joshua and Others v Nyakayojo People's Co-operative Savings and Credit Society Ltd (Miscellaneous Application 88 of 2025)
Observed later treatment
No later-treatment classification is recorded for this judgment.
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Holding
The High Court granted applicants unconditional leave to appear and defend a summary suit for recovery of loan monies. The respondent failed to discharge its burden of proving that the applicants had borrowed the money claimed, as the evidence produced (loan application form and ledger) lacked proper identification, corroboration, and account details. The court also found that applicants were not properly served with the mandatory summons in summary suit under Order 36 rule 3.
Outcome
Applicants granted unconditional leave to appear and defend summary suit; defence to be filed within ten days
Facts
The respondent, a co-operative savings and credit society, filed a summary suit under Order 36 seeking to recover UGX 65,743,569 from the applicants, comprising principal of UGX 50,000,000 allegedly borrowed by the first applicant on 24 April 2024 and interest of UGX 15,734,569. The second to fourth applicants were named as guarantors. The applicants denied ever borrowing the money or presenting guarantors. In support of its claim, the respondent produced a loan application form allegedly signed by the applicants and witnessed by local council chairpersons, and a loan ledger card showing disbursement of UGX 50,000,000 to Turyahabwe Joshua. The loan application form contained only two photographs instead of four, with no indication of identity. There was no identification card linking the name to a person, no corroborative affidavits from the local council chairpersons who allegedly witnessed the application, and no indication of the bank account into which the loan was allegedly disbursed. The affidavit of service was defective, failing to clearly establish when service occurred and showing that applicants were served with an incorrect form of summons rather than the mandatory summons in summary suit required under Order 36.
Issues
- Whether the application discloses grounds for leave to appear and defend the suit?
- Whether the application was filed out of time?
Orders
- The applicants are granted unconditional leave to appear and defend the respondent's claim in HCCS 12 of 2025.
- The applicants shall file their defence within ten (10) days from the date of delivery of this ruling.
- The costs of this application shall abide the outcome of the main suit.
Rules and key headnotes
Legislation cited (5)
Cases cited (1)
- Africa One Logistics Ltd v Kazi Food Logistics (U) Ltd (Miscellaneous Application No. 964 of 2019)
Full judgment
The original judgment as reported. Read the original PDF before relying on any passage.