Wakilii

Banamukozi Holdings Limited v Credo Link Agencies Uganda Limited and Another (Civil Suit No. 954 of 2023)

High Court · [2023] UGCOMMC 311 · 2023 Judgment for Plaintiff AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
First instance civil suit for breach of contract and recovery of money, decided on formal proof after defendants failed to file defence
Decision
Judgment entered for the plaintiff with orders for payment of principal, interest, general damages, and costs

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

The court held that the defendants breached a loan facility agreement by defaulting on their repayment obligations. Having failed to file a defence after service, the plaintiff was entitled to recover the principal sum and interest, general damages for inconvenience caused by breach, and interest on both heads at specified rates. The plaintiff recovered UGX 75,000,000 being principal and accrued interest, UGX 10,000,000 general damages, interest at 20% per annum on the principal from filing until payment, 6% per annum on general damages from judgment, and costs.

Outcome

Judgment entered for the plaintiff with orders for payment of principal, interest, general damages, and costs

Facts

The plaintiff entered into two loan facility agreements with the first defendant: UGX 20,000,000 on 22 June 2022 at 7% monthly interest, and UGX 30,000,000 on 16 November 2022, totalling UGX 50,000,000. The agreements provided for a penalty of UGX 200,000 per month or UGX 20,000 per day in case of default. The second defendant guaranteed the loans and pledged a postdated cheque for UGX 20,000,000 and his national ID as partial security. The second defendant requested the cheque not be banked due to lack of funds. The defendants defaulted on their repayment obligations. At the time of filing, the total amount due including interest was UGX 75,000,000. Summons and plaint were served on the defendants but they failed to file a defence. Interlocutory judgment was entered and the matter proceeded to formal proof.

Issues

  1. Whether the Defendants are in breach of Contract?
  2. Whether there are any remedies available to the Plaintiff?

Orders

  • The Defendants are hereby to pay UGX 75,000,000 (Uganda Shillings Seventy-Five Million Only) to the Plaintiff.
  • General damages of UGX 10,000,000 (Uganda Shillings Ten Million Only) are hereby granted to the Plaintiff.
  • Interest of 20% per annum is hereby granted on the sum in (1) above from the date of filing the suit until payment in full.
  • Interest is granted on general damages at the rate of 6% per annum from the date of judgment until payment in full.
  • The Defendants shall meet the costs of the suit.

Rules and key headnotes

Contract Law — Breach of Contract — Definition and Elements
A breach of contract occurs where one or both parties fail to fulfil the obligations imposed by the terms of the contract, either by failing to perform one's own promises or by interfering with another party's performance.
Damages & Quantum — General Damages — Breach of Contract
As a general rule, a breach of contract entitles the injured party to an award of general damages to place the party which suffered the loss by reason of the breach in the same position they would have been had the contract been properly performed.
Damages & Quantum — Interest on Judgment Debt — Distinction Between Principal and General Damages
Interest on a principal debt awarded at judgment is calculated from the date of filing the suit until payment in full, while interest on general damages is calculated from the date of judgment until payment in full, and the rates may differ for each head.
Civil Procedure — Costs — Award of Costs Following the Event
Costs of any cause follow the event unless otherwise ordered by court. A successful party can only be denied costs if it is proved that, but for their conduct, the action would not have been brought. Costs will follow the event where the party succeeds in the main purpose of the suit.

Legislation cited (2)

Cases cited (7)

  • Nakana Trading Co. Ltd v Coffee Marketing Board (Civil Suit No. 137 of 1991)
  • Rolco Construction Co v Attorney General (High Court Civil Suit No. 517 of 2008)
  • Bank of Uganda v Fred Masaba & 5 Others (Supreme Court Civil Appeal No. 03 of 1998)
  • ESSO Petroleum Co. Ltd Vs. Mordan [1976] 2 ALLER
  • Robinson Vs Harman [1848] Exch 850
  • Uganda Development Bank v Muganga Construction Co Ltd (1981) HCB 35
  • Surgipharm Uganda v Anotoli Batabane (Civil Appeal No. 11 of 2020)

Full judgment

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

Banamukozi Holdings Limited v Credo Link Agencies Uganda Limited and Another (Civil Suit No. 954 of 2023) [2023] UGCommC 311 (26 October 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.