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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.
46 judgments
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46 judgments
Citation
Judgment date
October 2019
4 October 2019
September 2019
Applicant granted extension and leave to amend plaint to reinstate fraud particulars after documents were discovered, subject to costs and timetables.
Civil procedure – Amendment of pleadings – Enlargement of time to seek leave to amend after Scheduling Conference – Newly discovered documents in applicant’s archives – Order 6 r 19 CPR; Abuse of process – Reinstating fraud particulars – bona fides and prejudice; Costs and procedural conditions to mitigate prejudice.
27 September 2019
Court limited to statutory arbitration remedies; late award alone is not reviewable and repetitive applications are abuse of process.
Arbitration — limited court intervention — Arbitration and Conciliation Act sections 9, 31, 33, 34 — delay in award delivery not automatically vitiating — proper remedy to challenge award is section 34 setting aside — abuse of process for successive time‑barred applications.
25 September 2019
Transfers of a company's exploration licence were void for lack of quorum/notice; conduct amounted to fraud on the minority and veil was lifted.
* Company law – derivative action – fraud on the minority – reflective loss and standing to sue. * Company law – meetings and resolutions – quorum, notice and validity of directors' decisions. * Directors' duties – duty to act in good faith, avoid conflicts and statutory compliance; breach and remedies. * Corporate personality – lifting the corporate veil where corporate form used as cloak for fraud; group control. * Remedies – declarations nullifying transfers, audit of accounts, return/benefit to nominal company, interest and costs.
19 September 2019
Whether a default judgment on a liquidated loan claim must follow Order IX r6 and the appropriate award of principal, interest and damages.
Civil procedure – default judgment on liquidated demand – Order IX r6 applies, not Order IX r8; Proof of indebtedness – correspondence and acknowledgments; Damages – requirement of evidence to establish general damages; Interest – court’s discretion to moderate contractual/claimed rate; Costs – plaintiff entitled to costs where judgment entered.
17 September 2019
Application to set aside default judgment dismissed after court struck off affidavits for deliberate falsehoods, awarding costs to respondent.
Civil procedure – setting aside default judgment – requirement of bona fide defence and credible excuse for delay; affidavits – material falsehoods and inconsistencies – striking off affidavits – dismissal of application; costs awarded.
3 September 2019
A corporate plaintiff’s name misnomer was curable; suit proceeds after amendment where registry records and admissions establish identity.
Company law – corporate name variation / misnomer – whether plaintiff is a nonexistent entity – Order 1 Rule 10 CPR – curable misnomer where incorporation records and defendant’s admissions establish identity – amendment of plaint ordered.
3 September 2019
August 2019
Mortgagee entitled to vacant possession where borrower defaulted and statutory Mortgage Act notices were complied with.
Mortgage law – enforcement of mortgage – statutory notices of default (s.19) and notice of sale (s.26) under the Mortgage Act 2009 – borrower’s default and failure to respond – entitlement to vacant possession and costs.
27 August 2019
26 August 2019
A bank in receivership lacked capacity to sue and its land claims were barred because it was a noncitizen; suit dismissed.
* Financial Institutions Act – receivership – section 96 bars proceedings against a financial institution in receivership; Receiver lacks statutory authority to sue. * Companies under statutory management and liquidation – instances when Central Bank or liquidator may litigate (s89, s100). * Cause of action – transfer of assets/liabilities during receivership extinguishes proprietary interest. * Land law – noncitizen companies cannot hold freehold/mailo land (Constitution art 237; Land Act s40). * Costs – party who instituted proceedings while respondent lacked capacity should pay.
26 August 2019
Buyer entitled to rescind and full refund where sold land was 1.5 acres short, constituting fundamental breach.
Sale of land – contractual warranty as to acreage and title – shortfall in acreage (1.5 acres) held a fundamental breach – rescission and refund of purchase price awarded; failure to prove squatting; damages and interest awarded.
23 August 2019
Suit dismissed for forum non conveniens because parties chose English law and the plaintiff failed to justify suing in Uganda.
Contract – choice of law and forum clauses; non-exclusive jurisdiction – burden on claimant to prove strong reasons to sue outside chosen forum; forum non conveniens – balance of convenience, witness location, costs and judicial expertise; effect of prior foreign proceedings.
16 August 2019
July 2019
A contracted carrier remains liable for loss of goods despite subcontracting; plaintiff awarded special and general damages.
Contract law – Carrier’s liability – duty to deliver safely remains with contracted carrier despite subcontracting; Assignment prohibited without consent – effect on liability; Proof of special damages – market valuation and reimbursed customs/VAT; Assessment of general damages and interest.
12 July 2019
A company officer cannot act as advocate without proper authority; refusing court-ordered counsel justified dismissal for abuse of process.
* Civil procedure – right of audience – corporate representation – managing director lacks locus to appear as advocate without power of attorney or resolution; Order 3 r.1; Order 29 r.1. * Judicial administration – judicial independence and allocation of business – Principal Judge may allocate but not direct judicial conduct (s.20 Judicature Act). * Inherent jurisdiction – abuse of process and delay – court may dismiss for non-compliance with directions and to prevent abuse (s.98 Civil Procedure Act; s.33 Judicature Act).
11 July 2019
A supervisor with continuing contractual duties may be joined despite privity; preliminary objection dismissed.
* Construction law – Supervisor's obligations – verification of Draft Final Statement of Account; issuance of Final Statement of Account and Final Acceptance (Articles 5, 51, 62). * Contract law – Privity and agency – agent of a disclosed principal generally not liable, but continuing contractual duties may make agent's presence necessary. * Civil procedure – Cause of action – plaint to be read with attachments; preliminary objection on disclosure of cause of action. * Civil procedure – Joinder (Order 1 Rule 3) – party may be joined if their presence is necessary for complete adjudication.
8 July 2019
June 2019
DTC bars withholding tax on intercompany lease payments absent a permanent establishment; VAT input credit recoverable despite supplier non-remittance.
* Tax – Double Taxation Convention – Intercompany lease payments – Withholding tax – Permanent establishment required for taxation under DTC; * Tax procedure – VAT input credit – purchaser not required to verify supplier remittance – tax authority’s duty to pursue collector; * Relief – injunction restraining collection, refund of input VAT, damages and costs.
19 June 2019
May 2019
Applicant’s failure to provide required advance security and submission of false claims justified termination; counterclaim succeeds.
Construction contract – advance payment – requirement for on-demand advance payment security – effect of failure to provide security; Interim payment certificates – rejection where claims unsubstantiated or false; Termination – justified for non-performance and false claims; Counterclaim – valuation and set-off; Interest award discretionary (15% p.a.).
24 May 2019

 

23 May 2019
The applicant’s unauthorized substitution of contract-specified components caused contract failure; claim dismissed with costs.
* Contract/subcontract – obligation to procure contract-specified components – requirement to source from specified supplier/location and consequences of unauthorized substitution. * Performance/termination – responsibility for delay and contract termination attributable to subcontractor’s breaches. * Supply terms – FOB supply and allocation of payment risk between subcontractor and supplier. * Remedies – claim for unpaid sums dismissed where claimant’s breaches caused contract failure and part payments unexplained.
3 May 2019
April 2019
Plaintiffs recover UGX 90,000,000 plus interest and costs after failed microfinance agreement and forged title.
Contract formation – Memorandum of Understanding creating loan/venture capital; evidential corroboration; recovery of monies where venture fails; forged security instrument; award of damages, interest and costs.
25 April 2019
March 2019
Court entered judgment on admission where pleadings and correspondence constituted clear admissions; POA allowed suit against the individual.
* Civil Procedure – Judgment on admission – Order 13 r 6 – admissions may arise from pleadings and correspondence; Order 13 r 4 permissive not mandatory. * Evidence – Admission – must be precise and unambiguous to found judgment on admission. * Agency / Locus standi – Power of attorney construed broadly to permit suit against identified person. * Company law – Corporate veil – cannot be invoked to evade obligations freely undertaken where person acted as voice of the company. * Remedies – Contracts Act s.61(1) – damages and interest for breach of contract.
25 March 2019
Affidavit omitting the source of factual information is incurably defective and must be struck out, rendering the application incompetent.
Affidavit — Order 19 r 3 CPR — requirement to confine to facts within deponent’s knowledge; where based on information, source must be disclosed — affidavit by counsel — factual averments outside counsel’s knowledge — non-disclosure of source is fundamental and renders affidavit incurably defective — severance not available to cure such defect — striking out affidavit and dismissal of unsupported application.
22 March 2019
An affidavit failing to disclose the source of information is incurably defective and warrants striking out and dismissal of the supported application.
Civil procedure – Affidavit – Order 19 r 3 CPR – affidavit based on information must disclose source – non-disclosure renders affidavit incurably defective; affidavit by counsel – distinction between matters of law and facts; severance not always curative.
22 March 2019
Application for extension to appeal dismissed for procedural impropriety, abuse of process and inordinate delay.
Administrative law – Extension of time to appeal – Procedural requirements under Electricity Tribunal Proceedings Rules and Order 44 r(3) CPR – Res judicata requires prior decision on merits – Abuse of process and inordinate delay – Striking out premature application.
22 March 2019
Court dismissed trademark injunction, holding customs lawfully escorted transit goods and foreign orders require local registration.
* Intellectual property – trademark territorial rights – limits of enforcement of foreign judgments and injunctions without local registration; * Customs law – transit versus importation – obligation to facilitate legitimate transit and hand over to destination state; * International/cooperative enforcement – need for reciprocal arrangements (EAC Customs Management Act s.10(3)); * Evidence – burden to prove smuggling/dumping and causal link to alleged defendant.
21 March 2019
19 March 2019
Applicant found served, was a named borrower, affidavit struck out for falsity; application dismissed with costs.
Civil procedure – service and notice; Written statement of defence – binding effect when filed by instructed counsel; Contract law – characterization of signatory as borrower under financing agreement; Affidavits – deliberate falsehoods warrant striking out; Interlocutory relief – attachment/security and consequences of non-compliance.
19 March 2019
Breach of land sale: plaintiffs awarded recovery, substantial general damages and interest; punitive damages denied.
Contract for sale of land; breach by non-delivery of agreed parcel; proof of payments by receipts and acknowledgements; substituted service and default judgment; assessment of general damages; refusal of punitive damages for lack of malicious conduct; interest awarded for deprivation of use of funds.
15 March 2019
Temporary injunction granted where sale procedures under the Mortgage Act were not shown to have been complied with, pending the main suit.
* Civil procedure – interlocutory injunction – requirements: prima facie case, irreparable harm, balance of convenience. * Mortgage law – requirements for sale of mortgaged property – compliance with statutory notices (Mortgage Act s.26(2)) and Mortgage Regulations. * Evidence – insufficiency of proof of statutory notice renders sale process flawed and may justify preservation of status quo.
4 March 2019
Temporary injunction granted where mortgagee failed to prove service of statutory sale notices; balance of convenience favoured applicant.
Civil procedure — temporary injunction — prima facie case, irreparable injury, balance of convenience; Mortgage Act s.26(2) — statutory notices for sale; Mortgage Regulations — security deposit requirement; defective sale/advertisement of mortgaged property.
4 March 2019
Applicant granted unconditional leave to defend summary suit due to triable disputes over loan amounts, outstanding balance and securities.
Civil Procedure – Order 36 (summary suits) – Application for leave to defend – Defendant need only show bona fide triable issues, pleaded in good faith and with sufficient particularity – Disputed loan amounts, inconsistent loan/bank statements, and missing/partial mortgage documentation raise triable issues warranting unconditional leave to defend.
1 March 2019
Court upheld the taxing master's UGX 90,000,000 instruction fee, finding no error of principle despite high subject-matter value.
* Taxation of costs – instruction fees – application of Schedule 6 of Advocates (Remuneration and Taxation of Costs) Rules – value of subject matter as factor. * Civil procedure – appeal from taxation – interference only for error of principle or manifestly excessive/low award. * Consent/compromise on decree – effect on costs claims – consent limited to partial satisfaction of general damages. * Miscellaneous application pending – court records show dismissal, taxation reference not stayed.
1 March 2019
February 2019
Contingency reserves required by insurance law are not deductible for income tax; assessment was not time‑barred.
* Taxation – Insurance business – Contingency reserves under Insurance Act – Whether deductible under paragraph 3 of 4th Schedule of Income Tax Act – Held not deductible as they are appropriations/retained earnings, not expenditures. * Tax procedure – Limitation – Sections 95 and 97 Income Tax Act – Burden to plead and prove filing dates to establish time‑bar – failure to plead or adduce evidence defeats the defence.
20 February 2019
Court entered judgment for UGX 32,000,000 on an unequivocal admission in the defence and ordered 25% interest from 24/6/2016.
Civil procedure – Order 13 r.6 – Judgment on admission in pleadings – Unambiguous admission in defence – Effect of non-appearance after service – Interest on admitted sum – Residual claim to proceed to hearing.
15 February 2019
Court entered judgment on a clear admission in defence for UGX 32 million and awarded 25% interest, reserving the residual claim for hearing.
Civil procedure – Judgment on admission – Order 13 rule 6 CPR – Admission in pleadings must be clear and unambiguous – Non-appearance after substituted service may be treated as affirmation of admission – Interest awarded on admitted sum.
15 February 2019
Court granted interlocutory injunction to prevent director’s disruptive interference with company bank accounts and business pending main suit.
* Civil procedure – interlocutory injunction – requirements: prima facie case, irreparable injury, balance of convenience. * Corporate law – director’s communications with banks – interference with company affairs and preservation of status quo. * Order 41 CPR – power to grant temporary injunction to prevent wasting, damaging or alienation of property.
15 February 2019
An insurer’s unapproved post-issuance policy variation fails; insured entitled to indemnity under original "all risks" marine policy.
Marine cargo insurance – formation and operative policy – material post-issuance alteration requires regulatory approval (Insurance Act s.35) – "All Risks" cover upheld – error and omissions clause protects unintentional non-disclosure – vessel age non-disclosure defence rejected – total constructive loss established – indemnity, general damages, interest and costs awarded.
14 February 2019
Application for stay pending appeal dismissed for failure to show arguable appeal, irreparable loss or requisite security.
Stay of execution — Order 43 r.4 CPR — requirements: notice of appeal; no unreasonable delay; likelihood of success; risk of appeal becoming nugatory; substantial/irreparable loss; security for due performance — execution by arrest/civil imprisonment — constitutional and ICCPR considerations.
13 February 2019
January 2019
Applicant’s claim that an insured salary loan should be paid by the insurer raised a bona fide triable issue, so leave to defend was granted.
Civil procedure – summary judgment under Order 36 – leave to appear and defend – bona fide triable issue required; Insured salary loan – insurer’s liability on job loss; Account reconciliation/audit where amount disputed.
25 January 2019
Applicant raised a bona fide triable issue that an insurance policy, not the applicant, may cover the outstanding loan.
Civil procedure — Order 36 r3-4 & Order 52 r1 — leave to appear and defend in summary suit — requirement of bona fide triable issue; Insured salary loan — contention that insurer, not borrower, liable after job loss; Dispute as to amount requiring reconciliation/audit; Proposed written statement of defence can demonstrate triable issues.
25 January 2019
Ex parte inspection and seizure under s.79 TMA granted where applicant showed prima facie infringement and risk of concealment.
* Trade Marks – s.79 Trademarks Act – ex parte inspection and seizure – Anton Piller style order – prima facie infringement and risk of concealment required. * Remedies – inspection, inventory and removal of infringing materials – presence of High Court bailiff and designated Trademarks inspector as procedural safeguard. * Costs – to abide outcome of main suit.
25 January 2019
Court allowed respondent’s late affidavit in reply but validated the extension and ordered respondent to pay adjournment costs.
Civil procedure – late filing of affidavit in reply – court’s discretion to extend time – factors: extent of delay, reasons, prejudice and accountability – Article 126(2) not a license to disregard procedural time limits – costs as sanction for delay.
25 January 2019
Court found defendant delivered 800 plates, must deliver remaining 200 or pay current price with interest and costs.
* Contract law – sale of goods – formation and performance of contract for supply of goods. * Breach of contract – non-delivery of agreed goods; specific performance or monetary compensation. * Evidence – weight of contemporaneous demand letter and invoice entries ("NT") in determining delivery. * Remedies – delivery or current market price, interest on undelivered goods, costs. * General damages – denied where loss attributable to claimant and duplicative of claim.
22 January 2019
Whether an acquiring bank is liable for salary deductions under transferred employment contracts — court finds liability and awards damages.
Banking law – banker–customer relationship and unauthorized account deductions; Employment law – transfer of contracts on business transfer (Employment Act s.28); Purchase of assets agreement – excluded liabilities and indemnity clauses do not preclude suit against buyer; Jurisdiction – commercial vs labour jurisdiction; Remedies – proof of special damages, award of general damages, interest, denial of exemplary damages.
15 January 2019
Instruction fees must be calculated under the sixth schedule formula where the claim value is ascertainable.
Advocates' costs – Taxation of costs – Sixth schedule of Advocates (Remuneration and Taxation of Costs) Rules S.I. 267-4 – Mandatory formula where subject-matter value ascertainable – item 1(a)(iv) and item 1(a)(iii) (settlement/withdrawal) – taxing officer’s discretion limited/removed – taxation award set aside and bill remitted.
14 January 2019
A transferee court requires a verified EACJ judgment and proper transfer; invalid service and sovereign/immunity principles bar garnishment.
EACJ judgments – enforcement requirements – verified judgment and specific transfer order required for transferee court jurisdiction; Service of process – branch inviolability and consent under Branch Office Agreement; Locus standi – agent cannot sue in own name; Post-judgment discovery – permissible but limited and relevant to attachable assets; International organisations and sovereign entities – process and jurisdictional immunity; Attachment – shares/dividends arising from shareholder status not readily garnishable.
6 January 2019