[2005] UGCommC 52

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THE REPUBLIC OF UGANDA}{\author Fredrick Egonda-Ntende}{\operator Harry Mak}{\creatim\yr2006\mo2\dy7\hr10\min14}{\revtim\yr2006\mo2\dy7\hr10\min14} {\printim\yr2005\mo9\dy23\hr16\min42}{\version2}{\edmins0}{\nofpages3}{\nofwords1266}{\nofchars7221}{\*\company }{\nofcharsws8471}{\vern24579}}\widowctrl\ftnbj\aenddoc\noxlattoyen\expshrtn\noultrlspc\dntblnsbdb\nospaceforul\formshade\horzdoc\dgmargin \dghspace180\dgvspace180\dghorigin1800\dgvorigin1440\dghshow1\dgvshow1 \jexpand\viewkind1\viewscale100\pgbrdrhead\pgbrdrfoot\splytwnine\ftnlytwnine\htmautsp\nolnhtadjtbl\useltbaln\alntblind\lytcalctblwd\lyttblrtgr\lnbrkrule\nobrkwrptbl\snaptogridincell\allowfieldendsel\wrppunct \asianbrkrule\rsidroot12847512\newtblstyruls\nogrowautofit \fet0{\*\ftnsep \pard\plain \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0 \fs24\lang2057\langfe1033\cgrid\langnp2057\langfenp1033 {\insrsid11874406 \chftnsep \par }}{\*\ftnsepc \pard\plain \ql 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2}}}{\cs16\insrsid8987924 \par }\pard \s15\ql \li0\ri0\widctlpar\tqc\tx4320\tqr\tx8640\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0 {\insrsid8987924 \par }}{\*\pnseclvl1\pnucrm\pnstart1\pnindent720\pnhang {\pntxta .}}{\*\pnseclvl2\pnucltr\pnstart1\pnindent720\pnhang {\pntxta .}}{\*\pnseclvl3\pndec\pnstart1\pnindent720\pnhang {\pntxta .}}{\*\pnseclvl4\pnlcltr\pnstart1\pnindent720\pnhang {\pntxta )}} {\*\pnseclvl5\pndec\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}{\*\pnseclvl6\pnlcltr\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}{\*\pnseclvl7\pnlcrm\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}{\*\pnseclvl8 \pnlcltr\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}{\*\pnseclvl9\pnlcrm\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}\pard\plain \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0 \fs24\lang2057\langfe1033\cgrid\langnp2057\langfenp1033 {\insrsid12847512 THE REPUBLIC OF UGANDA}{\insrsid15861250 \par }{\insrsid12847512 \par IN THE HIGH COURT OF UGANDA HOLDEN AT KAMPALA \par \par (COMMERCIAL COURT DIVISON) \par \par HCT-00-CC-MA-177-2005 \par \par (Arising from HCT-00-CC-CS-76-2005) \par \par ELIZABETH MUGAZA APPLICANTS \par KISOMA MUZAMIRU \par KABANDA STEVEN \par JANE BAFUKAWA \par AGNES KASAIJI \par PROSSY MULALYA \par ALL T/A MAKABU WOMEN\rquote S ASSOCIATION \par \par VERSUS \par \par ECUMENICAL CHURCH LOAN FUND LTD RESPONDENT \par \par \par \par }{\b\ul\insrsid12847512\charrsid11799068 BEFORE}{\b\ul\insrsid11799068 :}{\b\ul\insrsid12847512\charrsid11799068 THE HON. MR. JUSTICE F}{\b\ul\insrsid3029378\charrsid11799068 .}{\b\ul\insrsid12847512\charrsid11799068 M}{ \b\ul\insrsid3029378\charrsid11799068 .}{\b\ul\insrsid12847512\charrsid11799068 S EGONDA-NTENDE \par \par RULING \par }{\insrsid12847512 \par {\listtext\pard\plain\lang2057\langfe1033\langnp2057\insrsid12847512 \hich\af0\dbch\af0\loch\f0 1.\tab}}\pard \ql \fi-360\li720\ri0\sl360\slmult1\widctlpar\jclisttab\tx720\aspalpha\aspnum\faauto\ls1\adjustright\rin0\lin720\itap0\pararsid7951721 { \insrsid12847512 Th e applicants are the defendants in the head suit. In this application the applicants are seeking unconditional leave to appear and defend the suit against them. There are two grounds in support of this application, as set out in the notice of motion. Firs tly it is contended that the applicants were never advanced a loan to the tune of Shs.21,000,000.00. Secondly that the total amount claimed does not add up to Shs.5,117,600.00}{\insrsid1782523 .}{\insrsid12847512 \par {\listtext\pard\plain\lang2057\langfe1033\langnp2057\insrsid1782523 \hich\af0\dbch\af0\loch\f0 2.\tab}}{\insrsid1782523 The affidavit in support of this application was sworn by Jane Bafukawa,}{\insrsid13258437 }{\insrsid1782523 the sec retary to Makabu Women\rquote s Association. It states}{\insrsid11799068 ,}{\insrsid1782523 in part, }{\insrsid7482998 \par }\pard \ql \li1440\ri1440\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin1440\lin1440\itap0\pararsid7951721 {\i\insrsid1782523\charrsid7951721 \lquote 4. That in June 2000, we were loaned money by M/s Ecumenical Church Loan Fund to be used in our businesses. }{\i\insrsid7482998\charrsid7951721 }{ \i\insrsid1782523\charrsid7951721 5. That the said money did not amount to 21,000,000/= (Twenty one million shillings only) as alleged in their plaint. }{\i\insrsid7482998\charrsid7951721 }{\i\insrsid4803261\charrsid7951721 6. That}{\i\insrsid1782523\charrsid7951721 the agreement did not contain the clause of }{\i\insrsid4803261\charrsid7951721 payable}{ \i\insrsid1782523\charrsid7951721 in 6 instalments but for a period to be agreed after one year. 7. That the outstanding amount does not total up to 5,117,600/= (Five million one hundred seventeen thousand, six hundred shillings only). }{ \i\insrsid7482998\charrsid7951721 }{\i\insrsid1782523\charrsid7951721 8. That by virtue of an agreement and memorandum of understanding drawn up between the member and attested to by the plaintiff, it was agreed between the parties that each member pays a portion of the outstanding amount so as to retire the whole loan. }{ \i\insrsid7482998\charrsid7951721 }{\i\insrsid1782523\charrsid7951721 9. That some members paid their portion while others have failed and thus those that paid their portion are not liable.\rquote

\par {\listtext\pard\plain\lang2057\langfe1033\langnp2057\insrsid1059641 \hich\af0\dbch\af0\loch\f0 3.\tab}}\pard \ql \fi-360\li720\ri0\sl360\slmult1\widctlpar\jclisttab\tx720\aspalpha\aspnum\faauto\ls1\adjustright\rin0\lin720\itap0\pararsid7951721 { \insrsid1059641 There was a further affidavit sworn by a Mr. Ronald Bafukawa that was subsequently filed in support of this application. This Ronald Bafukawa was not a party to the suit but claimed that as a guarantor to the loan, the outcome in the head suit, and this application was likely to affect him, and accordingly had sworn this affidavit in s u pport of this application. The affidavit does not show that he was authorised by the parties/applicants to swear this affidavit in support of this application. Mr. Bafukawa Ronald is a stranger to the current proceedings. For those reasons I decline to ta ke this affidavit in account as I consider the merits of the application before me.}{\insrsid1782523 \par {\listtext\pard\plain\lang2057\langfe1033\langnp2057\insrsid7482998 \hich\af0\dbch\af0\loch\f0 4.\tab}}{\insrsid7482998 At the hearing of this application, the respondent was not present, in spite of proof of service on record. The hearing proceeded in their absence. }{\insrsid867669 Mr. Urban Tibemanya, lear ned counsel for the applicant, in his very brief submissions to the court, stated that a mere denial of the claim by the applicant was sufficient for this court to allow the applicant leave to appear and defend. He referred to the case of Photo Focus (u) }{\insrsid4803261 Ltd v}{\insrsid867669 Group Tour Security}{\insrsid7482998 Ltd Court of Appeal Civil Appeal No. 30 of 2000}{\insrsid11799068 as authority for that proposition}{\insrsid7482998 . He therefore submitted that the applicants should be granted leave to appear and defend. }{\insrsid867669 \par {\listtext\pard\plain\lang2057\langfe1033\langnp2057\insrsid15210022 \hich\af0\dbch\af0\loch\f0 5.\tab}}{\insrsid15210022 The }{\insrsid4803261 applicants\rquote }{\insrsid15210022 factual position is that they accept that t hey received a loan from the respondent but deny that it was in the sum of Shs.21,000,000.00. The applicants do not state what they claim to have received. The }{\insrsid4803261 applicants\rquote }{\insrsid15210022 claim that the outstanding amount is not the sum claimed in the plaint, but do not d isclose the sum due and owing to their knowledge. The applicants claim that the agreement did not contain a clause requiring them to repay the loan in six equal instalments}{\insrsid10167381 but that the period would be agreed after one year. This agreement is }{\insrsid11799068 not }{\insrsid10167381 attached, and I presume they refer to the agreement attached to the plaint. That agreement is clear. It provides for repayment to be made }{ \insrsid11799068 in}{\insrsid10167381 six instalments. The }{\insrsid4803261 applicants\rquote }{\insrsid10167381 position in this regard is clearly false.}{\insrsid7482998 \par {\listtext\pard\plain\lang2057\langfe1033\langnp2057\insrsid10167381 \hich\af0\dbch\af0\loch\f0 6.\tab}}{\insrsid10167381 The applicants\rquote }{\insrsid4803261 affidavit alleges}{\insrsid10167381 a new agreement as to the liquidation of the outstanding sums of money to the respondent, but the same is not attached. The applicants further assert that some members have paid their portion and others have not paid. It does not disclose who has paid, and who has not p aid. \par {\listtext\pard\plain\lang2057\langfe1033\langnp2057\insrsid10167381 \hich\af0\dbch\af0\loch\f0 7.\tab}The applicants\rquote evidence is evasive and vague without providing sufficient particulars that would allow a court to evaluate whether or not }{ \insrsid11799068 what appears a good}{\insrsid10167381 defence to the respondent\rquote s claim has been raised or whether a triable issue has been raised with regards to the facts that would be in issue. }{\insrsid11799068 Neither does it specify the specific sums of money that is due from the members who have not paid their \lquote portion\rquote of the loan or the sums paid by the members who have paid their \lquote portions.\rquote }{\insrsid10167381 The applicants a dmit taking a loan but fail to disclose }{\insrsid11799068 the sum}{\insrsid10167381 they received. They deny that the sum claimed is not the actual sum owing but do not disclose what they have either paid or is otherwise outstanding.}{\insrsid16063981 They den}{\insrsid8549126 y}{\insrsid16063981 a term of the agreement. The denial is false as the term exists in the agreement. I am satisfied that the applicants have failed to raise a triable issue on their application.}{\insrsid10167381 \par {\listtext\pard\plain\lang2057\langfe1033\langnp2057\insrsid16063981 \hich\af0\dbch\af0\loch\f0 8.\tab}}{\insrsid16063981 In taking this position, I take comfort in}{\insrsid16063981\charrsid16063981 }{\insrsid16063981 the case of Zola and Another v Ralli Brothers Limited and Another [1969] E A 691}{\insrsid11366132 which considered what is a triable issue}{\insrsid16063981 . The Court of Appeal for East Africa considered the Kenyan provisions of Order 35 Rule 2 which are somewhat worded differently from our own rules with regard to summary judgment. The court considered what would amount t o a triable issue in the following words of Newbold, P., \par }\pard \ql \li1440\ri1440\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin1440\lin1440\itap0\pararsid7951721 {\i\insrsid16063981\charrsid393220 \lquote \'85 the mere denial in the defence that the sums were lent would not suffice to raise a triable issue. Similarly, the mere statement in the defence of a new agreement with, be it noted, no particular s as to the parties, the date, the circumstances and the reason for the new agreement, which statement by Mr. Sirley did not see fit to substantiate by affidavit on which he could have been cross examined, would not suffice to raise a triable issue. Equal ly, the bare statement in the defence of a failure of duty on the part of the receiver and manager does not suffice to raise a triable issue.\rquote \par {\listtext\pard\plain\lang2057\langfe1033\langnp2057\insrsid16063981 \hich\af0\dbch\af0\loch\f0 9.\tab}}\pard \ql \fi-360\li720\ri0\sl360\slmult1\widctlpar\jclisttab\tx720\aspalpha\aspnum\faauto\ls1\adjustright\rin0\lin720\itap0\pararsid7951721 { \insrsid16063981 These remarks}{\insrsid7951721 ,}{\insrsid16063981 of weighty}{\insrsid7951721 and}{\insrsid16063981 persuasive authority}{\insrsid7951721 ,}{\insrsid16063981 would equally }{\insrsid8549126 apply }{\insrsid16063981 in the case before me. No particulars have been provided to support the alleged defence that the sum claimed by the respondent is not }{\insrsid7951721 what is }{\insrsid16063981 outstanding. Admission is made to some money being outstanding but it omits to declare what is outstanding}{\insrsid11799068 and what has been paid}{\insrsid16063981 .}{\insrsid8549126 This offends Order 33 Rul e 4 of the Civil Procedure Rules, which require an applicant to state clearly to which part of the plaintiff\rquote s claim that the alleged defence is directed to. The exact part of the plaintiff\rquote s claim which the applicants wish to defend is not disclosed.}{\insrsid16063981 \par {\listtext\pard\plain\lang2057\langfe1033\langnp2057\insrsid8549126 \hich\af0\dbch\af0\loch\f0 10.\tab}}{\insrsid8549126 I sh all now turn to consider Photo Focus (U) Ltd v Group Four Security Ltd (Supra), the decision referred to by learned counsel for the applicant, Mr. Urban Tibemanya.}{\insrsid11366132 Even if I were to accept the reading of this decision}{\insrsid11799068 , which}{\insrsid11366132 Mr. Urban }{\insrsid4803261 Tibemanya}{\insrsid11366132 , pressed upon this court, I find that the facts before }{\insrsid7951721 me }{\insrsid11366132 are distinguishable from }{\insrsid7951721 the facts upon which }{ \insrsid11366132 that decision}{\insrsid7951721 is based}{\insrsid11366132 . In the case now before the court, there is actually an admission that money is owing while at the same time vaguely denying that what is cl aimed in the plaint is the sum due from the applicants to the respondents. This is not a \lquote clear and unequivocal denial\rquote as was the case in Photo Focus (U) Ltd v Group Four Security Ltd (supra). }{\insrsid7951721 This decision is therefore not applicable to this case, given the facts of this case.}{\insrsid8549126 \par {\listtext\pard\plain\lang2057\langfe1033\langnp2057\insrsid11366132 \hich\af0\dbch\af0\loch\f0 11.\tab}}{\insrsid11366132 I am satisfied that this application is without merit. It has failed to show }{\insrsid7951721 that }{\insrsid11366132 the applicants have what appears to be a good defence. The application has also failed to raise a triable issue that need}{\insrsid7951721 s}{\insrsid11366132 to go to tr}{\insrsid7951721 ial}{\insrsid11366132 . It is dismi ssed, without costs, as it proceeded }{\i\insrsid11366132\charrsid7951721 ex parte}{\insrsid11366132 . }{\insrsid7951721 \par {\listtext\pard\plain\lang2057\langfe1033\langnp2057\insrsid11366132 \hich\af0\dbch\af0\loch\f0 12.\tab}}{\insrsid11366132 Judgment is entered for the respondent in the sum claimed in the plaint with costs and interest at court rate from the date of filing this suit}{\insrsid7951721 till payment in full}{\insrsid11366132 . \par }\pard \ql \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid7951721 {\insrsid11366132 Dated at Kampala this 28}{\super\insrsid11366132\charrsid11366132 th}{\insrsid11366132 day of September 2005 \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid11366132 {\insrsid11366132 \par \par \par \par \par \par \par FMS Egonda-Ntende \par Judge \par }}