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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.
41 judgments
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41 judgments
Citation
Judgment date
October 2023
Miscellaneous cause improper for resolving substantive mortgage disputes; contested issues require plaint and full trial; application dismissed.
Mortgage Act s.33; Civil Procedure Act s.98; procedure — improper use of miscellaneous cause for substantive disputes; requirement for mother suit/rule on notice of motion; interlocutory relief vs main suit; necessity of trial where oral evidence required.
31 October 2023
Court granted interim injunctions preserving assigned contract proceeds pending arbitration to prevent diversion.
Arbitration Act s.6(1) – interim measures pending arbitration – court may preserve status quo to protect assigned contractual proceeds. Security assignment – deed of assignment of contract proceeds as continuing security enforceable by interim relief. Interim injunctions – requirements of prima facie case, irreparable harm, and balance of convenience applied to payments diversion. Preservation of assets – payment direction to contracting authority restrained to prevent dissipation of assigned proceeds.
30 October 2023
Court stayed suits and sanctioned arbitration, granted injunction; applicant’s claim for contractual interest against respondent denied.
Arbitration law – competence of arbitrator (kompetenz‑kompetenz) – scope of arbitration agreement to be decided by arbitrator at first instance. Stay of court proceedings – where arbitration has commenced – court may stay and sanction arbitration to proceed. Interim measures – Section 6(1) Arbitration and Conciliation Act – temporary injunction to preserve status quo where irreparable harm and serious question to be tried. Contract law – privity of contract – contractual interest under a third‑party contract cannot be charged against a non‑party.
30 October 2023
An administrator’s agreement disposing of estate land without beneficiaries’ consent is unlawful; suit based on it dismissed.
Succession law – Administrator’s duties – Fiduciary obligations – Consent of beneficiaries required before disposing of estate property; transactions without consent unlawful. Contract/enforceability – Memorandum of Understanding entered by administrator without beneficiaries’ consent unenforceable. Remedies – Claims based on unlawful administrator transactions cannot be sustained; suit dismissed.
29 October 2023
Plaintiff proved breach of loan agreement; court awarded principal, modest general damages, interest and costs.
Commercial Law – Breach of loan facility agreement – default on repayment – unchallenged pleaded amounts treated as proved. Remedies – recovery of principal, general damages, interest and costs; unjust enrichment. Interest – court discretion to set rate (20% p.a. on principal from filing; 6% p.a. on general damages from judgment). Procedure – defendant’s failure to file defence; interlocutory judgment and formal proof.
27 October 2023
Defendants held liable for breach of loan agreements; plaintiff awarded principal, general damages, interest and costs.
Contract law – Loan facility – Default and breach; guarantor and post-dated cheque; proof of unchallenged pleaded sums; remedies – recovery of principal and interest, general damages, court’s discretion on interest (Civil Procedure Act), costs follow the event.
26 October 2023
Whether an interim stay of execution should be granted pending appeal and the substantive application, subject to a 30% security deposit.
Civil procedure – Interim stay of execution – Requirements: pending substantive application, imminent threat of execution, competent notice of appeal – Preservation of status quo. Mortgage law – Mortgage Regulations 2012 (Reg.13(1)) – 30% security deposit as condition for adjourning sale; court discretion to tailor timelines where sale imminent. Judicial discretion – customized interim orders to balance prejudice where statutory timelines are silent.
25 October 2023
Interim restraint preventing respondents from making copyright claims until the ownership dispute and injunction application are determined.
Copyright — interim relief — preservation of status quo — temporary injunction pending ownership dispute; probative value of platform takedown notices; discretion to grant interim orders.
25 October 2023
A secured creditor may enforce and sell pledged movable property; without evidence of perishability sale must be by public auction.
Security Interest in Movable Property Act 2019 – validity of security interest agreement; enforcement upon default; demand notice requirements; sale of pledged movable property – private treaty vs public auction; evidence of perishability.
24 October 2023
Appeal dismissed for lack of jurisdiction because orders under Order 9 Rule 12 are not appealable as of right and no leave was obtained.
Civil procedure — Appealability — Orders under Order 9 Rule 12 (setting aside ex parte/interlocutory judgments) are not appealable as of right under Order 44; leave required — appellate jurisdiction statutory — absence of leave divests court of jurisdiction to entertain appeal.
24 October 2023
Applicant granted leave to defend summary rent suit due to bona fide triable issues and related suits consolidated.
Civil procedure – Order 36 summary procedure – leave to appear and defend – requirement of bona fide triable issue of fact or law; preliminary objections to plaint premature in leave applications; consolidation of related suits to avoid multiplicity and contradictory findings.
24 October 2023
23 October 2023
23 October 2023
Application to amend plaint denied because amendment would defeat respondent's statutory limitation defence.
Civil Procedure – Amendment of pleadings (Order 6 Rule 19) – Limits where amendment would deprive opponent of Limitation Act defence – amendment not allowed to defeat statute of limitations or change cause of action.
20 October 2023
Interim relief pending arbitration denied: prima facie case found but no irreparable harm and balance of convenience/public interest favoured respondents.
Arbitration — Interim measures pending arbitration — Court's discretionary power under Arbitration and Conciliation Act to grant interim protection. Interim injunction principles — prima facie case, irreparable injury, balance of convenience applied to arbitration context. Public interest and statutory implementation — courts will not grant injunctions that effectively suspend legislation. Joinder and standing — requirement that a respondent be a party to the contract before being sued under it.
20 October 2023
The applicant granted leave to amend the plaint to reflect a reduced loan balance after part payment; no substantial prejudice found.
Civil Procedure – Amendment of pleadings – Order 6 r.19 CPR – Leave to amend to correct pleaded amount after part payment – Prejudice test – Amendments freely allowed before hearing unless injustice or new cause of action – Costs to abide main suit.
20 October 2023
20 October 2023
Member’s challenge to 21 September 2022 shareholders’ meeting and resolutions dismissed for lack of prejudice and insufficient proof.
Companies law – member’s standing under s.248 – validity of shareholders’ meeting and proxies – registration of resolutions by Registrar (URSB) – scope of court-ordered shareholders’ meeting – alleged abuse of court process and relief by injunction.
20 October 2023
Court reduced statutory 30% mortgage-security deposit to 10% and granted injunction subject to payment, balancing spouse rights and mortgagee protection.
Mortgage law – Regulation 13(1) and (6) of the Mortgage Regulations, 2012 – security deposit to adjourn sale – spouse exemption. Spousal rights – matrimonial home and requirement for spousal consent. Evidence – proof of inability to pay requires corroborative material, not mere assertions. Equitable balancing – protection of mortgagee’s interests versus spouse’s right of occupancy. Discretion – court may reduce statutory deposit when circumstances justify.
20 October 2023
20 October 2023
20 October 2023
18 October 2023
18 October 2023
Temporary injunction granted conditionally: fresh valuation ordered and Applicant must deposit 30% of forced sale value.
Mortgage law – Regulation 13(1) – requirement to deposit 30% of forced sale value as condition to adjourn sale of mortgaged property. Interlocutory injunction – test: prima facie case, irreparable injury, balance of convenience; possession/equitable interest versus registered title. Valuation authenticity – challenge to valuation report; court may order fresh valuation where authenticity is disputed. Due diligence of mortgagee – allegations of failure to detect fraudulent title raise substantial question to be tried.
17 October 2023
Applicant failed to prove fraud, mistake or frustration to set aside or be discharged from the consent judgment.
Civil procedure – Consent judgment – treated as a contract; parol evidence rule bars extrinsic variation; setting aside consent requires fraud, mistake, misapprehension or illegality; frustration and discharge of contract; approbation and reprobation doctrine; requirement to prove true facts would have led to a materially different order (J v B factors).
17 October 2023
Application to set aside a clear consent judgment for mistake, misrepresentation and frustration dismissed; consent binding and enforceable.
Consent judgments – enforceability – setting aside only for fraud, mistake, misrepresentation, collusion or contrary public policy; Parol evidence rule – written consent not varied by extrinsic statements; Frustration – discharge requires impossibility not proven; Approbation and reprobation – beneficiary cannot repudiate consent; Execution remedies available under consent.
17 October 2023
Application to set aside arbitral award dismissed: one‑month limitation runs from party’s receipt; no proven bias, fraud or public‑policy breach.
Arbitration — limitation for setting aside awards — one month runs from receipt by the party; institutional rules cannot extend statutory time; ex parte awards permissible where non‑participation unexplained; evident partiality, fraud and public policy grounds narrowly construed; registration does not convert award into a court decree except for enforcement.
16 October 2023
Delayed validation of pleadings outside a party's control can prevent abatement for failure to take out summons for directions.
Civil procedure — Order XIA Rule 1(2) & (6) — summons for directions — abatement of suit; filing effective upon Registrar validation; validation delays outside parties' control; court's discretionary assessment of circumstances before declaring abatement.
13 October 2023
13 October 2023
13 October 2023
Court permits substitution of defendant and addition of fraud allegations connected to a copyright claim, ordering amended plaint filed.
Civil procedure – amendment of pleadings; substitution of defendant for inadvertent pleading error; allowance of new allegations (fraud) linked to original copyright claim; prejudice to be compensated by costs; pre-trial directions.
13 October 2023
Court held the transaction was a loan, reopened it under the Tier 4 Act, voided the sale and awarded compensation.
Civil procedure – affidavits in surrejoinder – leave required; struck off if filed without leave. Money‑lending law – Tier 4 Microfinance Institutions and Money Lenders Act s.89 – reopening harsh or unconscionable transactions. Contract – whether transaction constituted loan with security or a genuine sale; intention to create legal relations. Remedies – repayment, setting aside sale, award of market value less loan, post‑judgment interest, and costs.
13 October 2023
Plaintiff obtained a default judgment under Order 36(3)(2) awarding specified monetary sums, costs and 6% interest.
Civil procedure – Default judgment – Entry under Order 36 rule 3(2) of the Civil Procedure Rules (as amended) – Award of decretal sums, costs and interest.
12 October 2023
Plaintiffs failed to prove licences to plant on forest reserve land; their claims against the defendant therefore failed.
Forestry law – existence and proof of licences to plant in forest reserves; evidentiary requirement to produce licences or admissible secondary evidence. Evidence – primary/secondary evidence under Evidence Act; receipts insufficient to prove licence. Remedies – absence of proved licence precludes damages against land manager; remedy may lie against third party or by refund claim. Costs – each party to bear own costs.
10 October 2023
10 October 2023
10 October 2023
Breach of undertaking, fraudulent pledge and unlawful possession of condominium titles; recovery and damages awarded.
Contract – breach of Deed of Undertaking by failure to deliver title documents; Property/Mortgage law – invalid mortgage where title remains registered in owner’s name and pledgor lacks authority; Fraud – concealment and misrepresentation by agents; Unjust enrichment – gain at owner’s expense; Remedies – recovery of titles, damages, interest and costs.
10 October 2023
Registrar lawfully imposed 30% mortgage-deposit condition under Mortgage Regulations; appeal and review dismissed.
Mortgage law – Regulation 13(1) – Temporary injunctions and adjournment of sale – 30% security deposit of forced sale value or outstanding amount; Registrar’s discretion and appellate/review route (Order 50 Rule 8; Order 46) – error apparent on face of record.
6 October 2023
Second respondent held in civil contempt for grading and pledging suit land; fined UGX 5,000,000 or two months' imprisonment on default.
Civil contempt – requirements: existence of clear order; notice/service; non-compliance; willfulness. Injunctions – enforcement – grading land and pledging as collateral contrary to injunction amounts to civil contempt. Remedies – proportional fine and conditional committal; punitive damages excessive where loss not proved.
6 October 2023
Whether the respondent properly applied Method 2 valuation, making demonstrated adjustments for commercial level and quantity.
Customs valuation – East African Community Customs Management Act – Fourth Schedule – Method 2 (transaction value of identical goods) – requirement to adjust for differences in commercial level and quantity supported by demonstrated evidence. Procedural law – Tax Appeals Tribunal – failure to decide the real issue – remittal for reconsideration under section 27(3) Tax Appeals Tribunal Act. Burden of proof – applicant’s obligation under section 18 of the Tax Appeals Tribunal Act noted but Tribunal’s incomplete decision remedied by remittal.
5 October 2023
Court allowed amendment and counterclaim over alleged forged inspection report, finding no unfair prejudice and same facts governed.
Civil procedure – Order 6 Rule 19 – Leave to amend pleadings to raise fraud counterclaim based on allegedly forged police inspection report; ECCMIS filing and service; inconsistencies in affidavit – ignoring inconsistent paragraph; prejudice and multiplicity of proceedings.
4 October 2023