[2011] UGCommC 101

[2011] UGCommC 101

The court found that the applicants acted diligently by instructing counsel to defend the suit, but their application was dismissed due to a technical error caused by their lawyers, who filed a defective affidavit. The court held that such professional mistakes should not be visited on the applicants. Furthermore,...

Source-derived case information.

Citation
[2011] UGCommC 101
Parties
Applicant: Jayanth Amratlal Bhimji; Applicant: Amratlal P. Bhimji; Respondent: Prime Finance Co. Limited
Court
Commercial Court of Uganda
Jurisdiction
Uganda
Case Number
HCT-00-CC-MA 225 of 2008
Procedural Posture
Miscellaneous Application / Ruling on Application to Set Aside Judgment and for Leave to Defend
Outcome
application granted subject to conditions
Legal Topics
Summary Procedure, Money Lending Regulation, Excessive Interest, Setting Aside Judgment, Mistake of Counsel
Source Language
en
Commercial and Corporate Civil Procedure Summary Procedure Money Lending Regulation Excessive Interest Setting Aside Judgment Mistake of Counsel

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Parties

Jayanth Amratlal Bhimji

Applicant

Amratlal P. Bhimji

Applicant

Prime Finance Co. Limited

Respondent

Procedural Posture

Miscellaneous Application / Ruling on Application to Set Aside Judgment and for Leave to Defend

  1. 1 Whether the judgment and decree in Civil Suit No. 307 of 2007 should be set aside due to mistake of counsel.
  2. 2 Whether the applicants should be granted leave to appear and defend the suit.
  3. 3 Whether the interest rate charged by the respondent contravened the Money Lenders Act and was unconscionable.

Ratio Decidendi

The court found that the applicants acted diligently by instructing counsel to defend the suit, but their application was dismissed due to a technical error caused by their lawyers, who filed a defective affidavit. The court held that such professional mistakes should not be visited on the applicants. Furthermore, the interest rate charged by the respondent (1% per week, amounting to 52% per annum, and potentially 104% with penalty interest) far exceeded the statutory maximum of 24% per annum under the Money Lenders Act, raising a triable issue of illegality and unconscionability. The court determined that justice required the judgment and decree be set aside, the applicants be granted...

Court Disposition

application granted subject to conditions

Orders

  • The judgment and decree in Civil Suit No. 307 of 2007 delivered on 18th April 2008 is set aside.
  • Execution of the said decree is set aside.