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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.
81 judgments
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81 judgments
Citation
Judgment date
December 2005
An informant’s 10% reward under the Finance Act is payable only on tax actually recovered, not merely ascertained or waived.
Revenue law – Informants’ reward under Finance Act s.7 – Reward payable only on tax recovered; agency notice is demand not recovery; Minister’s statutory remission under Income Tax Act lawful without informant notice.
27 December 2005
Whether ostensible authority can transfer ownership where the seller was not the registered owner and remedies for wrongful repossession.
Sale of goods – Nemo dat quod non habet – Ostensible (apparent) authority of agent – Agency by conduct – Transfer of vehicle registration documents – Buyer in good faith – Wrongful repossession – Damages and interest.
23 December 2005
Bank lawfully closed account and returned funds after cheques were materially altered and avoided under Bills of Exchange Act.
Banking law – bank’s right to close accounts where unlawful activity suspected; Bills of Exchange Act s63(1) – material alteration avoids cheque; holder in due course principle; conversion/receipt of fraudulently altered cheque proceeds; recovery on counterclaim.
22 December 2005
A claim on a verbal guarantee is barred unless a written, signed agreement or memorandum of guarantee exists under Section 3(1).
Contract Act s.3(1) — guarantee agreements must be in writing or evidenced by a signed memorandum; pleadings must support reliance on written memorandum; a compromise letter not mentioning personal liability is not a memorandum of guarantee.
22 December 2005
Leave for judicial review refused because a statutory Tax Appeals Tribunal remedy existed and no exceptional circumstances were shown.
* Judicial review – leave to apply – withheld where alternative statutory remedy exists unless exceptional circumstances shown; Tax Appeals Tribunal – statutory review and time limits; arbitrariness/high-handedness – requirement to show decision was capricious; exceptions allowing judicial review include ultra vires, fraud, bias.
14 December 2005
The plaintiff failed to prove the alleged loan balance; suit dismissed with costs and admitted sum deducted.
Commercial law – loan facility and securities; burden of proof on claimant to establish debt on balance of probabilities; inconsistent witness evidence and poor record-keeping undermining claimed balance; waiver/cessation of interest; sale/exchange of secured vehicles and application of proceeds; dismissal for failure to prove amount; costs ordered with admitted sum deducted.
12 December 2005
Plaintiff awarded decretal sum with 30% p.a. interest from filing and costs with post-taxation interest.
* Contract — supply of goods — payment due but unpaid — entitlement to interest on liquidated/decretal sums. * Interest — discretionary remedy — awardable where claimant deprived of money; authorities: Harbutt’s, Wallersteiner, Sietco. * Costs — ordinary rule that loser pays; awarded here with interest from date of taxation. * Frustration — not pleaded; concession of principal by defendant rendered liability for principal conceded.
9 December 2005
Applicant failed to show a triable defence where it had excluded the contested works and acknowledged indebtedness.
Contract – subcontract – variation by main contractor excluding external works – defence of non‑performance defeated by contractor’s own variation letter; debt established by final account and acknowledgements; unparticularised allegations and unsupported owner’s claim cannot defeat payment claim in absence of pleaded counterclaim or evidential link.
7 December 2005
November 2005
Seller entitled to unpaid purchase price, damages and interest where buyer defaulted and failed to prove or mitigate defences.
* Sale of goods on credit – recovery of unpaid purchase price; retention of logbook and post-dated cheques as security. * Onus and credibility – defendant’s absence and failure to adduce evidence undermines pleaded defences. * Assessment of damages – mitigation obligation and reduction of speculative loss. * Interest – court discretion to award reasonable commercial rate (24% p.a.). * Costs awarded to successful plaintiff.
30 November 2005
Plaintiff failed to prove agreed building-plan terms, defects, encroachment or delay; claim dismissed with costs.
* Contract formation – existence of written agreement in local language; disputed terms. * Contract breach – requirement to prove existence of specific terms (e.g. building plans, standards). * Evidence – necessity of adducing expert reports and concrete proof of defects; general allegations insufficient. * Encroachment/possession – court reliance on independent witnesses; complainant must prove encroachment. * Prevention and mitigation – party preventing completion cannot attribute non‑completion to other party. * Remedies – rescission and damages unavailable where breaches not proved.
30 November 2005
Failure to prove a company's existence under the Evidence Act exposes the defendant to personal liability for unpaid MOU fees.
• Contract law – enforcement of Memorandum of Understanding for school fee subsidies – liability for unpaid fees. • Company law / evidence – requirement to prove corporate existence (s.58 Evidence Act) before relying on separate corporate identity. • Civil procedure – consequences of failing to substantiate a technical defence and non-attendance at trial; remedies including interest and costs.
29 November 2005
An informal promotion-and-sale contract existed; the defendant must pay the unpaid purchase price with interest and costs.
Contract — oral/informal contract — sale versus promotion — delivery notes and company letter as evidence — breach for non-payment of goods — assessment of special and nominal general damages — interest awarded from date of judgment — counterclaim dismissed for want of prosecution.
28 November 2005
Plaintiff failed to prove the defendant's identity and indebtedness; claim for Shs.5,200,000 dismissed with costs.
Contract/loan recovery – burden of proof; identification of debtor; weight of handwriting evidence; credibility of witness testimony; signature inconsistencies.
28 November 2005
Court dismissed application for leave to appeal, holding respondent raised triable issues requiring a hearing.
* Civil procedure – summary judgment – leave to appear and defend – defendant must show a bona fide triable issue of fact or law.* Holder in due course – presumption of holder for value is rebuttable by evidence of lack of consideration, fraud, illegality, or non-presentation/dishonour.* Appealability – discretionary orders require a stronger showing that grounds merit serious judicial consideration.* Procedural – competence of prior appellate dismissal is for the Appellate Court to determine.
27 November 2005
A shipping contract constituted a bailment and the carrier (bailee) was liable for loss and ordered to pay refund, damages, interest, and costs.
* Contract law – shipment agreement – existence of shipping contract evidenced by invoice and correspondence; * Bailment – carrier as bailee – liability for loss in transit where goods not redelivered; * Damages – special damages must be specifically pleaded and proved (may be proved on balance of probabilities); * Remedies – refund of purchase price or equivalent currency, general damages, interest and costs; * Procedure – consequences of failure to file defence and interlocutory judgment under Order 9 Rule 6.
22 November 2005
Defaulting debtor and guarantor held jointly liable for unpaid loan; court awarded principal, damages, interest and costs.
* Civil procedure – Default judgment – Order 8 r 3 C.P.R.: allegations in plaint taken as admitted where defendant fails to defend. * Contract law – Loan agreements – Recovery of principal and interest for breach of loan repayment obligations. * Suretyship – Guarantor held jointly and severally liable for debtor’s default under guarantor’s undertaking. * Damages – Assessment of general damages for loss of use of money where no figure proposed by plaintiff’s counsel. * Interest – Award of interest on special damages at commercial rate from filing; interest on general damages at 8% from judgment. * Costs – Successful plaintiff entitled to costs.
9 November 2005
A defaulting defendant held liable for unpaid loan; plaintiff awarded principal, damages, interest and costs.
* Civil procedure – Default judgment – Order 8 r 3 CPR: allegations in plaint taken as admitted where no defence filed. * Contract – Breach of contract – assessment of damages – application of Hadley v Baxendale principles. * Remedies – Decree of principal, award of general damages, commercial interest and costs.
9 November 2005
October 2005
Applicants entitled to Shs.2,000,000 monthly arrears for three years; earlier claims time barred, plus interest, damages and costs.
* Limitation – contractual claims against local authorities – three‑year limitation period and effect on instalment rent claims. * Contract formation and proof – documentary acknowledgement plus unchallenged oral evidence establishing agreed monthly remittance. * Remedies – assessment of arrears, interest, general damages and costs where defendant fails to rebut admitted documents.
19 October 2005
Claim for Shs.15,000,000 dismissed because plaintiff failed to prove a contract with the defendant company.
Civil procedure; contract – existence and proof of contract; burden of proof on balance of probabilities; inconsistency between pleadings and oral evidence; company liability versus individual liability; dismissal for failure to establish contractual cause of action.
19 October 2005
Applicant failed to show specific assets or duties warranting an interim liquidator; application dismissed with costs.
Companies law – Interim (provisional) liquidator – Section 238 Companies Act and Rule 27 – Applicant must show assets in jeopardy or public interest and must particularise property and duties sought – Unsupported, open‑ended investigations do not justify provisional appointment.
14 October 2005
Supplier recovered unpaid debt; managing director personally liable under guarantee; deposited drugs were security, not set-off.
Commercial law – Sale on credit – Dishonoured post-dated cheques – Security v. set-off – Mitigation of loss by sale of secured goods – Contractual penalty interest unconscionable; court reduces rate – Personal liability under shareholder’s guarantee – Proof of signature required for liability.
13 October 2005
The applicant’s passing-off claim was dismissed as time-barred for lack of pleaded continuation.
Limitation of actions – Limitation Act s.3 – Passing off is a tort subject to six-year limitation – Continuing tort doctrine requires pleaded facts of continuity – Preliminary objection on limitation may be decided on pleadings when bar is apparent.
12 October 2005
Failure to defend led to constructive admission; plaintiff awarded unpaid fuel debt, general damages, court interest and costs.
* Commercial law – debt for goods supplied on credit – proof by vouchers and financial statements; constructive admission where defendant fails to plead; assessment of special and general damages; refusal of contractual interest for lack of evidence; award of interest at court rate and costs.
10 October 2005
Application for injunction dismissed: wrong statutory basis and no prima facie case or irreparable harm shown.
* Civil procedure – Temporary injunctions – Requirements: prima facie case, irreparable harm, balance of convenience. * Order 37 CPR – Rule 1(a) applies to property in danger of waste, damage, alienation or sale; contract interference matters fall under Rule 2(1). * Injunctions – Illegality alone does not establish a prima facie civil case for interference with contracts; need identification of specific contracts and evidence of interference. * Evidence – General allegations (e.g., thousands of contracts) insufficient without naming affected parties or showing actual or threatened breaches.
4 October 2005
September 2005
Deposit of title creates an equitable mortgage entitling repayment, charge, access and sale if defendants default.
Equitable mortgage — deposit of title as security; Originating summons under Order 34 r.3A CPR for mortgage enforcement; Proof of loan terms and interest accrual; Ex parte hearing after substituted service; Right of charge, access to land and sale by private treaty on default.
30 September 2005
A contractual break clause validly terminated the agreement, but the Town Clerk’s procedurally irregular conduct warranted repayment of an advance; claimed special damages were unproven.
Contract law – break clause – termination by one month’s written notice; Public procurement and corporate governance – applicability of PPDA and Local Government Act to public contract terminations; Procedural irregularity versus unlawful interference; Proof of special damages — requirement of specific, reliable evidence; Restitution of undocumented public advance; Remedies — refusal of declarations/injunction/specific performance, ordering tendering and repayment.
30 September 2005
A defective affidavit failing to distinguish knowledge and belief defeats an application to reinstate closed proceedings.
Civil procedure – Notice of Motion – Order 48 (Motions) vs Order 6 r.1(b) – affidavit sufficiency; Affidavits – must distinguish facts within deponent’s knowledge from matters on information and belief (Order 17 r.3(1)); Defective affidavit fatal to application; Citation of legal provision may be merely technical.
30 September 2005
Vague, unparticularised denials and an unauthorised non‑party affidavit do not raise a triable issue to resist summary judgment.
Summary judgment – application for leave to appear and defend – sufficiency of affidavit to raise triable issue – necessity of particulars under Order 33 Rule 4 – inadmissibility of affidavit by unauthorised non‑party – distinction from Photo Focus decision.
28 September 2005
Court released an attached vehicle after owner proved title and the judgment debtor admitted it belonged to the applicant.
Execution – Attachment of property – Ownership v possession; Attachment of vehicle allegedly used by judgment debtor but owned by third party; Release of attached property where ownership established; Direction for handling of deposited funds; Costs – each party to bear own costs; Right of owner to seek redress against person who handed over the vehicle.
28 September 2005
Advocate’s diary mistake insufficient; applicant must seek leave and show merits to set aside decree.
Civil procedure – setting aside decree under Order 33 Rule 11 – defendant must show reasonable excuse for default and disclose a prima facie defence; simultaneous application for leave to appear and defend is ordinarily required; advocate’s mistake alone insufficient to vacate decree.
7 September 2005
Pre‑incorporation contract and money‑lender illegality raise factual issues; objections overruled and matters ordered for determination on evidence.
Company law – pre‑incorporation contracts – unenforceability by company but subsequent acknowledgement/novation can create independent cause of action; Money Lenders Act – definition of 'money lender' and effect of being unlicensed; Public policy/illegality (ex turpi causa) – fact‑dependent application; Civil procedure – when points of law should be decided or left for evidence.
2 September 2005
August 2005
An order setting aside an arbitral award is not appealable under the Civil Procedure Act and no leave lies under the Rules.
Appealability — order setting aside arbitral award — Section 77 Civil Procedure Act excludes such orders; Order XL Rules cannot confer leave for orders not made under Rules; arbitration matters governed by Arbitration and Conciliation Act; authority: Rene Dol; B.D. Bilmoria.
31 August 2005
Applicant shareholder granted joinder to challenge company conversion; non-parties may apply for joinder.
Civil procedure – Joinder of parties under Order 1 Rule 10(2); locus standi of non-parties; proprietary interest shown by share certificate; avoiding multiplicity of proceedings; challenge to company conversion from public to private.
31 August 2005
Application for leave to appeal dismissed as time‑barred under Rule 39(2)(a) of the Court of Appeal Rules.
* Civil procedure – appeals – leave to appeal – Rule 39(2)(a) Court of Appeal Rules requires application for leave within 14 days or informally at time of decision. * Civil Procedure Act s.80 governs appeals as of right (30 days) and permits appellate court to extend time; not applicable to leave applications. * First instance court lacks jurisdiction to extend time for leave applications governed by Court of Appeal Rules. * Application for leave filed out of time is dismissible with costs.
24 August 2005
Statutory pre‑shipment inspection requirements did not create contractual privity with inspectors; plaint struck out as disclosing no cause of action.
* Civil procedure – striking out plaint – Order 7 r 11(a) – plaint discloses no cause of action. * Contract law – privity – statutory inspection regime does not create contractual privity between importer and pre‑shipment inspectors. * Statutory/regulatory obligations – pre‑shipment inspection under Bank of Uganda regime – duties limited to quality/quantity and price comparison; remedies for breach likely in negligence/statutory duty. * Evidence – survey report attributing damage to containers and transit conditions, not to inspectors’ conduct.
19 August 2005
Forfeiture was unlawful because the Commissioner-General failed to identify an offence, follow statutory procedure, or ascertain value.
Customs law – forfeiture of goods – Section 132(4) does not create an offence – mandatory procedural requirements under Sections 159–162 and Section 174 – compounding offences – evidential burden and value ascertainment – unlawful forfeiture where statutory procedures not followed.
1 August 2005
July 2005
Application for leave to defend dismissed for insufficient, untimely affidavits and failure to particularise a triable defence.
Commercial law – leave to appear and defend – Order 33 Rule 4 CPR – requirement to particularise whether defence goes to whole or part of claim; counterclaim/set-off – burden to plead and evidence; loan agreements – interpretation of ‘‘internal transportation’’ and limits of facility; admissibility/timing of affidavits supporting applications.
21 July 2005
Temporary injunction to enforce an exclusive outdoor‑advertising contract refused; damages and status quo concerns prevail.
Interlocutory injunctions — requirements: serious question to be tried, irreparable harm, balance of convenience; Outdoor advertising as protected freedom of speech and expression; exclusivity agreements limiting media use must meet constitutional justification; damages may be adequate remedy; injunction must preserve status quo.
20 July 2005
Taxing master failed to tax the bailiff’s bill; auctioneer not entitled to sale fees where no sale occurred, remit for proper taxation.
• Civil procedure – execution and attachment – conditional stay of execution – expiry of 45‑day period and issuance of fresh execution. • Court bailiffs/auctioneers – entitlement to fees – no entitlement to sale commission where no sale completed; entitlement limited to reimbursement and remuneration for services under Court Bailiffs Rules (S.I. No.64 of 1987 as amended). • Taxation procedure – taxing master must tax the bill and issue a certificate of taxation; failure to do so requires remit for proper taxation. • Possession of certificate of title by judgment creditor does not in itself prevent issuance of execution warrant.
14 July 2005
Order 1 Rule 10(2) permits joinder for complete adjudication but does not allow compulsory substitution of a defendant absent necessity.
Civil procedure – Order 1 Rule 10(2) CPR – misjoinder and non-joinder of parties; joinder by court for effectual adjudication; substitution of defendants; dominus litis; necessity to join party; application dismissed for lack of necessity.
14 July 2005
A secured creditor may enforce its mortgage during voluntary liquidation; the company’s application was procedurally defective and dismissed.
Companies Act s.305 – standing to apply (liquidator/contributory/creditor); secured creditor’s election to stand outside winding up; mortgagee’s right to possession and power of sale in voluntary winding up; mortgagee’s duty to obtain proper price and liability for negligence; distinction between compulsory and voluntary winding up stays.
13 July 2005
Arbitral award set aside for evident partiality and denial of applicant’s opportunity to present key evidence.
Arbitration – setting aside award – evident partiality and denial of opportunity to present case; conflict between conciliation and arbitration; procedural timeliness under s.34(3) ACA; ministerial interference vs corporate autonomy.
13 July 2005
Mortgagee must take reasonable care to obtain market value; bank’s negligent sale reduced recoverable balance to Shs.3,002,572.
Mortgagee’s duty of care in exercise of power of sale; adequacy of advertisement and description; need for re-valuation and competitive sale; measure of recovery for negligence in realising security; application of Cuckmere principles.
11 July 2005
Bank negligent for paying out on a forged cheque; customer entitled to refund, interest and costs.
Banking law – forged cheque; banker’s duty of care – verification where suspicion arises; Bills of Exchange Act s.59 – limits to banker’s protection; employer liability and customer’s own negligence.
8 July 2005
June 2005
Plaintiff awarded refund, interest and costs where defendant received payment but wholly failed to deliver motorcycles.
* Contract/Commercial law – advance payment for goods – failure of consideration – money had and received – entitlement to restitution. * Civil procedure – substituted service/default appearance – plaintiff allowed to prove claim in defendant’s absence. * Remedies – award of refund, interest and costs. * Counterclaim – dismissed for lack of evidence.
30 June 2005
Deposit paid to estate agent who absconded does not automatically render vendor liable absent agent's express or implied authority.
Agency law – estate agents’ authority to receive deposits – express or implied authority required; money had and received – recovery from vendor where agent misappropriates deposit; Sorrell v Finch considered.
27 June 2005
The applicant is entitled to contractual VAT reimbursement, interest and damages where the respondent withheld VAT-inclusive payment.
Contract law – VAT in contracts – VAT-inclusive contract price creates right to reimbursement by employer; Tax law – VAT liability of supplier does not preclude contractual reimbursement; Civil procedure – parties bound by their pleadings; unpleaded defences or late evidence disregarded; Interest – contractual clause permitting interest on late payments enforceable.
25 June 2005
Plaintiff had not completed the purchase payments; specific performance and claimed damages were denied and suit dismissed.
Contract – sale of vehicle – completion of payments; Evidence – burden of proof and poor accounting records; Fraud allegation – strict proof required; Equitable relief – specific performance denied where purchaser lacks 'clean hands'; Damages – special damages for loss of use not recoverable where contract payment incomplete; Costs – each party to bear its own costs due to defendants' deficient record-keeping.
22 June 2005
Central bank immunity applies to statutory takeovers unless bad faith is pleaded with sufficient particulars.
* Financial Institutions Statute – Central Bank possession and management – does not automatically create direct liability for a failed institution’s employment contracts. * Civil Procedure – plaint must disclose cause of action – O.7 r.11(a). * Pleading requirements – allegations of bad faith, fraud or willful default must be particularised (O.6 r.2). * Statutory immunity – S.49 protects Central Bank for acts done in good faith; bad faith must be pleaded.
21 June 2005
Court ordered minority shareholder to convene a meeting under s.135 and allowed one‑member quorum due to majority's absence.
* Companies Act s.135 – Court's power to order holding of a meeting where impracticable to convene in prescribed manner – power includes directing one person may constitute quorum. * Company governance – ultimate control by general meeting vs directors' management powers – intervention where company operates contrary to articles and Act. * Quorum – single‑member quorum permitted by court order in exceptional circumstances where majority shareholder absent abroad.
20 June 2005