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.
37 judgments
  • Filters
  • Judges
  • Alphabet
Sort by:
37 judgments
Citation
Judgment date
December 2004
The objector’s plot was not subject to attachment; eviction warrant related to a different plot.
Civil procedure — Order 19( rules 55, 57) objector proceedings — scope limited to possession at date of attachment and whether objector held property on own account; Attachment and execution — whether a specific plot is liable to attachment; Evidence — impartial surveyor versus unilateral survey; Encroachment and title disputes to be resolved in separate suit; Interim stay of execution — when to vacate.
31 December 2004
Commercial‑sense interpretation of a contract held the respondent liable to pay the Shs.3.5m billboard printing cost.
Contract interpretation — Commercial contracts — purposive construction and business common sense to give effect to parties' intention — interpretation contra proferentem considered but rejected — party bearing printing cost of billboard determined — costs follow the event.
17 December 2004
November 2004
Defendant liable for unpaid vehicle hire and towing after abandoning hired vehicle; plaintiff awarded damages, interest and costs.
Contract hire – vehicle hire agreement – breach for non-payment and abandonment – proof of payment by agent and disputed acknowledgment memorandum – credibility of witnesses – award of unpaid hire, towing costs, interest and costs.
30 November 2004
A sole proprietor supplier proved indebtedness and obtained Shs.12m, general damages, interest and costs after an ex parte hearing.
Commercial law – debt recovery from a bakery supplier – proof of special damages by invoices and testimony – locus of sole proprietor to sue – validity of written undertaking – ex parte trial for unjustified absence – damages, interest and costs awarded.
22 November 2004
A receiving order cannot be granted where the debtor has not filed the statutory statement of affairs with the official receiver.
Bankruptcy — statutory requirements for presentation of debtor’s petition — necessity of filing a verified statement of affairs with the Official Receiver under section 15 — non-compliance defeats receiving order under section 7.
16 November 2004
October 2004
The 1998 dealership agreement replaced the earlier one; both parties breached contract; applicant awarded general damages, respondent recovered loan.
Dealership agreements – contract replacement by later executed standard form; defective fuel tanks – contractual liability for losses; occupier’s liability excluded where contract governs duties; lawful termination for failure to meet sales targets; mortgage security distinct from dealership contract.
21 October 2004
Failure to file the prescribed affidavit or otherwise comply with a bankruptcy notice constitutes an act of bankruptcy.
Bankruptcy notice — compliance with s.3 of the Bankruptcy Act and Rule 140(2) — requirement to file affidavit (Form No.9) showing counterclaim, set-off or cross demand against the creditor — claims against third parties do not qualify — non-compliance constitutes act of bankruptcy under s.2(1)(g).
11 October 2004
Court granted applicant an extension to seek leave to defend a summary suit, overruling procedural objection and ordering costs.
Civil procedure — Extension of time to file leave to appear and defend in summary suit — Order 47 r 6 and inherent jurisdiction; procedural irregularity under s.33 Judicature Act/s.98 Civil Procedure not fatal; allegation of fraud and settlement negotiations relevant to exercise of discretion; delay not excessive; costs ordered.
4 October 2004
A sale conducted in breach of a court order preserving the status quo is void ab initio and objector proceedings must continue.
Civil Procedure – Order 19 rr.55 & 57 – Objector proceedings – Attachment and judicial sale – Provisional sale by bailiff – Status quo order preventing sale – Sale in breach of court order void ab initio – Abuse of court process – Costs awarded.
4 October 2004
September 2004
Court granted leave for judicial review of municipal transport fees, conditioning leave on deposit and staying enforcement pending hearing.
Administrative law – Judicial review – Leave to apply for certiorari, prohibition and declaration – Locus standi and promptness – Local government fees – Interim relief conditioned on deposit to protect public interest.
10 September 2004
Leave for judicial review of municipal transport fees granted conditionally on deposit to protect equity and public interest.
Judicial review — leave to apply for prerogative orders — standing and timeliness (three-month rule); local government fees — legality and public interest; conditional leave — deposit to prevent inequitable single-party relief; variation of interim injunction to stay pending hearing.
9 September 2004
The applicant's carrier breached the carriage contract by delivering two empty containers; damages, interest and costs awarded.
* Carriage of goods – Carrier’s contractual duty to deliver containers safely – Liability where containers arrive empty; discrepancies in seals as evidence of interference. * Bill of Lading – evidence and admitted facts – carrier’s responsibility despite delivery to consignee’s agents. * Damages – proof and particularity of special damages; award of general damages, interest and costs.
9 September 2004
August 2004
Defective Power of Attorney cannot establish authority to sell soil; apparent authority and partial, improper refill gave rise to limited damages.
* Evidence Act – authenticity of Power of Attorney – requirement of notarial authentication to invoke presumption under s.84. * Agency – apparent authority/holding out – third party reliance on agent’s representation. * Tort/property – unlawful excavation of soil (murram) and partial/inadequate remediation. * Assessment of damages – admissibility and weight of valuation evidence lacking specialist (soil/mineral) input.
31 August 2004
Whether contractual HRMM clauses permitting interdiction and termination without reasons rendered the dismissal lawful and determined terminal pay entitlement.
Employment law – wrongful dismissal – contract governed by HRMM – suspension under clause 13.1(f)(i) lawful; termination under clause 14.2(a) lawful even if reasons not given; entitlement to three months' salary in lieu under clause 14.2(b).
30 August 2004
Plaintiff failed to prove the bank sold the generator or acted negligently/fraudulently; claim dismissed with costs.
Banking law – disputed withdrawals and sale of customer’s property – authenticity and effect of customer‑tendered documents – agency and third‑party sale – negligence and fraud allegations against bank – balance of probabilities standard.
23 August 2004
Pleading must identify the correct corporate party; suing a managing director individually when contract is with the company discloses no cause of action.
Civil procedure – Plaints – Cause of action – Suit brought against an individual managing director where annexed contract is with the company – Defective parties – O.7 r.1(c) Civil Procedure Rules; Amendment of parties – O.11 r.13; Corporate personality – company sues and is sued in its corporate name (Salomon).
23 August 2004
Plaintiff proved entitlement to the agreed Shs.5,000,000 commission; company liable, director not personally liable.
* Company law – separate legal personality – director not personally liable for acts done in company name; director’s name struck out as wrong party. * Contract/brokerage – entitlement to commission – proof on balance of probabilities that plaintiff located property and was entitled to retained brokers’ fee. * Evidence – credibility findings where plaintiff’s evidence preferred to defendants’; falsified cheque disbelieved. * Remedies – award of agreed commission, interest and costs.
23 August 2004
Fundamental breaches by the defendant discharged the plaintiff from mortgage and guarantee obligations; title return, damages and costs awarded.
Mortgage and guarantee — breach by bank through account manipulation and dealing with different borrower entities; interpretation of guarantee imposing cap of UGX 40,000,000 on guarantor’s liability; fundamental breach discharging guarantor; remedies: declaration, discharge, return of title, damages and costs; potential criminality by bank.
15 August 2004
July 2004
Public-spirited citizens may sue under Article 17, but injunction refused; court accepted bank's US$5.7m undertaking instead.
Constitutional duty to protect public property (Art.17) — locus standi in public interest litigation; interim injunctions — prima facie case/serious question to be tried, irreparable harm, balance of convenience; evidentiary burden over disputed contractual annexures; use of on-demand undertaking/bond as alternative to interlocutory injunction.
22 July 2004
Winding up commencement does not bar appointing a receiver, but post-commencement possession without court leave is void.
Companies Act – winding up – commencement of winding up proceedings and effect on third-party appointments; debenture holders – appointment of private receivers after commencement – crystallisation, possession and need for court leave; sections 227, 228, 238 and 351; provisional liquidation – appointment of Official Receiver; remedies to protect creditors’ interests.
13 July 2004
June 2004
Court deferred ruling on preliminary objection challenging joinder of a director, reserving decision until final judgment.
Civil procedure – preliminary objection – Order 6 rr 27–28 – judicial discretion to hear or defer points of law – joinder of director – piercing corporate veil – material prejudice – deferral until final judgment.
27 June 2004
Contractor entitled to refund of VAT paid where contract price included VAT; late unpleaded directives inadmissible.
Contract law – VAT-inclusive contract price – entitlement to refund of VAT paid to tax authority; VAT Act (s.5(a), s.11, s.29, s.31) – taxable supply and invoicing obligations; Evidence and procedure – parties bound by pleadings; inadmissibility of late/unpleaded documents; Remedy – contractual interest clause and award of general damages and costs.
26 June 2004
The applicant proved a loan evidenced by an acknowledgement and dishonoured post‑dated cheque; judgment awarded principal, interest, damages and costs.
Commercial law – loan transaction – proof of special damages by oral evidence and acknowledgement – dishonoured post‑dated cheque – director’s liability where loan obtained on behalf of company – foreseeability limits on general damages – award of interest and costs.
13 June 2004
Documentary inconsistencies ordinarily prevail over oral testimony, but absent contrary proof the plaintiff recovered the unpaid loan balance.
Contract and evidence – conflict between documentary evidence and oral testimony – best evidence rule; sale agreement predating debt acknowledgment; entitlement to unpaid balance where no contrary evidence adduced; waiver and absence of material defeating claim for general damages; costs to successful party, personal costs against counsel not ordered without opportunity to be heard.
1 June 2004
May 2004
No hire contract proved; vehicle retained as security for unpaid debt and the plaintiff's claim dismissed with costs.
Contract of hire — existence of oral agreement; impounding/possession of vehicle as security for debt; credibility of witnesses; reliance on documentary evidence to rebut oral claim; remedy—dismissal and costs.
30 May 2004
Court issued case‑management directions in a creditors’ winding‑up petition, ordered disclosure and reminded parties of statutory moratoria.
Company law – Winding‑up petition – Case management directions and timetable for affidavits and disclosure; interlocutory application for security for costs; effect of commencement of winding up under Companies Act (ss. 227, 228, 229(2)) prohibiting dispositions and enforcement without leave; management of professional conflicts in proceedings.
25 May 2004
Court held appeal to Minister under s.11(4) optional and overruled preliminary objection, allowing judicial review to proceed.
Administrative law — Judicial review — alternative statutory remedies; Trade Licensing Act s.11(4) — appeal to Minister optional; access to superior courts preserved; agency acting for local authority — proper party to be sued; preliminary objection on prematurity overruled.
24 May 2004

 

21 May 2004
The respondent unlawfully interfered with the applicant's school licence, entitling the applicant to damages, interest, and costs.
Tort — unlawful interference with business/licence; Education Act — provisional licence and registration process; Remedies — general and exemplary damages, injunction; Refusal to order account of profits where parties lack reliable accounting records.
19 May 2004
Leave to appeal and stay granted conditionally; applicant must deposit a specified bank draft as security within 48 hours.
Civil procedure – informal application for leave to appeal – stay of execution – test for leave to appeal (prima facie grounds merit serious consideration) – requirement for security (bank draft) to obtain stay.
17 May 2004
Applicants failed to establish legal or factual basis for an interlocutory injunction restraining respondent from buying tobacco; dismissed with costs.
Civil procedure – interlocutory injunction – applicants sought restraint on respondent buying tobacco – Section 33 Judicature Act not a basis for interlocutory relief – Section 64 CPA inapplicable unless so prescribed – Section 98 (inherent jurisdiction) not engaged absent ends-of-justice or abuse of process – requirement to show risk of substantial/irreparable loss – relief would improperly affect third-party contracted farmers.
4 May 2004
April 2004
Court confirmed a capital-reduction special resolution, dispensed with creditor objections under s.69(3), and ordered registration and publication.
Companies Act (Cap 110) – Reduction of share capital – Validity of special resolution under s.68; Creditor objections – dispensing under s.69(3) where special circumstances exist; Registration and publication requirements under ss.71(1)–(2); Requirement to add "and reduced" under s.70(2).
2 April 2004
March 2004
Applicants induced to pay UShs.5,000,000 by false tender representation — restitution, interest, travel costs and suit costs awarded.
Contract and tort — breach of contract; fraudulent misrepresentation/deceit — elements: false representation, knowledge of falsity, intention to induce, reliance, and damage; damages — restitution of payments proven; refusal to award speculative future profits; interest and costs awarded.
23 March 2004
Overdrafts are repayable on demand; no specific performance or loss for undisbursed loan, but fees on undisbursed portion refunded.
Banking law – overdraft repayable on demand – no remedy for premature retirement; Equity – no specific performance to compel lending; Unjust enrichment/quasi-contract – restitution of fees charged on undisbursed loan portion; Interest and costs allocation.
23 March 2004
A post-loss payment or Third Party certificate cannot retrospectively create comprehensive insurance for a prior accident.
* Insurance law – motor insurance – distinction between comprehensive and Third Party cover; renewal creates a new contract and cannot cover past events. * Insurance law – post-loss payment – payment or receipt after risk materialised does not retrospectively create cover. * Civil procedure – claim dismissed where no policy in force at time of loss.
14 March 2004
A power to borrow "a sum of money" does not authorise mortgaging land to secure goods supplied on credit.
Power of Attorney — Construction — Specific powers to borrow "a sum of money" — Strict construction of powers of attorney — "Money" in its plain meaning does not include goods supplied on credit — Mortgage granted in excess of authority.
4 March 2004
February 2004
The plaintiff may recover despite the respondent’s failure to tender where respondent’s officials ratified the contract by conduct and payment.
Local government procurement – Tender Board requirement – effect of failure to tender – voidable v void contracts – ratification by conduct and payment – estoppel and unjust enrichment against public authorities.
29 February 2004