[2008] UGCommC 49
The court found that service of process was properly effected at the applicant company's registered address, as evidenced by the affidavit of service. The applicants failed to demonstrate lack of service or a sufficiently meritorious defence to justify unconditional leave to defend. However, given the substantial...
Source-derived case information.
- Citation
- [2008] UGCommC 49
- Parties
- Applicant: B. D. S Limited; Respondent: Antone H. Akroush
- Court
- Commercial Court of Uganda
- Jurisdiction
- Uganda
- Case Number
- High Court Miscellaneous Application No. 503 of 2008
- Procedural Posture
- Miscellaneous Application / Ruling
- Outcome
- conditional_leave_to_defend_granted_subject_to_payment
- Legal Topics
- Setting Aside Decree, Service of Process, Dishonored Cheque, Conditional Leave to Defend
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
B. D. S Limited
Applicant
Antone H. Akroush
Respondent
Procedural Posture
Miscellaneous Application / Ruling
Legal Issues
- 1 Whether the defendants/applicants were properly served with court process.
- 2 Whether the defendants/applicants have a meritorious defence to justify setting aside the decree.
- 3 Whether conditional leave to defend should be granted and under what terms.
Ratio Decidendi
The court found that service of process was properly effected at the applicant company's registered address, as evidenced by the affidavit of service. The applicants failed to demonstrate lack of service or a sufficiently meritorious defence to justify unconditional leave to defend. However, given the substantial amount in dispute, the court exercised discretion to grant conditional leave to defend and set aside the previous orders, subject to the applicants paying the sum of USD 225,000 into court within two weeks. Failure to comply would result in revival of the previous orders and execution by the plaintiffs. Costs of the application were awarded to the plaintiffs.
Court Disposition
conditional_leave_to_defend_granted_subject_to_payment
Orders
- Conditional leave to defend and set aside previous orders granted subject to payment of USD 225,000 into court within two weeks.
- If payment is not made within two weeks, conditional leave is discharged and previous orders revived.
Full Case Text
Judgment text and source record
2 paragraphs
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D. S LIMITED\tab }{\f0\fs24\insrsid1443459\charrsid5797233 ::::::::::::::::::::::}{\f0\fs24\insrsid11485506\charrsid5797233 ::::::::::::::: APPLICANT \par \par VS \par \par ANTONE . H. AKROUSH ::::::::::::::::\tab RESPONDENT \par \par }\pard \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid5797233 {\f0\fs24\insrsid11485506\charrsid5797233 \par }\pard \qc \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid5797233 {\f0\fs24\insrsid11485506\charrsid5797233 RULING \par }\pard \ql \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid5797233 {\f0\fs24\insrsid11485506\charrsid5797233 \par }\pard \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid5797233 {\b0\f0\fs24\insrsid11485506\charrsid5797233 This is a n Application brought by the Defendants/Applicants B. D. S Limited to set aside the orders made in the main suit }{\b0\f0\fs24\insrsid16085821\charrsid5797233 CS }{\b0\f0\fs24\insrsid11485506\charrsid5797233 230 of 2008 and for stay of execution an}{ \b0\f0\fs24\insrsid16085821\charrsid5797233 d unconditional leave to appear }{\b0\f0\fs24\insrsid11485506\charrsid5797233 and defendant and for}{\b0\f0\fs24\insrsid16085821\charrsid5797233 co}{\b0\f0\fs24\insrsid11485506\charrsid5797233 st}{ \b0\f0\fs24\insrsid16085821\charrsid5797233 s. \par \par The}{\b0\f0\fs24\insrsid11485506\charrsid5797233 said application is made under Section 33 of the Judicature Act, Section 98 of the Civil Procedure Rule}{\b0\f0\fs24\insrsid16085821\charrsid5797233 s}{\b0\f0\fs24\insrsid11485506\charrsid5797233 , Order 36 Rule 11 of }{\b0\f0\fs24\insrsid16085821\charrsid5797233 Civil Procedure Rules}{\b0\f0\fs24\insrsid11485506\charrsid5797233 , Order 22 Rule 24 and Order 52 Rule 1 & 3 of }{\b0\f0\fs24\insrsid16085821\charrsid5797233 Civil Procedure Rules}{ \b0\f0\fs24\insrsid11485506\charrsid5797233 . }{\b0\f0\fs24\insrsid16085821\charrsid5797233 \par \par }{\b0\f0\fs24\insrsid11485506\charrsid5797233 The Plaintiffs brought the claim following issuance of cheque by BDS Limited in the sum of 225,000 dollars}{\b0\f0\fs24\insrsid16085821\charrsid5797233 . A}{\b0\f0\fs24\insrsid11485506\charrsid5797233 pparently that cheque was issued by the company which was previously called Jae}{\b0\f0\fs24\insrsid16085821\charrsid5797233 l}{\b0\f0\fs24\insrsid11485506\charrsid5797233 Limited as stipulated in paragraph 2 of the Plaint. \par \par }{\b0\f0\fs24\insrsid16085821\charrsid5797233 The Applicants/}{\b0\f0\fs24\insrsid11485506\charrsid5797233 Defendant}{\b0\f0\fs24\insrsid16085821\charrsid5797233 s}{\b0\f0\fs24\insrsid11485506\charrsid5797233 claim that they were not served }{ \b0\f0\fs24\insrsid1331279\charrsid5797233 and that they have a good cause of action and particularly that when the cheque was dishonored no notice of dishonor was given to them. }{\b0\f0\fs24\insrsid5590666\charrsid5797233 \par \par }{\b0\f0\fs24\insrsid1331279\charrsid5797233 The application before the court is to set aside the decree and the court has to consider whether the Defendants/Respondents were served or not a nd secondly whether there is any merit in the case in order to proceed ahead. }{\b0\f0\fs24\insrsid2889717\charrsid5797233 \par }{\b0\f0\fs24\insrsid1331279\charrsid5797233 The court has looked at the }{\b0\f0\fs24\insrsid5590666\charrsid5797233 Affidavit of service which was filed by the court Process server who gave a very detailed explanation of what happened particularly explaining that he was referred to one Isaac}{\b0\f0\fs24\insrsid2889717\charrsid5797233 ,}{ \b0\f0\fs24\insrsid5590666\charrsid5797233 supposed to be the Manager of BDS Limited at Hannington road and that he would not sign the documents but nevertheless }{\b0\f0\fs24\insrsid9593820\charrsid5797233 accepted the documents pointing out that he would seek advise from his Lawyers before he signs anything.}{\b0\f0\fs24\insrsid11485506\charrsid5797233 \par }{\b0\f0\fs24\insrsid9593820\charrsid5797233 \par The court is satisfied that the service of documents at the Company\rquote s place of business or registered address is conclusive. As far as the merits are concerned, the Defendants allege that }{\b0\f0\fs24\insrsid198250\charrsid5797233 the Plaintiffs have not shown any consideration }{\b0\f0\fs24\insrsid3935805\charrsid5797233 and that the Plaintiffs were informed that they had to serve any proceedings on their Lawyers. \par \par The claim was brought on the }{\b0\f0\fs24\insrsid10821309\charrsid5797233 dishonored}{\b0\f0\fs24\insrsid3935805\charrsid5797233 cheques and the plaintiffs did not have to show any consideration and if the cheque was }{ \b0\f0\fs24\insrsid10821309\charrsid5797233 dishonored}{\b0\f0\fs24\insrsid3935805\charrsid5797233 the defendants did not write back to the Plaintiff explaining why the cheque had been }{\b0\f0\fs24\insrsid10821309\charrsid5797233 dishonored}{ \b0\f0\fs24\insrsid3935805\charrsid5797233 or any other proposals to make sure that the cheque was met in due course. }{\b0\f0\fs24\insrsid8469882\charrsid5797233 \par \par }{\b0\f0\fs24\insrsid3935805\charrsid5797233 In those circumstances, the court is sa}{\b0\f0\fs24\insrsid7886815\charrsid5797233 tisfied that this is not a case where the Application should be allowed but nevertheless in }{ \b0\f0\fs24\insrsid8469882\charrsid5797233 v}{\b0\f0\fs24\insrsid7886815\charrsid5797233 ie}{\b0\f0\fs24\insrsid8469882\charrsid5797233 w}{\b0\f0\fs24\insrsid7886815\charrsid5797233 of the large sums of monies claimed or in issue, the court will grant a conditional leave to}{\b0\f0\fs24\insrsid1443459\charrsid5797233 defend and set aside the orders already made subject to the Defendant\rquote s/Applicant\rquote s paying the sum of 225,000 dollars into the court within two (2) wee ks. If the Defendants/Applicants have any problem in making payment into the court because their client is out of the country, then they should re-apply to the court for extension of time or communicate with the other side informing them of their problems so that the }{\b0\f0\fs24\insrsid8132297\charrsid5797233 extension of time may be given by }{\b0\f0\fs24\insrsid1443459\charrsid5797233 mutual }{\b0\f0\fs24\insrsid8132297\charrsid5797233 consent rather than coming back to the court. If at the end of two week}{\b0\f0\fs24\insrsid8469882\charrsid5797233 s}{\b0\f0\fs24\insrsid8132297\charrsid5797233 the sum of 225,000 dollars is not paid to the court then the conditional leave }{ \b0\f0\fs24\insrsid16085821\charrsid5797233 will be discharged}{\b0\f0\fs24\insrsid8469882\charrsid5797233 ,}{\b0\f0\fs24\insrsid16085821\charrsid5797233 the previous orders will be revived and the Plaintiffs will be free to go ahead with the}{ \b0\f0\fs24\insrsid8469882\charrsid5797233 respective }{\b0\f0\fs24\insrsid16085821\charrsid5797233 execution of their judgment/order.}{\b0\f0\fs24\insrsid3935805\charrsid5797233 \par }{\b0\f0\fs24\insrsid16085821\charrsid5797233 \par Cost of this Application to be paid by the Defendants to the Plaintiff.}{\b0\f0\fs24\insrsid15032037\charrsid5797233 \par }\pard \qc \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid5797233 {\f0\fs24\insrsid15032037\charrsid5797233 \par \par \par }{\f0\fs24\insrsid16085821\charrsid5797233 Anup Singh Choudry \par Judge}{\f0\fs24\insrsid8469882\charrsid5797233 \par }{\f0\fs24\insrsid16085821\charrsid5797233 21/1}{\f0\fs24\insrsid8469882\charrsid5797233 0}{\f0\fs24\insrsid16085821\charrsid5797233 /2008 \par }}