Obeta v Centenary Rural Development Bank Limited
Obeta v Centenary Rural Development Bank Limited (Miscellaneous Application 1832 of 2024) [2024] UGCommC 366 (24 December 2024)
The court held that the applicant failed to demonstrate good cause to set aside the ex parte judgment entered in the summary suit. The Family Division judgment only voided the mortgages, not the underlying loan agreement or the applicant's liability as guarantor. The guarantee is a separate and enforceable obligation, and the respondent is entitled to pursue the guarantor without first proceeding against the principal borrower or mortgaged properties. The applicant's evidence of satisfaction of the judgment debt was unreliable and unsubstantiated. Procedural defects in citing the wrong rule w…
Source excerpt
- Setting Aside Ex Parte Judgment
- Summary Suit Procedure
- Guarantee Liability
- Mortgage Enforcement
- Good Cause Standard