background image
profile image

Commercial Court of Uganda

The Commercial Court was established in 1996 as a division of the High Court of Uganda devoted to hearing and determining commercial disputes with current jurisdiction (as established under Legal Notice No.4 of 1996 and Instruction Circular No.1 of 1996); company causes, Bankruptcies and intellectual property.

The mission of the court is to deliver to the commercial community an efficient, expeditious and cost-effective mode of adjudicating disputes that affect directly and significantly the economic, commercial and financial life of Uganda.

Physical address
Plot 14, Lumumba Avenue, Nakasero.
25 judgments
  • Filters
  • Judges
  • Alphabet
Sort by:
25 judgments
Citation
Judgment date
December 2002
Possession at attachment gives locus standi for release; ownership disputes must be litigated separately.
* Civil procedure – Objector proceedings (Order 19 rr.55–58 CPR) – Possession at time of attachment confers locus standi to seek release from attachment. * Civil procedure – Ownership disputes and alleged fraudulent transfers – triable in separate suit under Order 19 r.60, not in objector proceedings. * Evidence – Uncontradicted possession evidence entitles objector to relief even if title disputes exist.
18 December 2002
Interim injunction refused where both parties showed prima facie cases and balance of convenience favored respondents.
Interlocutory injunctions – requirements: prima facie case and probability of success; irreparable harm not adequately shown where asset value ascertainable; balance of convenience and preservation of status quo; economic consequences and employment considerations in injunctive relief.
6 December 2002
October 2002
The plaintiff’s liquidated claim may be severed to proceed summarily while unliquidated interest proceeds under ordinary procedure.
* Civil procedure – Summary procedure under Order 33 CPR – whether mixed claims (liquidated and unliquidated) may proceed summarily or must be struck out – severability of claims. * Civil procedure – Leave to defend – effect of grant of leave on summary suit (conversion into ordinary suit). * Civil procedure – Waiver – whether a party can waive a question of law by failing to object when seeking leave to defend.
11 October 2002
Debtor’s petition met statutory requirements; receiving order granted but stay of proceedings refused for lack of particulars.
* Bankruptcy — Receiving order — Debtor’s petition — Proof of indebtedness and act of bankruptcy required (ss.3(1)(f),5,8,16). * Bankruptcy Rules — U.K. Bankruptcy Rules declared in force and adaptable to local circumstances (s.164) — deposit in Uganda shillings acceptable. * Procedure — petitioner must provide particulars/reasons for court to exercise discretion to stay proceedings (s.11). * Relief — receiving order granted; Official Receiver appointed; general stay refused; costs in the cause.
11 October 2002
Liquidated claims in a mixed summary suit may proceed summarily while unliquidated claims must follow ordinary procedure.
Civil procedure – Summary procedure (O.33 CPR) – Mixed claims comprising liquidated and unliquidated amounts – Severability of claims; party cannot waive question of law concerning appropriate procedure; leave to defend converts summary suit into ordinary suit.
10 October 2002
A debtor’s petition establishes an act of bankruptcy and justifies a receiving order, but a stay of proceedings requires particulars.
Bankruptcy — Debtor’s petition — presentation constitutes an act of bankruptcy (s3(1)(f)) — receiving order mandatory where s8 and s16 conditions met; U.K. Bankruptcy Rules applicable and adaptable to local circumstances (s164); proof of indebtedness by decretal judgments and Statement of Affairs; court’s discretion to stay proceedings under s11 requires particulars and reasons.
10 October 2002
September 2002
Application to release allegedly attached property dismissed because no subsisting attachment and claimant failed to prove loss.
Civil procedure – Attachment and sale – Whether property was under attachment – Order 19 rr 56–57 (release of property from attachment) – Evidence by affidavit and credibility – Auctioneer’s mandate and potential separate tortious liability (conversion).
30 September 2002
Court set aside parts of an arbitral award for arbitrator's partiality and failure to award general damages, stayed enforcement pending security.
Arbitration — Setting aside award for evident partiality; Treatment of contractual 'extraordinary circumstances' versus force majeure; Duty of arbitrator to evaluate damages; Section 35 remedy; Stay of enforcement pending security deposit.
25 September 2002
Buyer entitled to reject unfit goods and recover deposit, damages and costs; supplier's counterclaim dismissed.
* Sale of goods – fitness for purpose – right to reject unfit goods – buyer entitled to refund of deposit * Evidence – credibility of quality-control and UNBS analysis – supplier's counterclaim dismissed for lack of evidence * Remedies – refund, interest, costs of analysis, general damages and costs of suit
24 September 2002
July 2002
Objector proceedings focus on possession, and a long-standing bona fide occupant can obtain release from attachment and set-aside of eviction.
* Civil procedure – Objector proceedings (Order 19 rr.55,56 and related rules; s.101 Civil Procedure Act) – focus on possession not title – relief available to bona fide occupant against attachment and eviction arising from execution. * Possession – length of occupation and substantial improvements as evidence of bona fide occupation. * Execution law – attachment and eviction may be set aside where third-party possession is proved.
17 July 2002
An appellate court will not disturb a Taxmaster's taxation based on property valuation absent manifest error or contrary valuation.
Taxation of costs – standard of review – appellate interference only for manifest error; Instruction fees – basis may be property value where property is central to suit; Application of Sixth Schedule to the Advocates (Remuneration and Taxation Costs) Rules; Evidential burden on challenger to provide alternative valuation; Credibility of affidavit denials when contradicted by other averments.
16 July 2002
Claim for restitution of withheld taxes succeeds; plaint not defective for failure to plead fraud; defendant failed to prove remittance.
Civil procedure – pleading requirements – fraud must be particularised if relied upon; restitution/quasi‑contract – recovery of moneys had and received; burden to prove remittance of withheld tax; assessment of damages and interest.
10 July 2002
Share transfer invalid for lack of corporate formalities; 2nd defendant liable for mortgage default, with shareholders bearing pro rata loss.
Company law – validity of share transfer – necessity of corporate seal and company resolutions – compliance with Articles of Association; Contract law – distinction between invalid share sale and independent obligations under Power of Attorney and mortgage; Tort/contractual liability – failure of agent/company to repay loan leading to sale of mortgaged property; Apportionment – shareholders’ pro rata liability under Memorandum of Agreement.
9 July 2002
Share transfer declared invalid for lack of corporate authorisation; company liable for mortgage default causing sale, awarded damages and costs.
Company law – share transfer – requirement of corporate seal and company resolutions; Articles of Association compliance – transfer formalities; Agency/Power of Attorney – duty to repay loan and redeem mortgaged property; Mortgage – lender sale following borrower default; Civil procedure – judgment for failure to file defence.
8 July 2002
Applicant’s money-lender claim dismissed as time-barred under s.20; s.7 memorandum satisfied so security remained enforceable.
* Money Lenders Act (Cap 264) – limitation – section 20: recovery proceedings must be commenced within 12 months from cause of action. * Money Lenders Act – memorandum requirement – section 7: loan application letter and form can satisfy note/memorandum requirement. * Validity of agreement – documents drawn by unlicensed practitioner may be nullities but annexures may still render contract enforceable. * Security – enforceability contingent on existence of required memorandum.
3 July 2002
June 2002
Minority shareholders may bring derivative suits without prior leave when controllers (including receivers) prevent the company suing.
* Company law – derivative actions – exceptions to Foss v Harbottle – minority shareholders may sue where controllers (including receivers) prevent company from suing. * Civil procedure – party joinder – misjoinder not fatal; company is the substantive plaintiff though minority shareholders may be nominal plaintiffs. * Receivership – receiver’s control does not bar derivative action if receiver is alleged to be a wrongdoer. * Pleading – "fraud" in derivative actions means wrongdoing; strict criminal particularity not required.
30 June 2002
Preliminary objections based on disputed facts are premature and must await substantive hearing and evidence.
Civil procedure — Preliminary objection — limited to pure points of law; cannot be used where facts must be ascertained (Mukisa Biscuit).; Property law — Deposit of title deed by one joint proprietor — whether it creates an equitable mortgage or banker’s lien absent co‑proprietor consent — factual issue for substantive hearing.; Evidence — disputed factual questions require proof at trial, not resolution on preliminary objection.
26 June 2002
Turquand/ostensible authority applied: internal execution defects did not avoid corporate contracts; leave to defend denied.
Civil procedure – leave to defend (O.33 r.4) and summary decree (O.33 r.3); Company law – execution of deeds and internal formalities (Article 112); Turquand rule/ostensible authority — third parties entitled to rely on apparent corporate authority; Evidence – indicia of contracting with company (single customer number, commercial form, single account).
19 June 2002
Guarantors may be sued jointly; possession to facilitate sale was under s.9, and registrar to inquire into mesne profits.
Mortgage law – mortgagee’s remedies – possession to facilitate sale under clause 3B of mortgage deed and s.9 Mortgage Decree (sale) versus s.6 (realisation by foreclosure/possession); Guaranty – demand guaranty permits suit against guarantors jointly and severally without prior demand on principal; Mortgagee in possession must account for rents and profits – inquiry ordered to determine mesne profits.
18 June 2002
May 2002
A non‑party minority shareholder lacks standing to set aside a consensual company sale absent personal injury or participation.
* Company law – minority shareholder remedies – standing to challenge consensual compromise – non-party cannot claim injury absent participation or concrete prejudice * Civil procedure – consent orders – effect on pending proceedings – preservation of proceeds in special account pending final determination * Property/mortgage law – characterization of sale – sale authorized by company and shareholders, not an exercise of mortgagee powers by Bank of Uganda
29 May 2002
Court awards damages for breach of a contract for meal services terminated without notice.
Contract law - breach of contract - summary termination without notice - meal service contract obligations
26 May 2002
February 2002
Old arbitration law governs the dispute; award upheld except remitted to quantify refund amounts and allow set-off.
* Arbitration law – applicability of repealed statute – repeal does not affect arbitral proceedings commenced before new Act comes into force; * Arbitration – remittance of award – remit where award omits or fails to particularize consequential monetary determinations; * Contracts/Illegality – refunds and unjust enrichment – money paid under illegal agreement may be recoverable where parties are not in pari delicto and unjust enrichment arises; * Arbitrators’ jurisdiction – arbitrator may decide consequential matters necessary for finality without acting ultra vires.
18 February 2002
Residence in an East African Community Partner State is not alone a basis to order security for costs.
Security for costs – Order 23 CPR – discretion of the court – residence within East African Community not prima facie ground for security – regional integration, reciprocal enforcement and harmonisation relevant – oppression and likelihood of success considered.
5 February 2002
January 2002
Court accepted plaintiff's price and credibility, awarding outstanding balance, general damages, interest and costs.
Contract – Sale of motor vehicle and motorcycles – Oral agreement as to price – Credibility of witnesses – Quantification of payments and outstanding balance – Award of general damages, interest and costs.
29 January 2002
Loan of US$25,000 to a company was proven; company liable, directors not personally liable; damages and interest awarded.
Contract/Commercial loan — proof of loan by documentary and oral evidence; Dishonoured post‑dated cheque; Corporate personality — company liable for its debts; Directors not personally liable absent veil‑piercing.
28 January 2002