Wakilii

Bisons Consult International Ltd v Kampala City Council & Anor (Civil Suit No. 338 of 2009)

High Court · [2013] UGCOMMC 117 · 2013 Judgment for Plaintiff AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Civil suit for recovery of unpaid contract sums following partial settlement by consent
Decision
Judgment entered for the plaintiff for the disputed contract sums, general damages, interest and costs

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

Held that the plaintiff proved it performed contracted work and was entitled to payment for three disputed invoices totalling UGX 26,352,750 despite failure to produce original invoices, as the contract did not require invoices as a prerequisite to payment. The plaintiff was also entitled to UGX 13,705,220 representing VAT deductions made by the defendant's contract supervisor without contractual authority. The court awarded general damages for breach of the monthly payment obligation and interest at 21% per annum from January 2007 to judgment.

Outcome

Judgment entered for the plaintiff for the disputed contract sums, general damages, interest and costs

Facts

On 1 November 2003, the plaintiff and first defendant executed a three-year contract for road sweeping, grass cutting and gardening in Kololo area at a monthly fee of UGX 8,784,250. The plaintiff performed the contract and issued monthly invoices. The plaintiff sued to recover UGX 82,732,685 as unpaid balance. On 7 November 2012, the parties filed a partial settlement by consent whereby defendants agreed to pay UGX 41,687,929 but disputed three invoices totalling UGX 26,352,750 and adjustments of UGX 13,705,220 made by the defendant's contract supervisor against some monthly payments. The contract required payment on a monthly basis not later than the 7th day of the following month under clause 4.1. The defendants disputed the three invoices on grounds the plaintiff failed to produce original copies. The adjustments appeared to represent VAT amounts withheld from monthly payments without contractual authority.

Issues

  1. Whether the Plaintiff is entitled to payment for the three disputed invoices each in the amount of Uganda shillings 8,784,250/= totalling Uganda shillings 26,352,750/=.
  2. Whether the Plaintiff is entitled to payment of Uganda shillings 13,705,220/= being the total sum of the adjustments made on its invoices by the Defendant's contract supervisor.
  3. What remedies are available to the parties.

Orders

  • Plaintiff awarded Uganda shillings 26,352,750/= based on three disputed invoices.
  • Plaintiff awarded Uganda shillings 13,705,220/= being adjustments made by Defendant's contract supervisor.
  • Plaintiff awarded general damages of 21% of the decreed amount (Uganda shillings 41,687,929/= plus Uganda shillings 26,352,750/=).
  • Plaintiff awarded interest at 21% per annum from January 2007 till judgment date on aggregate sum of Uganda shillings 68,040,679/=.
  • Plaintiff awarded interest at 14% per annum on Uganda shillings 68,040,679/= from judgment date till payment in full.
  • Costs of the suit awarded to the Plaintiff.

Rules and key headnotes

Contract Law — Payment Terms — Performance and Entitlement to Payment
Where a contract specifies a fixed monthly payment for services without requiring invoices as a prerequisite to payment, proof that the contracted work was performed entitles the contractor to payment regardless of failure to produce original copies of invoices issued for administrative tracking purposes.
Contract Law — Variation of Terms — Formalities Required
Where a contract contains an express provision that no deviation from, addition to, or variation of conditions shall be valid unless agreed in writing and signed by the parties, a supervisor's unilateral deductions from monthly payments without written authority constitute an invalid variation and do not bind the contractor.
Commercial Law — Value Added Tax — Liability of Supplier
Under the Value Added Tax Act, VAT is imposed on the supplier of services and not on the consumer. Where a contract specifies monthly payments without addressing VAT treatment, the supplier is entitled to receive the full contracted amount from which the supplier is then obliged to remit VAT to the Uganda Revenue Authority.
Damages & Quantum — General Damages — Breach of Payment Obligations
Where a party is kept out of money due under a contract for several years contrary to express payment terms requiring monthly payment, that party is entitled to general damages for breach of contract based on the delayed payment and need not prove specific pecuniary loss.
Civil Procedure — Interest on Judgment Debts — Court's Discretion
Section 26(2) of the Civil Procedure Act permits the court to award reasonable interest on the principal sum adjudged from the date of the suit to the date of decree, and further interest at such rate as the court deems reasonable on the aggregate sum from the decree date to the date of payment.

Legislation cited (3)

Full judgment

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

Bisons Consult International Ltd v Kampala City Council & Anor (Civil Suit No. 338 of 2009) [2013] UGCommC 117 (7 June 2013)
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.