Wakilii

Delights Company Limited v Kitaka (Civil Suit No. 754 of 2014)

High Court · [2020] UGCOMMC 17 · 2020 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 and breach of contract
Decision
Judgment entered for the 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.

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Holding

Court held that the Plaintiff proved on a balance of probabilities that the Defendant owed UGX 58,000,000 from three motor vehicle sales. The burden of proof for payment rested with the Defendant who failed to adduce evidence of full payment beyond what the Plaintiff acknowledged receiving. Court awarded the principal sum, general damages of UGX 10,000,000 for breach of contract, and interest at 24% per annum on the principal from date of demand.

Outcome

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

Facts

The Plaintiff, a motor vehicle dealer, sold three motor vehicles to the Defendant in May and June 2014 through its agent Hussein Ssegujja. The vehicles were: (1) a Toyota Kluger for UGX 30,400,000 (part payment of UGX 15,400,000 received, leaving balance of UGX 15,000,000); (2) a Toyota Mark X for UGX 38,000,000 (no deposit, full payment due 30 June 2014); and (3) a Toyota Raum for UGX 17,000,000 (part payment of UGX 12,000,000 received, leaving balance of UGX 5,000,000). The Defendant admitted purchasing the vehicles but claimed he had fully paid for all vehicles. The Plaintiff produced receipts acknowledging the part payments and retained the logbooks. The Defendant failed to produce evidence of payment beyond the amounts acknowledged by the Plaintiff.

Issues

  1. Whether the Defendant is indebted to the Plaintiff to a tune of UGX 58,000,000/=
  2. What remedies are available to the parties?

Orders

  • Payment of the principal sum of UGX 58,000,000 being the outstanding balance on the purchase price.
  • Payment of the sum of UGX 10,000,000 as general damages for breach of contract.
  • Payment of interest on the principal sum at the rate of 24% per annum from the 19th August 2014 till payment in full.
  • Payment of interest on general damages at the rate of 6% per annum from the date of judgment till payment in full.
  • Payment of the taxed costs of this suit.

Rules and key headnotes

Evidence — Burden of Proof — Payment — Defendant Alleging Full Payment
Where a plaintiff produces receipts acknowledging part payment and claims a balance remains unpaid, the burden of proof shifts to the defendant to prove payment of amounts beyond what the plaintiff acknowledges having received.
Contract Law — Breach of Contract — General Damages — Assessment
In assessing general damages for breach of contract, the court should be guided by the value of the subject matter, the economic inconvenience the plaintiff may have been put through, and the nature and extent of the injury suffered.
Damages & Quantum — Special Damages — Loss of Profits — Requirement to Plead and Prove
Loss of profits, like loss of income, is claimed as special damages and must be specifically pleaded and proved in evidence. A claim for loss of profits cannot be awarded where it is merely included among the prayers without being specifically pleaded or proved.
Civil Procedure — Interest — Rate and Commencement — Discretion of Court
Where a defendant has kept the plaintiff out of use of money over an extended period, the court may award interest at a commercial rate on the principal sum, running from the date of formal demand rather than from the dates of individual contract breaches, as this represents the definite date of default.

Legislation cited (7)

Cases cited (15)

  • Abubaker Seruwagi v Jaffery Forex Bureau Ltd (HCCS No. 830 of 2003)
  • J.K. Patel v Spear Motors Ltd (SCCA No. 4 of 1991)
  • AZK Services Ltd v Crane Bank Ltd (HCCS No. 334 of 2016)
  • AV Flexologic bv v. Monarch Paper Convertors Ltd [1998] Lexis Citation 1824 (U.K Court of Appeal)
  • Stanbic Bank (U) Ltd v Sekalega (HCCS No. 185 of 2009)
  • Kampala District Land Board & Anor v Venansio Babweyaka (SCCA No. 2 of 2007)
  • Uganda Commercial bank v. Kigozi [2002] 1 EA 305
  • Hadley v. Baxendale (1894) 9 Exch 341
  • Charles Acire v M. Engola (HCCS No. 143 of 1993)
  • Kibimba Rice Ltd v Umar Salim (SCCA No. 17 of 1992)
  • Bank of Uganda v Fred William Masaba & 5 Others (SCCA No. 3 of 1998)
  • Esso Petroleum Co. Ltd Vs Mardon (1976) 2 ALL ER
  • Premchandra Shenoi & Anor v Maximov Oleg Petrovich (SCCA No. 9 of 2003)
  • Harbutt's 'placticine' Ltd V Wayne tank & pump Co. Ltd [1970] QB 447
  • Kinyera v The Management Committee of Laroo Building Primary School (HCCS No. 99 of 2013)

Full judgment

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

Delights Company Limited v Kitaka (Civil Suit No. 754 of 2014) [2020] UGCommC 17 (28 May 2020)
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.