Court name
High Court of Uganda
Case number
High Court Civil Suit 619 of 1998
Judgment date
6 April 1999

Hima Cement (U) Ltd v Uganda Co-operative Insurance Ltd (High Court Civil Suit 619 of 1998) [1999] UGHC 11 (06 April 1999);

Cite this case
[1999] UGHC 11
Short summary:

Company Law

 

THE REPUBLIC OF UGANDA
IN THE HIGH COURT OF UGANDA AT KAMPALA
HIGH COURT CIVIL SUIT NO. 619/98 

Hima Cement (U) Ltd :::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::: Plaintiff versus
Uganda Co-operative Insurance Ltd :::
::::::::::::::::::::::::::::::::::::::: Defendant
 

Before: The Hon. Principal Judge Mr. Justice J.H. Ntabgoba 
RULING 
Hima Cement (U) Ltd, the plaintiff in this case brought an action against Uganda Co-operative Insurance Limited, the defendant seeking an order for payment to the plaintiff by the defendant of a sum of Shs. 21,943,200/= termed, in the plaint, the contractual sum. An order is also sought for general damages for breach of contract and interest on the decretal amount at the rate of 49% per cent per annum, together with the costs of the suit.

It is the case for the plaintiff that, upon a guarantee by the defendant for the payment of Shs. 50 million shillings signed by the defendant in favour of the plaintiff, the latter supplied to N.K.Paints Cement worth Shs. 21,943 ,200/=; that when N.K. Paint failed to pay this debt, the plaintiff resorted to the defendant for its payment relying on the guarantee but that N.K. Paint, Ltd defaulted in payment despite demands by the plaintiff. The alleged guarantee was written on the official document of the defendant bearing its logo, the letter head, and it was signed by two persons for the General Manager of the defendant. Their signatures are under the seal of the defendant. Although Mr. Kinyera