[2017] UGCommC 27

[2017] UGCommC 27

The court found that the applicants established sufficient cause for their nonappearance at the hearing of their application for leave to defend, as their counsel was genuinely ill and failed to inform them of the hearing date. Accordingly, the dismissal order was set aside and the application reinstated. However, the applicants admitted indebtedness to the respondent in the sum of UGX 73,000,000, having only disputed UGX 5,000,000 and the interest rate, which the court found to be 2% per month (24% per annum) as per the mortgage agreement. Under Order 36 rules 4 and 6 of the Civil Procedure Rules, the respondent was entitled to judgment for the admitted sum, while the applicants were...

Citation
[2017] UGCommC 27
Parties
Applicant: Pradip Enterprises Ltd; Applicant: Bunjo Jonathan; Respondent: Buyaga Multiservices Ltd
Court
Commercial Court of Uganda
Jurisdiction
Uganda
Judgment Date
7 April 2017
Case Number
Miscellaneous Application No. 1072 of 2016
Procedural Posture
Miscellaneous Application / Ruling on Application to Set Aside Dismissal and for Leave to Defend Summary Suit
Outcome
Application partially allowed; dismissal set aside; judgment and decree modified; leave to defend granted in part; stay of execution ordered; costs awarded as specified.
Legal Topics
Summary Suit Procedure, Mortgage Enforcement, Loan Default, Leave to Defend, Cheque Liability
Source Language
English
Civil Procedure Commercial and Corporate Summary Suit Procedure Mortgage Enforcement Loan Default Leave to Defend Cheque Liability

Case Brief

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Parties

Pradip Enterprises Ltd

Applicant

Bunjo Jonathan

Applicant

Buyaga Multiservices Ltd

Respondent

Procedural Posture

Miscellaneous Application / Ruling on Application to Set Aside Dismissal and for Leave to Defend Summary Suit

Legal Issues

  1. 1 Whether sufficient cause existed for nonappearance of the applicants or their counsel at the hearing leading to dismissal of their application for leave to defend the summary suit.
  2. 2 Whether the applicants have a plausible defence or triable issues warranting leave to defend the summary suit.
  3. 3 Whether the judgment and decree entered in default should be set aside or modified in light of the applicants' admissions and the law on mortgage enforcement and cheque liability.

Ratio Decidendi

The court found that the applicants established sufficient cause for their nonappearance at the hearing of their application for leave to defend, as their counsel was genuinely ill and failed to inform them of the hearing date. Accordingly, the dismissal order was set aside and the application reinstated. However, the applicants admitted indebtedness to the respondent in the sum of UGX 73,000,000, having only disputed UGX 5,000,000 and the interest rate, which the court found to be 2% per month (24% per annum) as per the mortgage agreement. Under Order 36 rules 4 and 6 of the Civil Procedure Rules, the respondent was entitled to judgment for the admitted sum, while the applicants were...

Court Disposition

Application partially allowed; dismissal set aside; judgment and decree modified; leave to defend granted in part; stay of execution ordered; costs awarded as specified.

Orders

  • The dismissal order of 26th October 2016 is set aside and Miscellaneous Application No. 283 of 2016 is reinstated.
  • The respondent is entitled to judgment for UGX 73,000,000 against the first applicant.