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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.
210 judgments
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Results. 210 judgments found.

210 judgments
August 2017
The respondent breached its security contract and is vicariously liable for guards' robbery; damages and costs awarded to the applicant.
  • Contract law — security guarding contract — breach for failure to prevent robbery; Vicarious liability — employer liable for employees’ criminal acts committed in course of employment; Damages — special and general damages; interest at court rate.
24 August 2017
A fresh suit to enforce an existing decree and pierce the corporate veil was barred; enforcement must proceed by execution.
  • Civil procedure
    • — Res judicata — Subsequent suit seeking recovery of a sum already decreed — Section 7 Civil Procedure Act — Suit barred
    • — Execution and enforcement — Proceedings against directors for alleged concealment of company assets — Section 34(1) Civil Procedure Act — Enforcement to be pursued in execution proceedings, not a separate suit
  • Company law — Lifting corporate veil — Directors' liability — Veil may be pierced in appropriate circumstances but allegations arising from enforcement of a decree must be addressed in execution proceedings
23 August 2017
The Defendant Africana Clays Ltd was found liable for breach of a loan agreement and ordered to pay the Plaintiff with interest.
  • Contract law — breach of contract — loan agreement — company liability — resolution authorizing borrowing
22 August 2017
Directors' admissions and a company resolution established the loan; court limited unconscionable contractual interest and awarded principal plus reasonable interest.
  • Contract law
    • — Formation and corporate authority — Board resolution and directors' admissions binding the company — Indoor management/organic theory
    • — Remedies — Interest on money due — Court discretion to award reasonable interest and adjust unconscionable contractual rate (Civil Procedure Act s.26)
  • Evidence — Admissions by parties — Facts admitted need not be proved (Evidence Act s.57)
22 August 2017
A contractual exclusive foreign jurisdiction clause does not automatically oust the Ugandan High Court; objection dismissed.
  • Constitutional law — High Court jurisdiction — Article 139(4) — Effect of contractual forum‑selection clauses on jurisdiction
  • Civil procedure — Forum conveniens — Factors: location of evidence, convenience and expense, applicable law, parties’ connections, genuineness of foreign forum choice
  • Contract law — Forum‑selection clause — Whether exclusive foreign jurisdiction clause automatically ousts Ugandan jurisdiction
21 August 2017
Post-filing regulatory revocation does not nullify a pending bank debt claim; successor bank must be joined to determine rights.
  • Civil procedure — preliminary objection — proper party — effect of regulatory revocation and purchase-and-assumption on pending claims; Financial institutions law — Bank of Uganda takeover; Order 1 rr.9–10 joinder/substitution of parties.
21 August 2017
Applicant’s challenge to arbitral factual findings did not satisfy limited section 34 grounds; application to set aside award dismissed with costs.
  • Arbitration — setting aside arbitral award — section 34 — limited statutory grounds — court will not re‑evaluate factual findings of arbitrator — untaxed/undetermined costs challenge requires showing statutory contravention.
21 August 2017
Leave to defend granted where plaintiff's Order 36 claim was not liquidated due to interest and damages.
  • Civil procedure — Order 36 (summary procedure) — Requirement that claim be liquidated and specifically pleaded
18 August 2017
Failure to deny service or show good cause under Order 33(3) leads to dismissal of application to set aside a default judgment.
  • Civil Procedure
    • — Setting aside default judgment — Service, requirement to show good cause to set aside default judgment under Order 33 Rule 3
    • — Execution of decree — Challenge to sale of judgment debtors' land following default judgment
    • — Leave to appear and defend — Failure to explain inaction disentitles party to relief
18 August 2017
The court denied aggravated damages, awarded UGX 227,569,318 plus UGX 30,000,000 general damages, interest and costs.
  • Contract — Damages — Aggravated damages — Require oppressive, arbitrary or culpable conduct; inability to pay alone insufficient
  • Civil procedure — Pleading — Particulars of special damages — Losses must be specifically pleaded in accordance with Order 6 r. (1)-(5) CPR
  • Remedies — Interest and costs — General damages awarded; interest at 10% p.a. from date of judgment and costs to successful party
18 August 2017
High Court lacks jurisdiction to hear appeals from arbitral awards absent the parties' express agreement under the Arbitration Act.
  • Arbitration law — Jurisdiction — Court intervention on questions of law from arbitral awards requires parties' agreement — Arbitration and Conciliation Act ss 9, 38
  • Civil procedure — Judicial jurisdiction — Judicature Act s 33 does not override express ouster of jurisdiction in arbitration statute
  • Contract law — Condition subsequent/precedent — Interpretation of clause 11(i) raised but not decided
15 August 2017
Applicants granted leave to defend summary suit after demonstrating bona fide triable issues and annexing intended defence.
  • Civil procedure — Summary procedure (Order 36) — Leave to appear and defend — Bona fide triable issue; annexure of intended written statement of defence as supporting material
14 August 2017
No partnership found; defendant wrongfully (but not fraudulently) entered plaintiff's school; plaintiff awarded damages and accounting.
  • Partnership law — dissolution by conduct and withdrawal; corporate dormancy — company not shown to own or finance business; fraud — requirement of intentional misrepresentation and inducement; special damages — must be specifically pleaded and proved; remedies — accounting, general damages, interest and costs.
2 August 2017
July 2017
The applicant’s challenge to the arbitral award was dismissed as time‑barred because the award was treated as received on its delivery date.
  • Arbitration law
    • — Setting aside arbitral award — Time bar and date of receipt — Arbitration and Conciliation Act s 34(3)
    • — Enforcement of foreign arbitral award — Effect of dismissal of setting‑aside application on enforcement proceedings
26 July 2017
Court refused to lift the corporate veil where the applicant failed to prove fraud or façade under Companies Act s20.
  • Company law — Lifting corporate veil — Fraud, asset and share transfers — Burden and standard of proof — Companies Act s 20
25 July 2017
Appellant failed to prove improper taxation; taxing officer properly applied Regulation 37 and exercised discretion under Regulation 42.
  • Civil procedure
    • — Taxation of costs — Burden of proof on party opposing assessed costs
    • — Advocates (Remuneration & Taxation of Costs) Regulations — Application of Sixth Schedule to contentious High Court proceedings — Regulation 37
    • — Taxation discretion — Separate bills and pleadings — Regulation 42 — Taxing officer's discretionary powers
24 July 2017
Seizure lawful where the applicant failed to prove lawful importation; claim dismissed with costs.
  • Customs law — Search and seizure — Entry and seizure of suspected uncustomed goods without warrant — EACCMA s157
24 July 2017
Applicant failed to prove sufficient cause to set aside a default judgment; application dismissed and costs awarded.
  • Civil procedure
    • — Default judgment — Setting aside for sufficient cause — Order 9 r.12 & r.27 CPR
    • — Evidence — Burden to prove alleged facts — Evidence Act s.102 — Proof required to establish mistake in service dates
19 July 2017
Court revoked letters of administration obtained by fraud, ordered accounting, new administrators, injunction and UGX 60,000,000 damages.
  • Succession law — Administration of intestate estate — Fraudulent procurement of letters of administration by concealment of beneficiaries and use of forged marriage certificate — Revocation under Succession Act s 234
  • Civil remedies — Misadministration of estate — Accounting, injunctions, cancellation of administrator's name on title and appointment of new administrators
  • Damages — Compensation for loss from misadministration awarded; exemplary/punitive damages refused where not specifically pleaded
14 July 2017
Ex parte security-for-costs order set aside where applicant was denied opportunity to be heard and given insufficient time.
  • Civil procedure
    • — Security for costs — Setting aside ex parte order — Denial of audi alteram partem/natural justice
    • — Service and time for affidavits — Insufficient time caused by public holiday and brief service period
10 July 2017
Unproven special damages and an earlier consent judgment barred further recovery; suit dismissed with costs.
  • Contract — Construction contracts — Claims for unpaid works, retention, loss of profit and interest — Requirement for specific pleading and strict proof
  • Civil procedure — Consent judgment/settlement — Effect as full and final settlement and estoppel against subsequent claims
9 July 2017
Applicant granted leave to defend summary suit due to a triable dispute as to indebtedness.
  • Civil procedure — Summary procedure — Leave to appear and defend — Triable issue of fact or law (dispute as to indebtedness) — Order 36 CPR
7 July 2017
Arbitral award set aside for exceeding contractual scope, irregular appointment procedure, and evident arbitrator partiality.
  • Arbitration
    • — Scope of reference — Whether arbitral award deals with dispute not contemplated by parties — Arbitrator exceeded mandate by including molasses and bagasse
    • — Appointment of arbitrator — Compliance with contractual appointment procedure — Role of President of the Law Society and Section 11(4)(c)
    • — Evident partiality — Disclosure and premature access to award as grounds for setting aside under s34(2)(a)(vi)
6 July 2017
Respondent lawfully froze account; entitled to recover overdraft from applicant despite criminal convictions being quashed.
  • Banking law — banker-customer contract — contractual right to freeze accounts on suspected fraud — payments against uncleared cheques create overdraft — civil recovery unaffected by criminal acquittal — interest and damages discretionary.
6 July 2017
Application to defend summary suit dismissed for failure to show bona fide defence or triable issues.
  • Commercial law — Summary suit — Leave to file defence — Requirement of bona fide defence and triable issue
  • Banking — Loan security and foreclosure — Application of sale proceeds to outstanding debt
  • Evidence — Proof of payment — Reliance on bank statements and facility agreement as unrebutted evidence
6 July 2017
Plaintiff failed to prove forgery; court found mortgage valid and dismissed both the suit and the defamation counterclaim.
  • Property law — Alleged forgery of mortgage instrument — standard of proof in fraud cases; Mortgage validity — compliance with pleadings and definition of matrimonial home; Defamation — statements in pleadings/court protected by qualified privilege; Evidence — weight of expert handwriting evidence versus contemporaneous documents and witness testimony.
6 July 2017
Leave to amend refused where applicant failed to plead new facts, attach amended plaint, or properly remove parties.
  • Civil procedure
    • — Amendment of pleadings — Requirements for leave to amend — Identification of new material facts and attachment of proposed amended pleading
    • — Parties — Striking off parties versus withdrawal — Proper procedure under Order 25
    • — Evidence supporting interlocutory applications — Necessity of appropriate affidavits and authorization
5 July 2017
A beneficiary with a certificate of no objection may sue; S.91 FIA protection ends once a bank is in liquidation.
  • Civil procedure — Locus standi — Beneficiary with certificate of no objection entitled to sue to preserve estate
  • Financial Institutions Act
    • — Statutory management v liquidation — S.91 protection applies only while institution is under statutory management
    • — Liquidator's capacity — S.99 and S.100 permit liquidator to bring or defend actions in the name of the institution
4 July 2017
A strike-out on a preliminary illegality does not invoke res judicata and does not bar a subsequent distinct suit.
  • Civil procedure
    • — Res judicata — Effect of striking out on preliminary point of law versus final decision on merits
    • — Abuse of process — Institution of fresh suit while appeal pending — Not necessarily an abuse where merits were not previously determined and issues differ
  • Arbitration — Optional arbitration clause — Clause does not mandate stay where parties did not agree to refer current dispute to arbitration
4 July 2017
Whether a memorandum of understanding requiring a refund and monthly penalty is binding and enforceable.
  • Contract law
    • — Formation and enforceability — Memorandum of Understanding and validity of signature
    • — Breach and remedies — Enforcement of contractual refund and monthly penalty; award of damages, interest and costs
3 July 2017
June 2017
Default judgment and execution set aside where substituted service and receipts raised doubt and a plausible defence was shown.
  • Civil procedure
    • — Summary/default judgment — Setting aside default decree under Order 36 r11 — Requirement of effective service and discretionary inquiry into arguable defence
    • — Service of process — Substituted service by newspaper — Sufficiency and effect on granting leave to defend
30 June 2017
Court granted interlocutory injunction to stop mortgagee sale, requiring small deposit, pending resolution of disputed loan accounts.
  • Mortgage law
    • — Remedies of mortgagor and mortgagee — Application for relief against power of sale under the Mortgage Act 2009 and Mortgage Regulations 2012
    • — Adjournment or stoppage of sale — Regulation 13(1) — 30% security deposit discretionary where outstanding amount or forced sale value is disputed
    • — Sale prerequisites — Mandatory valuation (Regulation 11) and notice requirements (Regulation 8) — lack of compliance may render a sale unlawful
30 June 2017
Altering a company’s share register and issuing a power of attorney after a domestic restraining order amounted to contempt and are to be disregarded.
  • Civil procedure
    • — Contempt of court — Transfer of company shares and appointment of agent after restraining order — Effect and remedies
    • — Jurisdiction and foreign companies — Effect of domestic restraining order on foreign‑incorporated company represented in proceedings
30 June 2017
An affidavit for leave to defend must particularise whether a defence goes to whole or part of the claim; vague denials fail.
  • Civil procedure
    • — Summary suit — Application for leave to defend — Mandatory affidavit particulars under Order 36 r.4 (state whether defence goes to whole or part and specify)
    • — Summary judgment — Purchase orders and signed confirmations — Admission of indebtedness and estoppel against denial of liability
30 June 2017
Contractor’s work stoppage constituted abandonment and termination; plaintiff failed to prove unpaid sums or variation claims.
  • Contract law
    • — Subcontracts — Breach and termination by abandonment — Whether laying down tools/absconding constitutes termination by the subcontractor
    • — Proof of quantum — Requirement to prove work performed and variations by production of certificates or quantification
  • Civil procedure — Counterclaim — Evidential foundation required for claims of equipment hire and advances
29 June 2017
Defendant repudiated supply-based loan obligations; owes UGX 94,000,000 plus contractual and post-judgment interest; counterclaim dismissed.
  • Contract law — Loan repaid by supplies — Breach and repudiation for failure to perform within a reasonable time (s.42 Contracts Act); admissibility and weight of business ledgers; contractual interest enforceable; illegal impoundment claim failed; counterclaim dismissed.
29 June 2017
Whether the plaintiff was entitled to unpaid salary, accrued leave, NSSF and vehicle transfer after resignation.
  • Employment law — Remedies for wrongful termination/exit — Entitlement to unpaid salary, accrued leave and statutory contributions (NSSF)
28 June 2017
Court admitted plaintiff’s late witness statements, granted extension under Order 51 r.6 and awarded costs to defendants.
  • Commercial law — Civil procedure — Late filing of witness statements — Extension under Order 51 r.6 and rule 7 of the Constitution (Commercial Court) (Practice) Directions
  • Civil procedure — Relief from sanctions — Assessment of seriousness, cause and all circumstances (Denton/Mitchell evaluative approach) — Discretion to award costs or dismiss
  • Evidence — Witness statements — Weight of evidence where witness may have been exposed to other testimony — potential for trifling weight
27 June 2017
Plaintiff's commission agreement held void for unauthorized signature; defendant awarded unpaid rent, damages, interest and costs.
  • Contract law — validity of agreements signed without authority; agency — creation, apparent authority, ratification and agency by necessity; unenforceability of contract void ab initio; counterclaim for unpaid rent; assessment of damages and interest.
26 June 2017
Misrepresentation and breach of sale entitled plaintiffs to refund, development costs and contractual 50% monthly interest.
  • Contract law — Misrepresentation and fraud — Breach of sale agreement — Contractual remedy for frustrated transaction — Liquidated refund and contractual default interest — Burden and standard of proof for fraud.
26 June 2017
Substituted service by court-ordered newspaper publication was effectual; application to set aside default judgment dismissed with costs.
  • Civil procedure — Service of process — Substituted service under Order 5 r 18 CPR — Effectual as personal service — Publication in national newspaper
21 June 2017
Defendant breached a lease; ordered to repay outstanding lease sum with contractual and default interest; general damages refused.
  • Contract law — lease agreement — breach for non-payment of rentals — recovery of outstanding lease sums — contractual interest and default interest awarded — general damages declined when interest compensates loss — costs follow the event.
16 June 2017
Regulatory authority’s administrative handling frustrated a harvesting licence, entitling the licensee to damages offset by unpaid licence fees.
  • Administrative law — Forestry regulation — Licence breach and regulatory handling — Effect of administrative resolution on prosecution and contractual rights
  • Contract law — Licence agreements — Frustration of performance by regulatory authority’s conduct — Entitlement to general damages
  • Civil procedure — Set‑off — Counterclaim for unpaid licence fees to be offset against plaintiff’s damages
16 June 2017
Vendor liable to refund the applicant's deposit after sale; transactional lawyer not liable; damages, interest and costs awarded.
  • Contract law — land sale — vendor’s obligation to refund deposit on purchaser’s default; liability of transactional lawyer for title release; award of general damages and interest at court rate.
16 June 2017
Applicant given conditional leave to defend a cheque-based summary suit amid dispute over personal liability versus company debt.
  • Commercial law — Summary proceedings on cheques — Exceptional circumstances permitting leave to defend where cheques alleged to be security/guarantee
  • Company law — Corporate personality — Whether a director trading as a company can be sued personally or whether the corporate entity is the proper defendant
16 June 2017
Borrower liable for auction shortfall; bank must pursue insurer for accident loss; counterclaim for undervaluation dismissed.
  • Commercial law — Financial lease and premium finance — borrower default; Insurance — lender as first-loss payee and duty to pursue insurer; Repossession and sale of financed vehicles — valuation, auction procedure and Mortgage Act inapplicability; Pleading and proof requirements for special damages and counterclaims.
16 June 2017
Plaintiff could sue as a contracting party, but claim failed for lack of demonstrated breach and was premature without payment timelines.
  • Commercial contract — sale of assets — locus standi/privity to sue; cause of action — requirement of right, breach and defendant's liability; premature claim where agreement lacks payment timelines and payments are ongoing.
14 June 2017
Seller lacked legal title and failed to deliver the log book; sale rescinded, refund and leasing costs awarded, interest reduced.
  • Sale of goods; authority to sell; separate legal personality (company v director); breach for lack of title and non-delivery of log book; rescission and restitution; special damages — pleading and proof of leasing expenses; discretionary award of interest — reduction to court rate; costs follow the event.
14 June 2017
High Court inherent power to stay proceedings pending interlocutory appeal on locus standi in public interest review.
  • Civil procedure
    • — Stay of proceedings pending appeal — Jurisdiction of High Court — Inherent powers to stay proceedings
    • — Locus standi — Interlocutory ruling as controlling question of law capable of disposing of the suit
  • Public law — Public interest litigation — Standing to challenge consent decree of a public authority
13 June 2017
Applicants’ main suit dismissed; counterclaim succeeds with interest, Shs.50,000,000 general damages and costs awarded.
  • Commercial law — Loan and mortgage — Default and recall of facility — entitlement to realize security. Contractual interest — enforceability of agreed 13% per annum interest on unpaid loan balance
  • Damages — award of general damages for loss of use of lent funds; interest on damages at court rate. Civil procedure — dismissal for want of prosecution; judgment on counterclaim entered on admission
12 June 2017