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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.
130 judgments
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130 judgments
Citation
Judgment date
March 2016
Review granted where striking out for alleged absence of partnership registration was erroneous; certified copies presumed genuine.
Civil Procedure – Review of court orders under S.82 & O.46 CPR; Evidence – certified copies presumed genuine (Evidence Act s.78; Registration of Documents Act s.17); Partnership law – capacity to sue and legal personality; Striking out – technical defects should not bar substantive adjudication.
14 March 2016
Court referred disputed insurance premium computation to arbitration under a mandatory policy arbitration clause; suit abated.
Arbitration clause – scope and mandatory referral; Insurance policy – "differences as to amount payable" includes disputes over interpretation and computation; Section 5 Arbitration and Conciliation Act – mandatory stay/referral to arbitration where valid agreement and real dispute exist; Effect – suit abates and amendment application becomes futile; High Court retains supervisory/appellate powers under Arbitration and Conciliation Act.
14 March 2016
Vehicle hire contract frustrated by breakdown; plaintiff failed to prove defendant's negligence, claim dismissed with costs.
Contract law – formation of hire agreement; Civil Procedure – requirement to plead misrepresentation with particulars; Evidence – burden to prove negligence on balance of probabilities; Contract law – frustration doctrine discharging further performance; Remedies – dismissal where plaintiff fails to prove breach or loss.
11 March 2016
The court dismissed an application to set aside a default judgment, ruling effective service and no necessity for urgency certificates.
Civil procedure – default judgment – service of summons – court vacation – certificate of urgency – setting aside judgments.
10 March 2016
Applicant failed to show good cause to set aside default judgment; service was effective and vacation hearing was not irregular.
Civil procedure – Setting aside default judgment – Order 36 r.11 CPR; effectiveness of service of summons; computation of time in summary procedure; court vacation rules and urgency; requirement to show good cause/sufficient cause to set aside decree.
10 March 2016
Applicant entitled to release of attached generator after prima facie proof it was not judgment debtor’s property.
Civil Procedure – Order 22 rules 55–57 – Objector proceedings to attachment – Prima facie inquiry to determine whether attached property is liable to execution – Release where property shown to belong to objector. Attachment and execution – ownership and possession – documentary proof (invoice, delivery, commissioning, demand letters) suffices for summary release. Ex parte proceedings – effect of non‑appearance of attaching parties when properly served.
9 March 2016
Court allowed amendment of defence and counterclaim before trial despite drafting omissions, finding no prejudice or bad faith.
Civil procedure – Amendment of pleadings – O.6 r.19 CPR; discretion to allow amendments – factors: prejudice, mala fides, multiplicity, limitation; omissions by prior counsel excusable; failure to underline amendments not necessarily fatal; right to be heard and substantive justice prevail.
7 March 2016
Service at a company’s registered office to a person willing to accept is effective; applicant failed to show a defence, application dismissed.
Civil procedure – setting aside judgment and decree – service on a company – O.29 r.2(b) CPR and s.274(1) Companies Act – service at registered office to person willing to accept is effective; Correction of clerical/mathematical errors – S.99 CPA; Threshold for setting aside for want of defence – need for proposed defence/particulars; O.9 r.12 & r.27 CPR discretion.
3 March 2016
Reinstatement refused for lack of sufficient cause and diligence; procedural errors were not fatal.
Civil procedure – Order 9 r.23(1) CPR – setting aside dismissal for non-appearance – "sufficient cause" requires promptness, adequate explanation, and diligence; procedural technicalities not fatal to merits. Affidavit by counsel without proof of client authorisation is a technical defect. Litigant (including advocate) must check court listings/notice board to ascertain hearing judge.
2 March 2016
Temporary injunction granted to prevent impoundment of vehicle pending trial due to arguable ownership and risk of irreparable harm.
Civil procedure – interim injunction – requirements: prima facie/arguable case, irreparable harm, adequacy of damages, balance of convenience; Property/purchase disputes – purchaser in possession v registered owner; Lien asserted by owner; Preservation of status quo pending trial (Order 41 CPR; Judicature Act).
2 March 2016
Plaintiff blocked account and removed defendant as signatory; defendant lawfully retained excavator and counterclaim partly succeeds with awards.
Commercial law – contract and agency – standing instructions and bank mandate – estoppel and conduct of parties; interlocutory injunction findings not conclusive on final facts; third‑party tax (URA) notice effect on bank funds; locus to sue where contractual beneficiary is an individual not company; damages for wrongful interference with account and consequential loss.
1 March 2016
February 2016
Applicant granted unconditional leave to defend summary suit due to triable issues over seed quality and payment.
Summary procedure – Order 36 leave to appear and defend – defendant must show bona fide/triable defence – dispute over conformity with LPO specifications (germination and purity) – unconditional leave granted.
26 February 2016
A supplier's failure to deliver paid-for equipment breached contract, awarding applicant repayment, damages, interest and costs.
Contract formation – inferred from correspondence, proforma invoice, receipts, LPO and payment; sale of goods/lease context Breach of contract – supplier’s failure to deliver paid-for goods constitutes substantial non-performance Damages – award of special damages (sum paid) and general damages for inconvenience; remedies under Contracts Act Interest – court discretion where no agreement; simple interest at 6% p.a. awarded Costs – costs follow the event; counterclaim dismissed for lack of proof
25 February 2016
Defendant granted unconditional leave to defend because disputed ledger items and authority for expenditures raised triable issues.
Civil procedure – Summary suit (Order 36) – Requirement to show no bona fide defence – When summary procedure is inappropriate due to triable issues of fact. Evidence – Ledger and affidavit insufficient proof where underlying vouchers/documents not produced. Affidavits – Alleged inconsistencies/falsehoods must go to root to justify striking out; minor inconsistencies severable. Contract/accounting – Liability for supplies to third parties and authority for expenditure are triable questions.
23 February 2016
Plaintiff awarded UGX 50,758,000; dishonoured cheques enforceable and commercial interest ordered until payment.
Commercial law – sale of goods on credit; breach of contract for non-payment; cheques/bills of exchange treated as cash for summary judgment; summary judgment appropriate where cheques dishonoured; compensatory interest (restitutio in integrum) in lieu of unsupported general damages; court’s discretion under s.26(2) Civil Procedure Act to award reasonable commercial interest.
23 February 2016
Plaintiff failed to prove alleged embezzlement; audit found unreliable and suit dismissed with costs to the defendant.
Commercial law – alleged embezzlement by an accountant; burden of proof on plaintiff; reliability of audit reports; internal controls and custody of cash; natural justice (right to be heard); where evidence gives rise to conflicting inferences, plaintiff must prove on balance of probabilities.
22 February 2016
Mortgages based on Mailo titles held by non‑citizen plaintiffs void; debenture unenforceable, but personal guarantees permit bank recovery.
Land law – non‑citizens and Mailo land – acquisition and ownership restrictions; Mortgage law – legality vs irregularity; Nullity of instruments registered in breach of statutory land‑ownership rules; Contract law – borrower’s default on facility; Security law – unenforceability of debenture founded on illegal title; Guarantees – on‑demand personal guarantees enforceable against guarantors.
10 February 2016
Court allowed appeal: "Java" is a descriptive/disclaimed element and no proven likelihood of confusion; registration ordered subject to disclaimer.
Trade marks — descriptiveness and disclaimer — assessment under sections 9 and 10 and Part B registration; similarity and likelihood of confusion — global test (visual, aural, conceptual); inadmissible or insufficient extrinsic evidence — weight of limited witness statements and press review; foreign registration and Paris Convention — relevance under sections 44–45 of the Trademarks Act; concurrent use.
9 February 2016
Default on time‑of‑the‑essence loan instalments justified acceleration; lender awarded outstanding debt, 20% interest and costs.
Commercial loan – instalments – "time of the essence" clause – default amounts to fundamental breach and justifies acceleration. Enforcement – lender entitled to sue for accelerated debt notwithstanding existence or non‑realisation of security. Interest – contractual commercial rate of 20% held not harsh or unconscionable and enforceable. Remedies – judgment for principal, contractual interest from date of filing and costs follow the event.
1 February 2016
January 2016
Conditional injunction lapsed by applicant’s non‑compliance; re‑advertisement improper but not contempt, application dismissed.
Civil procedure – conditional injunction – failure to comply with condition causing injunction to lapse; contempt – advertising of mortgaged property; Mortgage Regulations – notice and advertising periods; counsel duty to advise client; remedial limits where applicant fails to perform injunctive condition.
29 January 2016
Default decree set aside and unconditional leave to defend granted where advocate's default was not imputable and triable issues existed.
Civil procedure – setting aside default judgment – Order 36 rule 11 – effective service on lawyers versus personal service; advocate’s negligence and imputability to litigant. Summary suit – leave to defend – test for bona fide and triable defence. Res judicata – effect of decree against principal debtor on subsequent claim against guarantor. Guarantees – secondary liability of guarantor and scope of recoverable sums.
29 January 2016
Disputed sale/hire of a truck was frustrated by third‑party impoundment; both claim and counterclaim dismissed, costs each party.
Contract classification (sale v hire/hire-purchase) – identity of vehicle (colour, chassis/engine numbers, false number plates) – amendment/pleadings objections – ex parte rehearing set aside – frustration of contract by third-party impoundment/sale – remedies where subject matter lost (loss lies where it falls).
28 January 2016
Court found jurisdiction under Ugandan law and held defendant breached contract, awarding unpaid balance, damages, return of equipment and costs.
Contract law – choice of law clause – jurisdiction where contract governed by domestic law and signed in Uganda; Fundamental breach – wrongful takeover of site before expiry of contractual stoppage period; Remedies – award of balance of contract as special damages, general and exemplary damages, interest, return of chattels (or value) and costs.
25 January 2016
Commissioner’s communications on bond sales bound the revenue authority, making buyers/importers, not the seller, liable for VAT.
Tax law – VAT on bonded warehouse sales – allocation of VAT liability between seller (importer) and buyer (transferee) in bond sales. Administrative law – binding effect of Commissioner’s communications/practice guidance – whether they bind revenue authority and taxpayers. Tax procedure – assessment and penalties – liability for penalties follows VAT liability. Evidence – reliance on contemporaneous documents (A27/A28) and conduct of revenue authority in authorizing release without tax collection.
25 January 2016
Applicant alleging fraud in mortgage must show prima facie case and irreparable harm to obtain a temporary injunction.
Temporary injunction; prima facie case; irreparable harm; balance of convenience; preservation of status quo; mortgage dispute; allegations of fraud and illegality; possession.
14 January 2016
A High Court cannot review a referee’s award under Order 46; contested reconciliation issues must be remitted to the referee for reconsideration.
Commercial law – reference to referee under section 27(c) Judicature Act – awards under Order 47 CPR – limits of review under Order 46 CPR – remit/recission and correction of awards (Order 47 rules 12–15) – discovery of new evidence and mistake apparent on face of record – discretion to award interest (section 26 Civil Procedure Act).
12 January 2016
An application to reinstate a suit already litigated and dismissed is barred by res judicata and was struck out with costs.
Civil procedure – reinstatement of suit – res judicata – dismissal set aside previously and later dismissal – parties bound by pleadings – new grounds in submissions inadmissible – application struck out.
11 January 2016
Plaintiff recovers pleaded loan from borrower; collateral manager deemed bailee but not negligent; claim against it dismissed.
• Commercial law – loan facility and security – borrower’s breach of credit agreement; recovery of principal and interest. • Collateral management – tripartite agreement giving custody duties; deemed bailee with duty to exercise reasonable care and release goods only on bank’s written instructions. • Tort/negotiation – negligence claim against collateral manager; burden on bailee to prove absence of neglect; theft by borrower may negate liability. • Remedies – award of principal, structured interest (19% then 20% then 14%) and costs.
11 January 2016
Stay refused where constitutional petition did not directly affect appeal and application amounted to an abuse of process.
Stay of proceedings – application to stay pending constitutional petition – Article 137(6) applicability only where constitutional question directly affects dispute; requirements for stay (prima facie case, irreparable harm, balance of convenience); abuse of process and improper delay; recusal and interlocutory procedure.
11 January 2016
Registrar validly corrected an erroneously extracted interim order; recusal and ex parte conduct were properly handled; appeal dismissed with costs.
Civil procedure – Registrar’s powers – Section 99 CPA permits correction of clerical errors in orders; not a review under Order 46. Recusal – written request may suffice; judge may refuse recusal where grounds are implausible. Ex parte proceedings – justified where party deliberately disrupts hearing. Evidence – newspaper clippings are hearsay and inadmissible; severance is available. Abuse of process – multiplicity of proceedings and tactics to perpetuate interim relief may justify denial of relief.
11 January 2016