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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.
16 judgments
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16 judgments
Citation
Judgment date
July 2023
Affidavit with mismatched annexures and doubtful signing was struck out; applicant granted leave to appear and defend.
Civil procedure – leave to appear and defend; preliminary objection – competence of affidavit; Oaths Act and Commissioner for Oaths rules; electronic signatures; annexures mismatch; Order 6 r.28 - illegality may be raised at any time.
31 July 2023
Borrower defaulted; guarantor liable; court reduced an unconscionable 120% p.a. interest to 25% p.a. and awarded principal plus costs.
Contract law – Loan agreement and memoranda of understanding – Default on repayment; implied admissions where allegations not specifically denied (Order 8 Rule 3). Suretyship – Liability of guarantor crystallizes upon principal debtor's default (Contracts Act s.71). Interest – Excessive, harsh or unconscionable contractual interest may be reopened and substituted by court (Civil Procedure Act s.26(1)); court reduced 120% p.a. to 25% p.a. Civil procedure – Ex parte hearing where defendants failed to appear.
28 July 2023
Principal debtor defaulted; guarantor liable; excessive contractual interest reduced to 25% per annum.
Contract law – loan agreement and memoranda of understanding – default and admissions under pleadings (Order 8 Rule 3). Guarantee – guarantor’s liability crystallizes upon principal debtor’s default (Contracts Act s71). Interest – contractual interest of 10% per month (120% p.a.) declared harsh and unconscionable; court reduced interest to 25% p.a. (civil equitable power to moderate oppressive interest). Remedies – judgment for principal sum, moderated interest and costs.
28 July 2023
The plaintiffs recover UGX 238,000,000 under a valid settlement; alleged duress and defendant’s counterclaim fail.
Contracts — Illegality — Section 19 Contracts Act exceptions where plaintiff ignorant and illegal object not effected; Land law — non‑citizen freehold prohibition; Evidence — duress/torture requires corroboration; Enforcement — valid settlement enforceable; Remedies — refund with interest and costs.
27 July 2023
Settlement agreement enforced; Plaintiffs awarded UGX 238,000,000 plus 8% interest after illegality objection was overruled.
Contracts — illegality — section 19 Contracts Act — exception where plaintiff ignorant of illegality and illegal object not effected; Land law — non‑citizens prohibited from holding freehold — transfer requirements; Evidence — duress/torture allegations require corroboration (medical/evidential proof); Settlement agreements — voidability vs voidness; Remedies — restitution, interest and costs.
27 July 2023
Court declined injunction, ordered arbitration to proceed and struck out duplicative suit as an abuse of process.
Arbitration law – stay and primacy of arbitration – court must not entertain disputes already referred to arbitration under the Arbitration and Conciliation Act. Interlocutory relief – injunction – where arbitration pending court will generally decline jurisdiction and need not examine injunctive criteria. Abuse of process – instituting parallel court proceedings duplicative of arbitration may lead to dismissal and striking out of suit. Civil procedure – power to strike out and refer parties to arbitration; costs awarded against applicant.
24 July 2023
Court held plaintiff retained ownership where purported seller lacked capacity, buyer acquired no good title and 3rd defendant breached payment terms.
Company law — capacity of foreign company to sue through principal officer without board resolution; Order 29 r.1 CPR. Sale of goods — documents of title and bills of lading; nemo dat quod non habet; Sale of Goods and Supply of Services Act provisions on capacity and sale by non-owner. Contract — breach for non-payment under commercial invoice; remedies include declaration of ownership, injunctions, re-export facilitation, damages and costs. Customs / custody — URA holding goods pending determination of ownership; duty to release after court order and tax compliance.
17 July 2023
A Taxing Officer may quantify costs but questions on bailiff fees or existence/scope of an advocate-client retainer must be referred to a High Court judge.
Civil procedure – consultative case stated – reservation of question of law to High Court – criteria and procedure under Order 50 r.7 and s.62(2) Advocates Act. Taxation – scope of Taxing Officer – limited to quantifying costs/ taxing bills of costs; cannot vary costs orders or decide existence/scope of advocate-client retainer. Court bailiffs – entitlement to fees under Judicature (Court Bailiffs) Rules, 2022 is a question appropriate for a judge.
14 July 2023
Court enforces notarised advocate-client fee agreement, finds US$100,000 reasonable and dismisses applicant’s challenge.
Advocates Act – fee agreements – formal requirements (writing, signature, notary certificate) – compliance and effect. Advocates’ remuneration – fairness and reasonableness – test for unconscionability and proportionality to services and value of subject matter. Civil Procedure – summary suit and Order 36 leave to appear and defend – requirement to show bona fide triable issue. Civil Procedure – consolidation of interlocutory applications where common issues and parties exist.
14 July 2023
Court granted unconditional leave to defend where applicant raised triable issues regarding loan terms and bank's actions.
Civil procedure — Summary procedure — Leave to appear and defend — Triable issues — Loan agreements — Misrepresentation — Enforceability of personal guarantees — Legality of interest rates.
13 July 2023

 

12 July 2023
Applicant failed to show manifest fraud or unconscionability to restrain a demand performance guarantee under URDG 758.
Commercial law — Demand/drawn performance guarantees (URDG 758) — Autonomy and strict compliance principles — Exceptions permitting injunctions: manifest fraud, unconscionability or express negative stipulation — High threshold for restraining bank payment.
10 July 2023
Appellants lacked standing and the Taxing Officer’s award of instruction fees was not manifestly excessive; appeal dismissed.
Advocates Act s.62 – right of appeal from Taxing Officer – standing as "person affected" required. Taxation of costs – instruction fees – factors: complexity, importance, volume, skill and work deployed. Discretionary exercise – appellate interference only for error of principle, manifest excess or injustice. Costs against counsel personally – punitive/deterrent element when conduct is reprehensible.
10 July 2023
Applicant’s request to substitute title deeds for the required 30% cash security was refused; 30 days granted to pay and costs awarded to respondent.
Mortgage law – Mortgage Act s.20 remedies; Mortgage Regulations (Reg.13(1)) – requirement of 30% security for injunction; deposit of title deeds in lieu of cash; abuse of court process; foreclosure/forced sale; costs.
7 July 2023
A foreign seller retained ownership of shipped goods after a void resale by a non-existent entity, with contract breach established.
Civil procedure – Competence of suit – Authority to institute proceedings by foreign company – Sale of goods – Passing of title – Validity of sale by non-existent business – Lien – Breach of contract – Remedies – Declaratory and injunctive relief.
7 July 2023
Court set aside erroneous dismissal, reinstated the applicants' application and stayed execution pending its determination.
Civil procedure – Setting aside ex parte dismissal – Order 9 rule 27 CPR; Judicature Act ss.17(2), 33 and CPA s.98 – “sufficient cause” – reinstatement of application – stay of execution pending determination – costs discretion.
7 July 2023