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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.
45 judgments
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45 judgments
Citation
Judgment date
November 2023
A mortgagee must produce the mortgage instrument and sufficient evidence before obtaining foreclosure and eviction.
Mortgage law — foreclosure and sale; proof of mortgage terms — necessity of producing the executed mortgage instrument; statutory notice of default under Mortgage Act s.19(2); originating summons procedure (Order 37) — court must assess evidence even in unopposed matters; eviction requires clear, material evidence.
30 November 2023
Plaintiff proved an outstanding debt for supplied goods; court awarded principal, general damages, interest and costs.
Contract – sale and supply of goods – recovery of unpaid invoice amounts; burden of proof – documentary and oral evidence sufficient where defendant does not challenge. Civil procedure – ex parte hearing where hearing notice duly served – proceeding under Order 9 r.20(1)(a). Remedies – award of principal debt, general damages, interest and costs; exercise of court's discretion as to rates and periods of interest.
30 November 2023
Vendor breached a land sale agreement by re-selling land; purchaser entitled to refund, damages, interest and costs.
Contract law – sale of land – breach by vendor for failure to deliver title and sale to third parties; proof of payment – necessity of documentary evidence; remedies – refund, general damages, statutory interest and costs.
30 November 2023
Court set aside default judgment and allowed late filing of defences due to inadequate personal notice despite ECCMIS upload.
Civil procedure – Setting aside default judgment – Order 36 rule 11 – sufficient cause and enlargement of time. Service of process – Electronic notification via ECCMIS – adequacy of service – case-by-case recognition. Summary procedure – debt recovery – right to defend where triable issues of indebtedness exist.
30 November 2023
Court set aside default judgment and allowed applicants to file defences, finding ECCMIS notice not automatically adequate.
Civil procedure – setting aside default judgment – Order 36 rule 11 – exception to functus officio. Service of process – ECCMIS/electronic notification – adequacy of electronic notice assessed case-by-case where ruling was reserved for delivery "on notice". Enlargement of time – "sufficient cause" requires reasonable explanation and absence of inordinate delay. Summary procedure – leave to appear and defend where triable issues exist regarding indebtedness.
30 November 2023
Court holds bailiff fraudulent and negligent for private sale, poor valuation, and failure to account; substantial damages awarded.
Execution law — Bailiff liability — Distinction between bailiff (officer of court) and public officer; limitation not applicable. Execution procedure — Sale of attached goods — Requirement to sell by public auction, advertise and account for bidders; private treaty sales contrary to warrant unlawful. Tort — Fraud and negligence by enforcement officer for inadequate valuation, poor storage and failure to account. Civil remedies — Declarations, special, general and punitive damages, interest and costs.
30 November 2023
A notice of appeal does not commence an appeal to the High Court; absence of a memorandum makes a stay of execution invalid.
Civil procedure – Appeals from Magistrate Grade I to High Court – appeal must be preferred by memorandum of appeal under Order 43(1) CPR; a notice of appeal does not commence the appeal to the High Court. Stay of execution – requirements include a valid appeal, potential substantial loss, absence of unreasonable delay, and security for due performance; stay improperly granted where no valid appeal exists.
29 November 2023
A temporary injunction halting foreclosure requires the applicant to deposit 30% upon notice of default; valuation not prerequisite.
Mortgage law – Regulation 13(1) Mortgage Regulations 2012 – 30% security deposit required when injunction would halt foreclosure triggered by notice of default. Mortgage law – Commencement of foreclosure – notice of default suffices to trigger sale process; notice of sale not required. Procedure – Injunctions – court may base required security on outstanding loan amount where no valuation report produced. Evidence/Procedure – Affidavit jurat – material ambiguity as to place of swearing may lead to striking off.
29 November 2023
Default judgment upheld where service proved and forgery allegation unproven; application dismissed with costs.
Civil procedure – Setting aside ex parte/default judgment – Order 9 r.27 CPR; Service of summons – effectiveness and proof; Allegation of forgery – need for forensic/convincing evidence; Sufficient cause – inability to take step and burden on applicant.
29 November 2023
Court appointed ICAMEK to arbitrate dispute, denied interim injunctions and mandamus, and dismissed interim relief application; costs each party.
Arbitration clause – validity and enforcement; court appointment of arbitrator where designated appointing body non-functional; interim measures pending arbitration – prima facie case, irreparable harm, balance of convenience; mandamus to compel payment of government monies where counterclaim and arbitration pending; public-interest considerations against injuncting government projects.
29 November 2023
Conditional leave to defend granted limited to quantum contingent on borrower’s liability; 30% security ordered.
Civil procedure – Order 36 summary suit – leave to appear and defend – threshold for triable issue; mere denial insufficient. Res judicata – prior mortgage possession proceedings distinct from guarantee enforcement – guarantees not barred by earlier orders. Contract/Guarantee law – guarantor’s liability is separate and contingent on principal borrower’s default; foreclosure does not automatically discharge guarantor. Procedural relief – conditional leave to defend subject to payment into court (30% security) and time for filing defence.
27 November 2023
Leave to appeal granted only on whether the objector was a response to execution and whether the applicant occupied the attached property.
Civil procedure – Leave to appeal under Order 44 CPR – discretionary test: seriousness, misdirection, real prospects of success; Objector proceedings vs execution – whether objector filed in response to execution bars finding of designed delay; Relevance of occupation of attached property in objector proceedings; Appeal timeliness and effect of filing notice of appeal without leave.
27 November 2023
27 November 2023
Applicant satisfied Section 57 delivery and formal requirements; registrar granted leave to tax the unpaid bill of costs.
Advocates Act s.57 – requirements for bill of costs: signature, demand letter and delivery; Service on corporations – objective of notice; delivery to managing director and/or officer sufficient where awareness established; Taxation of advocates’ bills – registrar’s jurisdiction once statutory requirements met.
27 November 2023
An advocate who properly serves a signed bill and demand is entitled to taxation and costs when fees remain unpaid.
Advocates Act s.57 – bill of costs and demand letter; service on corporate entities; effective delivery via principal officer; taxation of advocate's bill; entitlement to costs where fees unpaid.
27 November 2023
Applicant entitled to taxation of its signed bill of costs after effective service and proof of unpaid legal services.
Advocates Act s.57 – Bill of costs – signature and delivery requirements; service on corporations – awareness suffices where principal receives documents; advocate-client relationship – implication from conduct of litigation; taxation of costs – leave to Registrar.
27 November 2023
24 November 2023
A court refused to set aside an ex parte judgment where the applicant failed to demonstrate sufficient cause for non-appearance.
Civil Procedure – setting aside ex parte judgment – sufficient cause – non-appearance of counsel – delay in filing application – Order 9 Rule 27 CPR.
23 November 2023

 

23 November 2023
Plaintiff must pay increased filing fees reflecting the amended plaint’s higher subject-matter value before hearing proceeds.
Court fees – amended plaint – increase in subject-matter value requires proportionate additional filing fees; Rule 6 SI 13-3 discretionary power to order payment of proper fees; preliminary objection for underpayment.
23 November 2023

 

23 November 2023
Mortgagee lawfully sold mortgaged land after borrower’s default; borrower liable for outstanding debt, damages, interest and costs.
Banking law – loan default – borrower’s unconditional repayment obligation under loan agreement; commercial interest rate. Mortgage law – mortgagee’s statutory power of sale – compliance with demand/notice, valuation and advertisement requirements under Mortgage Act and Regulations. Civil procedure – effect of claimant’s failure to prosecute counterclaim; consequences of proceeding effectively ex parte. Remedies – assessment of outstanding debt, general damages and interest.
22 November 2023

 

22 November 2023
Corporate veil pierced where company closure and conduct frustrated enforcement, directors held personally liable for outstanding judgment.
Company law – Piercing the corporate veil; enforcement of judgment – refusal/closure of company premises to frustrate execution; statutory basis – Section 20 Companies Act; authorities – Salomon; Prest v Petrodel; Beatrice Odongo v Tamp Engineering; lifting veil where company used to evade liabilities.
22 November 2023
A litigant may have a dismissed suit reinstated where non-appearance was due to counsel's mistake, without abuse of process.
Civil Procedure—Dismissal for non-appearance—Reinstatement of suit—Sufficient cause—Mistake of counsel—Withdrawal and refiling of applications—Abuse of process.
22 November 2023
Whether a consent judgment is enforceable and whether execution sale can be set aside for title, registration or valuation irregularities.
Civil procedure — Execution of decrees — Consent judgment v. settlement agreement — Enforceability of consent decrees by attachment and sale; Custodia legis — deposit of duplicate certificate of title and constructive custody by court officer; Registration of decree and warrant on title — effect and irregularities; Judicial sale — requirement of valid valuation, notice to judgment debtor and adequacy of forced‑sale price; Setting aside sale — necessity to prove substantial injury, fraud or collusion; Bailiff proceeds — deposit and distribution under court direction.
22 November 2023
Court granted leave to amend plaint to clarify claims, finding no specific prejudice and ordering timelines for filing and reply.
Civil procedure – Amendment of pleadings – Order 6 Rule 19 CPR – Leave to amend to determine real questions in controversy – Mistakes of former counsel not visited on litigant – Prejudice must be specific to refuse amendment – Costs to abide outcome.
21 November 2023

 

21 November 2023

 

21 November 2023
Out‑of‑time leave to appear in a summary suit dismissed; default judgment, interest and costs awarded to the plaintiff.
Civil procedure – Summary suit (Order 36 CPR) – Leave to appear and defend – 10-day time limit – Electronic filing (ECCMIS) – Consequences of late filing – Default judgment; interest and costs awarded.
20 November 2023
Court exercised inherent jurisdiction to grant preservative orders preventing registry acts that would frustrate enforcement of an arbitral award.
Arbitration—post‑award interim relief; inherent jurisdiction of High Court under s98 CPA; preservation of arbitral award enforcement; Section 91 Land Act—Commissioner’s powers to alter/cancel title; interlocutory relief against statutory bodies to prevent mootness.
17 November 2023
An ambiguous tax objection communication justified an extension of time to seek review; the Tribunal's dismissal was set aside.
Tax law – validity of objection decision – ambiguity and contradiction in objection communications – substantive defect versus defect of form – section 68 inapplicable to substantive ambiguity; Extension of time – reasonable/sufficient cause where taxpayer delayed due to tax authority’s unclear decision; Timing – six‑month rule applies to review applications not to applications for extension; Exercise of discretion – Tribunal misdirected and decision set aside.
15 November 2023
15 November 2023

 

14 November 2023

 

14 November 2023
Mortgagee lawfully foreclosed despite procedural defects; borrower liable for outstanding balance (UGX 153,967,568.92) plus contractual interest.
Mortgage law – default and remedies; foreclosure and power of sale – compliance with Mortgage Act and Regulations; valuation and duty to obtain best price; admissibility of valuation reports; counterclaim for under-sale value and requirements to prove unlawful sale.
14 November 2023
A conditional stay of execution was granted pending appeal upon deposit of 30% of the decretal sum in court.
Tax law – Stay of execution – Conditions precedent – Substantial loss – Security for due performance – Payment of 30% assessed tax – Application for conditional stay of execution pending appeal.
13 November 2023
A misnomer in naming a party is not fatal where the applicant participated in the misnaming and cannot evade liability on that basis.
Civil procedure – Misnomer – Effect of incorrect party name – Whether misnomer is fatal to proceedings – Ex parte judgment – Setting aside ex parte judgment – Service by substituted means – Contractual liability for personal guarantee.
13 November 2023
Originating summons inappropriate where contested payment reconciliation and service of Mortgage Act notices require oral evidence.
Civil procedure – Originating summons under Order 37 r.4 – Appropriateness where factual disputes exist; Mortgage law – requirement and proof of statutory notices; Evidence – need for reconciliation, oral testimony and cross-examination; Stamp duty – non-payment not automatically fatal; estoppel where defendant benefited.
13 November 2023
Leave to defend granted where applicant raised a bona fide triable issue on existence of an enforceable contract.
Civil procedure – summary suit – leave to appear and defend – bona fide triable issue; Contract formation – appointment letter vs subcontracting; Locus standi – party to the contract; Relief – file defence within 15 days; Costs follow the cause.
13 November 2023
Consent judgment upheld; counsel not disqualified; injunctions refused; applicants’ challenge dismissed.
• Advocates' professional conduct – Regulation 9 (advocate-witness rule) – disqualification requires necessary, non-cumulative testimony and real prejudice; speculative claims insufficient. • Civil procedure – consent judgments – can be set aside only for fraud, collusion, mistake or contravention of court policy; non-participation of proper (not necessary) parties does not vitiate consent. • Administrative/land law – Registrar’s powers under s.91 Land Act; correction of register; substitution of assignee. • Constitutional/administrative law – Attorney General’s legal opinion carries persuasive and binding weight for public institutions. • Interim relief – interlocutory injunctions for mortgaged commercial land require prima facie case, irreparable harm, and favourable balance of convenience; damages often adequate remedy.
10 November 2023
Taxing officer erred by allowing respondent separate bills absent separate proceedings; awards set aside and remitted for re-taxation.
Advocates’ costs – Taxation – Regulation 42 (Advocates (Remuneration & Taxation of Costs) Regulations) – Same advocate for two or more clients – Separate bills permissible only where separate proceedings were taken and found necessary – Taxing officer’s discretion and compliance with rules – Reference and remission for re-taxation.
7 November 2023
Amending a contract to comply with statutory requirements is not contempt for an injunction restraining termination.
Contempt of court – temporary injunction restraining implementation of termination letter – distinction between contract termination and statutory-mandated amendment; National Payment Systems Act (s.48) compliance; elements of contempt (order, notice, non-compliance, wilfulness) and criminal standard of proof.
6 November 2023
Leave to defend granted where bona fide triable issue exists on contract formation and locus standi.
Civil procedure – Summary suit – Leave to appear and defend – Bona fide triable issue required to defeat summary procedure; Contract formation – whether appointment letter constituted enforceable contract; Locus standi – whether respondents entitled to sue where primary contract was with third party.
6 November 2023

 

1 November 2023