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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
August 2023
Plaintiff failed to prove guarantors liable for lump-sum debt; guarantee covered only post-27 November 2019 loan, suit dismissed.
Contract law – Guarantee – scope of guarantor’s liability determined by guarantee terms; Evidence – ex parte/formal proof requires plaintiff to prove case on balance of probabilities; Procedure – necessity to join/serve estate of deceased principal debtor before seeking full recovery.
31 August 2023
Leave to appeal out of time granted where delay was caused by counsel’s mistake and justice favoured hearing the appeal.
Civil procedure – extension of time for appeal – Section 79(1)(b) – "sufficient cause" where delay caused by counsel’s mistake. Evidence – affidavits by advocates – competence where deponent swears to facts within personal knowledge; rule against advocate as witness considered. Procedure – minor misnomer and citation of wrong provision not fatal; substantive justice over technicalities. Practice – severance of offending paragraphs in affidavits; costs to abide appeal result.
31 August 2023
Applicant granted leave to defend due to a bona fide dispute over payment and respondents' authority to represent deceased estates.
Civil procedure – Summary suit – leave to appear and defend under Order 36 rules 3 and 4; bona fide triable issue standard; succession law – locus standi of beneficiaries to sue absent probate or letters of administration; risk of double payment and unjust enrichment; potential advocate instruction/professional conduct issue.
30 August 2023
30 August 2023
Applicant granted unconditional leave to defend summary suit due to triable dispute over existence and accuracy of the claimed debt.
Civil procedure – summary suit – leave to appear and defend – bona fide defence or triable issue required – Maluku test. Summary procedure – liquidated demand – necessity of clear documentary proof (facility letters, loan account statements) to justify summary recovery. Procedure – attachment of intended defence to affidavit in rejoinder – technical irregularity overruled where substantive justice not prejudiced. Remedies – grant of unconditional leave to defend; filing time for defence; costs to abide outcome of main suit.
30 August 2023
30 August 2023
29 August 2023
Failure by applicant and counsel to follow up ECCMIS notifications is not sufficient cause to set aside a dismissal.
Civil procedure – setting aside judgment/decree entered after dismissal – Order 36 Rule 11; sufficiency of cause for reinstatement; electronic court notification (ECCMIS) and counsel’s duty to monitor; competence and hearsay in supporting affidavits.
29 August 2023
28 August 2023
28 August 2023
A bank’s account coding and regulatory write-off do not extinguish the respondent’s debt or bar realisation of securities.
Banking law – security and enforcement – cash collateral, “post no debit” coding and perfection of security. Financial regulation – loan classification and write-off under The Financial Institutions (Credit Classification and Provisioning) Regulations, 2005 – write-off as accounting reclassification, not waiver. Contract damage causation – proof of causal link between bank’s conduct and contractor’s breach. Mortgage enforcement – right to realise securities subject to statutory procedure.
28 August 2023
28 August 2023
Originating summons filed during pending suit was struck out for violating lis pendens and abusing court process.
Civil procedure — Lis pendens — Section 6 Civil Procedure Act — multiplicity of suits — abuse of court process — striking out originating summons — costs.
25 August 2023
23 August 2023
21 August 2023
Court varied interim preservation order to remain until the LCIA final award becomes enforceable as a decree of this Court.
• Arbitration – Interim measures – Concurrent jurisdiction of courts and arbitral tribunal; court authority to grant preservative measures against non-parties (banks). • Arbitration – Institutional rules (LCIA Rule 25.3) – Tribunal authorisation after formation versus court jurisdiction. • Interim relief – Duration and variation – whether measures lapse on termination of proceedings or may continue until award becomes enforceable domestically. • Enforcement – Recognition and enforcement of foreign award as decree; preservation of assets pending enforceability.
18 August 2023
Applicant awarded repayment, compensatory damages and revised interest after respondent breached repayment undertaking.
Contract – breach of oral investment agreement and written acknowledgement; assessment of unliquidated damages after default judgment; general damages measured by loss/ROI; exemplary damages declined absent malicious or tortious conduct; court power to revise unconscionable contractual interest (7% per month) to fair pre‑ and post‑judgment rates (20% p.a. UGX, 10% p.a. USD); costs follow the event.
18 August 2023
Attachment binds property in custodia legis; sale by a non-registered mortgagee or during attachment without court leave is void.
Civil procedure – Execution and objector proceedings; attachment and custodia legis; Caveats – subsistence and maintenance; Mortgage law – requirement of registration for transfer of mortgagee rights; Receivership and insolvency – effect on power of sale; Priority – registered mortgage vs unregistered decree/warrant; Order 22 r.59 CPR; Registration of Titles Act s.54, s.92; Mortgage Act s.17 & s.20; Insolvency Act provisions on receivership.
11 August 2023
An applicant’s false affidavit about frozen bank accounts defeated leave to set aside a default judgment; application dismissed with costs.
Civil procedure – Order 36 r.4 (leave to appear and defend) – requirement of bona fide triable issue; affidavits – material falsehoods vitiating an application; setting aside default judgment; costs and execution of decree.
9 August 2023
Court granted limited freezing order over company assets after finding a prima facie case and real risk of dissipation.
Commercial injunctions – attachment before judgment (Mareva injunction) – requirements: prima facie case, real risk of dissipation, proportionality and disclosure – nominee shareholding and investment agreements – preservation of corporate assets pending trial.
9 August 2023
Applicants have standing and jurisdiction exists, but URSB lacks power and court will not invent a management-takeover remedy; application dismissed.
Company law – nominee shareholding and beneficial ownership – locus standi to sue; Civil procedure – subject-matter jurisdiction where contract performance occurs in Uganda; Statutory powers – limits of Uganda Registration Services Bureau and Registrar of Companies; Inherent jurisdiction – constrained, not to be used to invent remedy where statute provides alternatives; Remedies – Companies Act procedures preferable to court-ordered management takeover.
9 August 2023
Court refuses urgency to hear injunction during vacation where sale is not imminent and trial judge is available after leave.
Civil procedure – application for certificate of urgency to hear matter during court vacation; urgency test – imminence of threatened act; interim relief to interdict sale of property; allocation and availability of trial judge; directions to fix matter in chambers.
9 August 2023
A valid contractual termination does not excuse breach of express post-termination reconciliation and stock-handling obligations.
Contract law – termination for convenience clause – validity of notice; Implied terms and good faith – limits on implying term of good faith absent pleading or statutory basis; Post-termination obligations – express duties to reconcile and treat stock must be performed; Remedies – special damages require strict proof; general damages awarded for economic inconvenience and distress.
9 August 2023
Court issued a certificate of urgency to hear an attachment application during vacation to prevent removal of assets.
Certificate of urgency – Court vacation – Whether civil matters may be heard in vacation where assets are at risk – Inherent powers (section 98 CPA) – Attachment before judgment.
9 August 2023
Court granted certificate of urgency to hear an attachment application during court vacation to prevent removal of assets.
Civil procedure – Court vacation – Certificate of urgency – Attachment before judgment – Inherent powers of the court – Risk of removal of assets – Rule 3 Judicature (Court Vacation) Rules.
9 August 2023
Applicant failed to raise triable issues; leave to defend under Order 36 was refused and application dismissed with costs.
Order 36 leave to defend — triable issues; admissibility of unstamped instruments — duty may be assessed and paid; arbitration clause — inoperable clause does not oust court jurisdiction; enforcement of contractual interest — court enforces clear agreed rates absent illegality; severance of false affidavit paragraphs permitted.
7 August 2023
Court granted 60-day extension to comply with specific performance decree, imposing 15% interest due to delay and equity considerations.
Specific performance – decree for sale of land – enlargement of time to comply – requirement to show "good cause" and absence of inordinate delay. Equity and readiness/willingness – deposit of cheque after court-file delay; applicant not penalised for court’s lapse. Limitation Act – 12-year limitation to enforce judgment; Court cannot extend beyond limitation period. Extension terms – Court may impose conditions (interest at 15% per annum for delay).
4 August 2023
A foreign-provided CRS procured and used by a licensed hotel is an imported ancillary service taxable under VAT.
VAT – Import of services – destination principle – consumer is contracting recipient who procures and uses service in Uganda; Franchising/licensing in hospitality – CRS as integral, ancillary supply to brand license; Composite supplies – character determined by predominant/essential feature; Jurisdiction – High Court hears questions of law under TAT Act s.27(2).
2 August 2023
Evasive and general denials in a defence are deemed admissions; only specified defences proceed to trial.
Civil Procedure — Pleadings — Order 6 r.8; Order 7 r.10 — General and evasive denials must be specific or are treated as admissions. Civil Procedure — Remedies — Options where pleadings are defective: strike out, deem as admissions, order particulars, permit amendment. Civil Procedure — Abuse of process, sham, frivolous or vexatious pleadings — requisites and threshold for striking out. Contract/Commercial — Bank guarantee disputes — enforceability and effect of conditional guarantees as pleaded defences. Costs — allocation where strike-out application partially succeeds and defence partially sustained.
1 August 2023