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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.
29 judgments
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29 judgments
Citation
Judgment date
July 2022
Applicant granted unconditional leave to defend summary suit due to bona fide triable disputes over quantum, timing and cheque status.
Civil procedure – Order 36/Order 52 – leave to appear and defend – bona fide triable issues – disputed quantum – prematurity of summary suit – undated cheques as security v. payment.
29 July 2022
Amendment adding fraud disallowed as new cause of action; second applicant joined as plaintiff to the suit.
Civil procedure – Amendment of pleadings – Amendment disallowed where it introduces a new distinct cause of action; Joinder of parties – Persons who claim relief arising from same transaction may be joined; Mistake of counsel – Applicant must prove demonstrable counsel error to avoid technicality; Article 126(2)(e) not a free licence to ignore law.
29 July 2022
Application to appear and defend in summary suit denied for lateness and defective supporting affidavit; respondent awarded UGX 425,000,000.
Civil Procedure – Summary procedure (Order 36) – Leave to appear and defend – Ten‑day time limit; Service by electronic means (WhatsApp/email) effective to commence time; Affidavit requirements – deponent must have authority and personal knowledge; Threshold for leave – bona fide/triable defence required; Consequence of refusal – automatic decree up to endorsed sum and costs.
29 July 2022
Applicant granted leave to defend summary suit after raising triable issues over indebtedness and a compromise agreement.
Summary procedure – Order 36 R3/R4 – leave to appear and defend – triable issues as to indebtedness and account balancing – validity/execution of compromise agreement – whether applicant is beneficiary – bona fide defence required.
29 July 2022
Whether a breach‑of‑contract claim is time‑barred where the alleged sale occurred in 2015.
Limitation of actions — Contract actions — six‑year limitation under section 3(1) Limitation Act; Cause of action — arises on date of wrongful sale; Civil Procedure — Order 7 Rule 11(d) — rejection of plaint barred by law; Preliminary objection — time bar — dismissal where suit was filed within statutory period.
29 July 2022
Interim injunction set aside because the applicant failed to prove irreparable harm despite a prima facie case.
Interlocutory injunctions – requirements: prima facie case, irreparable harm, balance of convenience – absence of irreparable harm precludes grant of injunction; appellate re-evaluation of registrar’s discretionary interlocutory order.
29 July 2022
Court found mutual breaches: defendant failed to pay and removed co‑signatory; plaintiff delayed completion; monetary awards ordered.
Contract law – subcontract payment obligations – liability for unpaid work and wrongful removal of contractually-protected bank signatory. Contract law – time of performance – effect of agreed extension and breach for failure to complete by extended date. Restitution – unjust enrichment claims – requirement for proper pleading and evidential support. Remedies – assessment of damages, interest (court discretion; Bank of Uganda rate used) and costs (each party to bear own).
29 July 2022
Related mortgage and contractual disputes should be heard concurrently, not fully consolidated, to avoid practical prejudice.
Civil procedure – consolidation of suits – Order 11 r.1 CPR – related transactions and common questions of law and fact – practical prejudice where a party is plaintiff in one suit and defendant in another – concurrent trials with separate pleadings and judgments.
29 July 2022
Ex parte decree set aside for defective service and questionable decrees; applicant granted unconditional leave to defend.
Civil Procedure – Order 36 r.11 – setting aside ex parte decree for ineffective service; Affidavit of service – credibility and discrepancies; Decree formalities – sealing, dating and currency consistency; Leave to defend – requirement of bona fide triable issue.
29 July 2022
The defendant’s suit for the price barred later repossession; wrongful repossession without notice entitles the plaintiff to damages.
Contract law — sale by instalment/conditional sale; characterization of transaction; waiver by acceptance of late payments; election of remedies — suit for price bars later repossession; requirement of notice before repossession; wrongful repossession — damages.
28 July 2022
An on‑demand performance guarantee cannot be restrained from payment absent strict proof of fraud or irreparable harm.
Arbitration — interim measures — interim injunctions pending arbitration; Performance guarantees — on-demand/unconditional guarantees; Fraud as sole exception to payment under demand guarantees — strict proof required; Irreparable harm and adequacy of damages; Balance of convenience in restraint of performance bonds.
28 July 2022
The respondent is entitled to recover the outstanding loan, interest and general damages for breach of the loan contract.
Contract law – Loan facility – enforcement of loan agreements – proof of disbursement and outstanding balance by documentary evidence. Breach of contract – remedies – principal recovery, general damages; aggravated damages not awarded without aggravating conduct. Guarantor liability – guarantee enforceable; joint and several liability. Interest – commercial rate award under Civil Procedure Act; interest on principal from date default ascertained. Civil procedure – ex parte hearing of counterclaim after dismissal of plaintiffs’ suit under Order 9 CPR.
27 July 2022
Court stayed recovery proceedings and deferred leave-to-defend until an earlier suit challenging the same guarantee is determined.
Civil procedure – Order 36 r.4 – Leave to appear and defend – Requirement of a bona fide triable issue of fact or law pleaded with sufficient particularity. Related proceedings – Stay of proceedings – Where an earlier pending suit challenges the same agreement, later proceedings may be stayed pending determination. Case management – Reallocation of matters and directions to prosecute earlier proceedings to avoid conflicting determinations.
25 July 2022
An arbitration clause is void where the underlying loan contract is illegal, so the applicant's land suit proceeds.
Arbitration law — arbitration clause unenforceable where underlying contract is illegal (no licence, prohibited interest); Service of process — court may exercise inherent jurisdiction to renew summons; Civil procedure — lis pendens requires same parties and reliefs; Company law — director may be sued and corporate veil lifted within main suit where fraud alleged; Land law — RTA and Mortgage Act protections do not bar fraud-based challenges to title.
25 July 2022
Urgent judicial intervention granted to halt imminent sale of property, allowing injunctive applications to be heard during court vacation.
Civil Procedure – Certificate of urgency – Court vacation – Urgent application for injunctive relief pending sale of property – Imminent threat to property rights justifying dispensation of court vacation rules.
21 July 2022
A certificate of urgency was issued to hear injunction applications protecting family property from imminent sale during court vacation.
Civil procedure – Certificate of urgency – Injunctive relief during court vacation – Imminent threat to matrimonial property – Protection of spouse’s legal interest.
21 July 2022
Bank refunded fraudulently debited funds but breached fiduciary duty by failing to communicate investigation outcome, warranting damages.
Banking law – banker-customer relationship – duty of care and fiduciary obligations to safeguard customer deposits. Banking law – unauthorized/online Visa transactions – liability where bank did not participate in fraud but failed to communicate investigation outcome. Contract interpretation – indemnity clauses for internet card use not applicable where customer did not authorize the transaction. Remedies – reduction of excessive general damages; interest awarded on damages from judgment; costs follow the event.
19 July 2022
Court grants certificate of urgency due to imminent sale and eviction threatened over mortgaged property during court vacation.
Civil procedure – urgency – applications during court vacation – requirements for certificate of urgency – imminent threat to mortgaged property – pending injunctive relief.
19 July 2022
A taxation award given without reasons is vulnerable to being set aside and must be re-taxed with reasons provided.
Taxation of costs – Duty of Taxing Officer to give reasons; Judicial requirement for reasons – fairness and appellate scrutiny; Unreasoned taxation awards – set aside and remit for re‑taxation with reasons.
19 July 2022
Application for broad discovery of mortgage, loan and correspondence documents dismissed as overbroad and prematurely filed; costs awarded to respondents.
Civil procedure – discovery – Order 10 rules 12, 14, 15 and 19 – requirements of relevance, materiality and reasonable particularity – prohibition of fishing expeditions. Discovery practice – duty to attempt voluntary production (notice to produce) before court application – good faith effort requirement. Documents obtainable from public registries need not be compelled by discovery if burden of access is substantially the same. Privilege not claimed by respondents; discovery discretionary and may be denied for overbreadth or undue burden.
19 July 2022
A customer who authorised or negligently enabled digital banking transactions bears the loss; the bank not liable.
Digital banking — CenteMobile — two‑factor authentication — customer duty to safeguard PIN/SIM — signature binds — liability for unauthorised transactions — imposter rule.
18 July 2022
Court unconditionally stayed execution pending appeal due to imminent execution risk, potential irreparable loss, and sufficient security.
Stay of execution pending appeal – Order 43 rule 4(3) – requirements: notice of appeal, lack of unreasonable delay, likelihood of success, imminent execution/nugatory appeal, substantial/irreparable loss, security for due performance – sale of mortgaged property – bona fide purchaser – penal interest.
18 July 2022
15 July 2022
COVID‑19 tolled filing time but unexplained delay after lockdown justified dismissal of extension application; appeal dismissed.
Tax law – statutory interpretation of limitation periods – 30 days from service versus six months from decision; Tribunal’s procedural rule inconsistent and void to extent; extension of time – discretionary power, relevant considerations include disability and reasonable cause; COVID‑19 lockdown may toll procedural time but unexplained delay after tolling defeats extension; appellate restraint in interference with discretion.
12 July 2022
Applicants' stay denied for failing to show a real likelihood of success; application dismissed with costs.
Civil procedure – Stay of execution pending appeal – Requirements: notice of appeal, absence of unreasonable delay, security for due performance, risk of substantial loss, likelihood of success; right of appeal from review orders by a judge of similar jurisdiction; failure to plead substantive grounds of appeal renders stay application frivolous.
11 July 2022
Whether the respondent owed unpaid contractual sums under a three-way matching requirement and whether counterclaim for overpayment succeeded.
Contract law – written supply agreement – requirement of three-way matching (purchase order, mutually signed goods received note, invoice) before payment obligation arises. Evidence – special damages and contractual sums must be particularised and strictly proved. Restitution – money had and received requires full reconciliation and proof; failure to make out a prima facie case defeats counterclaim. Remedies – interest on commercial debt awarded at a just and reasonable rate (21% p.a.) and costs follow the event.
11 July 2022
Plaintiffs recovered funds advanced for a failed joint agricultural venture; restitution and interest awarded, general damages denied.
Restitution – money had and received – claim to prevent unjust enrichment where defendant received funds for a joint enterprise but failed to account; burden shifts to defendant to rebut. Evidence – remittances and invoices as proof; failure to file defence. Remedies – restitution of sums, interest (23% UGX; 8% GBP), refusal of unparticularised general damages; costs follow event.
5 July 2022
Unwritten accountability term excluded by parol evidence; defendant liable for US$6,879,222 plus interest and costs.
Contracts — Parol evidence rule — terms in writing as final expression; Implied terms — necessity and business efficacy; Account/rendition of accounts — distinction between debtor-creditor claims and suits requiring rendition of account; Sale of goods — proof of delivery and reconciliation; Interest on commercial debts — award of interest where payment wrongfully withheld; Costs follow the event.
4 July 2022
Applicant's late amendment denied for introducing new causes and amounting to abuse of process.
Civil procedure – Amendment of pleadings (Order 6 Rule 19) – Whether proposed amendment introduces new causes of action – Delay and abuse of process – Prejudice and limitation – Role of independent forensic audit in resolving disputed account sums.
1 July 2022