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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.
73 judgments
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73 judgments
Citation
Judgment date
December 2006
Objector succeeded: property was in applicant’s possession, sale in execution procedurally defective and set aside.
Civil procedure – Order 22 (objector proceedings) – investigation of possession and interest; immovable property – effect of sale in execution; procedural requirements for sale (advertisement/30 days/fresh warrant); certificate of title prima facie but rebuttable; setting aside sale for procedural irregularity.
21 December 2006
Court authorised increase to contingency fund expenditure to correct omissions and reflect revised quotations.
Companies Contingency Fund — review of prior court authorisation to increase expenditure due to clerical errors and revised supplier quotations; Official Receiver permitted to expend corrected amount.
17 December 2006
Amendment permitted to correct misnomer where documents showed plaintiff contracted with the respondent without "Limited".
Company/pleadings – misnomer – amendment to correct erroneous addition of "Limited" to defendant’s name. Civil procedure – Order 6 r.29 – objection to amendment where similarly named foreign and local entities exist. Amendment principles – late amendment allowed where drafting error and no element of surprise (citing JB Kohli and Edward Seninde).
5 December 2006
Pre‑incorporation agreements do not bind the company; 15 August 2002 meeting invalid, court directs Registrar under s.135 to rectify records.
Companies Act – validity of general meeting – notice and quorum requirements – effect of absent register of members and missing company file – pre‑incorporation agreements not binding on incorporated company – court powers under s.135 to direct Registrar to convene meeting and rectify records.
3 December 2006
November 2006
The applicant may sue personally for withheld sale proceeds where majority controllers wrongfully expropriate funds and the company cannot sue.
Company law — Derivative actions — Foss v Harbottle rule and exceptions — fraud on the minority/expropriation of company funds — control by wrongdoers — joinder of the company — minority shareholder right to sue for personal share of sale proceeds.
30 November 2006
A money‑lender’s recovery suit filed after the 12‑month statutory limitation was time‑barred despite alleged equitable mortgage security.
Money Lenders Act — limitation: section 19(1) twelve‑month bar; security over land — equitable mortgage v pledge; requirement of statutory registration (Mortgage Act/Land Act/Registration of Titles) for exemption under section 21(1)(c); guarantor liability; courts cannot revive time‑barred claims by invoking inherent or constitutional powers.
27 November 2006
Trademark 'YES' deregistered for continuous non-use and lack of bona fide intention to use in Uganda.
Trade marks – De-registration for non-use – Section 28 Trademarks Act – continuous five-year non-use and lack of bona fide intention to use. Burden of proof – proprietor must demonstrate bona fide use in jurisdiction. Applicant as 'aggrieved person' entitled to apply for removal. Renewal challenge unnecessary where de-registration for non-use is ordered.
15 November 2006
Court authorized the Official Receiver to expend Shs139,100,000 from the Companies Contingency Fund subject to procurement and use conditions.
Companies Act s.347(3) – Official Receiver – Companies Contingency Fund – Court authorization to expend fund for operational needs; requirement that fund comprise interest from fixed deposits; conditions imposed including adherence to Government procurement procedures and exclusive use for official duties.
9 November 2006
Court granted mandamus compelling Treasury to pay decretal sums and held limitation runs from evident non‑compliance, not decree extraction.
Mandamus – enforcement of decree against Government – Government Proceedings Act s.19 (certificate of order) – Judicial Review Rules S.I.75/2003 Rule 5(1) – limitation period begins when creditor is satisfied officer will not comply – order compelling Treasury/Commissioner to pay decretal sums, interest and costs.
1 November 2006
A local council's monthly 'boda‑boda' levy was unlawful because it lacked parliamentary or ordinance authorisation.
Constitutional law – taxation – Articles 152 and 191 – local government revenue – requirement that taxes be authorised by Act of Parliament – Local Government Revenue Regulations (annual bicycle licence) – distinction between annual bicycle licence and monthly motorcycle ('boda‑boda') levy – absence of council ordinance – illegality of tax and contract.
1 November 2006
October 2006
Whether a district government must pay outstanding certified contract sums, including VAT, and damages for delayed payment.
Contract law – Public works – Certified payments and VAT component – Liability of district local government despite ADB funding arrangements – Damages for delayed payment – Interest and costs.
31 October 2006
A local council may not impose a monthly boda-boda tax absent statutory authorisation or a valid council ordinance.
Constitutional taxation limits – Articles 152 and 191 – Local Government Act heads of revenue – Local Government Revenue Regulations (annual bicycle licence) – requirement for parliamentary authority and, where applicable, local ordinance – legal certainty in taxation – illegality of unauthorised monthly "boda-boda" tax.
31 October 2006
A district receiving ADB funds is liable to pay certified contract sums and VAT, with damages, interest and costs awarded.
Contract law – contractor’s entitlement to payment where final certificates issued; unpaid VAT forms part of district’s liability. Public finance – ADB disbursement to district account makes district responsible for paying certified sums. Remedies – assessment of general damages, mitigation, discretion to award interest and costs; interest awarded as compensation for deprivation of business funds.
30 October 2006
The applicant proved unpaid credit invoices by handwriting evidence; court awarded Shs.12,000,000 plus 20% interest and costs.
Commercial contract – supply of goods on credit – existence and breach of contract; Burden and standard of proof in civil claims; Handwriting expert evidence – weight and admissibility; Evidentiary value of invoices and written undertakings; Remedies – special damages, discretionary interest and costs.
25 October 2006
Local government breached a management contract but claimant failed to plead or prove recoverable damages.
Contract law – breach by premature termination; frustration doctrine – not engaged where defendant’s own actions caused cessation; damages – special damages must be pleaded and proved; expenses to perform are not automatically recoverable; exemplary damages generally not available for breach of contract.
25 October 2006
Court permitted Originating Summons for equitable mortgage and ordered service on the registered proprietor for hearing.
Mortgage law – equitable mortgage by deposit of duplicate certificate and caveat; procedure – Originating Summons under Mortgage Act and Civil Procedure Rules; sufficiency of affidavit evidence to institute proceedings; service on registered proprietor with redemption interest.
19 October 2006
High Court may grant interim relief when tax tribunal is non‑functional, but applicant failed to pay required deposit or prove irreparable harm.
Tax law – interim relief where Tax Appeals Tribunal non‑functional – High Court’s original jurisdiction to grant injunctions; Tax Appeals Tribunal Act s.15(1) – obligation to pay 30% of assessed tax pending review; Temporary injunction – requirement to show compliance with statutory preconditions and irreparable harm; Civil procedure – inadmissibility of affidavits filed without leave; Agency notices – enforcement of statutory tax collection powers not readily stayed without compelling cause.
10 October 2006
Court set aside consent sale order after debtor’s counsel failed to disclose an earlier interim injunction preventing the sale.
Civil procedure — Review — Consent judgment — Error/non-disclosure — Court may set aside consent order obtained in ignorance of prior interim injunction; earlier injunction prevails. Property law — Matrimonial property — Alleged mortgage without spouse's consent; pending proceedings protect right to be heard. Equitable relief — Illegality and miscarriage of justice justify review even post-execution; purchaser refunded. Professional conduct — Non-disclosure by counsel of material court orders can vitiate resultant orders.
5 October 2006
Temporary injunction granted to preserve status quo against alleged counterfeit goods pending resolution of trademark and passing-off claims.
Trade mark infringement; passing off; temporary injunction to preserve status quo; irreparable harm to goodwill; balance of convenience; transit goods/destination evidence.
3 October 2006
Application to set aside default judgment dismissed because the defendant failed to show an arguable defence.
Civil procedure – Order 9 Rule 12 – Application to set aside default judgment – court’s discretion – requirement of an arguable defence – promptness, bona fides and prejudice – documentary evidence contradicting proposed defence.
3 October 2006
September 2006
Non-performance of a consent decree does not constitute variation; new substantive relief requires trial and cannot reopen the decree.
Civil Procedure Act s.92 – scope limited to varied or reversed decrees; Consent decree – non-performance does not amount to variation; Enforcement versus variation; Substantive claims arising after a decree require trial; Final decree cannot be reopened by application seeking new awards.
27 September 2006
Section 71 VAT Act creates joint and several partner liability; third party agency notice to recover partnership tax from a partner was lawful.
Tax law – VAT Act s.71 – application to partnerships – obligations imposed on each partner and joint and several liability – validity of third party agency notice to recover partnership tax from a partner; Evidence – firm cheques do not alone create a personal guarantee; Administrative law – requirement for Tribunal to give reasoned decision and not rely on extraneous partnership deed when construing statutory powers.
27 September 2006
Attachment was wrongful: objectors proved ownership/possession and immediate release with costs was ordered.
Civil Procedure – Attachment and objection under Order 19 CPR (rules 55–60) – Validity of warrant where location omitted; possession versus ownership; movable goods versus fixtures; bailiff’s authority and trespass; release under Rule 57.
27 September 2006
Property held by administrators and possessed by objectors was released from attachment as not held in trust for judgment debtors.
Objector proceedings — Order 22 (rules 55–62) — inquiry limited to possession at date of attachment — administrators hold estate property for beneficiaries, not for deceased judgment debtors — release from attachment when no trust for judgment debtor established.
21 September 2006
Court permits foreclosure claim to proceed by Originating Summons where bank alleges equitable mortgage by caveat and default.
Mortgage law – equitable mortgage by caveat – Sections 7 & 8 Mortgage Act – Originating Summons procedure (Order 34 r.3A & r.7/now O.37) – foreclosure and sale – sufficiency of affidavit and annexed documents to found Originating Summons.
21 September 2006
Originating summons allowed for foreclosure claim; registered proprietor ordered served due to interest in redemption.
Mortgage law – Originating summons under Mortgage Act and Civil Procedure Rules – equitable mortgage by caveat and power of attorney – foreclosure and sale applications. Civil procedure – sufficiency of affidavit and annexed documents to warrant originating summons. Service – requirement to serve registered proprietor with interest in redemption.
21 September 2006
Applicant bank’s mortgage foreclosure application was fit for determination by originating summons; court ordered summons issued for hearing.
Mortgage law – foreclosure of equity of redemption – enforcement of security by mortgagee – application under sections 7 and 8 Mortgage Act. Procedure – use of originating summons (Order 34 r.3A & r.7 / now Order 37 r.4 & r.8) to determine mortgage enforcement applications. Evidence – affidavit proof of loan, registered mortgage, outstanding indebtedness and default as basis for issuing originating summons.
21 September 2006
Applicant granted leave to defend summary suit after demonstrating bona fide triable issues on payment terms and repudiation.
Civil procedure – Order 36 r.3 & r.4 CPR – leave to defend summary suit; requirement of a bona fide triable issue of fact or law; contract interpretation – payment timing and variation by subsequent acknowledgement; breach/repudiation of sale agreement; pleadings and summary procedure.
10 September 2006
August 2006
Pre‑paid VAT paid by Government and held by the revenue authority is not an attachable debt of the supplier.
Tax law – Pre-paid VAT paid by Government – Revenue Authority’s obligation to place receipts on Consolidated Fund – Attachment/execution—whether prepaid tax constitutes an attachable debt of supplier; Civil procedure – execution against public funds – illegal raid on Consolidated Fund; VAT – remedies for refund claims under statutory procedures.
29 August 2006
Review denied where alleged new evidence was within applicant’s knowledge and discoverable with due diligence.
Review — discovery of new evidence; requirement that evidence be both unknown and not discoverable with due diligence — applicant's own knowledge and laches; procedural expectation to seek adjournment or call advocate when objection to practising certificate raised.
22 August 2006
Appeal against taxation decision dismissed as time‑barred under Advocates Act; fee agreement lacked required statutory formalities.
Advocates Act s.62 – appeals from taxing officer’s decision – 30‑day limitation; Civil Procedure Act s.79 inapplicable where specific statute governs; Advocates Act ss.50–51 – formalities for fee agreements to avoid taxation.
22 August 2006
Applicant failed to show strong prospects of success or irreparable harm; stay of execution refused and costs awarded to respondent.
Civil procedure – stay of execution pending appeal; inherent jurisdiction – section 98 Civil Procedure Act; adequacy of remedy – compensation as alternative; admissibility of fresh evidence on appeal – leave required; balance of convenience and prospects of success required for stay.
20 August 2006

 

16 August 2006
Oral family arrangements to finance a company contract, unsupported by written evidence, are unenforceable and unproven.
Company law and agency – corporate acts done through directors; privity of contract; Contract Act s.3(1) – requirement of written memorandum for promises to answer another’s debt; burden of proof and proof of special damages; intention to create legal relations in family/business dealings; evidentiary credibility in commercial claims.
13 August 2006
Fraudulent diversion of bank funds by an employee warranted finding constructive trusts, lifting the corporate veil and tracing assets.
Banking fraud by employee; fiduciary duty and constructive trust; tracing converted assets; lifting corporate veil to recover proceeds; constructive notice of spouse and company; compound interest on misapplied fiduciary funds.
7 August 2006
July 2006
A written sale agreement governed the transaction; the applicant lacked contractual standing and the individual respondent is liable for the unpaid balance.
Contract law – formation and parties – corporate personality; Parol evidence rule – written sale agreement excludes extrinsic terms; Sale of Goods Act – specific goods and transfer of property; Remedies – decree for unpaid purchase price, interest, retention of pledged securities and sale in execution; Mitigation and contractual intentions.
26 July 2006
Clearing agent entitled to proved disbursements; unsupported invoices disallowed; judgment for US$8,516.16 with costs and interest.
Commercial law – clearing and forwarding – disputed invoices for demurrage, port rent, bond/agency and disbursements – necessity of documentary proof; burden of proof on defendant to show payment or credits; single-account treatment and joint liability of related defendants.
26 July 2006
Pre-judgment security under Order 36 r.5(1)(a) requires evidence of intent to obstruct or delay execution.
Civil Procedure - Order 36 r.5(1)(a) - pre-judgment security/attachment - requirement of intention to obstruct or delay execution - evidential foundation for courts satisfaction - public/statutory body and divestiture law reducing risk of unsatisfied decree - discretionary interference with lower court's order.
13 July 2006
Where the father contracted and paid, minor children had no contractual cause of action and the suit was dismissed.
Minors’ contracts – capacity to contract; agency and beneficial ownership; auction sale disputes; vicarious liability of bank for auctioneers; absence of standing where father contracted on minors’ behalf.
5 July 2006
Unlicensed high-interest loan held illegal under Money Lenders Act; claim unenforceable and suit dismissed.
Money Lenders Act – unlicensed lending – illegality of contract – ex turpi causa bars enforcement. Distinction: contract of loan/borrowing v. quasi-contract (money had and received). Abandonment of interest claim does not validate an illegal agreement. Burden of proof and proof of special damages; cheques as indicia of indebtedness, not conclusive proof.
2 July 2006
June 2006
Late notice of cheque dishonour under the Bills of Exchange Act discharged liability, rendering the plaintiff’s claim unenforceable.
Bills of Exchange Act – notice of dishonour – requirement to give notice within reasonable time – delay discharges drawer’s liability; Evidence – burden of proof on party alleging payment; Corporate personality – cheques payable to company bind drawer notwithstanding alleged dealing with individual; double recovery – invoice and cheque covering same debt cannot both be recovered.
20 June 2006
Plaintiff entitled to recover Shs.18,300,922 from bailiff for unpaid execution proceeds; unpleaded general damages disallowed.
Execution proceeds – bailiff’s accountability – money had and received/unjust enrichment – burden of proof on party alleging payment – unpleaded general damages not recoverable without amendment – interest on decretal amount.
14 June 2006
Frustration rejected where defendant’s negligent agent caused delay; written hire clause limited liability; damages awarded.
Contract law – car hire – breach and frustration; agency – hirer liable for acts of chosen agent; parol evidence rule; limitation clause for windscreen/tyres/rims; damages for loss of use and general damages; third-party indemnity requires contractual basis.
12 June 2006
The plaintiff recovered unpaid certified sums and general damages after the defendant terminated the contract without the required notice.
Contract – construction contract – interim certificates – entitlement to certified sums; Contract termination – Clause 25(1) notice requirement – failure to give 14‑day remedy period renders termination wrongful; Damages – lost opportunity compensation; Interest – court rate from date of default and from judgment; Costs awarded to successful contractor.
11 June 2006
Plaintiff lacked a legal right to sue on government-project contracts; plaint struck out for failing to disclose a cause of action.
Contract law — cause of action — plaint must disclose plaintiff's legal right; contracts between Government/project and defendant; pre-incorporation contracts; assignment and succession — requirement to plead and attach assignment; stranger to contract cannot sue; plaint struck out for non-disclosure of cause of action; leave to appeal granted.
7 June 2006
Plaintiff awarded damages for innocent misrepresentation and breach where seller failed to provide duplicate title and misdescribed the property.
Contract law – sale of registered land – implied term that duplicate certificate of title will be available or its unavailability disclosed. Misrepresentation – advertisement as representation – innocent misrepresentation entitling plaintiff to damages where contract affirmed. Evidence – special damages must be strictly proved; failure to inspect engages caveat emptor. Remedies – award of general damages and order to provide Special Certificate of Title; interest and costs.
6 June 2006
An acknowledgment letter copied to the creditor restarts limitation and entitles refund of a tax overpayment with interest.
Tax law – recovery of overpaid tax; Limitation Act S.22(4) – acknowledgment of debt; a letter addressed to a third party but copied to creditor can revive limitation; entitlement to refund, interest and costs.
4 June 2006
May 2006
Plaintiff entitled to recover value of dishonoured cheques and Shs.7,000,000 from guarantor/assignee with interest and costs.
Contract – oral variation/enforcement of written remedy; dishonoured cheques – immediate cause of action; novation/third‑party guarantee – enforceability under s.3(1) Contract Act where written confirmation and part‑payment exist; interest as compensation for deprivation of use of money; costs allocation.
29 May 2006
Court held €4,500 was a repayable loan; defendant breached repayment; no rent was owing; plaintiff awarded €4,500.
Contract law – informal/friendly advances treated as loans where money is proved paid; burden of proof on party alleging tenancy and rental arrears; remedies—principal recoverable, interest discretionary, nominal damages, costs each party to bear own costs.
24 May 2006
Written sale agreement governs consideration; vendor lacked transferable title so plaintiff recovers Shs.175,000,000/= with interest and costs.
Evidence – Written contracts – ss.91, 92 and 114 Evidence Act – written agreement cannot be varied by oral evidence; party estopped from asserting different consideration. Restitution – Money had and received – payment for land where vendor had no transferable title – refund ordered. Land law – invalid lease granted in error by local land board – lack of transferable title; prior freehold prevails. Procedure – death of a defendant – claim abates against deceased; action may continue against surviving defendant/principal. Third party indemnity – Uganda Land Commission not liable where error lies with local land board.
17 May 2006