KCB Bank Uganda Limited v Raid Technologies Ltd and Others (Civil Suit No. 449 of 2025) [2025] UGCommC 201 (25 June 2025)

5 THE REPUBLIC OF UGANDA IN THE HIGH COURT OF UGANDA AT KAMPALA (COMMERCIAL DIVISION) CIVIL SUIT NO. 0449 OF 2025

10 KCB BANK UGANDA LIMITED………………….…….. PLAINTIFF

VERSUS

1. RAID TECHNOLOGIES LTD …………........ DEFENDANT

15 2. MUTEBI DENIS

3. NABIRYE BRIANA

BEFORE: HON. LADY JUSTICE SUSAN ODONGO

JUDGMENT

The Plaintiff filed this suit for the following orders:

a) Payment of Ugx 67,900,695/- (Uganda Shillings Sixty Seven million, Nine Hundred Thousand, Six hundred Ninety Five only) being 25 outstanding principal loan and interest;

- b) Interest on a) above at a rate of 29% from the date of filing until payment in full; - c) Costs of the suit.

The facts of the case are that in March 2021 the 1 st Defendant obtained from the 30 plaintiff a loan facility of Ugx 50,000,000 at interest rate of 29% per annum for


- which the $2^{nd}$ and the $3^{rd}$ Defendants executed personal guarantees. That the $1^{st}$ $\mathsf{S}$ defendant defaulted on its obligations and failed to regularized its accounts. Consequently, the plaintiff recalled the loan and demanded payment of all monies due under the loan. The plaintiff invoked the personal guarantees of the $2^nd$ and $3^rd$ Defendants but they failed to settle the outstanding sums. - Summons to file a defence were issued by the Registrar on 1^st May 2025 for $10$ service upon the defendant by Atwijukire Allan, an Advocate of the High Court. (See: affidavit of service sworn by Atwijukire Allan on $14^th$ May 2025). That on $12^th$ May 2025 the said process server contacted the $2^nd$ Defendant via telephone number 0772479213 and the $2^nd$ Defendant agreed to meet with him. That they - met on the same day and he handed over copies of the summons to the $2^nd$ 15 Defendant who acknowledged receipt by appending his signature on the summons (paragraph 5 of the affidavit of service and annexture A). On $20^th$ May 2025 the process server located the 2^nd defendant through a contact provided by the 3rd Defendant and he served her with the summons and the - plaint. The 2^nd defendant appended her signature (Paragraph 8 of the Affidavit $20$ of service and Annexture B).

According to the ECCMIS record, the defendants filed a joint defence on $1^{st}$ May 2025.

When this matter came up for hearing, the plaintiff argued that the defendants had filed their defense out of the prescribed time and had not sought to extend 25 time within which to file their defense. The plaintiff then prayed for default judgement to be entered against the defendants pursuant to the provisions of Order 9 rule 6 of the Civil Procedure Rules S. I. 17-1.


5 Determination by Court

The singular question for determination by this Honourable court is *whether default judgement should be entered against the defendants.*

It suffices to state that the timely resolution of disputes cannot be overstated, as the credibility and effectiveness of the judicial system are highly dependent on

10 it. In addition, public policy demands that the business of the courts should be conducted expeditiously. One way to support this, is through the diligent participation of the parties to the suit by, inter alia, filing of necessary pleadings in accordance with the directions of the court to enable the progress of the case.

Where defendants fails to file a defense within the time prescribed in the 15 summons, the law under Order 9 rule 7 of the Civil Procedure Rules, provides guidance on how to proceed.

The provisions state;

*Order 9*

*7. Liquidated demand against several defendants*

20 *Where the plaint is drawn claiming a liquidated demand and there are several defendants of whom one or more files a defence on or before the day fixed in the summons, and another or others of them fail to file a defence, the court may, subject to rule 5 of this Order, pass judgment as in rule 6 of this Order against such as have not filed a defence, and execution may issue upon such judgment and decree without* 25 *prejudice to the plaintiff's right to proceed with the action against such as have filed a defence.*

The rule refers to rule 5 and rule 6 of the same order so it is prudent to reproduce the said rules herein below:


*Order 9*

*5. Affidavit of service upon failure to file defence*

*Where any defendant fails to file a defence on or before the day fixed in the summons and the plaintiff is desirous of proceeding upon default of filing the defence under* 10 *any of the rules of this Order, he or she shall cause an affidavit of service of the summons and failure of the defendant to file a defence within the prescribed time to be filed upon the record.*

*6. Judgment upon a liquidated demand*

*Where the plaint is drawn claiming a liquidated demand and the defendant fails* 15 *to file a defence, the court may, subject to rule 5 of this Order, pass judgment for any sum not exceeding the sum claimed in the plaint together with interest at the rate specified, if any, or if no rate is specified, at the rate of 8 percent per year to the date of judgment and costs.*

I am satisfied that service of summons on the defendants was effective, an affidavit of service is on the record. Notably summons were served on the 2 nd 20 Defendant on 12 th May 2025 and on the 3 rd Defendant on 20th May 2025. Under the summons the defendants were to file their defenses within 15 days from the date of service. The defendants filed their joint written statement of defense on 1 st June 2025. The 2 nd Defendant (Mutebi Dennis) who also signed for the loan of the 1 25 st Defendant filed his defense 7 days late, and did not seek to extend time to file their defense or to validate the defense. The 3 rd Defendant filed her defense within the prescribed time.


- Consequently, without prejudice to the plaintiff's right to proceed with the $\mathsf{S}$ action against the $3^{rd}$ defendant, I enter default judgement against the $1^{st}$ and $2^{nd}$ Defendant as follows: - a) Payment of Ugx 67,900,695/- (Uganda Shillings Sixty Seven million Nine Hundred Thousand, Six hundred Ninety Five only) being outstanding principal loan and interest; - $10$ - b) Interest on a) above at a rate of 29% from the date of Judgement until payment in full; - c) The costs of the suit are awarded to the plaintiff.

I so order.

Dated, signed and delivered electronically this 25^th day of June, 2025. 15

> S. Odongo JUDGE

$20\\$