KAMPALA, Uganda | The Commercial Division of the High Court has allowed Armour Trading Company Limited to defend itself against a $264,134 debt burden brought by Africa Global Logistics Uganda Limited.

Armour Trading Company petitioned the court to allow them to defend themselves against a debt brought by Africa Global Logistics Limited for USD 264,134 that arose out of a contract for logistic services that were imported by Africa Global Logistics Limited.

According to Africa Global Logistics Limited, delivered goods were worth USD 279,134; Armour Trading only paid $15,000, leaving an unpaid balance of $264,134 despite repeated reminders and attempts to recover the debt.

Armour Trading denied both the contractual relationship and the alleged debt, denying ever receiving any logistics services from Africa Global Logistics Uganda Limited.

Armour Trading Company Limited further argued that they never contracted Africa Global Logistics Uganda Limited for the services in question, describing the claim as “baseless and unfounded.”

Justice Ngwatu ruled that at this stage of litigation, the court is not required to determine the merits of the defense but only to assess whether there is a bona fide issue requiring trial.

Justice Dr. Ginamia Melody Ngwatu allowed Armour Trading’s application for leave to defend Civil Suit No. 1223 of 2024, ruling that the company had raised genuine triable issues requiring a full trial.

“In this particular application, the applicant, on the other hand, denies that there was any contractual relation with the respondent and that the respondent’s claim is unfounded and baseless as no evidence was provided, and that the applicant further disputes the provision and receipt of logistic services from the respondent, and in this effect, shows that the alleged breach is denied, thereby warranting a trial on its merits.” Justice Ngwatu held

Justice Ngwatu allowed Armour Trading to formally file its defense within 14 days from the date of the ruling.

The dispute landed before the court under Uganda’s summary suit procedure, governed by Order 36 of the Civil Procedure Rules (4) and (8), which provides unconditional leave to appear and defend creditors’ recoveries of liquidated debts quickly unless the defendant can present a valid defense warranting a full trial.