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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.
131 judgments
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131 judgments
Citation
Judgment date
December 2015
Failure to obtain Attorney General advice under Article 119(5) does not automatically void contracts of local government councils.
Constitutional law – Article 119(5) Attorney General’s advice – meaning of "Government" – local government councils not within Article 119(5) scope; Public procurement – PPDA compliance requires factual proof before invalidating contract; procedural law – preliminary objection overruled but procurement point stayed for evidence.
15 December 2015
Plaintiff entitled to the admitted UGX 36,368,000, compensatory interest for deprivation, and costs; alternative negligence claim dismissed.
Civil procedure – partial consent judgment admitting liability – entitlement to damages and interest as restitution (restitutio in integrum); negligence and special damages unsustained for lack of evidence; award of interest (20% p.a. May 2014–16 Oct 2015; 14% p.a. thereafter) and costs.
14 December 2015
Article 119(5) does not automatically void contracts of local governments; PPDA non‑compliance requires factual proof before relief.
Constitutional law – Article 119(5) Attorney General’s legal advice – meaning of "Government" – local government councils distinguished from central Government; Public procurement – PPDA compliance – factual proof required before declaring contract illegal; Procedure – point of law may be decided only where material facts are agreed or not in dispute.
14 December 2015
Defendant breached contract by failing to deliver procured goods; plaintiff awarded refund, damages, interest and costs.
Contract law – oral/implied contract for construction and procurement; breach for non‑delivery of procured goods; money had and received vs contractual dispute; restitution where goods’ existence not proved; enforceability of commission claims – requirement for written agreement (Contracts Act s.10(5)); remedies – refund, damages, interest, costs.
9 December 2015
Occupier of mortgaged property cannot be joined to mortgagee’s possession suit absent necessary legal interest.
Civil procedure – Joinder of parties – Order 1 Rule 10 CPR – Presence necessary to effectually and completely adjudicate – Mortgagee enforcement proceedings – Possession vs title – Matrimonial/equitable interests to be pursued in separate suit.
8 December 2015
Mortgaged property remains liable for sale; no proof of a new loan or discharge of the mortgage, claim dismissed with costs.
Mortgage law – characterization of parties (mortgagor vs guarantor) – power of attorney – internal account transfers vs new loan – burden of proof of fresh advance – enforceability and sale of mortgaged property.
7 December 2015
Default judgment set aside as to second and third applicants alleging duress and contested service; leave to defend granted.
Order 36 r.11 – setting aside default/ex parte judgments; effectiveness of service; duress and coercion in guarantees/undertakings; leave to appear and defend in summary suits; requirement of triable issues/just cause.
4 December 2015
Consent judgment: defendant liable for USD 600,000; two helicopters surrendered in full settlement; parties bear own costs.
Contract – Debt and breach – defendant's failure to repay USD 600,000 by due date held a breach; Consent judgment ordering surrender of two specified helicopters in full and final settlement; allocation of parking/storage charges; each party to bear own costs.
1 December 2015
November 2015
Respondent remained liable after lawful repossession and sale, but failure to give 14‑day notice entitled it to damages.
Finance lease – default and repossession – requirement of 14‑day notice under lease – breach not necessarily fundamental; valuation evidence – identity of asset crucial; personal guarantees – directors jointly and severally liable; valuation professional liability – vicarious/employer liability and need for strict proof of fraud; set‑off of damages in lieu of notice against main claim; interest and costs.
30 November 2015
Defaulting cargo payer liable; plaintiff awarded US$178,993.65, UGX60,000,000 general damages, interest and costs.
Commercial law – contract of carriage – existence and breach; substituted service by newspaper publication – validity for default judgment; admissibility of secondary evidence (copies of airway bills) when originals destroyed; assessment of special and general damages and interest rates.
27 November 2015
A binding final settlement estops defendants; their post‑settlement interference warrants injunction, damages and costs.
Contract law – final settlement agreement; estoppel under Section 114 Evidence Act; breach of contract and nuisance; permanent injunction; assessment of general damages; costs follow the event.
27 November 2015
Applicant granted unconditional leave to defend a liquidated summary suit due to triable disputes over payments; supplementary affidavit allowed.
Civil procedure – summary suit (Order 36) – liquidated demand – when a claim constitutes a liquidated amount (agreed purchase price).; Leave to appear and defend – test: bona fide triable issue of fact or law or dispute as to amount; procedural irregularity – supplementary affidavit filed without leave may be permitted where it does not prejudice competence and substantive justice requires it.; Relief – unconditional leave to defend and filing timeframe; costs in the cause.
23 November 2015
Plaintiffs were bona fide purchasers subject to the registered mortgage and must pay an additional Ushs.33,894,622; vendor liable to bank.
Property law – Registered versus unregistered mortgages – bona fide purchaser for value without notice; Mortgage Act/Registration of Titles Act – priority by registration and effect of caveats; Effect of partial consent settlement – payment does not extinguish liability of purchaser to mortgagee where outstanding sums remain; Remedies – partial success of counterclaim and orders for payment and interest; Costs ordered against vendor.
23 November 2015
An urgent oral order and partial deliveries formed a contract, but recovery limited to the value of items actually supplied due to falsified claims.
* Contract formation – offer and acceptance by conduct – oral order in urgent procurement can constitute binding offer. * Sale of goods – partial delivery accepted as performance; buyer’s duty to pay only for proven supplies. * Evidence – credibility and authenticity of delivery notes and GRN; falsified documents undermine claim. * Remedies – recovery limited to value of goods actually supplied; interest awarded at modest rate; costs where claimant acted fraudulently.
20 November 2015
Applicant granted leave to defend summary suit after court struck out respondent’s late affidavit and found triable issues.
Civil procedure – summary suit (Order 36 r.4; Order 52 r.1–2) – leave to appear and defend – good cause/tenable defence – timely filing of application – late affidavit in reply incurable without extension of time.
20 November 2015
Court enlarged time to deposit security for performance of decree, dismissing technical objections to affidavit and amendment.
Civil procedure – Extension of time to perform court-ordered act – Section 96 CPA and Order 51 r.6 empower court to enlarge expired time; Affidavit formalities – undated affidavit directory not fatal; Amendment of processes – harmless correction of "security for costs" to "security for performance of decree" permissible; Courts prefer adjudication on merits over procedural technicalities.
19 November 2015
Application to set aside summary judgment for alleged duress and defective service dismissed; service effective and duress unproven.
Civil procedure – Order 36 r.11 CPR – setting aside summary judgment for ineffective service or good cause; substituted service – requirements and validity; duress – standard of proof for vitiating consent; jurat technicalities – sworn vs affirmed not fatal.
13 November 2015
Defendants liable for dishonoured cheques for fuel; plaintiff awarded principal, commercial interest, damages and costs.
* Commercial law – sale of goods (petroleum) – agreed payment terms by bankers' cheques, telegraphic transfers or bank deposits. * Evidence – burden to prove payment lies on party alleging payment; uncorroborated receipts/agent assertions insufficient. * Bills of exchange – dishonoured cheques prima facie evidence of indebtedness (Bill of Exchange Act, s.29). * Interest – court discretion to award lawful interest; contractual/claimed usurious rates rejected; commercial rate awarded. * Costs – costs follow the event under Civil Procedure Act s.27(2).
13 November 2015
A pre‑incorporation promoters’ agreement does not bind the company; applicant cannot recover from respondents personally.
Company law – pre‑incorporation/promoters’ agreements – promoters cannot bind unformed company; separate corporate personality and privity of contract; Sale of Goods – description/quality (new/best) and right to reject – loss of right where unreasonable delay; failure of consideration and alleged misrepresentation – evidential requirements; proof of special damages – need for independent supplier invoices.
13 November 2015
Court reduced an agreed 6% weekly penalty to 24% per annum as unconscionable, awarding interest and costs to the plaintiff.
Civil Procedure Act s.26 – enforcement of agreed interest – court discretion where rate is harsh or unconscionable; contractual penalty interest; reduction of excessive contractual rate to just commercial rate (24% p.a.); interest accrual periods; costs follow the event.
13 November 2015
Limitation clause in guarding contract upheld; insurer’s subrogation is limited to the insured’s contractual recovery (UGX 2.5M).
Contract law – security services – fundamental breach by employee – enforceability of limitation of liability clause in standard form contract; Insurance law – subrogation – insurer’s recovery limited to insured’s contractual rights; Evidence – admission by company correspondence.
13 November 2015
An appeal challenging a registrar’s dismissal is moot and dismissed where the underlying proceedings have been withdrawn or concluded.
* Civil procedure – Mootness and academic appeals – Appeals dismissed where the underlying proceedings have been withdrawn or finally determined. * Civil procedure – Interim applications and ancillary orders – Costs awarded in interim/ancillary applications need not be re-opened where the substantive causes have been conclusively resolved. * Judicial administration – Competence of appeal – Courts should not decide cases lacking a live dispute or practical effect.
13 November 2015
Court dismissed the outstanding issue of costs after parties failed to comply with the court’s directions to file submissions.
* Civil procedure – non‑compliance with court order – failure to file ordered written submissions – Order 17 Rule 4 Civil Procedure Rules; * Commercial Court Practice Directions Rule 7 – powers to dismiss or award costs for noncompliance; * Abandonment of issue by conduct – dismissal of outstanding issue of costs.
12 November 2015
Court reviewed and corrected an erroneous costs award, holding the lender culpable for improperly selling mortgaged land and ordering costs against it.
Civil procedure – Review under Orders 46 & 52 CPR – correction of error on face of record; Costs – award of costs inconsistent with substantive finding; Mortgage law – lender’s remedy limited to security; foreclosure procedure – Order 37 Rule 4 CPR; Relief – review to correct court record.
10 November 2015
Plaintiff proved a subcontract breach by defective equipment and recovered special and general damages with interest and costs.
* Contract – Subcontract for provision of mobile stone crusher and operators – Existence of written agreement; * Breach – Material breach by supplying defective machinery and failing to deliver contracted quantity; * Damages – Proof and quantification of special damages by invoices and vouchers; award of general damages for loss of profits; * Interest – discretionary award under Civil Procedure Act; commercial rate on special damages (unspecified) and 6% on general damages; * Costs – awarded to successful plaintiff.
9 November 2015
A borrower and its guarantors are liable for a defaulted loan; agreed interest, general damages and costs were awarded.
* Commercial law – loan agreement – enforcement of outstanding balance after default; guarantors’ liability. * Security – personal guarantees and mortgage – guarantors jointly and severally liable for debtor’s default. * Remedies – contractual interest awarded from date of default; general damages and post-judgment interest; costs awarded.
6 November 2015
Buyer breached purchase contracts; 20% monthly charge held a penalty, cheques not given under duress, plaintiff awarded sums and costs.
Sale of goods – breach for non‑payment; Liquidated damages vs penalty – 20% per month held penal and unenforceable; Duress – requirement to prove unlawful pressure overcoming free will; Sale “as is” and buyer’s opportunity to inspect – no implied warranty for defects; Remedies – recovery of unpaid price, agreed compensation, general damages, interest and costs.
5 November 2015
Unlicensed use of "Bank" and failed loan processing fees warranted restitution, damages, and costs for unjust enrichment.
Contract law – Indicative Term Sheet as offer; breach for failure to provide loan; Unjust enrichment – money had and received; Financial Institutions Act – unlawful use of "Bank" by unlicensed entity; Agency and vicarious liability – director’s acts binding on company; Remedies – restitution, damages and interest.
2 November 2015
October 2015
Application for judgment on admission refused because the alleged admission was ambiguous; matter ordered to trial.
Civil procedure – Order 13 Rule 6 – judgment on admission – admission must be clear and unequivocal – discretion to grant or refuse summary judgment – contextual reading of pleadings.
30 October 2015
Breach of divisible construction contract: defendant liable for unpaid sums, interest and costs; general damages denied.
* Contract law – breach for failure to pay staged contractual sums; divisible contracts – entitlement to recover part payments. * Evidence – purchase orders, completion certificates and bank statements as proof of indebtedness. * Remedies – refusal of general damages where loss not proved; award of interest and costs.
30 October 2015
Bailee may sue for stolen bailed goods; defendant failed to prove connivance, so plaintiff awarded general damages and costs.
Contract — Bailee’s right to sue under s.117 Contracts Act; Exclusion clauses — defendant must prove connivance/employment to invoke clause; Burden of proof — s.103 Evidence Act places burden on party asserting a fact; Special damages — strict proof required; Vicarious liability — employer liable where employee’s deliberate act causes loss (unless exclusion proven).
23 October 2015
The petitioner was declared bankrupt due to an unsatisfied judgment debt and lack of available assets.
Insolvency/Burden of proof – petition supported by statement of affairs and public examination; Judgment debt and unsatisfied execution as evidence of inability to pay (s.3); Court’s discretion to grant receiving order where statutory conditions met (s.20, s.254); Vesting of bankrupt’s estate in Official Receiver and treatment of property held in trust or exempt (s.27, s.31).
23 October 2015
Plaintiffs failed to prove fraud, misrepresentation or negligence; defendant performed contracted sampling and sealing—suit dismissed with costs.
Commercial contract — sampling, weighing, packing, sealing and verification of minerals; scope of services; burden and standard of proof for fraud; misrepresentation; negligence; proof of special damages.
21 October 2015
Counterclaim dismissed: commissions payable only after six‑month retainer; claimant breached contract by insufficient notice.
* Contract interpretation – remuneration clause – six‑month retainer versus profit‑based commission payable thereafter. * Breach of contract – wrongful termination – failure to give contractual six months' notice or pay in lieu. * Evidence – timing of LPOs and payments – commission entitlement tied to post‑retainer payments. * Civil procedure – irregular default/dismissal entries by Registrar; ex parte proceedings and no costs order.
21 October 2015
Ex parte judgment set aside where service was ineffective and applicant showed a bona fide triable defence.
Civil procedure — Setting aside ex parte judgment under Order 36 r.11 — Effectiveness of service of summons — Validity of decrees signed during court vacation — Admissibility and weight of forensic document reports based on photocopies — Right to fair hearing.
15 October 2015
Leave to defend denied for the liquidated rental claim but granted for unliquidated repossession/repair costs.
Civil procedure – Order 36 r.4 (summary procedure) – leave to appear and defend – requirement to show a bona fide triable defence; Contract – clause permitting payment on a mutually agreed date – rescheduling, alleged frustration/repudiation; Summary judgment – liquidated claim for rentals and early termination costs; Reparations/recovery – repossession and repair costs not a liquidated sum within summary procedure.
8 October 2015
Sworn allegations of res judicata and a pending appeal prevent dismissal for non-appearance; court ordered applicant summoned to substantiate claims.
Civil procedure – Order 9 r.22 (dismissal for non-appearance) – Section 98 Civil Procedure Act – court’s power to override procedural rules to prevent compounding illegality – res judicata and pending appeal raised on oath – courts to administer substantive justice over technicalities.
6 October 2015
Commissioner wrongfully sold vehicles consigned nominally; bill of lading is prima facie, owners awarded damages.
* Customs law – EACCMA 2004 s.130 – lien and distress: lien on goods belonging to a person owing duty does not permit seizure of innocent third parties' goods. * Bills of lading – document of title: prima facie evidence of possession and right to dispose, but not conclusive proof of beneficial ownership. * Ownership – distinction between legal/documentary title and beneficial ownership; intention and subsequent dealings control. * Remedies – wrongful seizure and sale attract special and aggravated damages, interest and costs; general and punitive damages not awarded.
2 October 2015
September 2015
Plaintiff awarded only lawful renovation costs; rent arrears and counterclaim dismissed.
Contract – change of proprietorship and management – entitlement to compensation for improvements; illegality of unauthorized developments bars compensation; rescission of contract terminates future rent obligations; special damages and movable property claims require specific pleading and proof.
30 September 2015
Whether a mortgage lacking spousal consent is void where the bank relied on a statutory declaration; bank protected, mortgagor liable.
Mortgage law — Matrimonial home — Spousal consent — Whether mortgage void for lack of consent — Mortgage Act 2009 s.5, s.36 and Mortgage Regulations 2012 (Reg.3) — Duty of mortgagee to take reasonable steps — Statutory declaration as proof — Duty to disclose and criminal sanction under s.4(2) — Mortgagor’s liability for false declaration.
25 September 2015
Court granted conditional interim protection to prevent eviction and preserve arbitration rights pending appointment of an arbitrator.
* Arbitration — Interim measures by court (s.6 Arbitration and Conciliation Act) — court may grant necessary interim protection but should limit intervention. * Arbitration agreement validity — existence of dispute and contractual clause for arbitration. * Scope of interim measure — not limited to traditional injunctions; may include any lawful interim order to prevent arbitral proceedings being rendered nugatory. * Procedure — party ordered to commence appointment of arbitrator; costs reserved to tribunal.
22 September 2015
A non-profit service agreement was not breached by the defendant despite one defective machine; plaintiff’s damages claims dismissed.
Contract – Services Agreement between NGO and service provider – in-kind contributions on needs basis; not an equity partnership. Delivery/timing – agreement likely extended to 20 July 2010. Defective goods – manufacturer’s fault does not automatically render donor in breach where donor substantially performed. Damages – speculative projected profits and unproved special losses denied. Procedure – irregularity in service noted but matter heard on formal proof after default judgment.
17 September 2015
Tenant entitled to full recovery where landlord’s night‑time security guards were negligent or complicit in a burglary.
* Tenancy/Contract – implied terms by conduct and implied covenants of tenancy – landlord’s obligation to provide night security. * Tort/Vicarious liability – employer liable for servants’ negligent or fraudulent acts in course of employment. * Duty of care – contractual undertaking to protect tenant property imposes tortious duty. * Remedies – award of proven pecuniary loss, general damages, contractual/compensatory interest and costs. * Procedure – ex parte hearing after proof of service; counterclaim dismissed for non‑prosecution.
17 September 2015
Guarding company held vicariously liable for theft by its guard; contractual limitation did not bar plaintiff’s full loss claim.
Security services contract – vicarious liability of security company for theft by its guard – exclusion and limitation clause construed: clause does not cover deliberate theft by company’s own servant – limitation to UGX 500,000 inapplicable – Contracts Act 2010 not retrospective – counterclaim for unpaid fees allowed in part.
11 September 2015
Plaint discloses causes of action; limitation tolled by written acknowledgements and successor company liable for rebate debt.
Commercial law – succession of public enterprise liabilities under divestiture instruments; limitation of actions – tolling/restart by written acknowledgement; plaint sufficiency – cause of action (breach of contract, unjust enrichment, tort) to be determined at trial; liquidator correspondence and successor liability; statutory construction of PERD instrument (SI No.28/2002).
9 September 2015
Insurer who indemnified creditor under a collective loan‑protection policy may not recover from the debtor when policy was agreed security.
Insurance law – loan‑protection/salary loan policies – collective life/ employment assurance taken as security – interpretation of facility letter, employer undertaking and policy – premium paid by borrower does not necessarily make borrower the insured – subrogation limited; life/salary insurance used as security does not automatically entitle insurer to recover from debtor after indemnifying creditor.
7 September 2015
Dismissal for prematurity is not res judicata and ICA s.28 does not compel mandatory ICSID arbitration before High Court review.
Investment Code Act s.28 – arbitration – "may" versus "shall" – ICSID procedure not mandatory; High Court's original jurisdiction preserved; res judicata – dismissal on preliminary objection not a decision on merits.
4 September 2015
Comprehensive audit lacked evidentiary basis; plaintiff not liable for UGX 32,249,782, refund ordered subject to withholding tax.
Tax law – income tax assessments and comprehensive audit – cash‑flow/net‑worth reconstructions – evidentiary foundation required for undeclared income; limitation of assessments (s.95–97 ITA); deductibility of travel/transport and subcontract commissions (s.22 ITA); taxpayer’s record keeping and Commissioner’s discretion (s.129 ITA); withholding tax obligations on payments to resident professionals (s.119A & s.124 ITA); remedies – declarations, injunctions, refund, interest and costs.
4 September 2015
August 2015
An auditors' award under section 27(c) is enforceable; respondent must pay UGX47,710,000 plus 19% interest and costs.
* Civil procedure – Auditors' reconciliation and awards under section 27(c) Judicature Act – enforceability as court judgment. * Assessment of indebtedness – reconciliation by joint and third auditors determining principal sum due. * Interest – court's discretion under section 26 Civil Procedure Act; interest as compensatory restitution; determination of commercial rate (19% per annum). * Costs – successful claimant entitled to costs.
28 August 2015
A guarantor was discharged where the applicant’s failure to protect and apply security prejudiced the surety.
Guarantee law – discharge of guarantor where creditor’s acts or omissions injure the surety; Chattel mortgage – failure to exhaust remedies; Mortgage sale proceeds – application and apportionment between consolidated facilities; Misrepresentation and fraud allegations; Equitable protection of sureties; Remedies and interest on judgment.
28 August 2015