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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.
46 judgments
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46 judgments
Citation
Judgment date
September 2023
The respondent is liable for unpaid equipment rent; subcontractors are not required to indemnify due to respondent’s underperformance.
Contract law – equipment rental – breach and rent arrears; judgment on admission; evidentiary weight of site supervisor’s unchallenged testimony; fuel shortages/theft not contractual exceptions; indemnity – absence of express clause and denial of implied indemnity due to underperformance (unclean hands); special damages must be pleaded and proved.
30 September 2023
The respondent breached the transport contract by failing to pay; applicant awarded unpaid fees, contractual penalties and costs.
Contract law – breach for non-payment of agreed transport fees – evidence of acknowledgment of debt (signed financial confirmation and electronic correspondence). Civil procedure – failure to call witnesses – expunging of exhibits and witness statements under Order 18 rule 5A(5). Contractual remedies – agreed penalty clause (5/10,000 per day) enforceable and quantifiable using confirmed account reconciliation. Pleadings – reliefs not pleaded (general damages, interest) cannot be granted.
30 September 2023
Reinstatement refused where applicant failed to prove sufficient cause for non-appearance and unreasonably delayed seeking relief.
Civil procedure – Reinstatement of dismissed suit (Order 9 r23 CPR); dismissal for non-appearance vs want of prosecution; sufficiency of cause for non-appearance; effect of counsel’s negligence and litigant’s own diligence; service and delay in bringing reinstatement application.
29 September 2023
Oral tenancy evidenced by receipt estops the respondent; breach entitles the applicant to damages and costs.
Contract – Formation and enforcement of oral tenancy – receipt as evidence and estoppel (s.114 Evidence Act); Breach of contract – failure to deliver vacant possession and re-letting constitutes breach; Damages – entitlement to compensation for breach; special damages must be strictly proved; assessment of general damages and interest; Civil procedure – costs follow the event where plaintiff succeeds in main purpose of suit.
29 September 2023
A secured creditor may seize and auction mortgaged vehicles after debtor default and breach, subject to audit and escrow.
Security Interest in Movable Property Act 2019 – enforcement of chattel mortgages – Sections 44, 47, 48; duty of good faith (s.5(2)); expedited possession and sale of movable collateral; removal of collateral outside jurisdiction as breach; insurance cover does not discharge repayment obligations; audit and escrow of sale proceeds.
29 September 2023
Failure to obtain a Notice to Show Cause rendered execution proceedings fatally defective; payment to advocates with RTGS evidence discharged the decree.
Civil procedure – execution of decree – limitation under Section 35(1) CPA and Section 3(3) Limitation Act – effect of pending related proceedings on reckoning time. Civil procedure – execution – Order 22 Rule 19 CPR – requirement to issue Notice to Show Cause before execution where applicable. Agency/advocates – payment to advocate as agent – when payment to advocate discharges client’s debt; doctrine of notice. Consent judgments – ascertainment of quantum and interplay with set‑off and mutual debts. Procedure – misnomer of deceased litigant – continuation by estate and competence of proceedings.
29 September 2023
28 September 2023
28 September 2023
28 September 2023
Court allowed the applicant to amend the plaint to add transferees, land registration officer and bailiff; costs to abide outcome.
Civil procedure – amendment of pleadings – Order 6 r.19; liberal approach to amendments before hearing. Joinder of parties – Order 1 r.3 – addition of transferees, land registration officer and bailiff as proper parties. Affidavits – curable formal defects; supplementary affidavit filed before pleadings closed – no leave required (Order 8 r.18(2)). Preliminary objections – abatement and cause of action objections previously overruled; cannot preclude merits.
28 September 2023
Spousal consent is required for transfer or mortgage of family land; sale and mortgage without consent are unlawful.
Land law – Family land – Requirement of spousal consent for sale, mortgage or other disposition under section 39 of the Land Act and Article 31 of the Constitution. Property – Transfer and mortgage of jointly acquired land without spousal consent – Sale unlawful and mortgage voidable/fraudulent. Possession – Occupier who acquires land through an unlawful transfer is a trespasser. Remedies – Declarations, vacant possession/eviction, permanent injunction, delivery of documents, general damages, interest and costs.
27 September 2023
The respondent bank was held in contempt for failing to comply with a garnishee order and ordered to pay the decretal sum and damages.
Civil contempt – garnishee order absolute – existence, service and knowledge of order – failure to comply – wilful and mala fide non-compliance. Remedies – payment of decretal sum, award of general damages and costs for contempt.
26 September 2023
Court affirmed veil-piercing but limited the applicant’s liability to his pro rata shareholding and ordered each party to bear costs.
Civil procedure — Review — error apparent on face of record; Companies — Piercing corporate veil under s.20 Companies Act for impropriety/fraud; Privity — non-parties in privity bound by judgments; Execution — joint and several liability and equitable apportionment (pro rata share); Novation — requires creditor’s consent.
25 September 2023
Whether mortgage recorded after fraudulent transfer is void; court cancels transfer and mortgage, dismisses claim against mortgagee.
Land law – registration and transfer – alleged fraudulent registration of land title; Mortgage law – validity of mortgage created on irregularly transferred title; Civil procedure – cause of action and preliminary objection; Evidence – burden and standard of proof in fraud allegations; Remedies – declarations, cancellation of registration/mortgage, injunctions, damages and costs.
22 September 2023
Tour operator breached contract; tourism authority breached statutory duty and is negligent, entitling plaintiff to damages and costs.
Contract law – breach of contract by tour operator; Statutory duty – Uganda Tourism Act 2008 imposes licensing, inspection and monitoring duties on tourism authority; Public authority liability – breach of statutory duty and negligence where omission to regulate causes foreseeable loss; Remedies – compensatory damages, interest and costs.
21 September 2023
Applicants failed to show a bona fide triable defence in a summary banking suit; judgment entered for the respondent with interest and costs.
Banking law – summary suit (Order 36) – leave to appear and defend – requirement to show bona fide triable issue; proof of payment; third‑party indebtedness and consent judgments do not bind bank absent instruction or agreement; claim against third party is a separate remedy.
20 September 2023
The applicant failed to show a triable defence; summary judgment entered for the respondent with interest and costs.
Civil procedure – Summary judgment (Order 36) – Leave to appear and defend – Requirement to show a bona fide triable issue by affidavit; mere allegations insufficient. Evidence – Burden to prove disputed payment; failure to produce proof defeats alleged dispute. Third-party claims – A defendant’s claim or consent judgment against a third party does not constitute a defence to plaintiff where plaintiff was not party to those agreements. Banking law – Bank cannot be required to deduct from third‑party accounts absent customer instruction or authority.
20 September 2023
Court pierced corporate veil, allowing execution against directors for using company as a sham to evade creditor recovery.
Companies Act s.20 – Lifting/piercing corporate veil – exceptional remedy – requires impropriety and use of company as a sham to avoid or conceal liability; wrongful and fraudulent trading; directors’ personal liability for company debts; evidence: failure to file returns, concealment of business premises, directors’ control and avoidance of creditors.
19 September 2023
19 September 2023
Defaulting defendant liable for UGX 66,000,000 plus damages, interest and costs for breach of survey services contract.
Contract law – formation and enforcement of service contracts by conduct and consideration; Breach of contract – non-payment of liquidated demand; Civil procedure – default judgment and constructive admission where defendant fails to file a defence; Remedies – recovery of liquidated debt, award of general damages, interest and costs.
19 September 2023
16 September 2023
Whether the respondent breached the loan, effect of altered repayment terms, guarantor reimbursement, and alleged account fraud.
Commercial law – loan facility – breach for failure to make termly deposits as agreed;* Contract variation – alteration of repayment schedule and notice requirements under financial consumer protection guidelines;* Guarantees – guarantor reimbursement rights and applicant's duty to reimburse recovered funds;* Fraud – requirement of strict proof for allegation of account tampering;* Enforcement – legality of disposal/realisation of assets and available remedies.
15 September 2023
15 September 2023
15 September 2023
Parliamentary committee’s demands for proof of payments made under a consent judgment were within oversight powers; advocate-client privilege not absolute.
Parliamentary oversight – Article 164 and Article 90(4)(c) – powers to summon witnesses and compel documents; advocate-client privilege – scope and exceptions (fee agreements and bank details not generally privileged); separation of powers and sub judice rule – Parliament may inquire into aspects not for judicial determination; judicial review – limits of challenge to parliamentary committee actions.
13 September 2023
Appellate court set aside conditional reinstatement requiring security and costs, finding misdirection and prejudice to the applicant.
Civil procedure – exercise of judicial discretion on setting aside ex‑parte decrees – appellate restraint and grounds for interference; Security for costs – availability, proper recipients and limits; Penalising a litigant for counsel’s negligence – impermissible; Fixing security amount requires reasoned assessment, not arbitrary percentages.
13 September 2023
Plaintiff proved breach of sale agreement; awarded outstanding USD24,228, USD4,800 general damages, interest and costs.
Contract law – Sale of goods – Breach for non-payment and non-provision of agreed security – Remedies: declaration, principal, general damages, interest and costs; Contracts Act s.61; discretion to award interest and costs.
12 September 2023
Application to stay taxation denied because applicant failed to comply with prior court order and is in contempt.
Stay of proceedings – taxation of bill of costs – whether to stay taxation pending appeal – discretionary relief – compliance with conditional stay orders – contempt of court – unclean hands – purging contempt as prerequisite to discretionary relief – costs.
12 September 2023
An ex parte vacant-possession order was set aside because the applicant was not duly served and was given leave to reply.
Civil procedure – setting aside ex parte decree – Order 9 Rule 27 – requirement to prove summons not duly served; Service of process – Order 5 Rule 13 – service on agent or adult family member; Burden of proof – defendant/applicant must prove non-service; Court’s inherent and statutory powers – section 98 Civil Procedure Act – setting aside orders and granting leave to reply.
12 September 2023
Whether a spouse resisting sale must pay 30% deposit pending challenge and when irreparable harm arises.
Mortgage law – temporary injunctions – irreparable harm; Regulation 13(1) Mortgage Regulations 2012 – 30% security deposit pay-now-argue-later; appeals from registrar under Order 50 rule 8 – affidavit requirement; court discretion on non-compliance with practice directions; interlocutory relief vs merits (statutory notices and valuation).
9 September 2023
The respondent lawfully converted seized foreign currency; garnishee order for UGX168,482,970 upheld and appeal dismissed.
Bank of Uganda – lawful conversion of seized foreign currency; Article 162 and Bank of Uganda Act authority; garnishee proceedings; applicable exchange date; demonetization risk; evidentiary weight of approximate value statements.
8 September 2023
Plaintiff recovered USD 84,721.52 after proving unpaid invoices and contractual breach in a summary suit.
Civil procedure – Summary procedure (Order 36 Rule 2) – Liquidated demand – Requirement for documentary proof of invoices – Burden of proof on plaintiff – Contractual credit terms and acknowledgement of debt.
8 September 2023
Whether Bank lawfully converted seized foreign currency and whether the registrar correctly fixed the garnishee amount.
Banking law – Conversion of seized foreign currency – Bank of Uganda’s statutory and constitutional mandate to preserve monetary stability; conversion to Uganda shillings to avoid demonetization loss. Civil procedure – Garnishee – valuation date for converted currency – application of rate at time cause of action arose (analogy to Di Ferdinando v Simon Smits). Evidentiary sufficiency – internal bank estimate not conclusive to disturb registrar’s finding. Appeals – time for appealing a registrar’s decision (within seven days).
8 September 2023
The respondent lawfully converted seized foreign currency; the registrar’s garnishee award of UGX 168,482,970 is affirmed and appeal dismissed.
Bank of Uganda – statutory autonomy and functions under Article 162 and Bank of Uganda Act – power to exchange domestic currency series and convert held foreign currency to avoid demonetisation loss. Garnishee – valuation of seized foreign currency – appropriate conversion date/value where central bank holds funds in supervisory capacity. Evidence – pre-conversion correspondence approximating value not conclusive for fixing garnishee payment. Remedies – appeal dismissed; registrar’s garnishee order for UGX 168,482,970 affirmed.
8 September 2023
Plaintiff proved and was awarded the outstanding USD 84,721.52 under summary procedure after documentary proof and admission by the defendant.
Civil procedure – Summary procedure (Order 36 Rule 2) – Liquidated demand – Requirement for invoices/documentary proof; Burden of proof in civil matters; Effect of defendant’s default and admission by correspondence.
8 September 2023
Default judgment set aside where service on company was unproven and defence was on record, despite delay.
Civil procedure – Setting aside ex parte/default judgment – Service on a corporation (Order 29(2)) – Proof of authorization to accept service – Irregular entry of default judgment where a written statement of defence is on file – Delay in bringing application not fatal where judgment irregular.
8 September 2023
Default judgment set aside where service on company was ineffective and judgment entered despite a filed defence.
Civil procedure – setting aside default/ex-parte judgment – Order 9 Rules 12 & 27. Service on corporations – Order 29(2) – effectiveness of service and authority to accept service. Registrar’s error – judgment entered despite written statement of defence on file. Delay in bringing application – distinction between irregularity (must be corrected) and discretionary relief.
8 September 2023
6 September 2023
6 September 2023
Non-payment for goods supplied under an LPO amounted to breach; subcontract terms did not bind the non-party supplier.
Contract law – sale and supply of goods – formation by written LPO and conduct – breach by non-payment. Privity – subcontract terms not enforceable against non-party supplier. Evidence – plaintiff must strictly prove special damages; delivery notes, invoices and receipts suffice. Remedies – award of special and general damages, interest and costs under Contracts Act and applicable principles.
5 September 2023
Fuel cards are taxable benefits absent proof travel was in the course of performing employment duties.
Tax – Income Tax Act s19(2)(d)(i) – Travel/fuel allowances – requirement of nexus between travel and duties to qualify as non‑taxable reimbursement; procedure – appeals from Tax Appeals Tribunal commenced by Notice of Appeal; admissibility – supplementary record not new evidence where Tribunal considered same documents.
1 September 2023
Fuel cards were held taxable benefits because the employer failed to prove travel was "in the course of" employees' duties.
Tax law – PAYE on employer-provided fuel cards – interpretation of s.19(2)(d)(i) Income Tax Act – requirement to prove nexus between travel destinations and duties; Civil procedure – appeals from Tax Appeals Tribunal commenced by Notice of Appeal (s.27 Tax Appeals Tribunal Act) – memorandum of appeal struck off; Evidence – supplementary record documents treated as part of tribunal record, not new evidence.
1 September 2023
Fuel cards treated as taxable PAYE because appellant failed to prove fuel use "in the course of" employment duties.
Tax law – PAYE – whether employer-provided fuel cards are a taxable benefit or an exempt travel allowance under s19(2)(d)(i) Income Tax Act; burden of proof and nexus between travel and duties; appeals procedure from Tax Appeals Tribunal (s27); admissibility of supplementary record.
1 September 2023
Plaintiff failed to plead prima facie fraud or unconscionability against the guarantor; plaint struck out for no cause of action.
Bank guarantees – on‑demand/unconditional guarantees; autonomy principle and URDG; guarantor’s limited inquiry duty; fraud, manifest unlawfulness and unconscionability exceptions; requisite pleading particulars for challenge to payment; striking out for failure to disclose cause of action.
1 September 2023
A lender named as loss-payee under an insurance policy is not a contracting party and owes no duty to renew or pay the borrower's insurance.
Contract law – Privity – Loss-payee/"interested party" under insurance policy does not make a lender party to the insurance contract or impose contractual obligations. Banking/loan agreements – Interpretation of clauses regarding fees and debit authorisations; renewal obligations not implied where not expressly undertaken. Fiduciary duty – No fiduciary relationship or voluntary assumption of duty by lender to renew/pay insured's premiums. Negligence – No duty of care owed by lender to notify or renew borrower's insurance where contract does not create such duty. Remedies – Claim dismissed; costs awarded to defendant.
1 September 2023
An application for leave to defend in summary proceedings is overtaken by events once a default judgment is entered; the default must first be set aside.
Civil procedure – summary procedure (Order 36) – application for leave to appear and defend – time limits and effect of default judgment. Civil procedure – default judgment – once entered a defendant must set aside judgment before defending on merits. Contract/Guarantee – joinder of guarantor – distinct liabilities and preliminary objection as to wrongful joinder. Practice – application rendered overtaken by events where procedural remedies (setting aside default) are not pursued.
1 September 2023