background image
profile image

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.
210 judgments
  • Filters
  • Judges
  • Alphabet
Sort by:
210 judgments
Citation
Judgment date
December 2017
21 December 2017
Application to deposit certified payment into court denied for lack of urgency and no proven risk of dissipation.
Commercial law – payment under final payment certificate – application to deposit certified sums into court pending dispute – requirement to show expeditious determination and risk of dissipation; Contract law – interest and contractual entitlements; Civil procedure – interlocutory relief and exigency of prosecution of main suit.
21 December 2017
Fraudulent procurement of ex parte judgment and execution vitiates subsequent sale and entitles reinstatement of the innocent registered proprietor.
Property law; fraudulent procurement of court process and default judgment; invalidity of execution and sale founded on forgery; cancellation of transfers and reinstatement of registered proprietor; third‑party rights and mortgage claims defeated where base transaction is fraudulent.
14 December 2017
November 2017
Whether the respondent lawfully disconnected the applicant’s supply for alleged meter tampering and issued a fraud bill.
Electricity supply — Meter tampering — Burden of proof and inferences — Lawful disconnection and right to be heard — Fraud billing and computation — Damages for wrongful disconnection.
23 November 2017
Whether the respondent complied with statutory mortgage-sale procedures and properly applied the sale proceeds.
Mortgage law – Power of sale – compliance with Mortgage Act and Regulations (demand, default notice, valuation, notice to sell, advertisement and service). Duty of mortgagee – equitable duty to obtain true market value; independent valuation and exposure to market. Distribution of sale proceeds – statutory priority; payment to guarantor/spouse with beneficial interest
Recovery – irregular post-sale debits are recoverable; award of special damages and interest
20 November 2017
Substituted service by court order and newspaper publication was effective; application to set aside default judgment dismissed.
Civil procedure – Summary suit – Order 36 Rule 11 CPR – Setting aside default judgment; Substituted service – Order 5 Rule 18 CPR – effect and validity of newspaper publication; Defence of frustration – pleaded but not adjudicated after service found effective; Procedural compliance – duty to seek leave to appear and defend.
9 November 2017
Reconciliation document upheld; plaintiff not fully paid; defendants awarded USD 90,408, damages, interest and costs.
Contract law – reconciliation of accounts – validity of a signed reconciliation document (Exh D16) covering lease and purchase obligations
Duress – burden to prove coercion, requirement to repudiate promptly; subsequent conduct undermines duress claim
Interest – enforceability of agreed interest as reflected in parties' reconciliation. Privity and third-party beneficiary – financier’s undertaking made the seller an intended beneficiary, permitting suit against financier
Remedies – award of decretal sum, general damages, interest and costs; dismissal of plaintiff’s claim for specific performance/refund
2 November 2017
Application to set aside default judgment dismissed: service on a director was effective and no sufficient cause was shown.
Civil procedure – setting aside ex parte/default judgment – O.9 r.27 CPR – requirement of non-service or sufficient cause. Service on corporations – Order 29 – service on director or principal officer effective. Sufficient cause – must relate to inability to take the procedural step (illness, advocate’s mistake, ignorance of procedure). Relief refused where affidavit of service and acknowledgement by director establish effective service
2 November 2017
Default judgment upheld where service on the company's director was effective and applicants failed to show sufficient cause.
Civil procedure – Setting aside default judgment – Order 9 r.27 CPR – Requirement to show lack of proper service or sufficient cause; Service on corporation – O.29 r.1-2 CPR – service on director/principal officer effective; Sufficient cause – must explain inability to take the step in time (illness, advocate mistake, ignorance of procedure).
2 November 2017
Interim injunction refused where no pending adjudication existed, damages were adequate, and balance of convenience favoured the respondents.
Arbitration and Conciliation Act – interlocutory injunction – requirements for injunctive relief: prima facie case, irreparable injury, balance of convenience – effect of quashed adjudicator appointment on existence of a pending adjudication – adequacy of damages as remedy – public interest in uninterrupted procurement and road maintenance.
2 November 2017
Buyer validly rescinded sale after seller unlawfully impounded delivered vehicle; refund, damages and interest awarded.
Sale of Goods Act – unpaid seller and lien; delivery terminates lien absent express reservation; unlawful impounding absent warrant; rescission of contract; unpleaded/unsupported parking fees cannot be awarded; recovery of deposit, proven repair costs, general damages and interest.
2 November 2017
October 2017
Defendants who withdrew mistakenly credited funds must pay interest at a reasonable commercial rate; counterclaim dismissed and costs awarded.
Banking law – mistaken credit to customer’s account – recovery of funds – recipient’s liability to pay interest as compensation for retention; assessment of reasonable commercial interest rate; counterclaim for harassment dismissed; costs follow event.
31 October 2017
The court refused amendment that would revive a tainted contractual claim by a non‑party and change the cause of action.
Amendment of pleadings – amendment v fresh cause of action – identity of contracting party – misrepresentation and fraud – promotion of illegality – abuse of process – application dismissed with costs.
27 October 2017
Applicants failed to show improper service or a prima facie defence to warrant setting aside the default judgment.
Civil procedure – Setting aside default (ex parte) judgment – Service of process – substituted service by publication justified when defendants unavailable – Affidavit of illiterate must be verified under Illiterates Protection Act – Personal guarantee: signature and parties’ intention determine guarantor liability – Failure to attach draft defence when claiming a defence.
26 October 2017
Whether the respondent (customs authority) is liable for vandalisation and inferior replacement of vehicle parts while in its custody.
Customs law – liability for goods in custody – authority capable of being sued under URA Act despite provisions of EACCMA
Tort/delic t – vandalisation and safe custody of imported goods in a customs warehouse
Evidence – inspection reports, photographs and expert testimony as proof of vandalisation and inferior parts substitution
Damages – award of replacement costs and general damages including prospective loss of income; principles on proof of future loss
26 October 2017
25 October 2017
Consent judgment binding absent fraud or duress; authorized director’s acts bind the company—application dismissed.
Civil procedure – Consent judgment – Application to set aside – Requirements: fraud, collusion, misrepresentation, mistake or illegality to vitiate consent. Company law – Agency and authority of directors – Board resolution binding on company; indoor-management (Turquand) rule. Contract law – Freedom of contract; unconscionability insufficient absent fraud. Equitable relief – Duress and delay (laches) – need for prompt action
25 October 2017
Plaintiff performed web‑development; defendant’s dishonored cheques constituted breach—contract sum, damages, interest and costs awarded.
Contract law – existence and enforceability of written website development agreement; performance and expert evidence on functionality of websites; breach by issuance and stoppage of cheques; counterclaim for oral commission agreement dismissed for lack of evidence; remedies—contract sum, general damages, interest and costs.
20 October 2017
Admission and part-payments established the debt; court awarded outstanding sum, general damages, 20% interest and costs.
Evidence Act s.57 – admissions during proceedings and payments as proof of indebtedness – no further proof required. Civil procedure – recovery of undisputed debt; award of general damages for loss of use/profit
Interest – court power to award interest; 20% per annum ordered
Costs – costs follow the event
16 October 2017
Court allowed out-of-time filing of reply and defence due to counsel's illness; court not functus officio.
Civil procedure – Extension of time – Leave to file reply to WSD and defence to counterclaim out of time – Sufficient cause where counsel was ill – Mistake of counsel not visited on litigant – Court not functus officio where no final decision – Costs in the cause.
11 October 2017
Vendor's failure to deliver vacant possession entitled the purchaser to refund, general damages, interest and costs.
Contract law – Sale of land – failure to deliver vacant possession – vendor’s breach – refund of deposit (special damages) – general damages for inconvenience – interest awarded on commercial transaction – effect of interlocutory judgment and failure to defend.
11 October 2017
Appellant acted as company director, not personally liable; settlement bound the company, so respondent's damages claim failed.
Company law/agency – Director acting as directing mind and will of the company – personal liability versus corporate liability; Contract law – consideration: procedural bar to raising want of consideration not pleaded (O.6 r.7 CPR); Settlement agreements – enforceability of memorandum of understanding/compromise signed by counsel; Evidence – evaluation of facts showing capacity in which documents were signed; Remedies – appeal allowed, trial judgment set aside, costs to appellant.
4 October 2017
The High Court upheld jurisdiction, found a valid contract and guaranty, and awarded US$832,338.51 plus UGX50,000,000, interest and costs.
Civil procedure – jurisdiction clause – non‑exclusive consent to foreign court does not oust Ugandan High Court’s unlimited jurisdiction; contract formation – signature comparison and admissibility under Evidence Act; sale of goods – bills of lading and invoices as evidence of delivery; suretyship – guarantors personally liable under deed of suretyship; remedies – assessment of special and general damages, interest and costs.
3 October 2017
Stay of execution granted pending appeal on condition of a bank guarantee and mediation to avoid asset attachment.
Execution stay pending appeal; immunity of international financial institution’s assets under domesticated Charter; distinction between immunity from jurisdiction and immunity from execution; adequacy of bank guarantee as security for stay; mediation to resolve enforcement without attachment.
2 October 2017
Court ordered joinder of a party alleged to hold transferred mineral licence as necessary for complete adjudication.
Civil procedure – Joinder of parties; necessary and proper parties; piercing the corporate veil; tracing/transfer of mineral exploration licence; joinder permissible even absent direct cause of action to avoid multiplicity and where orders sought may affect a party’s interests.
2 October 2017
Bank awarded damages against borrower-guarantors for fraud and breach; valuer absolved due to unheeded warning.
Commercial law – loan secured by mortgage – misrepresentation and fraud by borrower in presenting security as developed; liability for breach of contract. Professional negligence – valuer’s duty – warning in valuation report and plaintiff’s failure to heed recommendation severs causal link to loss
Remedies – special and general damages, interest and costs; declaration of fraud; third-party indemnity requires a fair hearing
2 October 2017
September 2017
Court held defendant liable for breach, rejected special damages for lack of proof, awarded general damages, interest and costs.
Arbitration clause – referral requires party application under s.5(1) Arbitration and Conciliation Act; breach of contract – failure to deposit escrow proceeds and ordering outside agreed channels; evidentiary law – special damages and admissibility of secondary evidence (s.64 Evidence Act); damages – special damages must be specifically pleaded and proved; general damages discretionary; interest and costs awarded.
28 September 2017
Regulation prescribing UGX120,000 taxi/user fee upheld; applicant’s ultra vires and constitutional challenges dismissed.
Administrative law – Authority to levy fees under Kampala Capital City Act (ss.5,7,82) – Validity and presumption of constitutionality of statutory instruments (Kampala Capital City (Commercial Road User) Regulations SI No.3/2015) – Ultra vires challenge to fee conflicting with ministry policy – Constitutional claims under Articles 21, 26, 45 rejected.
28 September 2017
An objector in actual possession at attachment is entitled to release of the property from execution despite title disputes.
Execution — Attachment of land — Objector proceedings focus on possession at date of attachment rather than absolute title — possession in own right entitles release from attachment; disputed title requires separate proceedings — procedural irregularities in annexures not fatal where substantive justice demands.
27 September 2017
Applicant granted unconditional leave to defend summary suit after showing bona fide triable issues despite affidavit technical defect.
Civil procedure – Summary procedure (O.36 CPR) – leave to appear and defend – requirement to show bona fide triable issue; Affidavit formalities – undated jurat – commissioners’ duty; O.6 r.2 CPR – annexures/summary of evidence; Concurrent proceedings/possible double recovery; Article 126 – avoidance of technicalities.
24 September 2017
Execution court pierced corporate veil where directors used company as façade to evade contractual obligations and frustrate judgment enforcement.
Execution law; corporate veil – piercing corporate personality for fraud and deliberate evasion of contractual obligations; executing court’s jurisdiction under s.34 CPA; directors as directing mind and will; execution against controllers and directors.
18 September 2017
A non-taxpayer who was not the original applicant cannot appeal for costs after failing to obtain a private tax ruling.
Tax law – Private rulings – Commissioner General’s discretion under s.161(1) – Tax Appeals Tribunal appellate jurisdiction under s.17 and rule 14(1) – Proper party to appeal – Costs where appellant was not original applicant.
13 September 2017
Leave to appeal denied where pleaded admissions were factual, not unequivocal admissions warranting judgment on admission.
Civil procedure — leave to appeal — requirement of arguable points of law meriting serious judicial consideration; Judgment on admission — admission must be unequivocal and sufficient to dispose of claim; Discretionary orders — stronger case needed for leave to appeal; Appealability — grounds must arise from the impugned ruling, not from matters yet to be tried.
13 September 2017
Review application dismissed: alleged errors on the face of the record were not patent or self-evident.
Civil procedure – Review – Error apparent on the face of the record; Interpretation of contract terms – effect of heading referencing Money Lenders Act; Forfeiture clauses – legal effect and differing interpretations; Unconscionable interest – consideration at preliminary stage; Review not a substitute for appeal.
12 September 2017
Allegations of backdating and document smuggling failed where only clerical errors existed and no prejudice was proved.
Civil procedure – summary suit – leave to appear and defend – alleged document backdating, smuggling and replacement – clerical errors (wrong party names, incorrect suit number) – curable under Order 6 r.18 CPR – requirement for concrete evidence to prove fraud or abuse of court process – no miscarriage of justice shown.
11 September 2017
Plaintiff’s plaint failed to disclose a cause of action against the bank which merely advanced a loan secured by the property.
Civil procedure — Preliminary objection — Failure to disclose a cause of action; Pleadings — only plaint and attachments considered; Contract — sale agreement versus independent loan facility; Security/mortgage — title as security for a third-party loan.
11 September 2017
Applicant's claim dismissed: goods supplied by a different company and applicant lacked authority and standing to sue.
Commercial law – contract and standing – cause of action – separate corporate personality and authorization – privity of contract – capacity to sue – amendment of pleadings at advanced stage – evidentiary value of bills of lading.
11 September 2017
A suit filed in the name of a non-existent plaintiff is a nullity and cannot be cured by substitution.
Civil procedure – Suit by non-existent plaintiff – A suit filed in the name of a non-entity is a nullity; substitution under Order 1 r.10 CPR unavailable where named plaintiff does not exist; misnomer must be bona fide to be curable; incurably defective pleadings warrant striking out with costs.
8 September 2017
Supplier who relies on third‑party logo must seek clarification from contracting party; failure to do so justified rejection of goods.
Contract law – Sale by description – goods must correspond to contractual description; Privity of contract – third‑party communications cannot vary contract between parties; Obligation to seek clarification from contracting party where specification is incomplete; Right to reject non‑conforming goods.
7 September 2017
Termination without required contractual notice entitled the plaintiff to indemnity and awards for special and general damages.
Contract law – Termination – Failure to comply with contractual notice and cure provision renders termination a breach. Contract law – Indemnity clause – Enforceability where breach causes provable losses
Damages – Assessment and proof of special (pecuniary) and general (loss of income/reputation) damages. Exemplary damages – Not awarded absent oppressive or calculated misconduct. Interest and costs – Commercial rate for proved pecuniary loss; court rate for general damages
7 September 2017
Court may order security for performance of an arbitral award where objector lacks known assets and risk of non‑recovery exists.
Arbitration – security for performance of arbitral award under section 34(5) and Rule 12 – court’s discretionary power – principles for ordering security same as security pending appeal/decree – absence of assets in jurisdiction may justify security – examples: irrevocable bank guarantee.
6 September 2017
Defaulting buyer liable for unpaid invoices; landlord must release plaintiffs' goods; contractual interest enforceable, aggravated damages denied.
• Commercial law – Sale of goods – retention of title clauses – vendor entitled to recover price and goods when buyer defaults. • Civil procedure – default/interlocutory judgment (Order 9) – liquidated demand recoverable where defendant fails to plead. • Contract law – contractual interest clauses enforceable as agreed damages if not penal/unconscionable; court may reduce excessive rates. • Detention of goods – landlord liable to release goods when plaintiff proves retained title and detention. • Damages – aggravated/exemplary damages not awarded absent evidence of malice or arbitrary conduct.
6 September 2017
Failure to deliver bitumen within the agreed/immediate timeframe was a breach; plaintiff awarded damages; counterclaim mostly dismissed.
Contract law – breach of supply contract for bitumen; interpretation of delivery obligation described as “immediately”; bank guarantee evidence and its effect; frustration of contract — scope and proof; CIF terms and allocation of risk; assessment of special and general damages; mitigation and counterclaim for losses.
5 September 2017
August 2017
Written memorandum controls; oral variation inadmissible—plaintiff failed to prove breach and claim dismissed.
Contract law – interpretation of written memorandum; Evidence Act ss. 91–93 (parol evidence rule) – extrinsic oral evidence inadmissible to vary written terms; payment obligations and construction of clause specifying delivery of 4–5 vehicles; plaintiff failed to prove supply of 20 vehicles or breach; claim dismissed with costs.
29 August 2017
Whether an employer may unilaterally revise a project manager’s final payment certificate or must pay the certified amount.
Construction contracts – final certificate on termination (GCC 60.2) – creation of debt due – functus/estoppel – Employer cannot unilaterally replace Project Manager's final certificate; payments due within 30 days (GCC 43) – entitlement to interest for late payment.
28 August 2017
Wrongful registration of mortgage on the wrong title merits nominal damages and refund, and prevents sale until accounts are reconciled.
Property law – mortgage – erroneous registration of mortgages on wrong certificate of title – mortgagor/ mortgagee obligations and remedies
Remedies – nominal damages and restitution of charges where wrongful encumbrance proven but no proved pecuniary loss
Mortgage Act/Mortgage Regulations – statutory procedure for notices, redemption and consequences of deposit/payments to forestall sale. Civil procedure – counterclaim dismissal where specific damages not proved; account reconciliation where outstanding balance disputed
28 August 2017
Leave to defend granted where tenant raised triable issues over loan-penalty liability and unclear party relationships.
Order 36 CPR – summary suit – leave to defend – triable issue test; Contractual liability – recovery of third-party loan penalties – requirement of express undertaking; Pleadings – unclear relationships between parties raising triable issues.
25 August 2017
Plaintiff failed to prove title to the trailer; earlier purchaser held legal title and no conversion occurred.
Sale of Goods Act – transfer of property in specific goods – timing of transfer (ss.18–19); conflicting sale agreements; bona fide purchaser and voidable title; conversion – requirement of wrongful dominion; weight of police report and prosecutorial advice as evidence.
24 August 2017
Plaintiff breached the subcontract by failing to secure the head contract; defendant wrongfully terminated; court orders specific performance.
Contract law – subcontract – failure to secure head contract amounts to breach; specific performance clause as exclusive remedy; wrongful termination where contract prescribes specific performance; insufficiency of evidence to prove sabotage; counterclaim for monetary relief declined.
24 August 2017
The respondent’s oral guarantee claim (exceeding statutory value and based on deception) was unenforceable and dismissed.
Contracts Act – s.10(5)–(6) and s.68 – form of contract and guarantees; enforceability of oral guarantees exceeding statutory currency point threshold; requirement of tripartite relationship (creditor, principal debtor, guarantor); misrepresentation/unclean hands defeats equitable relief; pleadings and cause of action in guarantee claims.
24 August 2017