Wakilii

Banamukozi Holdings Limited v Credo Link Agencies Uganda Limited & Wagaba Godfrey Kikonyogo (Civil Suit 954 of 2023)

High Court · [2023] UGCOMMC 128 · 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. Defendants failed to file defence and interlocutory judgment was entered. Matter fixed for formal proof.
Decision
Judgment entered for plaintiff with orders for payment of principal sum, general damages, interest, and costs

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.

AI-generated summary. This summary was generated by AI from the full text of the judgment. It may contain errors or omissions—always read the source judgment before relying on it.

Holding

Held that the defendants breached a loan facility agreement by defaulting on repayment obligations totalling UGX 50,000,000 principal plus interest. The plaintiff proved its claim for UGX 75,000,000 being principal and accrued interest. General damages of UGX 5,000,000 awarded for inconvenience caused by breach. Interest awarded at 20% per annum on the principal sum from date of filing until full payment, and 6% per annum on general damages from date of judgment. Costs awarded to plaintiff.

Outcome

Judgment entered for plaintiff with orders for payment of principal sum, general damages, interest, 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 disbursed. The agreements provided for a penalty of UGX 200,000 per month or 20,000 per day in case of default. The second defendant acted as guarantor and pledged a postdated cheque for UGX 20,000,000 drawn on Centenary Bank Account No. 3100020278 and his national ID as partial security. The cheque was dishonoured for lack of funds. The defendants defaulted on their loan repayment obligations. The plaintiff claimed UGX 75,000,000 being the principal and interest at the time of filing. Summons were served but defendants failed to file a defence. Interlocutory judgment was entered and matter proceeded for formal proof.

Issues

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

Orders

  • Defendant to pay UGX 75,000,000.
  • General damages of UGX 5,000,000 granted to the Plaintiff.
  • Interest of 20% per annum on UGX 75,000,000 from the date of filing the suit until payment in full.
  • Interest granted on general damages at the rate of 6% per annum from the date of judgment until payment in full.
  • Costs of the suit awarded to the Plaintiff.

Rules and key headnotes

Contract Law — Breach of Contract — Definition and Elements
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.
Contract Law — Breach of Contract — Proof Where Defence Not Filed
Where payments were delayed and the figure was pleaded and has not been challenged by the defendant who failed to file a defence, the plaintiff is taken to have proved the claim to the satisfaction of the court.
Damages & Quantum — General Damages — Entitlement for Breach of Contract
As a general rule, a breach of contract entitles the injured party to an award of general damages. The purpose of contractual damages is to place the party which suffered the loss by reason of the breach in the same position he or she would have been had the contract been properly performed.
Damages & Quantum — Interest — Rate on Principal Sum and General Damages
Interest on the principal sum recovered for breach of loan agreement is properly awarded at 20% per annum from the date of filing the suit until payment in full, while interest on general damages is awarded at 6% per annum from the date of judgment until payment in full, following the distinction between special and general damages established by the Supreme Court.
Civil Procedure — Costs — Costs Follow 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 for his or her 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 (1)

Cases cited (7)

  • Nakana Trading Co. Ltd v Coffee Marketing Board (Civil Suit No. 137 of 1991)
  • Roko Construction Company v Attorney General (High Court Civil Suit No. 517 of 2008)
  • Bank of Uganda v Fred Masaba and 5 Others (Supreme Court Civil Appeal No. 3 of 1998)
  • ESSO Petroleum Co. Ltd v Mardan [1976] 2 All ER
  • Robinson v Harman [1848] Exch 850
  • Surgipharm Uganda v Anatoli Batabane (Civil Appeal No. 11 of 2020)
  • Uganda Development Bank v Muganga Construction Co. Ltd (1981) HCB 35

Full judgment

↓ Download PDF

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

Banamukozi Holdings Limited v Credo Link Agencies Uganda Limited & Wagaba Godfrey Kikonyogo (Civil Suit 954 of 2023) [2023] UGCommC 128 (27 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.