Wakilii

Bang Cheng Investment Co. Limited v House of Concrete East Africa Limited (Civil Suit No. 1493 of 2023)

High Court · [2024] UGCOMMC 390 · 2024 Judgment for Plaintiff AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
First instance civil suit for recovery of debt arising from breach of contract, heard ex parte after defendant failed to file defence
Decision
Judgment entered for plaintiff with special damages of UGX 244,605,580 and general damages of UGX 15,000,000 plus interest and costs

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

The court held that the defendant breached a contract for the supply of construction materials. The plaintiff supplied stone aggregates and lake sand worth UGX 244,605,580 which the defendant received but failed to pay for since 2019. The defendant's failure to file a defence was treated as a constructive admission. The plaintiff was entitled to special damages representing the unpaid contract price, general damages for financial inconvenience, and interest on both.

Outcome

Judgment entered for plaintiff with special damages of UGX 244,605,580 and general damages of UGX 15,000,000 plus interest and costs

Facts

In 2019, the defendant approached the plaintiff requesting supply of lake sand and stone aggregates for construction. The parties agreed on prices, place of delivery and payment terms. The plaintiff, which operates a stone quarry at Zirobwe producing construction materials, supplied the defendant with construction materials worth UGX 244,605,580. The defendant received and used the materials for commercial purposes but failed to pay the outstanding sum despite several reminders. The plaintiff instituted this suit on 16 November 2023. The defendant was served with summons but failed to file a defence. The matter proceeded ex parte under Order 9 rule 20(1)(a) of the Civil Procedure Rules. The plaintiff called two witnesses who testified to the supply of materials and non-payment.

Issues

  1. Whether the Defendant breached the contract of supply of construction materials between it and the Plaintiff?
  2. What remedies are available to the parties?

Orders

  • The Defendant shall pay the Plaintiff UGX 244,605,580/= as money for the supplies delivered by the Plaintiff.
  • The Defendant shall pay the Plaintiff general damages amounting to UGX 15,000,000/=.
  • Interest is awarded on the special damages at the rate of 20% per annum from the date of filing this suit until payment in full.
  • The Defendant shall pay interest on the general damages at the rate of 6% per annum from the date of Judgment till payment in full.
  • Costs of this suit are awarded to the Plaintiff.

Rules and key headnotes

Contract Law — Breach of Contract — Failure to Pay for Goods Supplied
Where a defendant fails to file a defence, such failure constitutes a constructive admission to the claims made in the plaint and the testimony of the plaintiff, and in the absence of contradictory evidence the plaintiff's case must be accepted as the truth, subject to the plaintiff proving the case on the balance of probabilities.
Contract Law — Definition and Formation — Essential Elements
A contract is an agreement made with the free consent of parties with capacity to contract, for a lawful consideration and with a lawful object, with the intention to be legally bound. Once a valid contract is formed, it creates reciprocal rights and obligations between the parties.
Contract Law — Breach of Contract — Recovery of Contract Price
Where a plaintiff performs its contractual obligation by supplying goods and the defendant receives and uses those goods for commercial purposes but fails to pay, the defendant has breached the contract and the plaintiff is entitled to recover the contract price as special damages.
Damages & Quantum — General Damages — Measure and Assessment
The general rule regarding general damages is that the award should be such a sum of money as will put the injured party in the same position as he or she would have been had he or she not sustained the wrong. General damages should be compensatory and restore satisfaction, as far as money can do, to the injured plaintiff.
Damages & Quantum — Interest — Rate and Application on Special and General Damages
Interest is awarded at the discretion of the court exercised judiciously taking into account all the circumstances of the case. A plaintiff deprived of money needed for business should be compensated by award of interest to insulate against inflation and currency depreciation. Courts determine a just and reasonable rate taking into account prevailing inflation and depreciation of currency.
Civil Procedure — Costs — Costs Follow the Event
Costs shall follow the event unless the court for good reason orders otherwise. A successful party can only be denied costs if it is proved that but 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 (10)

Cases cited (16)

  • Kyarimpa Sarah v Harriet Nassozi Hewett (High Court Civil Suit No. 794 of 2016)
  • Ronald Kasibante v Shell Uganda Limited (High Court Civil Suit No. 542 of 2006)
  • Agard Didi v James Namakaso (High Court Civil Suit No. 1230 of 1988)
  • Nakawa Trading Co. Ltd v Coffee Marketing Board (Civil Suit No. 137 of 1991)
  • William Kasozi v DFCU Bank Ltd (High Court Civil Suit No. 1326 of 2000)
  • Omega Bank PLC Ltd Vs O.B.C Limited [2005] 8 NWLR (pt. 928) 547
  • Roko Construction Company v Attorney General (High Court Civil Suit No. 517 of 2008)
  • 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 Vs Deo Kigozi [2002] 1 EA 305
  • Milly Masembe v Sugar Corporation (U) Ltd and Another (Supreme Court Civil Appeal No. 1 of 2000)
  • Wallersteiner Vs Moir [1975] 1 All ER 849
  • Waiglobe (U) Ltd v Sai Beverages Ltd (High Court Civil Suit No. 16 of 2017)
  • Surgipharm Uganda Ltd v Anatoli Batabane (Supreme Court Civil Appeal No. 11 of 2020)
  • Mohanlal Kakubhai Radia v Warid Telecom Uganda Ltd (High Court Civil Suit No. 224 of 2011)
  • Uganda Development Bank Vs Muganga Construction Co. Ltd [1981] HCB 35

Full judgment

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

Bang Cheng Investment Co. Limited v House of Concrete East Africa Limited (Civil Suit No. 1493 of 2023) [2024] UGCommC 390 (4 November 2024)
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.