[2008] UGCommC 43

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\par }{\b\f1\fs28\lang1033\langfe1033\langnp1033\insrsid14900888\charrsid7867159 (Arising from HCT-00-CC-CS-0}{\b\f1\fs28\lang1033\langfe1033\langnp1033\insrsid15736694 51}{\b\f1\fs28\lang1033\langfe1033\langnp1033\insrsid14900888 -2008}{ \b\f1\fs28\lang1033\langfe1033\langnp1033\insrsid14900888\charrsid7867159 ) \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid14900888 {\f1\fs28\lang1033\langfe1033\langnp1033\insrsid14900888\charrsid7867159 \par \par }{\f1\fs22\insrsid4939759\charrsid4939759 ZZIMWE HARDWARE & CONSTRUCTION ENTERPRISES LTD \'85..\'85\'85 APPLICANTS }{\f1\fs22\insrsid14900888\charrsid4939759 \par \par }\pard \qc \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid14900888 {\b\f1\fs28\insrsid416670\charrsid7867159 VERSUS}{\b\f1\fs28\insrsid14900888\charrsid7867159 \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid14900888 {\f1\fs28\insrsid14900888\charrsid4410407 \par }{\f1\fs28\insrsid416670 BARCLAYS BANK (U) LTD }{\f1\fs28\insrsid416670\charrsid4410407 \'85\'85\'85\'85}{\f1\fs28\insrsid416670 \'85\'85\'85...}{\f1\fs28\insrsid416670\charrsid4410407 \'85\'85 RESPONDENT }{\f1\fs28\insrsid14900888 \par }{\f1\fs28\insrsid14900888\charrsid4410407 \par \par }\pard \qc \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid14900888 {\f1\fs28\insrsid14900888 BEFORE HON.}{\f1\fs28\insrsid14900888\charrsid4410407 }{\f1\fs28\insrsid14900888 MR. JUSTICE LAMECK N. MUKASA \par \par }{\b\f1\fs28\insrsid14900888\charrsid7867159 RULING}{\f1\fs28\insrsid14900888 : \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid8786450 {\f1\fs28\insrsid8786450 \par }\pard \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid3305251 {\f1\fs28\insrsid8786450 This is an application by Notice of Motion under order 36 rule 4 , order 52 rule 1 of the Civil Procedure Rules and Section 98 of the Civil Procedure Act for orders that:- \par \par {\listtext\pard\plain\f1\fs28\lang2057\langfe1033\langnp2057\insrsid8681708 \hich\af1\dbch\af0\loch\f1 (i)\tab}}\pard \qj \fi-720\li1080\ri0\sl360\slmult1\widctlpar \jclisttab\tx1080\aspalpha\aspnum\faauto\ls1\adjustright\rin0\lin1080\itap0\pararsid3305251 {\f1\fs28\insrsid8681708 U}{\f1\fs28\insrsid8786450 nconditional leave to appear and defend the main suit be granted to the Applicant. \par {\listtext\pard\plain\f1\fs28\lang2057\langfe1033\langnp2057\insrsid8786450 \hich\af1\dbch\af0\loch\f1 (ii)\tab}Costs for the application be provided for. \par }\pard \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid3305251 {\f1\fs28\insrsid8786450 \par The main suit was brought by summary procedure. The }{\f1\fs28\insrsid2570709 R}{\f1\fs28\insrsid8786450 espondent}{\f1\fs28\insrsid4010546 ,}{\f1\fs28\insrsid8786450 Barclays Bank of Uganda Ltd, therein seeks to recover from the Applica nt, M/s Zzimwe Hardware and Construction }{\f1\fs28\insrsid2570709 Enterprises }{\f1\fs28\insrsid8786450 Ltd, and two others Andrew Kassag}{\f1\fs28\insrsid2570709 a}{\f1\fs28\insrsid8786450 and Paul Ka}{\f1\fs28\insrsid2570709 ssa}{ \f1\fs28\insrsid8786450 ga, a sum o f Ugshs. 2,211,653,283.05 being monies claimed due under overdraft facilities extended to the defendants, accrued interest at the contractual rate plus costs o}{\f1\fs28\insrsid2570709 f}{\f1\fs28\insrsid8786450 the suit. \par \par The ground}{\f1\fs28\insrsid2570709 s}{\f1\fs28\insrsid8786450 for this application are that:- \par \par {\listtext\pard\plain\f1\fs28\lang2057\langfe1033\langnp2057\insrsid8786450 \hich\af1\dbch\af0\loch\f1 (a)\tab}}\pard \qj \fi-405\li765\ri0\sl360\slmult1\widctlpar\jclisttab\tx765\aspalpha\aspnum\faauto\ls2\adjustright\rin0\lin765\itap0\pararsid3305251 { \f1\fs28\insrsid8786450 On the 27}{\f1\fs28\super\insrsid8786450\charrsid8786450 th}{\f1\fs28\insrsid8786450 May 2004 the }{\f1\fs28\insrsid2570709 A}{\f1\fs28\insrsid8786450 pplicant was given a loan facility of }{\f1\fs28\insrsid4010546 US$}{ \f1\fs28\insrsid8786450 600,000 by Nile Bank Ltd. \par {\listtext\pard\plain\f1\fs28\lang2057\langfe1033\langnp2057\insrsid2570709 \hich\af1\dbch\af0\loch\f1 (b)\tab}}{\f1\fs28\insrsid2570709 The A}{\f1\fs28\insrsid8786450 pplicant}{\f1\fs28\insrsid2570709 \rquote }{\f1\fs28\insrsid8786450 s loan of US$600,000 has since been paid off. \par {\listtext\pard\plain\f1\fs28\lang2057\langfe1033\langnp2057\insrsid8786450 \hich\af1\dbch\af0\loch\f1 (c)\tab}The Applicant has deposited a sum of Ushs4,807,527,500/= into its account No. 07101000339 }{\f1\fs28\insrsid9251782 and therefore the }{ \f1\fs28\insrsid2570709 A}{\f1\fs28\insrsid9251782 pplicant ha}{\f1\fs28\insrsid2570709 s}{\f1\fs28\insrsid9251782 deposited a sum of Shs3,882,892,615/= in repayment of its advances and interest.}{\f1\fs28\insrsid8786450 \par {\listtext\pard\plain\f1\fs28\lang2057\langfe1033\langnp2057\insrsid9251782 \hich\af1\dbch\af0\loch\f1 (d)\tab}}{\f1\fs28\insrsid9251782 The amounts claimed on the overdrafts are wrong and based on charging interest, late penalty fees and other deductions not due. \par {\listtext\pard\plain\f1\fs28\lang2057\langfe1033\langnp2057\insrsid9251782 \hich\af1\dbch\af0\loch\f1 (e)\tab}The }{\f1\fs28\insrsid2570709 A}{\f1\fs28\insrsid9251782 pplicant has not dealt with the }{\f1\fs28\insrsid2570709 R}{\f1\fs28\insrsid9251782 espondent and is not aware of its rights but the sum of Shs663,182,701/= is due from the Applicant in respect of the monies taken from Nile Bank Uganda Ltd. \par {\listtext\pard\plain\f1\fs28\lang2057\langfe1033\langnp2057\insrsid9251782 \hich\af1\dbch\af0\loch\f1 (f)\tab}It is just}{\f1\fs28\insrsid4010546 ,}{\f1\fs28\insrsid9251782 fair and equitable that unconditional leave to appear and defend }{ \f1\fs28\insrsid2510635 be granted to the defendant/applicant. \par }\pard \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid3305251 {\f1\fs28\insrsid2510635 \par The law governing applications for leave to defend a summary suit is that the applicant must show by affidavit or otherwise that there is a bonafide tr iable issue of fact or law. Any defence raised should be stated with sufficient particulars as to appear genuine and not generally vague statements denying liability. See }{\i\f1\fs28\ul\insrsid2510635\charrsid8463434 Mukulu Interglobal Trade Agencies Vs Bank of Uganda (1985) HCB 65, Tororo District Administration Vs Andabalap Industries (1997) IV KALR 126}{\f1\fs28\insrsid2510635 . \par \par The Respondent}{\f1\fs28\insrsid4673106 \rquote }{\f1\fs28\insrsid2510635 s claim against the defendants in the main suit is for a sum of Ugshs2,211,653,283/05 being monies due under overdraft facilities extended to the defendants and accrued interest a t the contractual rate. The applicat}{\f1\fs28\insrsid4010546 ion}{\f1\fs28\insrsid2510635 to defend the suit is supported by an affidavit deponed to by the General Manager of the Applicant, Musa Nsimbe. In the affidavit}{\f1\fs28\insrsid4010546 the Applicant}{\f1\fs28\insrsid2510635 does not deny the overdraft facilities and does not deny owing money to the Respondent under the said facilities. The core of the applicant\rquote s claim is}{\f1\fs28\insrsid15629151 found}{ \f1\fs28\insrsid2510635 in paragraph 8 of the affidavit where the deponent states:- \par }\pard \qj \li360\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin360\itap0\pararsid3305251 {\f1\fs28\insrsid2510635 \par }\pard \qj \li567\ri567\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin567\lin567\itap0\pararsid3305251 {\f1\fs28\insrsid13918978 }{\f1\fs28\insrsid2510635 \'93 9. The amounts claimed on the overdrafts are wrong and based on charging interest, lat}{\f1\fs28\insrsid15629151 e}{\f1\fs28\insrsid2510635 penalty fees and other deductions not due.\'94 \par }\pard \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid3305251 {\f1\fs28\insrsid8681708 \par }{\f1\fs28\insrsid3694528 The applicant}{\f1\fs28\insrsid9251782 }{\f1\fs28\insrsid8681708 admits }{\f1\fs28\insrsid1271654 the facility }{\f1\fs28\insrsid15629151 but claims}{\f1\fs28\insrsid1271654 to have parti}{\f1\fs28\insrsid4673106 al}{ \f1\fs28\insrsid1271654 ly repaid. In paragraph 11 of the affidavit the applicant contends that the amount due is shs663,182,701/=. The applicant thereby disputes the amount of Shs2,211,653,282/05 claimed by the Respondent and also dispute}{ \f1\fs28\insrsid15629151 s}{\f1\fs28\insrsid1271654 the computation of interest and penalties. \par }{\f1\fs28\insrsid3694528 \par }{\f1\fs28\insrsid1271654 The Respondent filed an affidavit in reply deponed to by its Manager Corporate R}{\f1\fs28\insrsid15629151 ecoveries Ms Esther Masami Biru}{\f1\fs28\insrsid1271654 ngi. She therein states:- \par \par }\pard \qj \li567\ri567\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin567\lin567\itap0\pararsid3305251 {\f1\fs28\insrsid1271654 \'93}{\f1\fs28\insrsid8681708 11.}{\f1\fs28\insrsid1271654 THAT the Appl icant defaulted on the repayment terms agreed under the Agreement, with Nile Bank Ltd \par }{\f1\fs28\insrsid3694528 \par }{\f1\fs28\insrsid1271654 12. THAT by reason of non repayment, the facilities due have continued to attract interest and a penalty such that the applicant stands indebted to the Respondent in the sum of Ug}{\f1\fs28\insrsid8918297 s}{ \f1\fs28\insrsid1271654 hs2,211,653,283/05.\'94 \par }\pard \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid3305251 {\f1\fs28\insrsid1271654 \par Annexture \'93C\'94 to the }{\f1\fs28\insrsid4681733 affidavit is the Applicant}{\f1\fs28\insrsid15629151 \rquote }{\f1\fs28\insrsid4681733 s loan statement account. It shows interest and penalty deductions among others. The rates and basis of deductions cannot be established fro}{\f1\fs28\insrsid15629151 m}{\f1\fs28\insrsid4681733 this statement. Counsel for both parties in their respective submissions concede that the issue is reconciliation of }{\f1\fs28\insrsid15629151 the }{\f1\fs28\insrsid4681733 account to determine the balance. Mr. Kasirye in his submissions argued}{\f1\fs28\insrsid15629151 ,}{ \f1\fs28\insrsid4681733 and rightly so, that the relationship between the applicant and the respondent was governed by contractual documents which set out how the respondent cha}{\f1\fs28\insrsid15629151 r}{\f1\fs28\insrsid4681733 ges the principle, the penalty and interest. However the issue remains whether the computations had been correctly done as per the facilities agreements/documents. Counsel referred to an Audit Report by Ms Mungereza and Kalisa but }{ \f1\fs28\insrsid15629151 t}{\f1\fs28\insrsid4681733 his report }{\f1\fs28\insrsid14433411 was not availed to court. }{\f1\fs28\insrsid1271654 \par }{\f1\fs28\insrsid14433411 \par Mr. Kasirye argued that the Applicant had not adduced any evidence to show where the interests and penalties had been wrongly computed. The applicant has raised the iss ue of computation of interest, penalties and other deductions and thereby of the amounts due on the facilities. In }{\i\f1\fs28\ul\insrsid14433411\charrsid12923086 Abubakar }{\i\f1\fs28\ul\insrsid12923086\charrsid12923086 Kato Kasule Vs Tomson Mu}{ \i\f1\fs28\ul\insrsid15629151 hwe}{\i\f1\fs28\ul\insrsid12923086\charrsid12923086 zi (1992 \endash 1993) HCB 212}{\f1\fs28\insrsid12923086 it was held that at this stage court was not entitled to inquire into the merits of the issue raised. In }{ \f1\fs28\insrsid933359 the instant}{\f1\fs28\insrsid12923086 case if the facts alleged by the applicant we}{\f1\fs28\insrsid15629151 r}{\f1\fs28\insrsid12923086 e established there would be a plausible defence to the amount claimed. }{ \f1\fs28\insrsid14433411 \par }{\f1\fs28\insrsid12923086 \par So this application is a}{\f1\fs28\insrsid15629151 llowed. The Applicant is to file a }{\f1\fs28\insrsid12923086 Written Statement of defence within 14 days from the date hereof. Th}{\f1\fs28\insrsid15629151 e A}{\f1\fs28\insrsid12923086 pplicant is awarded costs of this application. I so order. \par }{\f1\fs28\insrsid10553506 \par \par }\pard \ql \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12923086 {\f1\fs28\insrsid10553506 \par }\pard \qc \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid10553506 {\f1\fs28\insrsid10553506 \par Hon Mr. Justice Lameck N. Mukasa \par }{\b\f1\fs28\insrsid10553506\charrsid10553506 Judge \par }{\f1\fs28\insrsid10553506 22}{\f1\fs28\super\insrsid10553506\charrsid10553506 nd}{\f1\fs28\insrsid10553506 august 2008 \par }\pard \ql \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12923086 {\insrsid6754790 \par }}