Wakilii

Anhui Suan Holding Group Co. Limited v Risk Building Material Limited (Civil Suit 622 of 2021)

High Court · [2023] UGCOMMC 182 · 2023 Judgment for Counter Claimant AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Counter claim for outstanding contract sum and damages following plaintiff's suit dismissal for non-appearance
Decision
Judgment entered for counter claimant with payment of outstanding contract sum, general damages, interest, and costs

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

Held that the counter defendant breached the contract by unilaterally terminating the construction agreement without citing any reason specified under Clause 25 and by refusing to pay the outstanding contract sum of UGX 160,961,166.37. The counter claimant was entitled to payment of the outstanding sum, general damages, interest, and costs.

Outcome

Judgment entered for counter claimant with payment of outstanding contract sum, general damages, interest, and costs

Facts

On 10th April 2020, the parties entered into a construction agreement whereby the defendant/counter claimant would construct an office block on Plot 13 Naguru Summit View Road. The counter claimant executed works until 19th May 2020 when the plaintiff/counter defendant unilaterally terminated the contract and forcefully took over possession of the site. A joint re-measurement exercise determined the value of completed works as UGX 425,261,424.37. After deducting USD 8,836.21 for defects and UGX 232,489,901 for materials supplied, the outstanding balance due was UGX 160,961,166.37. Despite demands, the counter defendant refused to pay. The plaintiff's original suit was dismissed for non-appearance, and the counter claim proceeded ex parte.

Issues

  1. Whether the Counter Defendant breached the contract dated 10th April, 2020?
  2. Whether the Counter Claimant is entitled to the remedies sought?

Orders

  • Counter defendant to pay counter claimant UGX 160,961,166.37 as the amount due for works done before termination of the contract.
  • Interest awarded at 15% per annum on UGX 160,961,166.37 from the date of filing the suit until payment in full.
  • Counter claimant awarded general damages of UGX 15,000,000.
  • Interest awarded at 10% per annum on general damages from the date of judgment until payment in full.
  • Counter claimant awarded the costs of the suit.

Rules and key headnotes

Contract Law — Breach of Contract — Unilateral Termination Without Contractual Grounds
Where a contract specifies circumstances under which it may be terminated, a party who terminates the contract without citing any of the specified grounds commits a breach of contract, even if the termination is for a reason that appears convenient to the terminating party.
Contract Law — Consideration — Non-Payment for Services Rendered
Where parties have agreed that one party will perform work in return for payment, and the performing party executes part of the work before termination, failure by the other party to pay for the work done constitutes a breach of contract, as consideration must flow from agreement.
Contract Law — Breach of Contract — Definition and Elements
A breach of contract is a legal cause of action in which a binding agreement or bargain for exchange is not honored by one or more of the parties to the contract by non-performance or interference with the other party's performance.
Damages & Quantum — General Damages — Assessment for Breach of Contract
General damages for breach of contract include compensation for inconvenience, business disruption, and financial obligations incurred as a result of the breach. The court exercises its discretion in assessing what would be reasonable compensation based on the total inconvenience and probable loss suffered.
Damages & Quantum — Interest on Damages — Court's Discretionary Powers
Under section 26(2) of the Civil Procedure Act, where a decree is for payment of money, the court has discretionary power to award interest at such rate as it deems reasonable. The basis of an award of interest is that the plaintiff has been kept out of his money.
Civil Procedure — Ex Parte Proceedings — Order 9 Rule 20 CPR
Where a counter defendant has been duly served but fails to appear in court without advancing any reason, the court may order that the counter claim proceed ex parte under Order 9 rule 20(1)(a) of the Civil Procedure Rules.

Legislation cited (6)

Cases cited (7)

  • Nsibambi Mudashiru v Kasule Joseph (HCCS No. 244 of 2014)
  • Printing and Numerical Registering Co. v Simpson (1875) LR 19 Eq 452
  • Cargo World Logistics Limited v Royale Group Africa Limited (HCCS No. 157 of 2013)
  • Michael Katungye v Fred Byamukama & Another (HCCS No. 706 of 2020)
  • Stroms v Hutchinson (1905) AC 515
  • Kiwanuka Godfrey T/A Tosumi Autospares and Glassmart v Arua District Local Government (HCCS No. 186 of 2025)
  • Ecobank Uganda Ltd v LB Construction & Others (HCCS No. 574 of 2012)

Full judgment

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The original judgment as reported. Read the original PDF before relying on any passage.

Anhui Suan Holding Group Co. Limited v Risk Building Material Limited (Civil Suit 622 of 2021) [2023] UGCommC 182 (21 March 2023)
Source: this page presents Wakilii’s issue analysis and metadata for a publicly reported Ugandan judgment. Any AI-generated summary is marked as such. Judgment text is sourced from the Uganda Legal Information Institute (ulii.org). Wakilii is not affiliated with ULII.