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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.
73 judgments
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73 judgments
Citation
Judgment date
December 2020
Court granted a certificate of urgency to hear an application for stay of a bankruptcy order during Court vacation; costs to applicant.
* Civil procedure – Certificate of urgency – grant of certificate to enable hearing during Court vacation under Order 52 r1 & r3 CPR and Court Vacation Rules. * Insolvency/bankruptcy – stay of execution/implementation of bankruptcy order – urgent hearing sought pending appeal. * Public/constitutional interest – effect of bankruptcy on candidature and local government office as basis for urgency. * Costs – applicant to bear costs of ex parte urgency application.
30 December 2020
Commercial Court lacked jurisdiction to appoint an administrator ad litem; matter transferred to Family Division with stay on evictions.
Succession law; substitution of deceased parties; Order 24 r.3 and Succession Act s.222 require proof of executor/legal representative status before substitution; jurisdiction of Commercial Division limited for appointment of administrators; preservation of status quo and transfer to Family Division; stay on evictions and transactions affecting suit property.
29 December 2020
Court granted a certificate of urgency to hear an interim application preventing alleged imminent eviction during court vacation.
Urgency — certificate of urgency — ex parte interim relief — imminent risk of eviction and possibility of irreparable harm — preservation of status quo during court vacation.
29 December 2020
Applicant granted leave to defend summary rent claim after raising triable issues on liability and trade fixtures.
Order 36 — summary procedure — leave to appear and defend — bona fide triable issues; Liquidated demand — computation and requirement for summary suit; Corporate personality — identity and proper party to a tenancy; Trade/temporary fixtures — entitlement to removal, valuation, and possible set-off; Dishonoured cheques — evidential weight in summary rent recovery.
22 December 2020
Court refused to vary registrar’s 30‑day security order but ordered Arab Contractors to withhold Shs 950,000,000 pending further orders.
* Civil procedure – review of registrar’s interlocutory orders – whether Registrar acted within s.98 CPA when granting time to furnish security. * Enforcement/ancillary relief – security by bank guarantee; attachment of machinery; third‑party fund withholding orders as protective relief. * Risk of asset dissipation and provisional measures to preserve subject funds.
22 December 2020
A guarantor undertaking signed without duress is enforceable; guarantors jointly liable upon principal's default.
Contract of guarantee – valid undertaking signed by guarantors – duress not established; Evidence Act s.92 – written document prevails; Contracts Act s.71 – guarantor’s liability crystallises on principal’s default; remedy – judgment for principal debt with interest and costs.
22 December 2020
November 2020
Emails formed a binding contract; defendants (agents) breached it by not paying for medical services; plaintiff awarded damages.
* Contract formation — electronic communications/emails as data messages; enforceability under Contracts Act and Sale of Goods and Supply of Services Act. * Agency — factual finding that defendants acted as agents/representatives of Pinnacle Group International. * Breach of contract — non-payment for supplied medical services. * Evidence — burden under s.101 Evidence Act; plaintiff failed to prove that USD 268,290 credited to second defendant was payment to plaintiff. * Remedies — award of special and general damages, interest and costs.
27 November 2020
Review of liquidation order dismissed; no error apparent or new evidence justified setting aside the liquidation.
Insolvency/winding-up — Review of liquidation order — Grounds for review (error apparent, new evidence, other sufficient reason) — Right to fair hearing and adjournment applications — Allegations of res judicata and prematurity due to arbitration.
15 November 2020
Amendment to add a director denied; clarification of claim amount allowed to avoid multiplicity of proceedings.
Civil procedure – Amendment of pleadings (Order 6 r19; Order 1 r3) – discretion to allow amendments to determine real questions in controversy; corporate personality and privity of contract – director not automatically liable for company obligations; amendments refused where misconceived or premature; clarification of claim amount allowed to avoid multiplicity of proceedings.
15 November 2020
Applicant who accepted and signed commercial loan cannot later challenge interest rates or allege lender’s breach.
Contract law – formation and interpretation; approbation and reprobation – borrower who accepted and signed facility bound by its terms; Consumer protection – Bank of Uganda Financial Consumer Protection Guidelines (fairness, transparency) considered but did not nullify signed agreement; Agricultural Credit Facility (ACF) v. commercial loan – pre-approval disbursements may attract commercial rates; Loan restructuring – conversion of arrears into commercial loan where agreed; Remedies – no fraud, bad faith or damages where plaintiff knowingly contracted.
12 November 2020
A single‑day delivery delay did not justify termination; the respondent liable for breach and PILON awarded.
Contract formation – written service agreement – existence and signatures; Breach – whether single‑day delivery delay amounts to fundamental breach and justifies immediate termination; Conversion – wrongful detention of vehicles versus release and PILON; Counterclaim – set‑off/repayment of advances; Remedies – computation of PILON, special and general damages, and interest rates.
9 November 2020
Court granted conditional stay pending appeal subject to bank guarantee and cash security within 30 days.
Civil procedure – stay of execution pending appeal – prerequisites: timely notice of appeal, no unreasonable delay, security for due performance, risk of substantial/irreparable loss, likelihood of success – absence of draft grounds of appeal – conditional stay by bank guarantee and security deposit.
6 November 2020
Court set aside premature dismissal for want of prosecution, reinstated suit and stayed it pending related TAT proceedings.
Civil procedure – Review of judgment under s.82 CPA and O.46 r.1 CPR – Error apparent on the face of the record – Dismissal for want of prosecution – Order 17 r.5 & r.6 CPR – Lis pendens and abuse of process – Jurisdictional interplay with Tax Appeals Tribunal – Case management and administrative irregularities.
6 November 2020
Contributions to a statutory social security fund create a debt obligation; interest paid is deductible and prior tax authority guidance gave a legitimate expectation.
Tax law – statutory interpretation of "debt obligation" and "interest" – NSSF contributions as repayable obligations – allowable interest deduction under s.25(1) ITA; administrative law – legitimate expectation from tax authority letter; penal tax not payable where taxpayer reasonably relied on authority's prior position; appellate scope of High Court under TAT Act confined to questions of law.
2 November 2020
October 2020
30 October 2020
30 October 2020
A bonded warehouse breached its custodial duty for a stored vehicle and must compensate proven general and special damages.
Commercial law – bonded warehouse liability for goods – custodial duty to keep imported vehicles safe; Evidence – reliance on diagnostic/repair reports and failure to obtain competing inspection; Damages – requirement that special damages be specifically pleaded and proved; Assessment of general damages and discretion to award interest and costs.
30 October 2020
Conditional leave to defend granted where salary-based loan dispute and alleged unoffset repayments raise triable issues.
Summary procedure – leave to appear and defend – triable issues of fact or law – dispute whether loan repayments were exclusively from employment salary – dispute as to amount claimed and alleged recoveries – conditional leave requiring security deposit.
30 October 2020
Bank breached disclosure duties through system failures; no fraud or duress proved; plaintiffs awarded damages and currency-adjustment relief.
Banker-customer relationship – duties of fairness, transparency and disclosure; failure to provide amortisation schedule and system errors; fraud requires strict proof; economic duress and unconscionability – requirements and burden; corporate authority and the "indoor management" rule; remedies: damages, interest, adjustment for currency prejudice.
23 October 2020
Suit dismissed as premature for failure to arbitrate, defective service, and reliance on an unstamped tenancy agreement.
* Arbitration – contractual arbitration clause – mandatory precondition to litigation – court cannot hear suit where parties have not submitted to arbitration or shown agreement to abandon it. * Civil procedure – service of process – affidavit of service must state personal knowledge or identify the person served in compliance with Order 5 rule 16. * Evidence / Stamps Act – chargeable document attached to pleadings must show stamp duty paid per section 42; unstamped document is severable and may defeat cause of action.
20 October 2020
Preliminary objections rejected; plaint discloses a cause of action against the applicant and may be amended and tried.
Civil procedure – preliminary objections – locus standi of corporate deponent; Cause of action – requirements: right, violation, wrongdoer – oral contract and written commitment; Misnomer/misjoinder – T/A usage and remedy by amendment; Order 7 Rule 11 (CPR) – rejection of plaint; Article 126(2)(e) – substantive justice over technicalities.
16 October 2020
Application to amend counterclaim to add necessary parties allowed to avoid multiplicity and enable complete adjudication.
Civil procedure – Amendment of pleadings under Order 6 r.19 – Joinder of parties under Order 1 rr.1,2,3 – Avoidance of multiplicity of proceedings – Discretion to allow amendments where necessary to determine real questions in controversy.
13 October 2020

 

7 October 2020
Oral/partly written contract binding via director's ostensible authority; minor illegality reduced recovery; judgment for plaintiff.
Contracts – partly written and partly oral agreements; ostensible/apparent authority of company director binding the company; performance and substantial completion; illegality in performance (tax under-declaration) limiting recoverable items; damages, interest and costs for breach of contract.
4 October 2020
September 2020
A written tenancy that authorised a market precluded breach claims; only demolition of one market toilet and modest restoration costs were ordered.
Tenancy law – construction and effect of written lease terms; tenant fixtures and obligations on termination; burden of proof for removal of temporary structures; enforceability of unsigned agreements; remedies available for alleged breach of tenancy.
30 September 2020
Respondent held liable for unpaid goods; special and general damages, interest and costs awarded to the applicant.
* Commercial law – sale on credit – proof of credit facility, invoices, delivery notes and dishonoured cheques as evidence of debt; * Civil procedure – ex parte proceedings where defendant fails to file defence; * Damages – award of special damages (strictly pleaded and proved) and discretionary general damages; * Interest – award to compensate plaintiff for being deprived of funds; * Costs – awarded to successful plaintiff.
28 September 2020
High Court stayed final orders on an interlocutory mortgage application pending constitutional challenge, but fixed the main suit for hearing.
* Civil procedure — interlocutory applications — effect of pending appeals and applications at appellate courts on High Court proceedings. * Mootness — overtaken-by-events doctrine — when appellate applications become of no consequence. * Constitutional law — where constitutional challenge attacks the law or regulation under which enforcement is sought, High Court should defer final orders pending determination by Constitutional Court. * Case management — correction of clerical errors in pleadings/citations and fixing main suit for hearing despite interlocutory abeyance.
28 September 2020
Invalid settlement made monies payable under restitution; two partners ordered to refund UGX 2,748,804,076 with interest.
Civil procedure – restitution (money had and received) – invalid settlement/consent order not endorsed by court – failure of consideration – unjust enrichment; Advocates and partnership law – advocates’ lien and set-off; Partnership Act s.19 – liability of partners for pre-existing debts; Res judicata as to sums paid to beneficiaries.
25 September 2020
Absence from hearing due to lack of notification and omission from cause list constituted sufficient cause to reinstate and set aside default judgment.
Civil procedure – Order 9 Rule 23 CPR – setting aside dismissal for non-appearance – "sufficient cause"; cause lists and notification; applicability of vigilance and counsel negligence tests; threshold of prima facie defence for reinstatement of leave to appear and defend in summary suits.
18 September 2020
A company affidavit must be sworn by a principal officer or authorised agent; general or evasive defences may be struck out and judgment entered.
Civil procedure – Pleadings – Order 6 Rules 8 and 10 CPR – Specific and non‑evasive traverses required; Order 6 Rule 30 CPR – striking out pleadings that disclose no reasonable answer; Company representation – competence of affidavit deponent—must be director, secretary, principal officer, recognised agent or have express authority.
18 September 2020
Failure to defend and documentary acknowledgments can establish unpaid commercial debt despite absence of a specific invoice.
Commercial law – sale of goods – proof of indebtedness by ledger, statements and acknowledgments; Evidence – burden of proof on claimant; Civil procedure – failure to file defence deemed admission; Dishonoured cheques and partial payments as evidence of liability; Interest and costs awarded.
14 September 2020
Lender proved breach of loan agreement; court awarded outstanding sum, reduced interest to 19% and permitted enforcement of securities.
* Contract law – Loan agreement – existence, receipt of funds and borrower’s default – breach of contract established. * Interest – Contractual monthly interest deemed harsh and unconscionable – court reduced rate under Civil Procedure Act to 19% p.a. * Damages – Award of general damages for loss of profit and inconvenience (UGX 20,000,000) with 6% p.a. interest from judgment. * Securities – Lender entitled to enforce and realise pledged securities per contractual clause if recovery fails. * Procedure – Ex parte proof accepted where defendant absent and plaintiff satisfied burden of proof.
7 September 2020
Stay of execution refused: no imminent execution or irreparable loss despite arguable appeal points.
Civil procedure – Stay of execution pending appeal – Order 43 r.4 requirements: notice of appeal, delay, imminent execution, likelihood of success, substantial loss, security; consolidation and separate appeal rights; equitable mortgagee versus registered mortgagee rights; execution versus preservation of status quo.
4 September 2020
An expunged defence must be reinstated by vacating the expunging order before seeking enlargement of time.
Civil procedure — Enlargement of time (s.96 CPA; Order 51 r.6 CPR) — Incorrect citation of law not fatal — Expunged pleadings require vacatur of striking-off order before seeking extension of time to file or validate defence.
4 September 2020
Registered trademark owner proved infringement and passing off; injunction, damages, interest and costs awarded to the plaintiff.
Trademark law – Registered mark ownership and exclusive rights under s.36(1); Infringement – use of identical or nearly resembling get-up likely to deceive (s.36(2)); Passing off – goodwill, misrepresentation and damage (s.35 and common law); Remedies – injunctions, general and exemplary damages, interest and costs.
2 September 2020
High Court had jurisdiction where contract was made in Uganda; debt proven by acknowledgement and post-dated cheque.
* Commercial Court jurisdiction – contract formed in Uganda – cause of action arising partly in Kampala under s.15(c) CPA. * Private international element – supply performed in Rwanda but contract made in Uganda. * Proof of debt – invoices, acknowledgment letter and post-dated cheque as evidence of indebtedness. * Quantum – currency conversion/forex not established; court relied on admitted RWF amount. * Damages – general damages assessed by interest (15% p.a. to judgment; 8% p.a. from judgment).
2 September 2020
Application for leave to appear and defend dismissed as overtaken by an unchallenged default judgment.
* Civil Procedure – summary procedure (Order 36) – leave to appear and defend – time limits for filing – effect of default judgment – application overtaken by events; * Procedure – setting aside default judgment as prerequisite to defending after default; * Contract/Guarantee – joinder of guarantor where principal not in default (raised but not decided due to default).
1 September 2020
August 2020
Court corrected a clerical inconsistency in the damages award under section 99 CPA to reflect the intended amount.
Civil Procedure — Correction of clerical/typographical error — Section 99 Civil Procedure Act — Court empowered to amend judgment to reflect intended award where figures and words conflict.
31 August 2020
Stay denied where no competent Notice of Appeal was lodged and exceptional circumstances were not proven.
Stay of proceedings – competence of Notice of Appeal – endorsement by Registrar required under Rule 76 – Order 6 r.30(2) CPR not an unrestricted automatic right – interlocutory orders under Section 7 CPA and O.6 rrs.8 & 10 CPR require leave – mere lodgment of notice not an exceptional circumstance – irreparable loss not established – abuse of process/lengthy litigation.
25 August 2020
July 2020
17 July 2020
17 July 2020
Plaint challenging a settlement deed dismissed for lack of locus standi and breach of lis pendens as an abuse of process.
Civil procedure – locus standi for public interest suits under Article 17 – requirement to exhaust remedies and particularize allegations; Lis pendens – subsequent suit barred if directly and substantially same matter pending; Consent decree/settlement deed reduced to court order – can only be revisited by appeal or review in prior proceedings.
14 July 2020
Electronic service without prior leave under Order 5 is ineffective and does not confer jurisdiction on the High Court.
Civil Procedure – Service out of jurisdiction – Order 5 rules 22, 24 and 26 CPR – leave mandatory before service; Legal Notice No.6 of 2019 permits electronic service but does not negate Order 5 leave requirement – electronic service ineffective without prior leave – jurisdiction not invoked where service invalid.
14 July 2020
Plaint struck out for failing to disclose a cause of action and being barred by lis pendens and lack of public-interest locus standi.
Civil procedure – res judicata – consent decree on tax liability; lis pendens – pending review of same Settlement Deed; public-interest locus standi – Article 17 – requirement to exhaust other remedies; pleadings – requirement to particularise allegations of corruption/fraud to disclose cause of action; appropriate remedy – judicial review vs ordinary suit.
14 July 2020
Respondent lacked locus standi and the suit was barred by lis pendens; plaint struck out for no cause of action.
* Constitutional/public-interest actions – locus standi – requirements under article 17: citizenship, sufficient interest, gravity, "high constitutional principle", and steps taken to protect public property. * Civil procedure – striking out plaint – failure to disclose cause of action and incompetent plaint. * Civil procedure – lis pendens – previously instituted proceedings raising substantially the same issues bar subsequent suit.
14 July 2020
Plaintiff lacked locus standi and failed to exhaust remedies; plaint struck and suit dismissed for lis pendens, defective service, and lack of jurisdiction.
Administrative law – requirement to exhaust available judicial review/administrative remedies before instituting ordinary suit; Civil procedure – locus standi to challenge public settlement deeds; Lis pendens – dismissal/strike out where substantially similar matter pending; Service out of jurisdiction – compliance with Order 5 rules 22 & 24; Jurisdiction – High Court may lack jurisdiction over some defendants.
14 July 2020
Court granted ex parte Anton Piller order for inspection and seizure of alleged trademark‑infringing goods and documents.
Anton Piller order – ex parte relief – trademark infringement and passing off – three‑part test: extremely strong prima facie case; serious damage; real risk of destruction of incriminating materials – inspection and seizure permitted – inter partes hearing within 15 days.
13 July 2020
Ex parte Anton Piller order granted to inspect and seize alleged trademark-infringing goods; inter partes hearing within 15 days.
Trade mark law – Anton Piller (search and seizure) orders – criteria for ex parte grant: extremely strong prima facie case; serious or irreparable damage; clear evidence of incriminating material and real risk of destruction – inter partes hearing to follow; costs in the cause.
13 July 2020
Suit dismissed: company’s purported representative lacked mandate and the Registrar was the wrong respondent, so the claim failed.
Company law — representation — requirement that company be represented in court by an advocate or an agent holding a power of attorney; Civil Procedure — O.3 R.1–2 CPR — recognized agents; Administrative/quasi‑judicial body — proper respondent in challenges to decisions; locus standi — representative who is party to contested decision lacks mandate to sue on behalf of principal.
10 July 2020

 

8 July 2020