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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.
145 judgments
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145 judgments
Citation
Judgment date
December 2013
A contract variation does not override a payment-by-certificate regime; recovery is limited to amounts certified unless dispute procedure is pursued.
Contract law – construction contract – variation approved by employer authority – payment governed by Project Manager’s certificates – final certificate binding – contractual dispute resolution (adjudication) required – VAT entitlement – assessment of special and general damages and interest.
19 December 2013
An expert report under a consent order is binding; the applicant awarded contractual and general damages.
* Civil procedure – Consent order – Binding effect of an expert determination agreed by parties and made the subject of a consent order; adoption of expert report as basis for judgment. * Evidence – Burden on counterclaimant to prove reduction in construction costs; absence of evidence defeats counterclaim. * Damages – Compensation for breach of contract: general damages awarded for deprivation of contractual monies for several years. * Interest – Discretionary award; court may refuse contractual high rate and award court rate from filing until payment.
19 December 2013
Application to set aside judgment denied: applicant found served, participated, and liable as loan guarantor.
Civil procedure – application to set aside judgment under S.98/Civil Procedure Act and O.36 r11, O.52 r1&3 – service of process; evidence of participation in proceedings; law of guarantees – effect of guarantor’s signature and liability; credibility of affidavit evidence; whether to grant leave to appear and defend.
18 December 2013
Originating summons dismissed where factual disputes and enforceability issues require trial, not summary determination.
Civil procedure – Originating summons (Order 37) – inappropriate where disputed questions of fact and enforceability exist; distinction between construction of instrument and factual disputes; Order 37 r.6, r.8 & r.11; necessity of ordinary suit for contested factual issues.
18 December 2013
Whether only ten vehicles were procured and liability for unfair procurement; modest damages, interest and costs awarded.
Public procurement – formation of contract under PPDA Act and Regulations – provisional letter of bid acceptance; Administrative oversight – PPDA investigative report admissible and establishes unfair or discriminatory procurement practices; Remedies – assessment of damages requires adequate proof of loss; Interest and costs – court discretion under Civil Procedure Act.
12 December 2013
Plaintiff proved UGX 80,800,000 in written loans; SACCO held vicariously liable and ordered to pay principal plus 6% interest.
Contract and credit – Written loan acknowledgements – Proof of indebtedness – Vicarious liability – Acts of general manager binding the SACCO – Allegations of fraud and unconscionable interest require strict proof – Remedies: principal, interest and costs.
12 December 2013
Ex parte judgment set aside where substituted newspaper service was ineffective as defendant was abroad; leave to defend granted.
Civil Procedure – Order 9 r.12 – Setting aside ex parte judgment – Court’s unfettered discretion; Substituted service – Publication in newspaper – Effectiveness where defendant absent abroad; Service on corporate defendant – notice via officer; Default judgment – Prima facie defence and promptness; Taxation of costs – challenge and effect when judgment set aside.
10 December 2013
Applicant failed to show bona fide triable issues; leave to defend summary suit dismissed and liquidated claim upheld.
Summary procedure – leave to appear and defend – requirement to show bona fide triable issue; Mortgage law – invalidity of security does not negate underlying indebtedness on loan instruments; Fraud – substantive particulars required to raise triable issue; Illiterates Protection Act – mandatory verification where illiteracy alleged; Effect of prior sworn admission (bankruptcy petition) on ability to defend liquidated claim.
6 December 2013
Carrier liable for stolen cargo where foreign terms were not shown and failure to insure did not excuse negligence.
* Carriage of goods – notice of standard trading conditions – exclusion clauses and foreign company terms are not binding unless brought to the customer's attention and incorporated into the contract. * Contract formation – identity of contracting party – admitted contract with local carrier precludes reliance on sister-company terms absent proof of agency and incorporation. * Bailment and carriage – onus on carrier to show exercise of reasonable diligence to safeguard goods; theft in custody prima facie imposes liability unless rebutted. * Insurance – optional and for the insured’s benefit; failure to insure is not a defence to liability for negligent loss. * Damages – measure for non-delivery is replacement value at place and time of delivery; reasonable loss of use may be awarded; interest and costs follow judgment.
6 December 2013
Execution against directors permitted where they control the judgment debtor and no company assets can be found.
* Company law – corporate veil – execution against directors where company has no attachable assets and directors control company affairs. * Civil Procedure – service on corporation – Order 29(2) CPR – service and execution on directors. * Execution – propriety of executing against non-party directors where they represent the company’s mind and conceal assets. * Procedural remedies – challenge to execution order by non-party directors; dismissal where application unexplained and unopposed.
4 December 2013
Vendor who sold land to a third party must refund purchase price and pay contracted interest and damages for deceit.
Contract – sale of land – vendor’s failure to deliver title and transfer to third party; restitution and unjust enrichment; enforceability of high contractual interest under s.26 CPA; proof of special damages; aggravated/general damages for deceitful conduct; post-judgment interest and costs.
3 December 2013
November 2013
Arbitral award upheld: arbitrator lawfully decided replacement-of-experts issue; challenge dismissed with costs.
Arbitration — scope of reference — setting aside award under s34(2)(a)(iv) for matters beyond reference; pleadings and joint scheduling memorandum define arbitrator’s jurisdiction; Civil Procedure Rules — Order 3 r1 (advocate’s competence to depose affidavits) and Order 19 r3(1) (means of knowledge and severability); duty to raise jurisdictional objections during arbitration (s16(3)).
29 November 2013
A jointly commissioned forensic report on signatures is admissible as factual findings under section 27 but does not finally determine the suit.
Company law – share transfer – allegation of forged transfer – forensic handwriting reference – trial by referee under Judicature Act section 27 – referees as officers of court (s28) – expert factual findings admissible but do not necessarily dispose of all legal issues – remaining issues to be heard by court.
25 November 2013
Preliminary res judicata and no-cause-of-action objections cannot be decided without evidence; objections overruled pending trial.
Civil procedure – preliminary objections – res judicata – section 7 Civil Procedure Act – requirement that matter be directly and substantially in issue and finally decided; Cause of action – Order 7 r.11 – plaint alone to be considered; Points of law based on disputed facts require evidence and should await trial; Consent judgment may be res judicata if earlier proceedings clearly decide same issue, but not where record does not show determination.
22 November 2013
Exclusive English‑jurisdiction clause in incorporated standard terms ousts Uganda hearing; suit dismissed for lack of jurisdiction.
Commercial law – carriage of goods – incorporation of standard trading conditions – exclusive jurisdiction clause (English courts) – preliminary objection on jurisdiction upheld; time‑bar clause not determined.
15 November 2013
An arbitration clause survives contract expiry and mandates referral to arbitration unless statutory grounds for refusal exist.
* Arbitration – Mandatory referral under section 5(1) of the Arbitration and Conciliation Act – Court must refer unless arbitration agreement null, inoperative, incapable of performance, or no dispute. * Separability doctrine – Arbitration clause distinct and enforceable despite expiry or alleged invalidity of main contract. * Waiver – Filing a defence and counterclaim does not necessarily waive right to refer to arbitration; application may follow filing of defence. * Trade usage/custom – Not a ground to displace mandatory referral under section 5; court's discretion limited to statutory grounds. * Procedure – Once referred, court proceedings collapse; arbitral tribunal decides substantive issues and costs; court retains supervisory jurisdiction under the Act.
14 November 2013
High Court properly taxes advocate-client fees; taxing master erred by omitting items and miscalculating VAT, taxation set aside.
Advocate-client costs – Taxation venue and scale – Rule 109(3) places advocate remuneration taxation in High Court under Advocates (Remuneration & Taxation of Costs) Rules; Taxing master must follow Schedule VI; VAT payable on professional (instruction) fees not on disbursements; appellate interference only for error in principle or exceptional cases; omission of items from instruction fee is error requiring set aside and fresh taxation.
14 November 2013
Vehicle valuation may be set off against decretal sum under a varied consent judgment; unpaid balance remains payable.
* Civil procedure – Consent judgments – limited grounds for variation or rescission (fraud, collusion, mistake); review allowed where material facts warrant it (s.82 CPA; Order 46 CPR). * Set-off – valuation of disputed specific property may be applied as set-off against a decretal sum under a consent judgment. * Restitution – depreciation and hire claims require pleading to be awarded.
12 November 2013
A director may be sued personally for alleged professional negligence or fraud without a prior court order lifting the corporate veil.
Company law – corporate veil – Order 38 CPR applies to company matters under Companies Act, not ordinary third‑party tort/contract claims; Civil procedure – competence of suit against director without prior lifting of veil; Company officers – personal liability for negligence/default – Companies Act ss.206, 405 (indemnity and relief); Professional negligence – duty of care, foreseeability and proximity (Hedley Byrne principles); Surveyors Registration Act – registration and practising certificate apply to natural persons; integrity of professional responsibility.
8 November 2013
Rule 11’s 30-day period for the Attorney General to file a defence is constitutional; defence filed within 30 days was timely.
Government Proceedings Rules — Rule 11 (30-day defence period) — constitutional validity; Order VIII r1(2) (15 days) — procedural disparity justified by practical necessities of defending the State; default judgment — inadmissible where defence filed within Rule 11 period; equality under the Constitution — contextual and may require equality of outcome.
5 November 2013
Sale by mortgagee delivered transfer forms; purchaser refunded, awarded expenses, interest and costs; breach and general damages denied.
Contract — Interpretation of sale agreement between mortgagee-vendor and purchaser; Mortgage law — power of mortgagee to sell; Registration of Titles Act s59 — conclusive effect of certificate of title; Effect of refund "without prejudice" — discharge of sale as to consideration but preservation of other claims; Damages — recoverability of consequential outlays versus brokerage and general damages; Interest and costs awarded.
1 November 2013
An appeal was dismissed because the originating chamber summons was served after the 21‑day period without timely extension application.
Civil procedure – originating chamber summons under Advocates (Taxation of Costs) Regulations – service within 21 days under Order V rule 1 – failure to apply for extension within 15 days renders summons expired and appeal incompetent; Taxation – interlocutory costs may be taxed but taxation before final disposal is practice, not per se illegality; Clerical/mathematical errors in taxation are correctable by taxing officer or under s.99 Civil Procedure Act; Requirements for certified copies and competent affidavits relevant but procedural nullity was dispositive.
1 November 2013
October 2013
Performance bond payable on demand; defendant failed to prove fraud vitiating the bond, so insurer must pay US$489,650 plus interest and costs.
Performance bond – payable on first written demand – bank/insurer must pay unless clear fraud by beneficiary is proved and known to payor; fraud exception strictly applied; PPDA findings of procurement irregularities are not necessarily fraud; vicarious liability of principal for agent’s fraud depends on proof and whether principal benefited; remedies include payment of bond, interest and costs.
25 October 2013
Application for leave to defend summary debt claim dismissed; penal interest clause, defaults and no triable defence established.
* Civil procedure – Summary judgment – leave to appear and defend – requirements for showing reasonable grounds and triable issues. * Contract law – Loan facility – enforcement of penal interest clause and recalculation of interest. * Evidence – default notices and Mortgage Act notice as establishing indebtedness. * Force majeure and commercial misfortune not a defence to contractual repayment absent express provision.
24 October 2013
Applicant failed to prove irreparable harm; injunction to restrain respondent from website/domain control was denied.
• Injunctions – temporary injunction – preservation of status quo; • Requirement of irreparable harm and prima facie case for injunctive relief; • Balance of convenience where doubt exists; • Corporate authority – sanction of suit by Board of Trustees evidenced by minutes and resolutions; • Evidentiary burden regarding ownership/registration of domain names and websites.
24 October 2013
Once leave to defend is granted, a summary suit proceeds as an ordinary suit and reserved claims (e.g. general damages) may be tried.
Civil procedure — Order 36 (summary procedure) — scope of claims under Order 36 rule 2; unliquidated/general damages excluded from summary relief; effect of granting leave to defend — conversion to ordinary suit; remedy for irregular specially endorsed plaint is to treat as ordinary plaint and grant leave; court powers under Order 36 rules 8 and 10 to give directions on pleadings, issues and trial.
18 October 2013
A registrar lacks jurisdiction to extend the Advocates Act’s statutory 30‑day appeal period; appeal dismissed as time‑barred.
* Advocates Act s.62(1) – statutory 30‑day appeal period – courts/registrars lack inherent jurisdiction to extend time absent enabling statute or rule. * Civil Procedure Act s.96 – enlargement of time applies to periods fixed by the court, not to statutory limitation periods. * Precedent – Makula International remains authoritative on inability to enlarge statutory time limits; Sitenda Sebalu distinguished.
18 October 2013
A consent judgment referring accounts to auditors was binding and resolved receivership and account issues, precluding further trial on those matters.
Consent judgment – entered by registrar under Order 50 r.2 – parties’ agreement – reference to auditors – section 27(c) Judicature Act – auditors’ final report binding – lifting of receivership and return/holding of titles – estoppel/contractual effect of consent orders – res judicata (no subsequent suit) – functus officio (not engaged) – execution and enforcement matters fall to Executions and Bailiffs Department.
11 October 2013
Court held the 24 July 2003 mortgage and lease invalid, ordered cancellation, reconciled accounts and awarded damages and costs.
Property law – mortgage and lease irregular registration – allegations of forgery and photocopy manipulation – forensic reports – validity/enforceability of instruments; Contract/delivery – termination of dealership – notice and damages in lieu of notice; Accountancy – court-appointed audit for reconciliation – counterclaim recovery; Remedies – declarations, cancellation of registered instruments, monetary awards, interest and costs.
4 October 2013
September 2013
Audit under s.27 Judicature Act established only UGX 26,885,000 was disbursed; respondent breached loan agreement but applicant remains partly indebted.
Commercial law – loan and mortgage – section 27 Judicature Act reference to independent auditor – auditors' factual findings adopted by court; banker–customer duties – disclosure of account statements; breach for non-disbursement of approved loan; remedies: declarations, damages, interest; exemplary damages and permanent injunction refused.
27 September 2013
Taxing Master erred in principle by failing to apply taxation rules; bill set aside and referred for fresh taxation.
* Taxation of costs – Advocate/Client bill – Whether items claimed are covered by instruction fees or separately taxable under Advocates (Remuneration and Taxation of Costs) Regulations – proper exercise of taxing officer’s judicial discretion. * Procedural – duplication of issues decided in an earlier appeal and application of prior judgment. * Remedy – setting aside taxation award and referral for fresh taxation where errors of principle shown.
16 September 2013
The applicant failed to prove recoverable sums after breach; the director not personally liable absent proved fraud or veil‑lifting.
• Contract law – aircraft rental agreement; admissibility and effect of written lease (28 May 2008). • Corporate law – limited liability and lifting the corporate veil; director not personally liable absent pleaded and proved sham or fraud. • Evidence – admission of documents, burden of proof for special damages and money had and received; requirements under Stamps Act considered. • Remedies – termination clause (clause L(2)) governs repayment on termination; specific performance refused where no enforceable entitlement proved.
13 September 2013
Plaintiff proved credit sales and recovered US$105,601; defendant’s counterclaim for alleged advance payments was dismissed.
Civil contract — terms: advance payments versus credit established by conduct; invoices are not proof of payment; burden of proof on party asserting payment; late-produced receipts and documents attract suspicion; amendment of counterclaim requires prescribed fees or court order to validate; damages and interest for unpaid goods; scheduling conference fixes trial issues.
10 September 2013
Taxing Master erred; Advocate/Client bill set aside and referred for re-taxation under Sixth Schedule with apportionment of instruction fees.
Advocates’ costs — Taxation of Advocate/Client bill — Application of Advocates (Remuneration and Taxation of Costs) Regulations (Sixth Schedule) — Instruction fees increased by one-third — Apportionment of instruction fees where more than one counsel — Taxing Master must exercise discretion judicially and give reasoned findings.
6 September 2013
An equitable mortgage was validly created; mortgagor and guarantor ordered to pay the determined sum or face foreclosure.
Equitable mortgage – creation by deposit of title deeds and intent – Registration of Titles Act s.129; Mortgage Act/Cap.229 s.8 – court to determine amount due and fix period to pay; withdrawal/caveat – effect of late caveat and lack of notice to mortgagee; formalities – stricter requirements apply to legal, not equitable, mortgages; foreclosure remedy reserved on default.
3 September 2013
Impugned April 2013 board resolutions invalid for lack of quorum and because disqualification provision is not retrospective.
Company law – Articles of Association – Interpretation of "becomes" as prospective, not retrospective; Directors – quorum requirement under Articles 33(c) and Table A – invalidity of resolutions passed without required quorum; Corporate remedies – court cannot compel sale of a shareholder’s shares in absence of lawful basis given constitutional property protections; Commercial dispute resolution – court promotes reconciliation and orders independent audit.
3 September 2013
August 2013
Registrar breached the applicant's right to be heard; instruction fees must be calculated per the Sixth Schedule when value is ascertainable.
* Civil procedure – Taxation of costs – Advocates (Remuneration and Taxation of Costs) Rules (Sixth Schedule) – Item 1(a)(iv) mandatory calculation where subject matter ascertainable; taxing master’s discretion limited to specific statutory certificates. * Constitutional law – Right to fair hearing (Article 28) – party entitled to be heard on remitted taxation issues; ex parte recalculation without notice invalid. * Taxation – refunds only where overpayment established on proper reassessment. * Interpretation – prior authorities based on revoked or different rules distinguishable; rules to be applied literally where clear.
30 August 2013
Respondent’s defence and counterclaim struck out for non-payment of fees and disobedience; default judgment entered despite timely filing.
Civil procedure – computation of time – day of service excluded when computing prescribed days; filing effected by registry receipt, sealing and dating – court fees – alteration/reuse of receipt and non-payment – disobedience of peremptory court order – striking out pleadings and default judgment.
27 August 2013
Preliminary objection that defendant complied with later court orders was premature; factual disputes required full hearing and evidence.
Civil procedure — preliminary points of law — Order 6 r.28–29 CPR — point of law should be decided only where facts relevant to it are clear and undisputed; otherwise evidence required. Customs control — impounding of imported goods — need to establish lawful basis for seizure prior to any interim order. Interlocutory orders in related proceedings may affect subsequent suits; factual chronology and final orders must be clarified before dismissing on point of law. Contempt/compliance — party served with order must comply, but applicability depends on timing and scope of order.
7 August 2013
Respondent’s blanket suspension of the transaction-value customs method was ultra vires; applicant awarded reassessment, refund, damages and costs.
Administrative law – ultra vires act: Commissioner’s directive suspending statutory valuation method unlawful; Customs valuation – primacy of transaction value and sequential application under s122 and Fourth Schedule (EACCMA); Fallback method permissible only where conditions met; Remedies – reassessment, refund with interest, aggravated damages and costs.
7 August 2013
A claimant cannot recover commission or quantum meruit for services tainted by illegality in influencing public procurement; suit dismissed.
Contract law – commission agreements – sufficiency of evidence for oral commission agreements; Public procurement and anti‑corruption – undue influence, gifts to procurement officials, illegality renders contract unenforceable; Quantum meruit – illegality bars restitution.
5 August 2013
July 2013
Court stayed a contested termination-for-convenience and enjoined appointment of replacement consultant to preserve arbitration rights.
Arbitration Act s.6 — interim measures before arbitration; interim injunction principles (American Cyanamid) applied; termination-for-convenience clauses — subject to implied duty of good faith and fair dealing; preservation of arbitral hearing and prevention of rendering arbitration nugatory; limited stay of termination and prohibition on appointing replacement consultant.
31 July 2013
Informer received the correct 10% on recovered tax; additional claims and damages dismissed.
Informer rewards – entitlement limited to tax actually recovered from audited period; PPDA Regulations do not apply to informer awards; timing reasonable given URA procedures and taxpayer instalments; post‑dated cheques presented but dishonoured; travel and punitive damages not recoverable.
27 July 2013
Court dismissed plaintiff’s claim, holding loan/debenture, receivership and sale valid despite name discrepancies.
Property/Commercial law – company name misdescription and locus to sue; loan and facility agreements – enforceability despite foreign borrower issues; estoppel and admissions; validity of debenture and mortgage; Turquand/indoor management rule; receivership powers and sale under debenture; caveat removal – adequacy of notice.
16 July 2013
Interim stay preserved garnishee order nisi; maintaining debit restrictions was lawful, not contempt; application dismissed with costs.
Contempt of court – Interpretation of interim stay of garnishee proceedings; Effect of garnishee order nisi – creates charge/freeze on funds; Status quo doctrine – interim orders preserve existing attachments; Bank duties – maintain debit restrictions until garnishee order discharged or set aside; Relief – committal and sanctions require established disobedience.
11 July 2013
Default judgment set aside for ineffective service; applicant granted unconditional leave to defend due to bona fide triable issues.
* Civil procedure – Order 36 r.11 CPR – Setting aside default judgment – Effective service required to produce intended awareness of suit; defective affidavit of service vitiates default judgment. * Corporations – Service on a company – compliance with Order 29 r.2 and identification of officer served. * Summary judgment/summary procedure – leave to defend granted where bona fide triable issues and plausible defence raised. * Procedural irregularities (annexures, extraction date of decree) may be curable and not necessarily fatal.
11 July 2013
An advocate holding out under a deceased sole proprietor’s business name may be personally liable for unremitted client funds.
Commercial/agency agreement; Business Names Registration Act — liability where business continues under deceased sole proprietor’s name; estoppel from holding out; advocates’ personal liability and vicarious liability for staff; audit evidence as proof of unremitted client funds; counterclaim for taxed costs recoverable by execution, not counterclaim.
5 July 2013
June 2013
Donor‑funded project assets embodied in corporate shares required valuation; shares partly held in trust for the programme, not immediate cash award.
Microfinance/project transformation – donor‑funded assets and shares – resulting/implied trust; legal v beneficial ownership of shares; need for professional valuation to determine compensable interest; public‑interest litigation; remedial accounting.
28 June 2013
Applicant entitled to foreclose and sell mortgaged land after respondent's default and unproven repayment claim.
* Mortgage law – Foreclosure – Right of mortgagee to foreclose where mortgagor breaches covenant to pay – O.37 r.4 CPR; s.8(1) Mortgage Act. * Evidence – Burden to prove alleged repayments – receipts/ledger entries required. * Remedy – Foreclosure, sale of mortgaged property, vacant possession and costs.
27 June 2013
Court ordered a company meeting under s135 to protect a 51% shareholder’s interests pending resolution of director-removal disputes.
Companies Act s135 – court-ordered meeting where Articles’ procedures impracticable; temporary injunction vs majority-shareholder rights; corporate governance – removal of director; validity of removal as bank signatory; Civil Procedure Act s98 – ancillary powers to organise meeting.
24 June 2013