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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.
132 judgments
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132 judgments
Citation
Judgment date
May 2012
Receivers' constructive possession, not a creditor’s lien, prevailed and attached trucks were released.
Civil procedure – Release from attachment – Possession is determinative; lien does not confer possessory rights; appointment of receiver vests constructive possession and prevails over subsequent attachment by judgment creditor.
2 May 2012
Whether the applicant had possession of assets purchased from receivers at the time of attachment.
Civil procedure – Objector proceedings under Order 22 r 55–58; question of possession at time of attachment; limits of inquiry (possession v title); effect of receivers’ sale on attachment; release of attached property.
2 May 2012
April 2012
Registrar's extension of interim order after stay to arbitration was void; interim relief must be sought under the Arbitration Act (section 6).
Arbitration and Conciliation Act – stay of proceedings under section 5 – effect on interlocutory matters; registrar's lack of jurisdiction to extend orders after stay. Arbitration and Conciliation Act – section 6 – court’s power to grant interim measures before or during arbitration; procedural requirements (chamber summons, Arbitration Rules). Civil Procedure Act/Rules – improper procedure for interim relief in matters governed by arbitration clause; possibility of curing procedural defects but preference for correct statutory route. Jurisdiction – inherent and statutory limits once dispute referred to arbitration.
30 April 2012
Whether a post‑award notification's registration/inspection terms formed part of the contract and justified refund for rejected drugs.
• Contracts – tenders: invitation to treat, tenderer’s bid as offer, acceptance must be unqualified; post-award notification accepted by conduct can form part of contract. • Administrative/regulatory compliance – statutory/regulatory registration (NDA) and quality inspection clauses enforceable where incorporated into contract. • Evidence of special damages – special damages must be specifically pleaded and strictly proved; invoices/documentary proof required. • Remedies – recovery of payments made under letter of credit for non‑compliant goods; refusal of unproven ancillary costs; dismissal of counterclaim for unpaid balance.
30 April 2012
Contractual variation orders by the Project Manager were binding; contractor awarded outstanding variation payment, interest, damages and costs.
Contract law – variations: Project Manager’s contractual authority to order and assess variations binds the employer. Public procurement/AG clearance: internal approval gaps do not render variation orders unenforceable against an innocent contractor acting on written Project Manager instructions. Proof of special/retention sums: retention payable only upon Project Manager’s certification; special damages must be strictly proved. Interest: court discretion to award pre‑ and post‑judgment commercial interest.
27 April 2012
Court varied default judgment: confirmed liability for admitted UGX 250,000,000, allowed defence only on UGX 50,000,000, and restored disputed claims for trial.
Civil procedure – Default judgment (Order 9 r6, r12) – Setting aside/varying default orders – sufficient cause; enlargement of time (Order 51 r6); contract law – frustration and contractual covenant providing refund/alternative plot; evidence – no oral variation of written contract (s91 Evidence Act); deemed admissions (Order 8 r3).
27 April 2012
Expert reports agreed by the parties are binding; most insurance claims dismissed, applicant awarded workmen’s compensation.
Civil procedure — Court proceeding after delay — Order 17 r.4 CPR. Expert evidence/referee — Parties’ agreement to be bound by court-appointed experts; adoption under s.26 Judicature Act. Insurance law — scope of public liability/all-risks; exclusion for criminal acts by insured’s agents (guards); ex-gratia payments. Accounting reconciliation — premiums paid, credit notes, claims paid and unsettled. Set-off defence — unpaid premiums not established; plaintiff in credit for relevant period. Workmen’s compensation — insurer liable for claim within policy period.
26 April 2012
Registrar's taxation set aside for failing to rule on preliminary objection and for improperly aggregated advocate costs; taxation ordered de novo.
Taxation of costs – limits of appellate interference – exceptional circumstances required to upset taxation awards. Civil procedure – preliminary objections – must be ruled upon before hearing merits; hearing ex parte without ruling is error. Res judicata/functus officio – dismissal for want of form is not final on merits and does not preclude filing a fresh bill. Advocacy costs – items attributable to different advocates/firms must be separately itemised to avoid improper claims.
23 April 2012
A former proprietor may sue for breach of injunction and mortgage duties but cannot cancel a third party’s registered title absent that party.
Civil procedure – Order 7 r.11 / Order 6 r.30 – plaint disclosing cause of action; Locus standi – "person aggrieved"/equitable mortgage – third‑party injunction effects; Registration of Titles Act ss.176–178 – impeachment/cancellation of title requires action against registered proprietor; Constitutional right to fair hearing (art.28) – cannot adjudicate rights of absent registered proprietors.
22 April 2012

 

20 April 2012
The plaintiffs’ claim was barred by lis pendens and failed against non‑parties for lack of cause and privity; suit dismissed.
Civil Procedure – Lis pendens – Section 6 Civil Procedure Act – later suit barred where matter directly and substantially in issue in earlier suit between same parties. Pleadings – Order 7 r 11 and Order 6 r 30 CPR – when plaint discloses no cause of action or is frivolous/vexatious. Contract/Consent order – privity of contract – third parties not bound or enforceable against non‑parties to the consent order. Misjoinder – remedy by striking out/joining under Order 1 rules 9,10 and 13. Abuse of process – bringing parallel suit to circumvent pending proceedings.
20 April 2012
Dishonoured cheques for credit sales entitle the holder to judgment for the cheque value plus contractual and post‑judgment interest.
Commercial law – dishonoured cheques – cheque as a bill of exchange – holder entitled to judgment for face value where cheque dishonoured absent exceptional grounds. Contract – sale of goods on credit – admissibility of invoices, ledger and original cheques as proof of indebtedness. Interest – contractual interest recoverable; additional pre‑ and post‑judgment interest awarded. Civil procedure – ex parte hearing where service proved; costs follow successful party.
19 April 2012
Bank found negligent for unauthorised withdrawal from customer’s account due to lax procedures but fraud not established.
Banking law – savings account – withdrawal by forged signature – negligence – duty of care owed by banker – relationship between banker and customer – quantum of damages for negligent payment – pleading and proof of fraud versus negligence.
13 April 2012
Mandatory commercial‑court mediation counts as ADR under Order 12; late security‑for‑costs application dismissed due to inordinate delay.
Civil Procedure — Order 12 (Scheduling conference and ADR) — Interpretation of timelines for interlocutory applications; Commercial Court Mediation Rules 2007 — mandatory mediation deemed ADR for Order 12 purposes; Security for costs — interlocutory application deadlines and inordinate delay; Appeals from registrar — competence where ruling and record attached.
12 April 2012
Bank liable for negligent over‑the‑counter payment where withdrawal slip was not signed and bank failed verification; fraud not determined.
Banking law – banker–customer duty of care in over‑the‑counter withdrawals – withdrawal slips vs. cheques – handwriting expert evidence conflicts – fraud requires specific pleading and particulars – negligent payment on materially incorrect withdrawal slip renders bank liable.
12 April 2012
Employer liable for unpaid statutory social security contributions, statutory penalties and minister-declared interest; liquidated demands warrant final judgment.
Social Security contributions – employer liability to remit statutory contributions – inspection reports and correspondence as proof of non-remittance. Statutory penalties (s.14 NSSF Act) and minister-declared interest (s.35 NSSF Act) – recoverable as liquidated demands. Civil Procedure – Order 9 rr.6 & 8 – default judgment: final judgment for liquidated demand and interlocutory judgment for pecuniary damages. Remedies – arrears, statutory penalties, minister-declared interest, further accruals and costs.
12 April 2012
Pleadings alleging diversion of supplied goods and a conspiracy sufficiently disclose a cause of action against the third defendant.
Civil procedure — Order 7 r.11 (CPL) — Rejection of plaint for failure to disclose a cause of action; Pleadings — court limited to plaint and annexures; Conspiracy — pleaded conspiracy may implicate alleged co-conspirators; Evidence from the bar (e.g., acquittal) not considered at pleading stage.
12 April 2012
March 2012
Interlocutory judgment set aside for lack of affidavit of service and failure to publish the plaint with the summons.
Civil procedure – substituted service by publication – Order 9 r5 mandatory affidavit of service – failure renders interlocutory judgment irregular; Order 5 r2 – summons must be accompanied by plaint and prescribed documents in advertisement; Interlocutory judgment – unlawful without proof of service; Contract law – hire/lease payments are liquidated demand.
25 March 2012
Court overruled state objections and admitted PAC report, annexures, minutes, press clippings and secondary documentary evidence.
Commercial procedure; admissibility of evidence – public documents and parliamentary committee reports; parliamentary privilege (Article 97) limited to MPs/officers; cabinet minutes and annexures in PAC report admissible as public/secondary evidence; res gestae and newspaper clippings admissible to prove publication; witness statements not evidence until verified on oath.
18 March 2012
A plaint omitting material facts and particulars of alleged misrepresentation fails to disclose a cause of action and is rejected.
Civil procedure – Pleading – Whether plaint discloses cause of action – Mandatory requirement to plead all material facts; Misrepresentation/fraud – particulars required by Order 6 r.3; Letters of credit – documentary attachments do not cure failure to plead why payment was not obtained; Rejection of plaint under Order 7 r.11 for failure to disclose cause of action.
11 March 2012
Plaintiff failed to prove landlord breached advertising exclusivity; landlord awarded unpaid rent and interest.
Contract – advertising management agreement – interpretation of clauses on existing contracts and reserved/temporary advert spaces; agency obligations – plaintiff’s duty to solicit advertisers and to pay rent; proof of collection by landlord – evidentiary burden; condonation/acquiescence; remedies – rent arrears, pre- and post-judgment interest; procedural – counterclaim form objection overruled.
1 March 2012
February 2012
Request to restrain enforcement of an autonomous on‑demand bond pending appeal refused; damages deemed adequate remedy.
Civil procedure – Stay of execution – Requirements: likelihood of success on appeal and risk of irreparable prejudice rendering appeal nugatory. Commercial law – Demand/guarantee bonds – autonomy of on‑demand bonds; enforceable according to tenor irrespective of underlying contract. Remedies – Adequacy of damages where loss arises from enforcement of on‑demand bond; insurer not party limits court’s ability to restrain payment.
29 February 2012
Presentation of a bankruptcy petition by a debtor constitutes an act of bankruptcy and may attract a receiving order despite lack of assets.
Bankruptcy Act – s.2(1)(f) act of bankruptcy by debtor filing petition; s.4 receiving order; s.10 stay of proceedings; ss.43–44 restriction of execution/attachment; Civil Procedure Act s.40(4) – discharge jurisdiction remains with execution court; arrest/detention does not complete execution.
28 February 2012
Both plaintiff’s claim and defendant’s counterclaim dismissed for failure to strictly prove special damages.
Commercial law – agency under a memorandum of understanding – accounting and remittance obligations; Evidence – burden of proof in civil claims and requirement to strictly prove special damages; Evidence – extraterritorial documents and credibility of conflicting police reports; Forensic handwriting evidence – inconclusive variation; Audit reports – adequacy of source documentation for claims.
27 February 2012
Carrier held liable for lost cargo; exclusion clause not proved; subcontractor must indemnify; plaintiff awarded US$348,830 plus interest.
• Carriage law – common carrier liability – burden shifts to carrier once delivery and non-delivery proved• Contract law – incorporation of exclusion clauses – notice must be given at contract formation; electronic communications require authentication• Evidence – admissibility/authentication of emails; Electronic Transactions Act 2011 principles applied• Sub-contracting and indemnity – third-party carrier liable under contractual indemnity for loss in its custody• Insurance – asserted policy limits do not automatically limit contractual indemnity absent proof and proper contractual/insurance nexus• Remedies – award of special and general damages, interest, and shared costs (50/50)
26 February 2012
Court found the defendant company infringed the plaintiff’s business name and registered trademark and ordered injunctions, damages, interest and costs.
Trade marks and business names – trademark infringement – passing off – similarity of name and device – likelihood of confusion; registered trademark advantage over unregistered mark; corporate personality shields director from company liability.
23 February 2012

Banking law — banker-customer relationship — merchant agreement — identity theft — freezing of account — chargeback liability — contractual fraud — credit card fraud — breach of contract — general damages.

16 February 2012
A judgment against a principal debtor does not automatically preclude a separate suit against guarantors under res judicata.
Civil procedure – res judicata (s.7 CPA) – When a prior judgment bars subsequent suit; Guarantee law – nature of guarantor liability as a separate, secondary obligation; Creditor may sue guarantor independently – demand, notice and construction of guarantee are merits issues; Parties and title – requirement that parties be same or claim under same title for res judicata to apply.
9 February 2012
January 2012
The applicant was entitled to payment where government agents issued and confirmed supply orders despite later funding halts.
• Limitation law – contract claims – three‑year limitation under section 3; cause of action determined by acknowledgement/forwarding of claim. • Administrative acts – validity of supply orders issued by government agents despite later internal directives halting procurement. • Contract/enforcement – third‑party supplier entitlement to payment where supply orders and confirmations are duly endorsed by government officers. • Remedies – special damages to contract price, disallowance of unproven transport costs, awards of general damages, interest and costs.
26 January 2012
Application to strike defendant as partner dismissed; procedural rules on business names (Order 30 rules 5,8,10) govern, issues to be tried.
Civil Procedure – Order 30 CPR – suits against persons trading under business names – distinction between partnerships (rule 5) and persons trading under other names (rule 10); abolition of entry of appearance practice renders rule 8(2)(b) inapplicable; misnomer/unregistered business name and factual connection are matters for trial.
25 January 2012
Court awards US$ 10,000 general damages, finding a personal loan valid and within judicial discretion.
Contract Law – Validity of transactions under Financial Institutions Act – Award of general, exemplary, and punitive damages in breach of contract.
19 January 2012
Leave to amend plaint granted in part: clarificatory amendments allowed; new causes (special breach claims, mesne profits) disallowed.
Civil procedure — Amendment of pleadings — Leave to amend to reflect withdrawal of co‑defendants and to clarify facts allowed where not introducing new causes or causing prejudice; amendments that introduce new causes (special damages for breach of contract; mesne profits) disallowed — Questions of title and merits to be determined at trial.
13 January 2012