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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.
93 judgments
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93 judgments
Citation
Judgment date
December 2007
Sale of mortgaged property without statutory notice and with under‑declared proceeds held unlawful, fraudulent and negligent; plaintiff liable for market value difference.
Mortgages – Requirement of statutory notice under Registration of Titles Act (ss.116–117) and service per s.210A; sale of mortgaged land without notice unlawful; Mortgagee’s duty of care in sale – obtain pre‑sale valuation and avoid private treaty without justification; Fraudulent under‑declaration of sale proceeds — concealment of true purchase price; Remedies — recovery of difference between true market value and sale price plus interest; mesne profits and general damages considerations.
20 December 2007
Applicant failed to seek a statutory additional arbitral award within 30 days; High Court revision was inappropriate.
Arbitration — omitted claims; Arbitration and Conciliation Act s.33 — additional award within 30 days; High Court revision — not available for arbitration awards; Procedural compliance and statutory time limits; Improper attempt to register omitted certificates via company resolution.
19 December 2007
Preliminary objections raising mixed questions of fact and law were overruled; defects in the plaint are curable by amendment.
Civil procedure – preliminary objections – jurisdiction under section 15 of the Civil Procedure Act (place where contract made, to be performed, or defendant carries on business) – preliminary objections raising mixed facts and law not suitable for summary disposal – pleadings and disclosure of cause of action – omission as to joint or several liability curable by amendment.
17 December 2007
Ex parte judgment set aside where service on a receptionist was ineffective and defendant demonstrated timely prima facie defence.
Civil procedure – Setting aside ex parte judgment – Order 9 rule 12 – requirement of reasonable explanation and prima facie defence; Service on corporations – Order 29 rule 2(a) service on secretary, director or other principal officer; service on receptionist or office attendant not effective; alternative service at registered office or place of business under rule 2(b) – requirement to aver absence of registered office; affidavit of service must identify officer served.
13 December 2007
Respondent’s deficient defence and counter‑claim alleging misrepresentation and lacking a title were not struck out but ordered amended.
Civil Procedure – Pleadings – Order 6 r.3 CPR – particulars required where misrepresentation is pleaded; Order 6 r.19 CPR – amendment to cure defects; Order 8 r.8 CPR – titled heading for counter-claim mandatory where counter-claim introduces other persons; counter-claim as cross-action; strike-out inappropriate where defects curable by amendment.
13 December 2007
A judgment against a principal debtor does not bar a separate enforcement action against a guarantor; limitation runs from demand.
Res judicata — applicability to guarantor where earlier decree against principal debtor; Contract limitation — six-year period; for guarantees, limitation runs from date of demand (invocation).
11 December 2007
Leave to appeal granted to determine whether counsel who supplied affidavit information is a potential witness and therefore disqualifiable.
* Civil procedure – interlocutory applications – leave to appeal – test: arguable grounds, seriousness of issue and absence of dilatory conduct. * Advocacy ethics – whether counsel who supplies information relied upon in a supporting affidavit becomes a potential witness and may be disqualified.
6 December 2007
An equitable mortgage and foreclosure were upheld where defendants expressly acknowledged the debt and deposited the title as security.
* Security law – Equitable mortgage – deposit of title and caveat create equitable mortgage (Mortgage Act s.129). * Mortgage – foreclosure – right to foreclose upon breach of covenant to pay (Mortgage Act s.8(1)). * Corporate law – separate corporate personality – director/owner’s written acknowledgement and security can override mere reliance on company separation. * Evidence – written acknowledgment of debt and conduct (caveat, retention of title) establish enforceable security.
6 December 2007
An airway-bill "Prepaid" endorsement does not prove payment; the respondent was held liable for unpaid carriage charges.
Commercial law – carriage of goods – recovery of airfreight charges – whether "Prepaid" endorsement on airway bills constitutes proof of payment – distinction between airway bill and receipt – evidence and credibility of witnesses.
5 December 2007
Ineffective service and the seller’s breach led to the plaint being rejected and the suit struck out.
Civil procedure – Service of summons – ineffective service on former solicitors who disclaimed instructions – default/interlocutory judgment improperly entered and set aside; Contract law – Sale of land – express obligation to deliver possession immediately – vendor’s breach; Specific performance – unavailable where vendor re-sold property after transaction collapsed; Pleadings – plaint discloses no cause of action – rejection under O.7 r.11(a).
4 December 2007
November 2007
Government (Attorney General) not a necessary party; corporate separateness precludes joining shareholder as co-defendant for company’s contractual breach.
Civil procedure – Joinder of parties – Order 1 r.10(2) CPR – Necessary vs proper party; Corporate law – Separate legal personality of company; Shareholder (Government) not liable for company’s contractual breaches; Third-party/indemnity remedy where company seeks redress against shareholder; Evidence of negotiation or shareholder interest does not make shareholder a necessary party.
29 November 2007
Applicant's application to vacate temporary injunction for inventory non-compliance dismissed; both parties breached order, injunction maintained.
* Civil procedure – temporary injunction – purpose is to preserve status quo pending suit – order binds both parties. * Court-ordered joint inventory – compliance required within prescribed time and signatures by officials and lawyers. * Failure to comply – where both parties breach the order, applicant cannot rely solely on respondent's non-compliance. * Equitable principle – parties must come with clean hands; uncontested affidavit averments are taken as admitted. * Remedy – application to vacate injunction dismissed with costs; inventory to be verified, signed and filed within seven days.
29 November 2007
Leave to voluntarily wind up a financial institution refused for non-compliance with Companies Act notice requirements; 30-day cure allowed.
Financial Institutions Act s.98(1) – voluntary liquidation leave; Companies Act ss.279, 281, 277(1) – statutory declaration of solvency, special resolution, and publicity/notice requirements; court’s supervisory role to protect depositors and creditors; non-compliance with notice requirement bars immediate grant of leave but may be cured.
28 November 2007
Payment of the principal after suit is not a bar to a claim for costs; unsuccessful defendants ordered to pay costs.
* Civil procedure – costs – discretion under section 27(1) Civil Procedure Act – usual rule that costs follow the event. * Commercial law – dishonoured cheque – payment of principal after suit filed does not extinguish claim for costs. * Withdrawal of application – undertaking to pay costs strengthens entitlement to costs; judgment entered for plaintiff for principal and costs. * Costs – defeated party liable for costs of suit and costs attendant to withdrawal; bill of costs to be taxed.
15 November 2007
Extension denied: applicant failed to show the intended appeal raised a question of law or attach a proposed notice of appeal.
Tax Appeals Tribunal — extension of time to appeal under s.27(1) — appeals limited to questions of law under s.27(2) — applicant must demonstrate intended question(s) of law (attach proposed notice of appeal or state grounds) — counsel’s miscalculation/late receipt insufficient where no point of law shown.
13 November 2007
Respondent’s failure to pay hire balance breached contract; applicant entitled to unpaid balance, agreed costs, limited additional damages.
* Contract law – hire agreement – existence and terms of hire; breach for non-payment. * Mitigation of loss – injured party’s duty to terminate and avoid accruing further loss. * Damages – assessment of special and general damages, and award of interest and costs. * Civil procedure – substituted service and default judgment.
11 November 2007
Leave for judicial review refused where PPDA made no cancellation order and contract remedies were available to the applicant.
Judicial review — leave to apply — discretionary remedy — prerogative writs (certiorari, mandamus, prohibition) inappropriate where administrative body made no cancellation order and where adequate contractual remedies exist.
4 November 2007
October 2007
Contractor substantially performed lump-sum building contract; employer’s wrongful termination entitles contractor to full contract price, interest and costs.
Construction law – lump-sum contract; substantial performance doctrine; admissibility of oral variation under Evidence Act; estoppel by silence; entitlement to contract price, interest and costs where employer wrongfully terminates contractor’s work.
30 October 2007
Insurer subrogated to insured’s claim recovers indemnity from security firm vicariously liable for employees’ theft.
Insurance law – validity of policy despite typographical error in insured’s name; coverage of money in transit by third-party carrier; insurer’s right of subrogation upon indemnification; formation and enforceability of oral cash-in-transit contract; vicarious liability of employer for servants’ criminal acts; quantum determined by independent adjuster and indemnity documentation.
30 October 2007
Leave to defend granted due to bona fide triable issues over pledged title, lender’s conduct, and accumulated interest.
Civil procedure – Order 36 r 3 & 4 – leave to appear and defend; requirement of bona fide triable issue; adequacy of affidavit particulars; summary procedure; security by deposit of certificate of title; lender’s failure to sell pledged land; refusal to release title; title registered in third party’s name; entitlement to accumulated interest.
24 October 2007
Stay of execution pending appeal denied where applicant failed to show execution would render appeal nugatory.
Tax Appeals – stay of execution pending appeal – section 28 Tax Appeals Tribunal Act; inherent jurisdiction to stay – burden on applicant to show execution would render appeal nugatory or special circumstances – respondent’s ability to repay as decisive factor.
18 October 2007
Statutory notice accepted as received, but adding the division was time‑barred without pleading the disability exception.
Local authorities — statutory notice requirement to sue local authority — mandatory but effective receipt may be shown by legal department's response; Limitation law — causes of action against local authorities subject to statutory periods (s3) — substantive and strictly enforced; Limitation exception — "disability" under s5 may revive action but must be pleaded in the plaint; Amendment — adding a defendant outside limitation requires disclosure of the exception; Civil procedure — plaint to disclose grounds for exemption when instituting out‑of‑time claims.
18 October 2007
Leave granted to add the central bank as defendant; statutory immunity issue reserved for trial.
* Civil procedure – Amendment/Joinder – leave to add a party – discretion to allow amendment to fully determine issues. * Financial regulation – regulator immunity – statutory immunity under s.118(2) of the Financial Institutions Act should be addressed at trial where evidence can be led. * Interlocutory relief – objections raising factual or evidentiary matters may be reserved for trial rather than decided at leave-to-amend stage.
17 October 2007
Arrest warrant and ex parte judgment set aside due to doubtful service, document discrepancies and irregular advocate change.
Civil procedure – service of process – validity of service where summons and affidavits show inconsistent dates and differing signatures; execution and committal – requirement for proper Notice of Change of Advocates; ex parte judgment – setting aside for procedural irregularity and triable issues; leave to defend – granted where service and supporting documents are doubtful.
17 October 2007
Proceedings instituted by notice of motion for an ordinary money claim were incompetent and dismissed.
Civil procedure – institution of suits – Order 4 Rule 1(1) and Order 6 CPR – plaint required for ordinary actions – notice of motion not competent to commence action for recovery of money.
17 October 2007
Court can order security for enforcement of an arbitral award under section 34(5) despite alleged redundancy of Rule 12.
Arbitration — Security for enforcement — Section 34(5) Arbitration and Conciliation Act — Rule 12 Arbitration Rules — procedural redundancy does not oust substantive power — interlocutory refusal to declare award nullity — delay and respondent’s ability to pay as relevant factors.
17 October 2007
Default judgment set aside: service on an unauthorised secretary was ineffective and the applicant showed an arguable defence.
* Civil procedure – setting aside default judgment – requirement of effective service of process – acknowledgement by company secretary not shown to be authorised – ineffective service. * Civil procedure – affidavits – inadmissible hearsay and matters not within personal knowledge (Order 19 r.3(1)) – weight of competing untested affidavits where no cross-examination. * Setting aside default judgment – must show absence of service and an arguable defence – discretion to order trial and file defence.
17 October 2007
September 2007
Temporary injunction refused where arguable claim existed but irreparable loss not shown and the property sale had already occurred.
* Land law – family land and spouse's consent – whether mortgage without spouse's consent is void under section 39 of the Land Act. * Interim remedies – temporary injunctions – requirements: prima facie case, irreparable harm and balance of convenience. * Evidence – contradictions in affidavit affecting credibility. * Remedy timing – injunctions to preserve status quo; relief inappropriate after sale has occurred.
19 September 2007
A plaint mixing time‑barred interest claims with recoverable principal must be rejected if it fails to segregate or plead exemption.
Limitation Act s.18(5) — recovery of arrears of interest barred after six years; Pleadings — amended plaint must segregate time‑barred and non‑barred amounts; Civil Procedure Rules Order 7 r.6 — requirement to plead exemption from limitation; Order 7 r.11(d) — rejection of plaint where claim is statute‑barred and indistinguishable.
19 September 2007
Applicant failed to show a prima facie case and injunction was refused; substantive spouse-consent issue reserved for trial.
* Interim relief – temporary injunction – requirements: prima facie case, irreparable harm, balance of convenience. * Land law – mortgage of family home – spouse’s prior written consent under Section 39 of the Land Act (pre-amendment). * Corporate capacity – director/secretary as the ‘mind’ of the mortgagor company and implications for spouse consent. * Procedural – whether interim relief appropriate where substantive issues require full trial.
18 September 2007
Whether a lease extension and force majeure excused non-return of hired machinery; court found termination, no force majeure, award for plaintiffs.
Commercial law – Dry lease of heavy equipment – Extension and termination of lease – Variation of hire charges and implied obligation to keep utilisation records – Force majeure plea (insurgency/mechanical breakdown) – burden of proof – Counterclaim for repairs dismissed for lack of credible evidence – Interest and costs awarded.
12 September 2007
Plaintiff failed to prove alleged overdraft; confused bank records defeated both claim and counterclaim.
Bank overdraft disputes; burden of proof on balance of probabilities; reliability of bank records in liquidation; mixed accounts where customer is also service provider; special damages must be pleaded and strictly proved; loss falls where it lies when rights cannot be accurately ascertained.
5 September 2007
August 2007
Defendant who ordered and received goods through agents liable for unpaid price; plaintiff awarded judgment, interest and costs.
Sale of Goods Act – specific goods – property passes on contract; Seller’s action for price under s.48; burden of proof; inadmissibility of hearsay from uncalled witness; commercial interest discretionary award; agency and liability for acts of agents.
30 August 2007
July 2007
A plaint omitting particulars of interest can be amended; oral amendment allowed where attachments and facts disclose the claim.
* Civil procedure – Pleadings – Cause of action – Whether plaint discloses cause of action where claimed outstanding sum includes interest not particularized. * Civil procedure – Amendment – Order 6 r.19 – Deficiencies in pleadings curable by amendment; oral application to amend permissible during hearing. * Contract – Interest on late payment – entitlement to interest despite full payment before suit if claim properly pleaded or shown in attachments. * Civil Procedure Act – Court’s discretion as to commencement of interest and allowing amendments to determine real controversy.
26 July 2007
Plaintiff accepted reduced distribution of execution proceeds by conduct and is estopped from later claiming the full decretal balance.
* Civil procedure – money had and received – action against a court bailiff for recovery of decretal proceeds; allocation of execution proceeds. * Evidence – burden and standard of proof on balance of probabilities; weight of circumstantial evidence and conduct. * Equitable estoppel – acquiescence by conduct to reduced settlement precludes later claim for original amount. * Remedies – decree for unpaid balance, interest from filing date, partial costs award.
25 July 2007
Appellate court may hear injunctions to safeguard appeals, but injunction refused where no irreparable harm and public interest outweighs applicant.
Electricity law – injunction pending appeal – Court of Appeal Rules (Rule 6(2)(b) & Rule 42) – jurisdiction to entertain application – prima facie/triable issues – re-evaluation authority of Ministry – irreparable harm and balance of convenience – public interest vs. interim relief.
19 July 2007
Defendant liable for employees' theft in course of employment; insurer’s subrogation and unsigned policy upheld.
Contract law – validity of insurance policy (unsigned by insured) – vicarious liability – theft by employees committed in the course of employment – indemnity clause interpretation – clause excusing liability for events beyond reasonable control (burden to prove).
17 July 2007
Whether a temporary injunction under Order 41(1)(a) can restrain enforcement of a debenture pending a validity determination.
Civil Procedure – Interlocutory injunction – Order 41 Rule 1(a) – Whether declaratory proceedings as to loan and debenture invalidate an application for injunctive relief – Debenture enforcement rights (possession, sale) as property in dispute – Preliminary objection dismissed.
17 July 2007
June 2007
Interlocutory judgment under Order 9 Rule 8 is inappropriate where the plaint includes a liquidated debt; judgment entered under Rule 6.
Civil Procedure – Default judgment – Distinction between Order 9 Rule 8 (pecuniary damages only) and Order 9 Rule 6 (liquidated demands); interlocutory judgment improperly entered where plaint joins liquidated debt with pecuniary damages; setting aside interlocutory judgment and entering judgment under Rule 6.
27 June 2007
Court disallowed adding a revenue authority as co-defendant, finding joinder unnecessary for resolving a contractual breach.
* Civil procedure – joinder of parties – O.1 r.10(2) – court has wide discretion to add parties but only when necessary to effectually and completely adjudicate all questions. * Plaintiff's prerogative – plaintiff entitled to select defendants; compulsory joinder not ordered where non-joinder will not defeat the suit. * Third party procedure – where a defendant seeks contribution or indemnity from a third party, proper course is third party notice rather than forced addition over plaintiff's objection. * Privity – a third party who is a stranger to the contract need not be joined to adjudicate contract disputes.
21 June 2007
Court finds defendants liable for trade mark infringement and passing off; grants injunctions, destruction, damages and cancels bad-faith registration.
Trade mark law – passing off and trade mark infringement – similarity of get-up and likelihood of confusion – priority of use and goodwill – remedies: injunction, delivery up and destruction, damages, interest and cancellation of bad-faith registration.
21 June 2007
Temporary injunction granted to preserve disputed land pending trial where applicant established a prima facie case and balance of convenience.
Civil procedure – Temporary injunction (O.41 r.1) – preservation of status quo; prima facie case and probability of success; irreparable harm; balance of convenience; orders against parties not registered as owners; ability of true owner to apply to be discharged from injunction.
17 June 2007
A VAT refund claim based on invoices issued to other legal entities discloses no cause of action and is struck out.
VAT law – input tax refund – tax invoice must be in name of taxable person – corporate separate personality – cause of action determined from plaint alone – ex turpi causa bars recovery where claim relies on non-compliant/illegally issued invoices – O.7 r.11(a) Civil Procedure Rules (plaint discloses no cause of action).
14 June 2007
The plaintiff's 2006 suit based on a 1992 undertaking was time‑barred and disclosed no cause of action, so the plaint was rejected.
* Limitation of actions – time bar – twelve years for actions on judgment and six years for contract – claim based on 1992 judgment and agreement held time‑barred. * Limitation of actions – fraud tolling (section 25) – discovery rule – concealment pleaded as occurring "soon after" 1992, court finds plaintiff could have discovered earlier. * Civil Procedure – plaint to be rejected where it does not disclose a cause of action – undertaking between defendant and court bailiffs not creating direct cause of action for judgment creditor. * Procedure – inability to trace defendant is not a defence to limitation; substituted service available.
7 June 2007
May 2007
A company is not liable for pre‑incorporation debts absent pleaded ratification; plaint rejected for non‑disclosure of cause of action.
* Company law – liability for pre‑incorporation debts – company distinct from promoters; no automatic liability for predecessor's obligations. * Pleadings – disclosure of cause of action – Order 7 r.11(a) – plaint liable to rejection if no cause of action pleaded. * Ratification – memorandum and articles do not constitute a contract with third parties or ratify pre‑incorporation debts absent a new agreement or resolution. * Comparative law – English statutory developments (Phonogram/European Communities Act) not applicable to change Ugandan common law.
31 May 2007
Mortgagee breached duty to obtain best price; plaintiff awarded Shs.15,000,000 damages with interest, sale not set aside.
Mortgagee’s duty to act in good faith in exercising power of sale; obligation to take reasonable steps to obtain best price; remedies for undervalue sale; assessment of damages where private sale conducted without adequate competitive bidding.
31 May 2007
Registered trade mark owner proved infringement by imported counterfeit toothbrushes; passing off failed for lack of goodwill evidence.
* Trade mark law – registration – proprietor’s certificate as prima facie proof of ownership. * Trade mark infringement – test is likelihood of confusion; importer of goods bearing identical get-up found liable. * Passing off – requires goodwill, misrepresentation and damage; absence of evidence of circulation or goodwill defeats claim. * Remedies – permanent injunctions, delivery up and destruction, damages, interest and costs. * Evidence – reliance on UNBS interception and analysis; Registrar’s testimony confirming registrations.
31 May 2007
Interlocutory judgment entered in error where plaint combined liquidated and unliquidated claims; final judgment entered under Rule 6.
Civil procedure — Order 9 Rule 6 (liquidated demand) vs Order 9 Rule 8 (pecuniary damages-only); interlocutory judgment; mixed plaints combining liquidated and unliquidated claims; setting aside erroneous interlocutory judgment; plaintiff’s election to proceed under appropriate rule.
30 May 2007
Registrar’s failure to decide an extension application and to hear opponents breached natural justice, warranting reinstatement of oppositions.
* Trade marks – opposition proceedings – Registrar’s power under Rule 101 to grant extension of time – duty to consider pending extension application before setting aside opposition. * Administrative law – natural justice/audi alteram partem – duty to notify and hear an opponent before making adverse decision. * Procedural fairness – requirement for reasons and specific findings when striking out opposition proceedings.
30 May 2007
Defaulting defendant held liable; plaintiff awarded special and general damages, 25% interest and costs.
* Civil procedure – Default judgment (O.9 r.6) – interlocutory judgment determining liability where defendant fails to file a defence. * Evidence – proof of special damages by invoices and payment instruments. * Damages – award of general damages by legal presumption where breach established despite no figure proposed. * Interest – decretal amounts to attract post-judgment interest at 25% per annum. * Costs – successful plaintiff entitled to costs following default judgment.
30 May 2007