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.

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Plot 14, Lumumba Avenue, Nakasero.

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https://judiciary.go.ug/data/smenu/17/Commercial%20Court%20Division.html

12 judgments

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12 judgments

Citation	Judgment date
June 2005
Tarsis B Kabwegyere v Sheikh Adam Semugabe (HCT-00-CC-CS 662 of 2004) [2005] UGCommC 36 (30 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
Dr James Kashugyera Tumwine and Anor v Sr Willie Magara and Anor (HCT-00-CC-CS 576 of 2004) [2005] UGCommC 35 (27 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
Draco (U) Ltd v Kamuli District Local Council (Civil Suit No. 250 of 2003) [2005] UGCommC 34 (25 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
Wamala Nanseera v North Bukedi Cotton Company Ltd (Civil Suit No. 755 of 2003) [2005] UGCommC 84 (22 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
Robert Mwesigwa and Anor v Bank of Uganda (HCT-00-CC-CS 588 of 2003) [2005] UGCommC 33 (21 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
In Re: BDC Online and Lynn Kategaya (HCT-00-CC-CI 18 of 2005) [2005] UGCommC 31 (20 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
Stella Twinebirungi v Akamba Public Services Ltd (Civil Suit No. 264 of 2004) [2005] UGCommC 82 (20 June 2005) Short delivery proved but an exclusion clause on the issued receipt, known to the plaintiff, relieved the carrier of liability. Transport law – common carrier status and duty to deliver – short delivery proven; Exclusion/exemption clause on luggage receipt – incorporation and notice (knowledge imputed) – exclusion effective to bar carrier liability; costs awarded to each party.	20 June 2005
The Observer Media Ltd v Books Plus Ltd - (HCT-00-CC-CS 937 of 2004) [2005] UGCommC 32 (20 June 2005) Default judgment for plaintiff for unpaid supplies; 15% interest and costs awarded; general damages abandoned. Contract law – recovery of unpaid debt for supplied goods – default judgment following non-service of defence. Civil procedure – service on defendant’s counsel effective in absence of contrary evidence. Remedies – award of principal sum, interest (15% p.a.), and costs; general damages abandoned.	20 June 2005
Stanbic Bank Uganda Ltd v Joseph Aine and Ors (HCT-00-CC-MA 305 of 2005) [2005] UGCommC 29 (19 June 2005) Applicant failed to prove danger of alienation under Order 37(1); injunction application dismissed with costs. Civil procedure – Injunctions – Order 37 Rule 1 – Applicant must prove danger of wastage, damage or alienation or intention to dispose to defraud creditors before court considers probability of success, irreparable injury or balance of convenience. Failure to plead or prove such danger is fatal to an injunction application.	19 June 2005
Uganda Ecumenical Church Loan Fund Ltd v Mary Florence Nabiyinja Mbuga - (HCT-00-CC-OS 1 of 2005) [2005] UGCommC 30 (19 June 2005) Mortgagee owed principal plus contractual interest; court ordered payment within three months and dismissed general damages claim. Mortgage law – Foreclosure under section 8 of the Mortgage Act – court determines amount due and may fix time to redeem; failure permits foreclosure application. Interest – contractual interest rate controls; claimed higher rate must be supported by evidence; court rejected unsupported 28% claim and applied 20% per mortgage deed. Procedural – originating summons under Order 34 Rule 3A does not permit claim for general damages; such a claim dismissed. Service – substituted service by national newspaper permitted where personal service has failed.	19 June 2005
In Re: Ranch on the Lake Ltd (HCT-00-CC-CI 9 of 2005) [2005] UGCommC 28 (14 June 2005) A lender that has not enforced its security or actively pursued enforcement cannot claim receivership proceeds under a valid sharing clause. Mortgage law – Security sharing agreement – Clause conditioning entitlement to proceeds on enforcement or active steps – Interpretation of ‘‘enforce’’ and ‘‘actively pursuing steps’’ – Section 11 Mortgage Act does not invalidate contractual priority arrangements among encumbrancers of the same class – Receivership proceeds allocation.	14 June 2005
Uganda Micro Enterprises Association Ltd and Anor v The Micro Finance Support Centre Ltd (HCT-00-CC-MA 125 of 2005) [2005] UGCommC 27 (6 June 2005) Unconditional leave to defend granted where defendants raised triable issues on guarantees, loan disbursement and balance. Civil procedure – summary judgment – Order 33 r(3) – leave to appear and defend – bona fide triable issue required – personal guarantees – disputed loan balance – alleged conduit/disbursement on third-party instructions – need for oral evidence.	6 June 2005