Ms Prosy Nasuna had sued another woman over a USh3m (KSh103,182) debt.
Official records show that Ms Nasuna took Ms Jane Nabukenya to court over breach of contract after the latter failed to pay her.
But when she went to Bukomansimbi for the court hearing last week, she and the accused both found themselves behind bars.
Earlier on, they attracted murmurs and shouting with people saying their outfits are outlawed in the recently passed Anti-Pornography Act.
The Act cites pornography as any representation of the sexual parts of a person primarily for sexual excitement.
This prompted the presiding magistrate Catherine Baguma to order their arrest for contempt of court.
She said the court was unable to proceed with the case while the two were dressed in miniskirts.
Ms Baguma then sentenced the women to three hours in prison and postponed their case to March 13.