Sofitra (U) Ltd v Swastika Impex Ltd (HCT-00-CC-MA 609 of 2006) [2006] UGCommC 68 (3 October 2006)

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}{\b\insrsid15861250\charrsid5322249 \par }{\b\insrsid7893803\charrsid5322249 \par IN THE HIGH COURT OF UGANDA HOLDEN AT KAMPALA \par \par COMMERCIAL COURT DIVISION \par \par HCT-00-CC-MA-0609-2006 \par \par }{\insrsid7893803\charrsid5322249 (Arising from HCT-00-CC-CS-0417-2006) \par \par Sofitra (U) Ltd Applicant \par \par Versus \par \par Swastika Impex Ltd Respondent \par }{\insrsid15868771\charrsid5322249 \par }{\b\i\ul\insrsid15868771\charrsid5322249 Legislation referred to: \par {\listtext\pard\plain\i\lang2057\langfe1033\langfenp1033\insrsid15868771\charrsid5322249 \hich\af0\dbch\af0\loch\f0 1.\tab}}\pard \ql \fi-360\li720\ri0\sl360\slmult1\widctlpar \jclisttab\tx720\aspalpha\aspnum\faauto\ls2\adjustright\rin0\lin720\itap0\pararsid5322249 {\i\insrsid15868771\charrsid5322249 Civil Procedure Rules, (Chapter 71, 2000 Rev Ed), \par }\pard \ql \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid5322249 {\insrsid7893803\charrsid5322249 \par }{\b\i\insrsid15868771\charrsid5322249 Cases cited: \par {\listtext\pard\plain\i\lang2057\langfe1033\langfenp1033\insrsid15868771\charrsid5322249 \hich\af0\dbch\af0\loch\f0 1.\tab}}\pard \ql \fi-360\li720\ri0\sl360\slmult1\widctlpar \jclisttab\tx720\aspalpha\aspnum\faauto\ls3\adjustright\rin0\lin720\itap0\pararsid5322249 {\i\insrsid15868771\charrsid5322249 Ooka v Phillister Nabunjo H. C. C. S. No. 613 of 1963 (unreported), \par {\listtext\pard\plain\i\lang2057\langfe1033\langfenp1033\insrsid15868771\charrsid5322249 \hich\af0\dbch\af0\loch\f0 2.\tab}Sebei District Administration v Samwiri Gasyali and Others, 1968 E A 300 \par {\listtext\pard\plain\i\lang2057\langfe1033\langfenp1033\insrsid15868771\charrsid5322249 \hich\af0\dbch\af0\loch\f0 3.\tab}Jamnadas V. Sodha v Gordhahandas Hemraj, (1952), 7 U. L. R. 11, \par }\pard \ql \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid5322249 {\insrsid7893803\charrsid5322249 \par }{\b\ul\insrsid7893803\charrsid5322249 \par BEFORE: THE HONOURABLE MR. JUSTICE F}{\b\ul\insrsid13704802\charrsid5322249 .}{\b\ul\insrsid7893803\charrsid5322249 M}{\b\ul\insrsid13704802\charrsid5322249 .}{\b\ul\insrsid7893803\charrsid5322249 S}{\b\ul\insrsid13704802\charrsid5322249 .}{ \b\ul\insrsid7893803\charrsid5322249 EGONDA-NTENDE \par \par RULING \par }{\insrsid7893803\charrsid5322249 \par {\listtext\pard\plain\lang2057\langfe1033\langfenp1033\insrsid5520858\charrsid5322249 \hich\af0\dbch\af0\loch\f0 1.\tab}}\pard \ql \fi-360\li720\ri0\sl360\slmult1\widctlpar \jclisttab\tx720\aspalpha\aspnum\faauto\ls1\adjustright\rin0\lin720\itap0\pararsid5322249 {\insrsid5520858\charrsid5322249 The applicant is the defendant in the head suit. It is seeking that a judgment entered in default against it on the 18}{ \super\insrsid5520858\charrsid5322249 th}{\insrsid5520858\charrsid5322249 August 2006 be set aside, and that the applicant be granted leave to defend the suit on its merits. In effect the ground for this application, as can be gathered i n the many grounds stated in the notice of motion is simply that the applicant has a good defence to the plaintiff\rquote s claim. The application is supported by an affidavit sworn by Sasi Nair, the Country Manager of the Applicant. }{ \insrsid4723871\charrsid5322249 A supplementary affidavit, sworn by Assumpta Kemigisha, an advocate working with the applicant\rquote s advocates was also, albeit, without leave of cour}{\insrsid4600631\charrsid5322249 t, filed in this matter}{ \insrsid4723871\charrsid5322249 .}{\insrsid7893803\charrsid5322249 \par {\listtext\pard\plain\lang2057\langfe1033\langfenp1033\insrsid5520858\charrsid5322249 \hich\af0\dbch\af0\loch\f0 2.\tab}}{\insrsid5520858\charrsid5322249 The respondent/plaintiff opposes this application, and an affidavit in reply to the application, sworn by Ashok M Joshi, a director of the respondent was filed in this regard. \par {\listtext\pard\plain\lang2057\langfe1033\langfenp1033\insrsid6362854\charrsid5322249 \hich\af0\dbch\af0\loch\f0 3.\tab}}{\insrsid6362854\charrsid5322249 Mr. Kabagambe, learned counsel for the applicant, submitted that the applicant was not at fault, but the fault lay with the counsel, that failed to file the written statement of defence in time . This applicant should therefore be allowed an opportunity to defend this suit. \par {\listtext\pard\plain\lang2057\langfe1033\langfenp1033\insrsid6362854\charrsid5322249 \hich\af0\dbch\af0\loch\f0 4.\tab}Mr. Kibaya, learned counsel for the respondent opposed this }{\insrsid4600631\charrsid5322249 application. He}{ \insrsid6362854\charrsid5322249 attacked the filing of the supplementary affidavit by the applicant, as it was done without leave o f this court. He argued that this court should not have regard to it. And if the court had no regard to it, there is nothing before the }{\insrsid4723871\charrsid5322249 court that}{\insrsid6362854\charrsid5322249 explains why the applicant failed to file the defence in time. Secondly he submitted that the applicant was u nder an obligation to show that it had a defence worth being called a defence. In the instant case the email message referred to in the affidavit of the applicant as instructing it not to deliver the goods, was in fact, instructing them to deliver the goo ds. \par {\listtext\pard\plain\lang2057\langfe1033\langfenp1033\insrsid6362854\charrsid5322249 \hich\af0\dbch\af0\loch\f0 5.\tab}Lastly Mr. Kibaya submitted that setting aside the judgment in this case would be prejudicial to the respondent}{ \insrsid4076303\charrsid5322249 due to the delay that would be visited on these proceedings.}{\insrsid6362854\charrsid5322249 \par {\listtext\pard\plain\lang2057\langfe1033\langfenp1033\insrsid4076303\charrsid5322249 \hich\af0\dbch\af0\loch\f0 6.\tab}}{\insrsid4076303\charrsid5322249 I shall start by bringing the applicable rule here in view. Order 9 Rule 12 of t he Civil Procedure Rules, (Chapter 71}{\insrsid13704802\charrsid5322249 ,}{\insrsid4076303\charrsid5322249 2000 Rev Ed), states, }{\insrsid4723871\charrsid5322249 \par }\pard \ql \li1440\ri1440\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin1440\lin1440\itap0\pararsid5322249 {\insrsid4076303\charrsid5322249 \lquote Where judgment has been passed pursuant to any of the preceding rules of this Order, or where judgment has been entered by the Registrar in cases under Order L of these Rules, the court may set aside or vary the judgment upon such terms as may be just. \rquote \par {\listtext\pard\plain\lang2057\langfe1033\langfenp1033\insrsid4076303\charrsid5322249 \hich\af0\dbch\af0\loch\f0 7.\tab}}\pard \ql \fi-360\li720\ri0\sl360\slmult1\widctlpar \jclisttab\tx720\aspalpha\aspnum\faauto\ls1\adjustright\rin0\lin720\itap0\pararsid5322249 {\insrsid4076303\charrsid5322249 This rule obviously provides wide discretion to this court in applications of this nature.}{\insrsid16389669\charrsid5322249 I shall examine how this provision has been interpreted and applied in the past.}{\insrsid4076303\charrsid5322249 In }{\ul\insrsid4076303\charrsid5322249 Ooka v Phillister Nabunjo H. C. C. S. No. 613 of 1963 (unreported)}{\insrsid4076303\charrsid5322249 , Russel, J., held that where a defendant had appeared, but not filed a statement of defence, and had a good defence on the merits, unless he was simply trying to delay the action, the court should normally exercis e its discretion and let him put forward a defence, but penalise him severely by way of costs. \par {\listtext\pard\plain\lang2057\langfe1033\langfenp1033\insrsid16389669\charrsid5322249 \hich\af0\dbch\af0\loch\f0 8.\tab}}{\insrsid16389669\charrsid5322249 In }{\ul\insrsid16389669\charrsid5322249 Sebei District Administration v Samwiri Gasyali and Others, }{\ul\insrsid7950239\charrsid5322249 1968 E A 300}{\insrsid13704802\charrsid5322249 , }{\insrsid16389669\charrsid5322249 the respondent sued the appellant and others for damages for assault and trespass. The appellant did not enter an appearance }{\insrsid4600631\charrsid5322249 after}{\insrsid16389669\charrsid5322249 it was served with summons. Judgment against it was obtained in default. The respondent applied for execution on 8}{\super\insrsid16389669\charrsid5322249 th}{\insrsid16389669\charrsid5322249 December 1967, and on the 18}{ \super\insrsid16389669\charrsid5322249 th}{\insrsid16389669\charrsid5322249 December 1967, the appellant applied to set aside the ex part e judgment. The magistrate hearing the application dismissed it, and leave to appeal was granted to the appellants, and the appellants were also ordered to deposit the decretal amount in court, which they did.}{\insrsid4076303\charrsid5322249 \par {\listtext\pard\plain\lang2057\langfe1033\langfenp1033\insrsid16389669\charrsid5322249 \hich\af0\dbch\af0\loch\f0 9.\tab}}{\insrsid16389669\charrsid5322249 On appeal to the High Court, Sheridan, J.,}{\insrsid7950239\charrsid5322249 stated at page 301, }{ \insrsid4723871\charrsid5322249 \par }\pard \ql \li1440\ri1440\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin1440\lin1440\itap0\pararsid5322249 {\insrsid7950239\charrsid5322249 \lquote It is not dis}{\insrsid4723871\charrsid5322249 puted that the appellants have }{ \insrsid7950239\charrsid5322249 a defence on the merits of the case. Nor does it appear that they have been trying to obstruct or delay the course of justice. As soon as they became aware of the judgment by the application fo r execution, they took steps to rectify the position. And, as I have alre}{\insrsid4723871\charrsid5322249 a}{\insrsid7950239\charrsid5322249 dy observed, they have paid the decretal amount into court. In these circumstances, the justice of the case required that the defence to be heard on its merits:\rquote }{\insrsid16389669\charrsid5322249 \par {\listtext\pard\plain\lang2057\langfe1033\langfenp1033\insrsid791130\charrsid5322249 \hich\af0\dbch\af0\loch\f0 10.\tab}}\pard \ql \fi-360\li720\ri0\sl360\slmult1\widctlpar \jclisttab\tx720\aspalpha\aspnum\faauto\ls1\adjustright\rin0\lin720\itap0\pararsid5322249 {\insrsid791130\charrsid5322249 Sheridan, J., in the above case referred to the case of }{\ul\insrsid791130\charrsid5322249 Jamnadas V. Sodha v Gordhahandas Hemraj, (1952), 7 U. L. R. 11}{\insrsid791130\charrsid5322249 , where Ainely, J., (as he then was), stated, }{\insrsid4723871\charrsid5322249 \par }\pard \ql \li1440\ri1440\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin1440\lin1440\itap0\pararsid5322249 {\insrsid791130\charrsid5322249 \lquote Though I have the greatest sympathy with a busy magistrate who no doubt has a great deal to put up with in the way of belated applications and requests for }{\insrsid4723871\charrsid5322249 adjournments}{\insrsid791130\charrsid5322249 , and though two views can no doubt be taken of this matter, I yet think that insufficient attention was paid by the lower court to the fact the appellant had a defence to put forward, and to the fact that no great hardship would have been likely to result to the respondent if an appropriate order for costs had been made. I may be doing the learned magistrate an injustice, but from a reading of his ruling of June 19 it seems to me that he has concentr ated solely upon the poverty of the appellant\rquote s excuse. }{\insrsid4723871\charrsid5322249 }{\insrsid791130\charrsid5322249 In my view that is not the sole matter which must be considered in cases of this kind. The nature of the action sho uld be considered, the defence if one has been brought to the notice of the court, however irregularly, should be considered, the question as to whether the plaintiff can reasonably}{\insrsid8213759\charrsid5322249 be compensated by costs for any delay occasioned should be considered, and finally I think it should be always be remembered that to deny the subject a hearing should be the last resort of a court. Though I realise that the views expressed may not be shared by everyone I think that there was not a full judicial exercise of disc retion in this case, and that it was wrong under all the circumstances to shout out the defendant. He should I consider have been visited with a severe order as to costs, and permitted to defend.\rquote \par {\listtext\pard\plain\lang2057\langfe1033\langfenp1033\insrsid8213759\charrsid5322249 \hich\af0\dbch\af0\loch\f0 11.\tab}}\pard \ql \fi-360\li720\ri0\sl360\slmult1\widctlpar \jclisttab\tx720\aspalpha\aspnum\faauto\ls1\adjustright\rin0\lin720\itap0\pararsid5322249 {\insrsid8213759\charrsid5322249 It is clear from the foregoing authorities that a number of considerations are apposite }{\insrsid2491678\charrsid5322249 in proceedings of this nature}{\insrsid8213759\charrsid5322249 .}{\insrsid2491678\charrsid5322249 And that such considerations ought to be taken together.}{\insrsid791130\charrsid5322249 }{\insrsid8213759\charrsid5322249 These include whether the defendant has a good defence or not. The question of delay or promptness in coming to court is relevant. Whether an application is made in good faith or is an attempt to obstruct the wheels of justice may be considered if }{ \insrsid4600631\charrsid5322249 it }{\insrsid8213759\charrsid5322249 arises. The prejudice that may be suffered by the plaintiff should also be considered. And whether or not such prejudice may be compensated by an order for costs. Running through all the above cases, is the showing of a good defence on the merits.}{\insrsid791130\charrsid5322249 \par {\listtext\pard\plain\lang2057\langfe1033\langfenp1033\insrsid8213759\charrsid5322249 \hich\af0\dbch\af0\loch\f0 12.\tab}}{\insrsid8213759\charrsid5322249 Turning to the facts in our case, it is clear that the applicant has acted promptly in coming to this court.}{\insrsid9795538\charrsid5322249 This application was filed on 1}{\super\insrsid9795538\charrsid5322249 st}{\insrsid9795538\charrsid5322249 September 2006 when the ex parte judgment in default was entered on 18}{\super\insrsid9795538\charrsid5322249 th}{\insrsid9795538\charrsid5322249 August 2006. It may be noted that the applicant was out of time in filing its defence by about a week only. The defence in this case ought to have been filed before 3}{\super\insrsid9795538\charrsid5322249 rd}{\insrsid9795538\charrsid5322249 August 2006. It was filed on 11}{\super\insrsid9795538\charrsid5322249 th}{\insrsid9795538\charrsid5322249 August 2006.}{\insrsid8213759\charrsid5322249 \par {\listtext\pard\plain\lang2057\langfe1033\langfenp1033\insrsid9795538\charrsid5322249 \hich\af0\dbch\af0\loch\f0 13.\tab}}{\insrsid9795538\charrsid5322249 Turning to the merits of the defence, the claim was for value of goods imported by the plaintiff to Uganda, and loss of profit}{\insrsid4600631\charrsid5322249 s}{\insrsid9795538\charrsid5322249 on that consignment. It was contended that the defendant was instructed to clear and forward the said consignment of goods to Kampala, and that the plaintiff had paid all dues including freight and the defendant\rquote s charges to the defendant. The defendant failed to clear and deliver the goods to the plaintiff in Kampala. \par {\listtext\pard\plain\lang2057\langfe1033\langfenp1033\insrsid15206050\charrsid5322249 \hich\af0\dbch\af0\loch\f0 14.\tab}}{\insrsid15206050\charrsid5322249 The defendant contends both on the affid avit and the proposed written statement of defence that the plaintiff had no claim on the applicant as }{\insrsid9976954\charrsid5322249 stated, in part, in paragraph 7 of the affidavit of Sasi Nair, below, \par }\pard \ql \li1440\ri1440\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin1440\lin1440\itap0\pararsid5322249 {\insrsid15206050\charrsid5322249 \lquote it was the late director of the Respondent }{\insrsid4723871\charrsid5322249 Company}{ \insrsid15206050\charrsid5322249 who requested our Company to hold the containers in Mombasa as owing to financial }{\insrsid9789102\charrsid5322249 constraints}{\insrsid15206050\charrsid5322249 , he was not in a position to arrange freight charges and other dues. (A copy of an email to that effect is }{\insrsid4723871\charrsid5322249 annexed hereto}{\insrsid15206050\charrsid5322249 and marked, \lquote \lquote B\rquote \rquote .\rquote }{ \insrsid9976954\charrsid5322249 }{\insrsid9795538\charrsid5322249 \par {\listtext\pard\plain\lang2057\langfe1033\langfenp1033\insrsid15206050\charrsid5322249 \hich\af0\dbch\af0\loch\f0 15.\tab}}\pard \ql \fi-360\li720\ri0\sl360\slmult1\widctlpar \jclisttab\tx720\aspalpha\aspnum\faauto\ls1\adjustright\rin0\lin720\itap0\pararsid5322249 {\insrsid15206050\charrsid5322249 The annexture B referred to reads, }{\insrsid5378497\charrsid5322249 \par }\pard \ql \li1440\ri1440\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin1440\lin1440\itap0\pararsid5322249 {\insrsid15206050\charrsid5322249 \lquote Dear Sasi Nair Ji, }{\insrsid5378497\charrsid5322249 }{\insrsid15206050\charrsid5322249 Good Day!!! }{\insrsid5378497\charrsid5322249 }{ \insrsid15206050\charrsid5322249 Hope you are fine. }{\insrsid5378497\charrsid5322249 }{\insrsid15206050\charrsid5322249 Reference our discussion at your office. }{ \insrsid5378497\charrsid5322249 }{\insrsid15206050\charrsid5322249 I am requesting you to load my 1}{\insrsid13704802\charrsid5322249 x }{\insrsid15206050\charrsid5322249 20 Kajaria }{ \insrsid9976954\charrsid5322249 c}{\insrsid15206050\charrsid5322249 ontainer after 15}{\super\insrsid15206050\charrsid5322249 th}{\insrsid15206050\charrsid5322249 of January 2006 as am organising duties etc., by that time. }{ \insrsid9976954\charrsid5322249 }{\insrsid15206050\charrsid5322249 With }{\insrsid9976954\charrsid5322249 b}{\insrsid15206050\charrsid5322249 est }{ \insrsid9976954\charrsid5322249 r}{\insrsid15206050\charrsid5322249 egards, }{\insrsid9976954\charrsid5322249 }{\insrsid15206050\charrsid5322249 Harshad Patel\rquote \par {\listtext\pard\plain\lang2057\langfe1033\langfenp1033\insrsid15206050\charrsid5322249 \hich\af0\dbch\af0\loch\f0 16.\tab}}\pard \ql \fi-360\li720\ri0\sl360\slmult1\widctlpar \jclisttab\tx720\aspalpha\aspnum\faauto\ls1\adjustright\rin0\lin720\itap0\pararsid5322249 {\insrsid15206050\charrsid5322249 It is clear to me that this is not an instruction to hold the containers in Mombasa indefinitely but an instru ction to load the container not earlier than 15}{\super\insrsid15206050\charrsid5322249 th}{\insrsid15206050\charrsid5322249 January 2006. The construction put upon the said email by the applicants is the exact opposite of its import. }{ \insrsid16003903\charrsid5322249 The plaintiff was asking the applicant to deliver the consignment, approximately 4 weeks, or a month from the time of writing the message. This message, given its headers, appears to have been written on 14}{ \super\insrsid16003903\charrsid5322249 th}{\insrsid16003903\charrsid5322249 December 2005.}{\insrsid15206050\charrsid5322249 \par {\listtext\pard\plain\lang2057\langfe1033\langfenp1033\insrsid9976954\charrsid5322249 \hich\af0\dbch\af0\loch\f0 17.\tab}}{\insrsid9976954\charrsid5322249 Secondly the email does not, as alleged by Mr. Sasi Nair, state that the container should be held in Mombasa as Mr. Harshad Pate l was looking for money for freight charges and other dues. Mr. Harshad Patel, in the email message clearly stated that the container should be loaded after 15}{\super\insrsid9976954\charrsid5322249 th}{\insrsid9976954\charrsid5322249 January 2006 }{ \insrsid4600631\charrsid5322249 as }{\insrsid9976954\charrsid5322249 he was \lquote organising duties etc., by that time.\rquote There is clearly no reference to freight and other charges presumably due to the applicant. }{ \insrsid1988673\charrsid5322249 The reference in the message }{\insrsid9976954\charrsid5322249 is}{\insrsid1988673\charrsid5322249 to}{\insrsid9976954\charrsid5322249 }{\insrsid1988673\charrsid5322249 \lquote }{\insrsid9976954\charrsid5322249 duties}{ \insrsid1988673\charrsid5322249 \rquote }{\insrsid9976954\charrsid5322249 which I presume are due to the Government in the form of taxes. \par {\listtext\pard\plain\lang2057\langfe1033\langfenp1033\insrsid1988673\charrsid5322249 \hich\af0\dbch\af0\loch\f0 18.\tab}}{\insrsid1988673\charrsid5322249 Clearly the Mr. Sasi Nair, }{\insrsid15170659\charrsid5322249 a director of the applicant, }{ \insrsid1988673\charrsid5322249 who swore the affidavit in question, and attached this message is simply being disingenuous in importing to the message what clearly is not available on that message. \par {\listtext\pard\plain\lang2057\langfe1033\langfenp1033\insrsid9789102\charrsid5322249 \hich\af0\dbch\af0\loch\f0 19.\tab}}{\insrsid9789102\charrsid5322249 The applicant further contend}{\insrsid4723871\charrsid5322249 s}{\insrsid9789102\charrsid5322249 that the plaintiff\rquote s claim}{\insrsid4723871\charrsid5322249 , in the plaint,}{\insrsid9789102\charrsid5322249 that it paid all dues is false as there is an outstanding sum of US$800.00. A statement}{\insrsid9575224\charrsid5322249 of account}{ \insrsid9789102\charrsid5322249 is attached showing the plaintiff}{\insrsid9575224\charrsid5322249 \rquote }{\insrsid9789102\charrsid5322249 s account with the applicant. It shows that two invoices were raised on 17 and 18 November 2005 for a total of US$8,034.06}{\insrsid9575224\charrsid5322249 by the defendant/applicant}{\insrsid9789102\charrsid5322249 . It also shows paym ents by the plaintiff from 12 November 2005 to 6 December 2005 totalling to US$7,200.00. \par {\listtext\pard\plain\lang2057\langfe1033\langfenp1033\insrsid9789102\charrsid5322249 \hich\af0\dbch\af0\loch\f0 20.\tab}It is clear that by the time the email message referred to above by the applicant, which must have been written on }{ \insrsid16003903\charrsid5322249 or about }{\insrsid9789102\charrsid5322249 the 14}{\super\insrsid9789102\charrsid5322249 th}{\insrsid9789102\charrsid5322249 December 2005, the applicants wer e already in receipt of approximately 90% of the funds reflected on their invoices, and leaving a balance of only US$800.00. The respondent had paid the bulk of the}{\insrsid16003903\charrsid5322249 applicant\rquote s invoiced }{ \insrsid9789102\charrsid5322249 charges in respect of this transaction.}{\insrsid4723871\charrsid5322249 }{\insrsid9789102\charrsid5322249 \par {\listtext\pard\plain\lang2057\langfe1033\langfenp1033\insrsid4723871\charrsid5322249 \hich\af0\dbch\af0\loch\f0 21.\tab}}{\insrsid4723871\charrsid5322249 Of course the applicant may b e entitled to the US$800.00, that it alleges the respondent has not paid, but the applicant has not indicated any desire to counter claim for the same, either, on its application or on the proposed written statement of defence. \par {\listtext\pard\plain\lang2057\langfe1033\langfenp1033\insrsid9789102\charrsid5322249 \hich\af0\dbch\af0\loch\f0 22.\tab}}{\insrsid9789102\charrsid5322249 On the basis of the facts that are evident on the application and }{\insrsid5378497\charrsid5322249 the }{\insrsid9789102\charrsid5322249 supporting documents put forth by the applicant,}{\insrsid5378497\charrsid5322249 in particular the email message and the statement of account,}{\insrsid9789102\charrsid5322249 it cannot be said, as the applicant has attempted to do, that the respondent/plaintiff has no claim on the applicant.}{\insrsid16003903\charrsid5322249 This defence is not an arguable defence given the documentary evidence put forth by the applicant itself on this application. The applicant\rquote s position is not credible at all. It is a sham defence.}{\insrsid9789102\charrsid5322249 \par {\listtext\pard\plain\lang2057\langfe1033\langfenp1033\insrsid5378497\charrsid5322249 \hich\af0\dbch\af0\loch\f0 23.\tab}}{\insrsid5378497\charrsid5322249 The applicant may well have a good reason as to why the respondent\rquote s consignment of goods is not in Kampala. Unfortunately such reason has not been stated in its application before me or in its proposed defence in this matter. }{\insrsid9575224\charrsid5322249 In effect the applicant has failed to show an arguable or a good defence to the suit in this case. }{\insrsid5378497\charrsid5322249 The applicant has therefore failed to satisfy one of the conditions necessary for this court to exercise its discretion and allow the applicant to proceed with the defence of this suit on its merits. }{\insrsid3372741\charrsid5322249 \par {\listtext\pard\plain\lang2057\langfe1033\langfenp1033\insrsid3372741\charrsid5322249 \hich\af0\dbch\af0\loch\f0 24.\tab}Notwithstanding the fact tha t this application has been brought without delay, and that prejudice occasioned to the respondent could possibly be compensated for by costs, the applicant has failed to show that it has any defence to the plaintiff\rquote s suit. }{ \insrsid5378497\charrsid5322249 I accordingly dismiss this application with costs. \par }\pard \ql \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid5322249 {\insrsid4723871\charrsid5322249 Signed, dated and delivered this 4}{\super\insrsid4723871\charrsid5322249 th}{\insrsid4723871\charrsid5322249 day of October 2006 \par \par \par \par FMS Egonda-Ntende \par Judge \par }}