Commissioner of Customs v Prompt Packers and Forwarders Limited (Civil Appeal No. 93 of 2015)
Observed later treatment
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Holding
The Court of Appeal held that a mistitling of a party (Uganda Revenue Authority instead of Commissioner of Customs) arising from the trial court's judgment was a curable error and that the Commissioner's appeal was filed in time. Except for one suspension based on misclassification of polythene bags, all suspensions of the respondent's clearing licence were unlawful because they rested on unreliable and false records, breaching section 145(3) of the EACCMA. The trial court's award of general damages was undisturbed, the claim for special damages for lost income failed for want of solid proof, but the Court awarded UGX 100,000,000 exemplary damages because the Commissioner's conduct was reckless and oppressive.
Outcome
Commissioner's appeal (No. 169 of 2015) dismissed; the respondent's appeal (No. 93 of 2015) partly allowed and exemplary damages of UGX 100,000,000 additionally awarded to Prompt Packers & Forwarders Ltd.
Facts
Prompt Packers & Forwarders Ltd, a customs clearing and forwarding agent, sued the Commissioner of Customs for wrongful suspension of its business licence on various occasions between 2005 and 2010. It alleged the Commissioner posted false and duplicate entries on its bond register, including entries cleared by other companies, raised unfounded short-payment notices and queries, and distrained its property, causing losses. A joint inspection report and system verification showed that many of the entries relied on to suspend the agent were non-existent, had already been validated and exited, or belonged to other clearing agents. Two remaining entries were traced to a former employee who no longer represented the company. One suspension in November 2006 was based on a genuine misclassification of imported polythene bags and short collection of duty, which the agent later paid. The trial court declared the suspensions (save the misclassification one) unlawful, ordered reinstatement of the licence, and awarded general and aggravated damages. Both parties appealed on liability and on the quantum of damages.
Issues
- Whether the Commissioner of Customs could appeal after complying with the trial court order by lifting the suspension and restoring the licence, and whether the appeal was filed within time and by a proper party.
- Whether the suspensions of the respondent's clearing licence were justified under section 145(3) of the East African Community Customs Management Act.
- Whether the trial court properly assessed and awarded general damages and whether the amount was manifestly low or excessive.
- Whether the respondent was entitled to special damages for lost income and consequential lost earnings.
- Whether the respondent was entitled to exemplary or punitive damages for the Commissioner's conduct.
Orders
- Court of Appeal Civil Application No. 23 of 2016 dismissed with costs.
- Civil Appeal No. 169 of 2015 dismissed with costs.
- Civil Appeal No. 93 of 2015 allowed in part with 50% of the costs on appeal.
- Exemplary damages of UGX 100,000,000 awarded to Prompt Packers & Forwarders Uganda Ltd.
- Costs in the court below awarded to the successful party, Prompt Packers & Forwarders Uganda Ltd.
Rules and key headnotes
Legislation cited (12)
- East African Community Customs Management Act 2004 s.145(3)
- East African Community Customs Management Act 2004 s.109(1)
- Civil Procedure Code Act s.99
- Judicature (Court of Appeal Rules) Directions SI 13-10 rule 83(1)
- Judicature (Court of Appeal Rules) Directions SI 13-10 rule 83(2)
- Judicature (Court of Appeal Rules) Directions SI 13-10 rule 83(3)
- Judicature (Court of Appeal Rules) Directions SI 13-10 rule 82
- Judicature (Court of Appeal Rules) Directions SI 13-10 rule 91
- Judicature (Court of Appeal Rules) Directions SI 13-10 rule 30
- Judicature (Court of Appeal Rules) Directions SI 13-10 rule 5
- Constitution of Uganda Article 28
- Constitution of Uganda Article 44(c)
Cases cited (32)
- Ddegeya Trading Stores Uganda Ltd v Uganda Revenue Authority (Civil Appeal No. 44 of 1996)
- Habre International Co Ltd v Kassim & Others [1999] 1 EA 125
- Eladam Enterprises Ltd v SGS (U) Ltd & Ors [2004] UGCA 1
- Mpungu & Sons Transporters Ltd v Attorney General & Anor [2006] UGSC 15
- Mpagi Godfrey v Uganda [2011] UGSC 36
- Robert Coussens v Attorney General [2000] UGSC 2
- Ahmed Ibrahim Bholm v Car and General Ltd [2004] UGSC 8
- Southern Engineering Company Ltd v Mutia [1985] 1 KLR 730
- Jane Chelagat Bor v Andrew Otieno Onduu [1990-1994] EA 47
- Catholic Diocese of Kisumu v Sophia Achieng Tete [2004] 2 KLR 55
- Fredrick JK Zaabwe v Orient Bank & 5 Others [2007] UGSC 21
- Bakaluba Peter Mukasa v Nambooze Betty Bakireke [2010] UGSC 1
- Mansukhlal Ramji Karia & Anor v Attorney General & Ors [2004] UGSC 32
- Semakula Musoke & Anor v Nabamba & 2 Ors [2020] UGSC 28
- George Lubega & Ors v Uganda Transport Ltd & Anor [1978] UGSC 2
- Car & General Ltd v AFS Construction (U) Ltd [2018] UGCA 34
- Goodman Agencies Ltd v Attorney General & Anor [2010] UGSC 7
- Banco Arabe Espanol v Bank of Uganda [1999] UGSC 1
- Rwakashaija Azarious & Ors v Uganda Revenue Authority [2010] UGSC 8
- Omunyokol v Attorney General [2012] UGSC 4
- Crown Beverages Limited v Sendi [2006] 2 EA 43
- James Fredrick Nsubuga v Attorney General (Civil Suit No. 13 of 1993)
- Erukan Kuwe v Isaac Patrick Matovu & Anor (Civil Suit No. 177 of 2003)
- Uganda Commercial Bank v Kigozi [2002] 1 EA 305
- Charles Acire v Myaana Engola (Civil Suit No. 143 of 1993)
- Kibimba Rice Ltd v Umar Salim (Civil Appeal No. 17 of 1992)
- Livingstone vs Rowyard's Coal Co. (1880) 5 App. cas 259
- British Transport Commission vs Gourley [1956] A.C. 185
- Rookes vs. Barnard
- Cassel & Co Ltd vs. Broome (1972) A.C. 1027
- Cookson vs Knowles (1978) 2 WLR 978 (HL)
- South African Revenue Service v Commission for Conciliation Mediation and Arbitration 2016 ZACC 38
Cases citing this judgment (1)
How later Ugandan judgments in the Wakilii corpus have cited this case. Treatment labels come from Sequitur — Uganda’s citator — each backed by a verbatim span from the citing judgment, and are not an assertion that this case is, or is not, good law.
Full judgment
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