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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.
200 judgments
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200 judgments
Citation
Judgment date
December 2022
Application to defend a summary suit filed three days late and unsworn excuse led to striking out and judgment for the respondent.
* Civil procedure – Order 36 summary procedure – requirement to apply for leave to defend within ten days of service – non-compliance results in decree. * Civil procedure – Extension/validation of time – must be sought by notice and supported by affidavit; negligence of counsel not admissible when unsworn. * Summary suits – court will not consider merits where procedural time limits are not complied with.
30 December 2022
Court overruled objections: plaintiff may sue bank and director for fraudulent call on performance guarantee despite arbitration on construction contract.
Civil procedure – preliminary objections – cause of action – corporate veil – piercing veil for fraud; Arbitration – scope and competence – arbitration clause vs. guarantee disputes involving non‑signatory guarantor; Bank guarantees – autonomy and independence of demand guarantees; Fraud exception to autonomy of guarantees; Res judicata – interlocutory orders not final on merits.
27 December 2022
Court granted interim injunction restraining payment of a demand guarantee due to a strong prima facie case of fraudulent demand.
* Banking law – Demand performance guarantees – autonomy and strict compliance principles – narrow fraud exception where beneficiary’s demand is materially misrepresented. * Contract law – Privity and collateral (tripartite) contract exception – locus of applicant (non‑party) to challenge guarantee enforcement. * Interim relief – interlocutory injunction – prima facie case, irreparable harm, balance of convenience.
22 December 2022
Applicant established a strong prima facie fraud and obtained an injunction restraining payment under an on‑demand guarantee.
Bank guarantees — demand performance guarantee — autonomy principle and fraud exception; collateral contract/privity exception — locus standi of applicant; whether beneficiary’s demand was manifestly fraudulent; interim injunction to restrain payment pending main suit.
22 December 2022
Equitable mortgage perfected by deposit of title and caveat; mortgagor ordered to pay declared debt or face foreclosure.
Mortgage law – equitable mortgage: deposit of certificate of title and lodging of caveat perfect equitable mortgage under RTA s.129; Foreclosure procedure – section 8 Mortgage Act; Remedies – declaration of indebtedness, payment within fixed time, return to court for foreclosure and sale; Notice by publication where respondent absent.
20 December 2022

 

19 December 2022
Leave to appeal refused: interim arbitral protective orders are not appealable absent statute or parties’ agreement.
Arbitration — interim/provisional measures — appealability — limited court intervention; party autonomy and finality of arbitral process; appeals only where statute or parties’ agreement permits questions of law arising out of award.
12 December 2022
A court declined to grant interim protection after termination of a contract, finding no prevailing status quo to preserve.
Arbitration – Interim measures – Temporary injunction – Status quo – Contract termination – Prima facie case – Irreparable harm – Balance of convenience – Judicial discretion – Enforcement of arbitral proceedings.
12 December 2022

 

8 December 2022
Leave granted to file and tax an advocate–client bill after service and absence of evidence of prior payment.
* Advocates Act s.57 – action to recover advocate’s costs – requirement of delivery and service of bill; * Advocate–client bill of costs – nature: professional fees and disbursements payable by client irrespective of outcome; * Taxation – role of taxing officer in assessing recoverability and reasonableness; * Evidence – burden to prove prior payments or discharge of the bill.
7 December 2022
Court validated a belated memorandum of appeal due to court delay and counsel's mistake, refusing to strike it out.
Civil procedure – appeals – limitation periods – section 79 CPA – time excluded for court’s delay in preparing certified record – appeal commenced by memorandum of appeal – validation/enlargement of time – mistakes of counsel not ordinarily visited on litigant – discretion to admit late appeal for good cause.
7 December 2022

 

6 December 2022

 

6 December 2022
Court upheld contract balance but set aside arbitral awards for variations and design costs for breaching procurement law.
* Arbitration — validity of appointment; kompetenz‑kompetenz; waiver by participation. * Arbitration — jurisdictional limits; ultra petita/infra petita. * Natural justice — bias and misconduct thresholds. * Public policy — incompatibility of arbitral awards with mandatory procurement regulations (Regulations 54, 55). * Quantum meruit cannot displace clear statutory procurement limits.
2 December 2022
November 2022
Court set aside registrar’s injunction and dismissed suit for lack of jurisdiction due to an enforceable exclusive forum clause.
Court procedure – Time to appeal runs from date of pronouncement (including electronic delivery via ECCMIS); Jurisdiction – procedural versus substantive challenge; Registrar’s powers – interlocutory steps v. matters disposing of a suit (Order 50(7)); Contract law – enforceability of exclusive forum-selection clauses; Tort of procurement – suing third parties does not automatically displace an agreed exclusive jurisdiction clause.
30 November 2022

 

30 November 2022

 

30 November 2022

 

19 November 2022

 

19 November 2022
Carrier liable for mis‑description and delay; cargo released and plaintiffs awarded damages; demurrage counterclaim dismissed.
* Carriage of goods – carrier’s duty to verify bill of lading and manifest; liability for mis‑description and delay. * Agency – freight forwarder as shipper’s agent; liner agent as carrier’s agent; apparent authority to issue documents. * Hague‑Visby Rules – shipper’s furnished figures; carrier’s obligation and limits; indemnity for inaccuracies not applicable where carrier at fault. * Remedies – release of cargo, damages, dismissal of demurrage counterclaim and award of costs and interest.
10 November 2022

 

7 November 2022

 

7 November 2022

 

7 November 2022
Whether the applicant may enforce non‑notarised contingency fee agreements against the respondent and tax an advocate‑client bill.
Advocates Act s48–51 — fee agreements; notarisation and Law Council registration — non-compliance renders agreement unenforceable; champerty/contingency/success fees — prohibition and public policy; Taxing Officer’s jurisdiction limited to quantum — questions of validity for a Judge; s50(3)/(4) — court power to set aside unfair/unreasonable agreements; fiduciary duty — overreaching and professional misconduct; advocate-client taxation — not available where agreement illegal or unconscionable.
3 November 2022
October 2022
Vendor entitled to contract price, damages and interest after buyer's breach by dishonoured cheques and abandonment.
Contract law – sale of business assets – dishonoured cheques and abandonment – breach of contract; rescission requires clear communication; counterclaim for misrepresentation dismissed for lack of evidence; award of contractual price, special and general damages; interest and costs.
31 October 2022
Whether respondents breached a sale agreement and are liable for unpaid purchase price, damages and interest.
Contract law – sale of business assets; breach of contract for non-payment of purchase price; rescission – requirement of clear communication; admissibility and effect of dishonoured cheques; assessment of special and general damages; award of interest and costs; counterclaim dismissed for lack of proof.
31 October 2022
31 October 2022
Ignorance of procedure by lay litigants and counsel’s mistake can constitute sufficient cause to file a defence out of time.
Civil procedure – Extension of time – Leave to file defence out of time – Sufficient cause includes ignorance of procedure by lay litigant and mistake of counsel; discretion under Order 51 r6 exercised to promote hearing on merits and access to justice.
31 October 2022

 

7 October 2022
Default on a loan agreement found; defendant ordered to pay USD 25,650, UGX 20,000,000 damages, interest and costs.
* Civil procedure – Default judgment/formal proof – Effect of failure to file a defence; presumption of constructive admission. * Contract – Loan agreement – Default and acceleration clause making whole sum due on missed instalments. * Remedies – Declaratory relief, payment of outstanding loan, general damages for economic inconvenience, interest and costs.
5 October 2022
2 October 2022
September 2022

 

29 September 2022
Where an arbitration clause exists and no appointing authority, the court can appoint an arbitrator and close the suit.
Arbitration Act s.5 – stay of proceedings and referral to arbitration; court appointment of arbitrator where appointing authority unavailable; requirements for s.5 (defence filed, hearing); court jurisdiction to intervene; costs to abide arbitration.
26 September 2022
Decretal payment under a supply contract awarded; 25% interest not proved, court awarded 6% from filing and costs to plaintiff.
* Contract law – recovery of sums under a framework supply contract – partial consent judgment upheld as decretal sum. * Civil Procedure – interest on money decree – court discretion to award interest; high claimed rate must be pleaded and proved. * Evidence – inability to rely on unfiled bank/default documents in the trial bundle. * Costs – costs follow the event; successful party awarded costs.
23 September 2022
Written friendly loan agreements were enforceable; excessive default interest reduced and guarantors held jointly and severally liable.
Commercial law – Friendly loan agreements – Parol evidence rule (Sections 91–92 Evidence Act) – Written agreements binding; illegality defence requires proof of trading as unlicensed money lender; Interest – default interest may be restrained as harsh and unconscionable under Section 26 Civil Procedure Act; Court reduced contractual default interest to 24% p.a.; Guarantee law – guarantors jointly and severally liable on principal debtor's default; Property – retention of title not enforceable as additional security absent written agreement; Order to release title and remove encumbrances.
22 September 2022
19 September 2022
Failure of the Taxing Officer to give intelligible reasons vitiated the taxation award and justified remittal for fresh taxation.
Costs — Taxation — Party-and-party bill — Requirement for Taxing Officer to give intelligible reasons — Failure to give reasons vitiates award — Appellate interference where discretion exercised on wrong principle or results in injustice.
16 September 2022
Applicant’s injunction to restrain sale by mortgagee dismissed; damages adequate and balance of convenience favoured respondent.
Interim injunctions – interlocutory relief – test of prima facie case, irreparable harm and balance of convenience – mortgage security and receivership – adequacy of damages as remedy – commercial property sales.
14 September 2022
Court finds judgment debtors in civil contempt for procuring special titles and transfers to frustrate court-ordered rectification.
Contempt of court – civil contempt for deliberate disobedience of a clear rectification order; Land law – rectification under s.91 Land Act to convert mailo to leasehold; Validity of special certificates and transfers – nemo dat and illegality where transferee/corporate status disqualifies tenure; Remedies – cancellation of certificates/transfers, fines, conditional imprisonment, compensation and costs.
12 September 2022
The court declined jurisdiction to bar advocates from arbitral proceedings, holding such disputes must be resolved by the arbitrators.
Arbitration – Court jurisdiction – Section 9 of Arbitration and Conciliation Act – Judicial intervention in arbitral proceedings – Conflict of interest in representation – Professional conduct of advocates – Objections to representation to be raised before arbitral tribunal.
8 September 2022
August 2022
Court found breach and guarantor liability; awarded UGX 318,993,500 special damages, UGX 25,000,000 general damages, interest and costs.
* Contract law – breach of MOU and commitment agreements; guarantor liability under contractual guarantees; evidentiary burden in default judgment proceedings; partial allowance where bank statements and beneficiary lists conflict; proof of special damages for title/transaction costs; interest and costs awarded.
31 August 2022
The mortgagor's failure to repay after notice justified foreclosure, eviction, inspection access, sale and costs in favour of the mortgagee.
* Mortgage law – foreclosure – remedy available on mortgagor's default; Order 37 Rule 4 CPR. * Mortgage Act – remedies on default: possession, entry, valuation, sale (ss. 8, 19, 20). * Civil procedure – ex parte proceedings after service by publication and failure to file defence. * Costs – discretion under Civil Procedure Act; costs follow the event.
30 August 2022
The applicant mortgagee entitled to foreclose, enter, evict, inspect and sell property after respondent's default.
* Mortgage law – remedies on default – foreclosure, possession, valuation and sale by mortgagee under Mortgage Act 2009 and Order 37 Rule 4 CPR; default and unopposed evidence; costs follow the event.
30 August 2022
A stay of execution of an arbitral award requires proof of substantial loss, prompt application and security; absence warrants dismissal.
Arbitration enforcement – stay of execution – Order 43 r 4(3) CPR – conditions for stay: substantial loss, absence of unreasonable delay, security for due performance – failure to prove any condition results in dismissal.
29 August 2022
Loan formed by multiple documents and conduct was enforceable; defendant liable for USD 37,143, insurer and employer not liable.
* Contract formation – loan agreements may be constituted by multiple writings and conduct; written terms need not appear in a single document. * Loan enforceability – borrower’s acknowledgement and receipt of funds supports contract existence. * Insurance – scope and exclusions of credit life policies determine insurer liability for loan repayment. * Employer undertaking – recommendation/undertaking letters do not necessarily transfer repayment liability. * Remedies – court may award interest and costs; rate may be adjusted for conduct of parties.
29 August 2022
Plaintiff bank awarded outstanding loan, interest, general damages and costs after defendants defaulted and mortgaged property was sold.
Commercial law – Loan agreements – Default and enforcement; Security – personal guarantee, charges and mortgage; Mortgage sale proceeds applied to loan account; Burden of proof where defendant fails to file defence; Remedies – recovery of principal, contractual interest, general damages, interest on damages and costs.
16 August 2022
Whether respondents committed fraud and veil lifting warranted; court found no fraud but awarded USD 500,000 to the applicant.
* Company law – lifting corporate veil – whether fraud proven to justify piercing corporate veil. * Contract law – investment proposal/non‑binding proposals – when proposal becomes binding and divisibility of contract price. * Remedies – recovery of money had and received, general damages, interest and costs. * Evidence – fraud requires strict proof on a higher standard.
16 August 2022
The plaintiff was entitled to 40% project commission where a partner bound the firm by apparent authority.
Partnership law; agency and apparent authority of partners; consent judgment and effect on co-partners; validity and enforceability of KPI/consultancy agreements; procuring-cause test for commissions; contingent liabilities, retirement of partner and indemnity/contribution; commercial interest on withheld payments.
16 August 2022
Partner-executed KPI bound the firm; employee procuring the project entitled to 40% of net project profits.
Partnership law – apparent and implied authority of partners; ordinary course of business – when partner’s acts bind partnership; KPI/employment arrangements – commission entitlement; procuring cause doctrine – entitlement to commission; consent judgment – binding only on signing partner when not in firm name; indemnity/contribution among partners – liability for debts incurred while partner.
16 August 2022
Fraud not proved and corporate veil not pierced, but plaintiffs recover USD 500,000 and damages for breached investment obligations.
* Civil law – Alleged fraudulent misrepresentation – requirement to prove fraud strictly; burden on claimant. * Company law – Piercing the corporate veil – factors for lifting: fraud, sham, siphoning; court refused to lift veil. * Contract law – Non-binding investment proposal rendered binding by parties' conduct; divisible contract and recovery of money had and received. * Remedies – Recovery of funds, interest, general damages, and costs (split award).
16 August 2022