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Uganda Judgment

High Court of Uganda

Natongo Satongo Sanyu v Poyo Noah (HCMA Land Division 138 of 2006) (HCMA Land Division 138 of 2006) [2006] UGHC 2 (31 December 2006)

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01

Holding and result

The court found that the claim in the plaint was not for a liquidated sum and thus not properly brought under summary procedure. Both parties agreed that UGX 11,500,000 was paid and UGX 2,300,000 was due before property in the land could pass to the plaintiff. The applicant raised bona fide triable issues regarding the circumstances of the contract and alleged breach, which necessitate adjudication. The respondent's allegations of fraud or dishonesty require specific proof in evidence. Therefore, the court granted unconditional leave to the applicant to appear and defend, as the matter involves substantive factual and legal disputes unsuitable for summary determination.

Court disposition

application_granted

Orders

  • Unconditional leave is granted to the applicant to appear and defend HCCS 80/06.
  • The applicant shall submit a written statement of defence within 14 days from the date of this ruling.

02

Material facts

Parties

Natongo Satongo Sanyu

Applicant Counsel: Mugabe Enoth

Poyo Noah

Respondent

Amounts and remedies

  • Amount Paid for Land: UGX 11,500,000
  • Balance Due Under Contract: UGX 2,300,000
  • Total Claimed in Plaint: UGX 15,600,000

03

Procedural history

  1. Posture

    Miscellaneous Application / Ruling

04

Questions and positions

Legal issues

Party arguments

Applicant
Counsel for the applicant argued that the claim by the respondent was not for a liquidated sum and was improperly brought under Order 36. He submitted that the matter should proceed under ordinary proceedings and cited Uddheum Singh v Ambalal & Co. Ltd (1959) EALR 67 to support that the dispute, though contractual, was not for unliquidated damages. The applicant denied being related to the respondent as alleged, asserted that the respondent defaulted on payment of UGX 2.3 million under a Deed, and that the respondent is in possession of the suit property. The applicant further averred that there are triable issues of fact and law and prayed for unconditional leave to appear and defend.
Respondent
Mr. Joshua Ddombo, holding power of attorney for the respondent, argued that the applicant had no defence and that the summary suit is based on contract law. He submitted that there was a breach of contract by the applicant and denied owing UGX 2.3 million to the applicant. He conceded that UGX 11.5 million was paid for the suit land but argued that the balance would not be paid due to breach of confidence and trust. He insisted the matter was indefensible and should be dealt with ex parte under Order 33 CPR.

05

Court’s reasoning

  1. 01

    Sheba Gold Mining Co. Ltd v Trubshawe (1892) 1 QBD 680

    Summary procedure under Order 33 applies only to cases involving liquidated demands.

  2. 02

    Muluku Interglobal Trade Agency Ltd v Bank of Uganda 1985 HCB 65

    Defendant must show a bona fide triable issue of fact or law to be granted leave to appear and defend.

06

Ratio, limits and disposition

Ratio decidendi

The court found that the claim in the plaint was not for a liquidated sum and thus not properly brought under summary procedure. Both parties agreed that UGX 11,500,000 was paid and UGX 2,300,000 was due before property in the land could pass to the plaintiff. The applicant raised bona fide triable issues regarding the circumstances of the contract and alleged breach, which necessitate adjudication. The respondent's allegations of fraud or dishonesty require specific proof in evidence. Therefore, the court granted unconditional leave to the applicant to appear and defend, as the matter involves substantive factual and legal disputes unsuitable for summary determination.

Obiter and limits

  • The court failed to understand the basis for the sums of UGX 14,950,000 and UGX 650,000 claimed in the plaint.
  • Allegations of fraud or dishonesty must be specifically proved in evidence and cannot be resolved summarily.

Court disposition

application_granted

  • Unconditional leave is granted to the applicant to appear and defend HCCS 80/06.
  • The applicant shall submit a written statement of defence within 14 days from the date of this ruling.

Source and reliance status

High Court of Uganda

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Judgment text

The complete available source text.

Source document

High Court of Uganda

Judgment

[2006] UGHC 2

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.}}{\*\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 \qc \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid14436020 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\insrsid3953950\charrsid14436020 THE REPUBLIC OF UGANDA}{\insrsid934969\charrsid14436020 \par }{\insrsid3953950\charrsid14436020 IN THE HIGH COURT OF UGANDA AT KAMPALA \par }{\b\insrsid3953950\charrsid14436020 HCMA LAND DIVISION 138 OF 2006 \par }{\insrsid3953950\charrsid14436020 (Arising from HCLD NO 80 OF 2006)}{\insrsid3953950 \par }{\insrsid14436020\charrsid14436020 \par }\pard \ql \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid14436020 {\insrsid3953950\charrsid14436020 NATONGO SATONGO SANYU}{\insrsid14436020 \'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85.}{ \insrsid3953950\charrsid14436020 APPLICANT \par }\pard \qc \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid14436020

{\insrsid3953950\charrsid14436020 VERSUS \par }\pard \ql \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid14436020 {\insrsid3953950\charrsid14436020 POYO NOAH }{\insrsid14436020 \'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85}{ \insrsid3953950\charrsid14436020 RESPONDENT}{\insrsid3953950 \par }{\insrsid14436020\charrsid14436020 \par }{\b\ul\insrsid11018161\charrsid14436020 BEFORE: HON. JUSTICE MARY IDE. MAITUM:}{\b\ul\insrsid3953950\charrsid14436020 \par }{\b\ul\insrsid11018161\charrsid14436020 \par RULING: \par \par }\pard \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid14436020 {\insrsid11018161\charrsid14436020 This is an application brought under O33 r 3 & 4 CPR for orders that leave be granted to the Defendant to appeared defendant HCCS 80/06 and for costs. \par }{\insrsid8421296\charrsid14436020 \par }\pard \qj \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid14436020 {\insrsid8421296\charrsid14436020 The application is supported by an affidavit deponed by Natongo Sanyu on 25/5/2006. The gist of which are: \par \par {\listtext\pard\plain\insrsid8421296\charrsid14436020 \hich\af0\dbch\af0\loch\f0 1.\tab}}\pard \qj

\fi-720\li1080\ri0\widctlpar\jclisttab\tx1080\aspalpha\aspnum\faauto\ls1\adjustright\rin0\lin1080\itap0\pararsid14436020 {\insrsid8421296\charrsid14436020 The applicant denies being}{\insrsid16518642\charrsid14436020 }{\insrsid12939936\charrsid14436020 related to the respondent as alleged in the plaint. \par }\pard \qj \li360\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin360\itap0\pararsid14436020 {\insrsid16518642\charrsid14436020 \par {\listtext\pard\plain\insrsid12939936\charrsid14436020 \hich\af0\dbch\af0\loch\f0 2.\tab}}\pard \qj \fi-720\li1080\ri0\widctlpar\jclisttab\tx1080\aspalpha\aspnum\faauto\ls1\adjustright\rin0\lin1080\itap0\pararsid14436020 { \insrsid12939936\charrsid14436020 The respondent is in default in paying Ug. Shs.2.3 million under a Deed dated }{\insrsid14754862\charrsid14436020 2}{\super\insrsid14754862\charrsid14436020 nd}{\insrsid14754862\charrsid14436020 May 2005. The Deed with its translation into English is marked \lquote A\rquote . \par {\listtext\pard\plain\insrsid14754862\charrsid14436020 \hich\af0\dbch\af0\loch\f0 3.\tab}}\pard \qj \fi-720\li1080\ri0\sl360\slmult1\widctlpar\jclisttab\tx1080\aspalpha\aspnum\faauto\ls1\adjustright\rin0\lin1080\itap0\pararsid14436020 { \insrsid14754862\charrsid14436020 The Respondent is in possession of the suit property which he has already fenced and should not deny that he is in possession not deny

that he is in possession of the suit land. \par }\pard \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid14436020 {\insrsid16518642\charrsid14436020 \par {\listtext\pard\plain\insrsid14754862\charrsid14436020 \hich\af0\dbch\af0\loch\f0 4.\tab}}\pard \qj \fi-720\li1080\ri0\sl360\slmult1\widctlpar\jclisttab\tx1080\aspalpha\aspnum\faauto\ls1\adjustright\rin0\lin1080\itap0\pararsid14436020 { \insrsid14754862\charrsid14436020 That Responded has admitted in his affidavit para.10 having defaulted in the payment 2.3 million to the Applicant. \par }\pard \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid14436020 {\insrsid16518642\charrsid14436020 \par {\listtext\pard\plain\insrsid14754862\charrsid14436020 \hich\af0\dbch\af0\loch\f0 5.\tab}}\pard \qj \fi-720\li1080\ri0\sl360\slmult1\widctlpar\jclisttab\tx1080\aspalpha\aspnum\faauto\ls1\adjustright\rin0\lin1080\itap0\pararsid14436020 { \insrsid14754862\charrsid14436020 In para}{\insrsid13256129\charrsid14436020 graph 9 of the affidavit of the Applic}{\insrsid2908693\charrsid14436020 a}{\insrsid13256129\charrsid14436020 nt the applicant avers that the respondent had been informed of his default in paying in annexture \'93B\'94}{\insrsid2908693\charrsid14436020 }{\insrsid16518642\charrsid14436020 which the respondent never react ed. There was another

letter of 13/3/2006 about the default which the respondent did not respond to. \par {\listtext\pard\plain\insrsid16518642\charrsid14436020 \hich\af0\dbch\af0\loch\f0 6.\tab}In para 10 of her affidavit the Applicant avers that the suit/plaint raises triable issues of fact and law which necessitate adjudication by this non. }{ \insrsid15024964\charrsid14436020 COUIT \par }\pard \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid14436020 {\insrsid15024964\charrsid14436020 \par In paragraph II. The applicant avers that there is }{\insrsid10440326\charrsid14436020 a plausible}{\insrsid15024964\charrsid14436020 defence to the suit and that it is just and equitable that a written statement of defence be filed. \par \par Counsel for the applicant contended that the claim by the respondent defendant was not for a liquidated sum and was therefore improperly brought under O.36. He argued that the matter should have been brought under ordinary proceedings. Counsel cited: } {\b\i\ul\insrsid15024964\charrsid14436020 Uddheum Singh \endash v \endash Ambalal & Co. }{\b\i\ul\insrsid12146349\charrsid14436020 Ltd (1959) EALR 67 t}{\insrsid12146349\charrsid14436020 o the effect that though the dispu te arose out of a contract (of employment) the claim was not for un liquidated damages.}{\insrsid15024964\charrsid14436020

}{\insrsid5313995\charrsid14436020 \par \par Counsel, Mugabe Enoth prayed court to grant the Applicant unconditional leave to appear and defend HCS 80/06. Mr. Joshua Ddo}{\insrsid466603\charrsid14436020 mbo who holds the power of attorney for the Respondent/Pl}{\insrsid16210600\charrsid14436020 ai} {\insrsid466603\charrsid14436020 ntiff and had no legal representation stated that he would conduct his own case on behalf of the Respondent/Plaintiff. Mr. Ddombo contended that the Applicant had no defence in this matter. He argued that the summary suit 4/033 is based on the law of contract. He submitted that there was a breach of contract by the Applicant and there I no defence to that. He denied that the Respondent owed 2.3 million to the Applicant/Defendant. He conceded that the Defendant Applicant had received 11.5 million for the Suit land but argued that the 2.3 million would not be paid because of a breach of confidence and trust between the parties. \par He insisted that the matter was }{\insrsid528693\charrsid14436020 indefensible and should be dealt with under 0.33 CPR and ex parte.}{\insrsid466603\charrsid14436020 \par }{\insrsid528693\charrsid14436020 \par In the instant case the defendant was served in form 4 Appendix A in compliance with 0.33 r3. hence this application of leave to appear and defend. \par \par In compliance with the requirement of 0.33 r4 the

Applicant/Defendant avers in her affidavit that the Respondent paid her 11.500}{\insrsid14436020\charrsid14436020 , 000}{\insrsid528693\charrsid14436020 /= for land which he had agreed to purchase from her at 13,800,000/=. She avers that the Respond}{\insrsid15148703\charrsid14436020 e}{\insrsid528693\charrsid14436020 nt has since defaulted on the payment of the balance of 2,300,000/=. The Plaintiff in his prayers in the Plaint demands for 14,950,000/= and ex penses of 650,000 making a total of 15,600,000/=. In the alternative the Respondent prays for vacant possession of the land. \par }{\insrsid9113926\charrsid14436020 \par In }{\b\i\ul\insrsid9113926\charrsid14436020 Sheba Gold mining Co. Ltd \endash v- Tru}{\b\i\ul\insrsid7807679\charrsid14436020 b}{\b\i\ul\insrsid10498041\charrsid14436020 sha}{\b\i\ul\insrsid9113926\charrsid14436020 ve (1892) I}{ \b\i\ul\insrsid10896574\charrsid14436020 Q}{\b\i\ul\insrsid9113926\charrsid14436020 BD 680,}{\insrsid9113926\charrsid14436020 the Plaintiff claimed money paid under a bill of exchange by the Pla intiff for accommodation of the Defendant with interest thereon from time of payment and the Plaintiff claimed further interest at 5% p.a. on the said sum of \u8356\'a350 from the date hereof till payment or judgment,\'94 }{ \insrsid3020824\charrsid14436020 it was held O. III r.6 \endash Uganda\rquote s O.33 r.2 applies only to cases in

which the demand which the plaintiff seeks to recover, is a liquidated demand i.e. to cases in which the interest is payable under a cont ract \'85\'94}{\insrsid9113926\charrsid14436020 \par }{\insrsid1383706\charrsid14436020 \par Both parties in the instant case agree that there was payment of 11,500,000/= and that 2,300,000/= was due before property in the land could be passed to the plaintiff. I have failed to understand the 14,950,000 and 650,000/= have come from. In an application for leave to appear and defend, the defendant must show a bona fide triable issue of fact or law, see }{\b\i\ul\insrsid6496352\charrsid14436020 Muluku interglobal Trade Agency Ltd \endash v \endash B. O. U. 1985 HCB 65}{ \insrsid6496352\charrsid14436020 . Under the instant application, from the affidavits of the Applicant in suppo rt of this application it is necessary for court to hear evidence from both parties as to circumstances which led to a breach of the contract for sale of land. The Respondent in his affidavit deponed on 22/6/2006 suggests the existence of fraud or dishon esty on }{\insrsid478171\charrsid14436020 the part of the Applicant this has to be specifically proved in evidence. Consequently, this court grants unconditioned leave to the applicant to appear and defend herself in HCCS 80/06. }{ \insrsid5457127\charrsid14436020 S}{\insrsid478171\charrsid14436020 he should submit a written statement of defence (WSD) with 14 days from tomorrow.}{\insrsid478171 \par }{\insrsid14436020\charrsid14436020 \par }{\insrsid478171\charrsid14436020 Mary I. D. E. Maitum \par }{\b\insrsid478171\charrsid14436020 JUDGE \par }}

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Authorities

Authorities used by the court

Cases, legislation, regulations, and constitutional provisions identified in the available record.

Uddheum Singh v Ambalal & Co. Ltd (1959) EALR 67

Case cited

Sheba Gold Mining Co. Ltd v Trubshawe (1892) 1 QBD 680

Case cited

Muluku Interglobal Trade Agency Ltd v Bank of Uganda 1985 HCB 65

Case cited

Order 33 rules 3 & 4 Civil Procedure Rules

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Legislation referenced in the available case record.

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