Wakilii

Bajaber Millers Ltd v Bakers World Ltd (Civil Appeal No. 14 of 2014)

High Court · [2020] UGCOMMC 36 · 2020 Appeal Allowed AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Appeal from Chief Magistrate's Court decision in a civil suit for recovery of debt for non-payment of goods supplied
Decision
Appeal allowed; special damages and interest awarded to the appellant; judgment of the lower court set aside.

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

The High Court Commercial Division allowed the appeal, holding that the trial magistrate erred in refusing to award special damages where the respondent acknowledged indebtedness through correspondence and cheques, failed to file a defence, and left the appellant's evidence uncontroverted. The absence of an invoice for a specific transaction date was not fatal where other documentary evidence established the debt on a balance of probabilities. Special damages of Ushs 19,685,000/= were awarded with interest at 9% per annum from the date of default.

Outcome

Appeal allowed; special damages and interest awarded to the appellant; judgment of the lower court set aside.

Facts

Between February and April 2013, Bajaber Millers Ltd supplied wheat flour to Bakers World Ltd. Two cheques issued by the respondent for Ushs 20,000,000/= and Ushs 18,800,000/= were dishonoured. The respondent made partial payments totalling Ushs 15,535,000/= leaving an outstanding balance of Ushs 19,685,000/=. The appellant sued for recovery of this amount in the Chief Magistrate's Court. The respondent did not file a defence or appear in court. In correspondence dated 4th March 2013, the respondent's managing director acknowledged receipt of the flour and admitted owing Ushs 35,025,000/=. The trial magistrate dismissed the claim on the ground that no invoice was produced for a transaction dated 1st January 2013, despite acknowledgment letters, statements of account, and a customer ledger book being in evidence.

Issues

  1. Whether the trial magistrate erred in failing to properly evaluate the uncontroverted evidence of the Appellant.
  2. Whether the trial magistrate erred in failing to appreciate that no defence had been filed and thus the evidence was not challenged.
  3. Whether the trial magistrate erred in refusing to award the Appellant special damages of Ushs 19,685,000/=.

Orders

  • Appeal allowed.
  • The judgment and orders of the lower trial court set aside and substituted with the judgment and orders of this appellate court.
  • Special damages of Ushs 19,685,000/= awarded to the Appellant.
  • Interest at the court rate of 9% per annum on the special damages from the date of the cause of action awarded to the Appellant.
  • Costs of the appeal and costs in the lower trial court awarded to the Appellant.

Rules and key headnotes

Civil Procedure — Appellate jurisdiction — Duty of first appellate court — Re-evaluation of evidence
The duty of a first appellate court is to reconsider all material evidence before the trial court, making allowance for the fact that it has neither seen nor heard the witnesses, and to reach its own conclusion on that evidence rather than merely endorsing the conclusion of the trial court.
Evidence — Proof of debt — Acknowledgment of indebtedness — Sufficiency of documentary evidence
Where a defendant acknowledges indebtedness in writing and issues cheques in payment, the absence of an invoice for a specific transaction date is not fatal to the plaintiff's claim if other documentary evidence, including statements of account and correspondence, establishes the debt on a balance of probabilities.
Civil Procedure — Failure to file defence — Effect on plaintiff's burden of proof — Deemed admission
A party who fails to appear in court and file a written statement of defence is deemed to have admitted the allegations made against them in the plaint, and the evidence given against them remains uncontroverted.
Contract Law — Supply of goods — Proof of debt — Commercial transactions
In a commercial transaction for supply of goods, acknowledgment of receipt and indebtedness by the buyer, coupled with attempts at payment through dishonoured cheques and partial cash payments, constitutes sufficient proof of the outstanding debt.

Legislation cited (3)

Cases cited (12)

  • Walubi & Anor v Uganda (Criminal Appeal No. 152 of 2012)
  • Pandya v R [1957] EA 336
  • Ruwala v R [1957] EA 570
  • Bogere Moses v Uganda (Criminal Appeal No. 1 of 1997)
  • Okethi Okale v Republic [1965] EA 555
  • Mbazira Siragi and Anor v Uganda (Criminal Appeal No. 7 of 2004)
  • Baguma Fred v Uganda (Supreme Court Appeal No. 7 of 2004)
  • Banco Arab Espanol v Bank of Uganda (Supreme Court Civil Appeal No. 8 of 1998)
  • Byaruhanga Yozefu v Kahemura Patrick (High Court Civil Suit No. 19 of 2016)
  • HSGS Impex Uganda Ltd v Bakama Enterprises Ltd & Christopher Henry Batureine (High Court Civil Suit No. 787 of 2014)
  • Mwesigye v Kiiza (High Court Civil Suit No. 320 of 2015)
  • Majid Akuze v Centenary Rural Development Bank (Civil Suit No. 87 of 2015)

Full judgment

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

Bajaber Millers Ltd v Bakers World Ltd (Civil Appeal No. 14 of 2014) [2020] UGCommC 36 (14 September 2020)
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.