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Postbank Uganda Limited v. Abdu Ssozi

 Supreme Court Civil Appeal No. 8 of 2015 –  Ground breaking judgement on a plea of fraud in a summary suit

The appellant bank commenced a summary suit against the respondent and others to recover loan monies.  In its claim, it alleged fraud on the borrowers’ part. At the High Court, judgement was summarily entered against the respondent and his co-defendants.  The respondent appealed to the Court of Appeal on the basis that the High Court erred in summarily entering judgment when there was a clear plea of fraud.  The Court of Appeal agreed with the respondent overturning the High Court decision. It reasoned that a plea of fraud could not be brought in a case of a summary nature.  Court went further to strike out the plaint. The appellant appealed to the Supreme Court contesting the finding on the basis that a summary suit could be entertained even with an allegation of fraud as long as a claimant’s claim was liquidated.  The Supreme Court in clarifying the position of the law agreed with the appellant in finding that a party whose action against the other was not founded on fraud as a basis for their claim, could plead fraud within a claim of a summary nature.

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