background image
profile image

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.
47 judgments
  • Filters
  • Judges
  • Alphabet
Sort by:
47 judgments
Citation
Judgment date
March 2024
28 March 2024
The plaintiff proved a supply debt and was awarded USD 267,261.30, USD 20,000 damages, interest and costs.
Breach of contract; recovery of debt — proof of delivery by invoices, airway bills and bills of lading; burden of proof and shift after prima facie case; unproven set-off/reconciliation; award of general damages, interest and costs.
28 March 2024
Guarantors held liable under deed of guarantee; court awards principal, damages, interest and costs.
Contracts — Guarantee and indemnity — Guarantor’s liability where principal debtor defaults; Evidence — documentary proof of facility, disbursement, assignments and demand notices; Remedies — recovery of principal, interest, discounted penalties, general damages and costs.
28 March 2024
Respondent’s failure to lodge title deeds held wilful contempt; fined and ordered to pay damages and costs.
Civil procedure – contempt of court – clear and unambiguous orders to lodge title deeds; notice and service; standard of proof beyond reasonable doubt; defence of good‑faith inability requires proof of all reasonable efforts; corporate contempts – monetary sanctions appropriate; directors not personally punished without joinder and hearing.
28 March 2024
Court allowed amendment of defence to clarify issues, holding pleadings are averments and prejudice is curable by costs.
Civil procedure – Amendment of pleadings – Order 6 r.19 – Amendments allowed to determine real questions in controversy – Pleadings are averments not evidence – Prejudice curable by costs and case management directions.
28 March 2024
Court allowed discovery of most bank and transaction documents, overruling procedural objection, but declined documents relating to Plot 308.
* Civil procedure — Discovery — Order 10 Rule 12 — Relevance, necessity and control of documents for discovery; recipient certification of copies. * Procedure — Use of notice of motion under Section 98/Order 52 vs chamber summons — procedural irregularity not fatal where court has jurisdiction. * Evidence — Not a fishing expedition — reasonable expectation of materiality. * Banking law — Financial Institutions Act retention obligations; Banker’s Books Act not extending to correspondence/contracts/security documents.
27 March 2024
A court-endorsed consent decree is binding; post-judgment variations need court endorsement and verification must follow agreed terms.
Civil procedure – consent judgment – binding effect and variation – post-judgment compromise requires court endorsement; execution – verification under consent terms – requirement for jointly agreed terms of reference, attendance and signed verification reports; interest – enforcement of agreed contractual interest once consent is endorsed by court.
27 March 2024
Typographical misnaming of an existing corporate plaintiff is a curable misnomer; court may invoke inherent powers to order amendment.
* Civil procedure – misnomer in pleadings – distinction between suit by non-existent entity and curable misnomer where the correct company exists. * Civil procedure – inherent powers (S.98 Civil Procedure Act) – court may cure procedural defects and grant corrective orders in the interests of justice even if not specifically prayed for. * Civil procedure – Order 1 Rule 10 – inapplicable to classic misnomers involving typographical errors in names of existing parties. * Professional negligence – mistake by counsel – error of counsel should not be imputed to client where identity of party is clear.
26 March 2024

 

26 March 2024

 

26 March 2024

 

26 March 2024

 

25 March 2024
Leave granted to add employer as third party for indemnity after wrongful dismissal caused loan default.
Third party procedure – Order 1 rule 14 – Leave to issue third party notice for indemnity or contribution; Same subject matter requirement; Proof of right to indemnity (Industrial Court award); Absence of prejudice; Interest of justice; Time limit for filing third party notice (15 days).
25 March 2024

 

25 March 2024
Failure to produce allegedly infringing copies prevented proof of substantial similarity, so copyright claim was dismissed.
* Copyright — literary works — protection of foreign-published works under domestic Copyright Act; * Licensing — written transfer/assignment requirements for exploitation rights; * Infringement — copying and substantial similarity test requires comparison of original and accused work; * Evidence — primary evidence requirement for documents; failure to produce seized infringing copies defeats infringement claim.
25 March 2024

 

25 March 2024
Plaintiff retained ownership and lien over unpaid consignment; customs must release goods for re‑export; damages and injunction granted.
Sale of goods — property and passing of title; unpaid seller’s lien and stopping goods in transit; proof of fraud in civil claims — high standard required; customs possession does not amount to lawful delivery to buyer; ex parte proceedings where defendant fails to appear.
22 March 2024
The applicant retained ownership and lien over unpaid consignment; re-export, injunction, damages and costs awarded.
Sale of goods – transfer of property in specific goods – property passes when parties intend per contract; unpaid seller’s lien and right to stop goods in transit preserved where payment not made; goods held at customs are in transit. Contract law – existence of contract established by communications and commercial invoice. Fraud – civil fraud requires strict proof to a high standard; mere non-payment or silence insufficient. Remedies – declaration of ownership, re-export order, permanent injunction, general damages and interest; punitive damages not appropriate for ordinary contractual breach. Procedure – suit permitted ex parte where defendant defaulted after service/substituted service.
22 March 2024
Applicant’s suit reinstated for sufficient cause, subject to UGX 50,000,000 security and costs to be paid by applicant.
Civil procedure – Setting aside dismissal for non-appearance – Order 9 Rule 18 – "Sufficient cause" standard; Counsel negligence – when knowledge can be imputed to client; Inordinate delay – assessment and consequences; Commercial court discretion to impose safeguards including security to ensure diligent prosecution.
22 March 2024
Res judicata not established where earlier distress proceedings lacked jurisdictional competence and differed in cause of action.
* Civil procedure – Res judicata – three‑part test: former suit decided by competent court; same matter in dispute; same parties/title. * Distress for Rent (Bailiffs) Act – distress proceedings and leave of court – distress is a self‑help remedy and the Act does not require court leave to levy distress. * Jurisdiction – competency of court for res judicata purposes; inherent powers under Section 33 Judicature Act/Section 98 Civil Procedure Act may justify court orders in exceptional cases. * Distinction between applications for leave to levy distress and substantive contractual claims for recovery of rent – different causes of action.
22 March 2024

Arbitration—contract disputes—guarding services—valid arbitration clause—clause conflict—pathological clause claim rejected—arbitration preferred—jurisdiction excluded—parties bound—suit dismissed—no costs awarded

22 March 2024

 

20 March 2024
Counter‑indemnities are autonomous and payable on strict compliance; applicants failed to show a bona fide defence, leave denied.
Civil procedure – Order 36 rule 4 – leave to appear and defend – requirements of bona fide, particularised defence; Contract/Construction – counter indemnities – autonomy and strict documentary compliance; Counter indemnities payable on demand unless beneficiary’s fraud established; Expiry/renewal of bonds and conditional undertakings; Frivolous defences and summary procedure.
20 March 2024
Applicant’s denial of payment contradicted by EFT receipts; summary judgment for respondent for UGX 75,000,000 entered.
* Civil Procedure – Order 36 CPR – summary judgment on admission – entry of judgment where plaintiff’s claim (or part) is admitted. * Evidence – documentary proof (EFT/bank receipts) establishing admission and defeating a defence of non-payment. * Costs – unsuccessful resisting party liable for costs where defence is unsupported by credible evidence.
19 March 2024
Interlocutory injunction refused for abuse of process, limitation defects and failure to show irreparable harm; Regulation 13 deposit critical.
* Civil procedure – interlocutory injunction – requirements: prima facie case, irreparable harm, balance of convenience. * Limitation – six‑year rule for contractual claims – stale claims unsustainable. * Abuse of process – multiplicity of suits and re‑litigation; splitting causes of action. * Corporate law – piercing the corporate veil where directors misuse company to obstruct justice. * Mortgage law – Mortgage Regulations Reg.13: 30% security deposit to adjourn/stop sale of mortgaged property.
18 March 2024
18 March 2024
Mortgagee entitled to foreclose, sell by public auction and obtain vacant possession where mortgagor defaults and fails to redeem.
* Land law – Mortgages – Foreclosure – equity of redemption and right to redeem; * Mortgage enforcement – possession and power of sale – statutory power where contract silent; * Procedure for sale – public auction requirements under the Mortgage Act and Regulations; * Relief – foreclosure extinguishes mortgagor's redemption rights and justifies eviction to obtain possession.
18 March 2024
15 March 2024
Transaction was a loan secured by property, not a sale; sale agreement void and title returned.
Property law – Sale versus security for loan; Intention to create legal relations; Fraud/misrepresentation inducing consent; Specific performance refused where no valid sale proved; Restitution of title and costs awarded.
15 March 2024
Applicant raised bona fide triable issues on contract variations and amount owed, warranting unconditional leave to defend.
* Civil procedure – summary procedure (Order 36) – leave to appear and defend – requirement to show bona fide triable issue of fact or law. * Contract – alleged variations to service contracts – existence, approval and execution contested. * Evidentiary issues – annexures to affidavits (UMEME service orders/change request forms) require trial examination; interlocutory inadmissibility/weight not determinative. * Remedy – unconditional leave to defend; written statement of defence ordered; costs in the cause.
14 March 2024
Applicant granted unconditional leave to defend summary suit after court found bona fide triable issues requiring full trial.
* Civil procedure – Summary procedure (Order 36) – Leave to appear and defend – Requirement to show a bona fide triable issue of fact or law – Defendant need not prove defence on merits but must demonstrate issues requiring trial.* Contract law – Dispute as to interpretation/validity of contract addendum and statutory restrictions—matters unsuitable for summary disposal.* Orders 36 and 52 – procedural directions where unconditional leave granted; costs in the cause.
13 March 2024
13 March 2024
Appeal dismissed where notice of motion served lacked mandatory judicial signature and court seal.
* Civil procedure – Service of summons/notice of motion – Order 5 rule 1(5) CPR – signature and court seal mandatory. * Electronic filing (ECCMIS) – does not dispense with statutory requirements for signed and sealed court processes. * Notice of motion served without judicial signature/seal – fundamental defect and nullity. * Preliminary objections – competency of appeal; appeal dismissed with costs.
12 March 2024
Petitioner failed to prove inability to pay and did not meet statutory or evidential requirements; petition dismissed.
Insolvency Act 2011 – debtor’s petition – burden to prove inability to pay; Section 3 presumption of insolvency; requirements of Sections 20–21; Insolvency Regulations (Reg.11, Reg.21) – completeness of statement of affairs and service on known creditors; evidential requirement to produce guarantee, demand notices and sale proceeds.
12 March 2024
A bank breached its duty by honoring transfers on a joint account without verifying co-signatory authorization; plaintiff recovered title and costs.
Banking law — Quincecare duty — joint-account mandates — bank's duty to make enquiries before honoring transfers — consumer protection and illiteracy/translation obligations.
12 March 2024
11 March 2024
Freezing orders preserve assets but do not halt decretal interest; payment to an authorised agent discharges accrued interest.
Civil procedure – execution – freezing order does not automatically suspend accrual of decretal interest; payment to judgment creditor’s authorized agent discharges decretal principal and accrued interest; garnishee for further interest set aside where payment had been made.
11 March 2024

 

7 March 2024

 

7 March 2024
Enforcement of Hong Kong arbitral award upheld; tribunal rightly declined jurisdiction over a separate MoU‑based counterclaim.
Arbitration — recognition and enforcement of foreign awards under the New York Convention (Article V) — limited grounds for refusal; Kompetenz‑Kompetenz — tribunal’s power to rule on its jurisdiction; Counterclaims — must arise under same arbitration agreement and be closely connected to main claim; Procedural fairness — fair hearing and manifest impartiality threshold; Public policy — narrow exception, requires causal nexus and substantial prejudice.
6 March 2024
Foreign arbitral award enforced: counterclaim lay outside arbitration agreement; no procedural unfairness or public-policy breach.
International arbitration — Recognition and enforcement under the New York Convention — Article V limited grounds for refusal — Kompetenz‑Kompetenz — scope of arbitration agreement and admissibility of counterclaims — procedural fairness and evident partiality — public policy exception narrowly construed.
6 March 2024
Memorandum of understanding was a valid contract; defendant breached it and plaintiffs awarded principal, penalty, liquidated damages, interest and costs.
Contracts — validity of memorandum of understanding as contract; breach for non-repayment of monies; enforceability and measure of contractual penalties and liquidated damages — application of s.62 Contracts Act; award of interest and costs.
6 March 2024
Court consolidated two land suits raising common questions on title and mortgage legality to avoid multiplicity of proceedings.
Civil procedure – consolidation of suits – Order 11 Rule 1 CPR – common questions of law or fact; Land law – proprietary claims and mortgage validity; Fraudulent transfer allegations as part of related transactions; Judicial discretion to avoid multiplicity of suits; Case management and costs in cause.
5 March 2024
High Court refused to refer acting-judge challenge to Constitutional Court and consolidated two applications to add defendants.
Constitutional law – Article 137(5)-(6) reference to Constitutional Court – res judicata where Constitutional Court has already determined same constitutional question; Acting judges – constitutionality of appointment, deployment and tenure; Civil procedure – jurisdiction to add parties and consolidation of similar applications under Order 11 rule 1; Stare decisis – High Court bound to respect Constitutional Court decisions pending appeal.
4 March 2024
A preliminary objection alleging absence of cause of action fails where successor liability from an acquisition requires evidential proof.
Civil procedure – preliminary objection – competence where factual determination required; Cause of action – elements; Corporate/successor liability – whether successor liable for predecessor’s acts after acquisition; Judicial notice of acquisition insufficient to dispense with evidence; Issue to be framed and tried before competency determination.
4 March 2024
1 March 2024
1 March 2024