Arrow Centre (U) Ltd v Polat Yol Yapi Sanayi ve Ticaret Anonim Sirketi (Civil Suit 534 of 2024)

Observed later treatment

No later-treatment classification is recorded for this judgment.

Citator coverage is limited to judgments in the Wakilii corpus and source-matched treatment records. Absence of a signal is not an assertion that the case remains good law.

Holding

The High Court Commercial Division held that the defendant breached the contract by failing to pay UGX 62,128,000 for tyres supplied. Following an interlocutory judgment under Order 9 rule 8 for failure to file a defence, the court awarded the plaintiff the outstanding sum plus general damages of UGX 8,000,000 for deprivation of business funds, interest at 20% per annum on the principal from filing date, 6% per annum on general damages from judgment, and costs.

Outcome

Judgment entered for plaintiff with outstanding sum, general damages, interest, and costs awarded following defendant's failure to defend

Facts

On 5th February 2022, the defendant issued a Local Purchase Order for 52 pieces of 13R 22.5 Royal Black tyres. On 8th February 2022, the plaintiff supplied and delivered 44 pieces of the tyres and issued a tax invoice for UGX 64,664,000. The defendant paid only UGX 2,536,000, leaving an outstanding balance of UGX 62,128,000. Despite several reminders, the defendant refused to pay. Summons to file a defence were served on 24th May 2024 and subsequently by substituted service through newspaper publication on 25th October 2024, but the defendant failed to file a written statement of defence. An interlocutory judgment was entered on 11th November 2024 for failure to defend, and the matter proceeded to formal proof and assessment of damages.

Issues

1. Whether the Plaintiff is entitled to an award of general damages for breach of contract by the Defendant?
2. Whether the Plaintiff is entitled to interest and costs of the suit?

Orders

• It is declared that the Defendant breached the terms of the Contract for the supply of Royal Black tyres.
• The Defendant shall pay the Plaintiff UGX 62,128,000 being outstanding monies for the 44 Royal Black tyres supplied on 8th February 2022.
• The Defendant shall pay the Plaintiff general damages amounting to UGX 8,000,000.
• Interest is awarded on the principal sum at the rate of 20% per annum from the date of filing the suit until payment in full.
• Interest is awarded on the general damages at the rate of 6% per annum from the date of judgment until payment in full.
• Costs of the suit are awarded to the Plaintiff.

Rules and key headnotes

Legislation cited (10)

• Civil Procedure Rules Order 9 rule 8
• Civil Procedure Rules Order 15 rule 5(1)
• Sale of Goods and Supply of Services Act Cap. 292 s.60(1)
• Contracts Act Cap. 284 s.60(1)
• Contracts Act Cap. 284 s.60(4)
• Evidence Act Cap. 8 s.101
• Evidence Act Cap. 8 s.102
• Evidence Act Cap. 8 s.103
• Civil Procedure Act s.26(2)
• Civil Procedure Act s.27(2)

Cases cited (6)

• Haji Asumani Mutekanga v Equator Growers (U) Ltd (Supreme Court Civil Appeal No. 7 of 1995)
• Kabandize John Baptist and 21 Others v Kampala Capital City Authority (Court of Appeal Civil Appeal No. 36 of 2016)
• Takiya Kashwahiri and Another v Kajungu Denis (Court of Appeal Civil Appeal No. 85 of 2011)
• Uganda Commercial Bank v Deo Kigozi [2002] 1 EA 305
• Milly Masembe v Sugar Corporation (U) Ltd and Another (Supreme Court Civil Appeal No. 1 of 2000)
• Uganda Development Bank v Muganga Construction Co. Ltd [1981] HCB 35

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