Wakilii

GoodWill Lab Supplies v National Drug Authority (Civil Suit No. 58 of 2021)

High Court · [2022] UGCOMMC 88 · 2022 Judgment for Plaintiff AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
First instance civil suit for recovery of contract sum and specific performance
Decision
Judgment entered for the plaintiff with payment of the principal sum, interest at court rate, and costs

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

In a commercial supply contract dispute resolved by partial consent judgment for payment of the principal sum of UGX 260,754,119, the court declined to award interest at the claimed commercial rate of 25% per annum where the plaintiff failed to plead or prove the loan that allegedly justified the higher rate. The court awarded interest at court rate from the date of filing the suit and awarded costs to the successful plaintiff.

Outcome

Judgment entered for the plaintiff with payment of the principal sum, interest at court rate, and costs

Facts

The plaintiff, a limited liability company, entered into a three-year framework contract with the defendant statutory body on 26 April 2018 for the supply and delivery of chemicals, reagents, and secondary reference standards following a tender process. The plaintiff made deliveries under several local purchase orders and was paid for the first three orders. A dispute arose over Local Purchase Order No. 5089 for UGX 260,802,381.84 when the defendant identified price inconsistencies and investigations were conducted by the Criminal Investigations Directorate and the Public Procurement and Disposal of Public Assets Authority. The defendant suspended payment and retrieved Local Purchase Order No. 5651 following non-renewal of the contract. The plaintiff claimed UGX 272,814,349 as the outstanding contract sum. The parties reached a settlement on the principal amount of UGX 260,754,119 but disagreed on interest and costs, which were determined by the court.

Issues

  1. Whether the plaintiff is entitled to interest on the decretal sum and at what rate.
  2. Whether the plaintiff is entitled to costs of the suit.

Orders

  • Judgment entered for the plaintiff.
  • Defendant to pay the plaintiff the principal sum of UGX 260,754,119.
  • Interest at 6% per annum on the principal sum from the date of filing the suit until payment in full.
  • Costs awarded to the plaintiff.

Rules and key headnotes

Contract Law — Breach of Contract — Payment Obligations — Recovery of Contract Sum
Where parties reach a settlement on the principal sum owed under a supply contract and record a partial consent judgment, the court will enforce payment of the agreed principal sum.
Civil Procedure — Interest — Pleadings and Proof — Court's Discretion
A party cannot raise or adduce evidence at trial on matters not pleaded in the pleadings. Where a plaintiff claims interest at a commercial rate of 25% per annum based on an alleged loan but fails to plead facts relating to the loan in the pleadings, the court will decline to award interest at that rate and will instead exercise its discretion to award interest at court rate.
Civil Procedure — Interest — Court's Discretion — Rate of Interest
Under section 26(2) of the Civil Procedure Act, the court has discretionary power to award interest at such rate as it deems reasonable. In the absence of agreement between the parties on the interest rate payable, the court may award interest at court rate from the date of filing the suit until payment in full.
Civil Procedure — Costs — Discretion of Court — Costs Follow the Event
Under section 27(1) of the Civil Procedure Act, costs are in the discretion of the court. Costs follow the event unless for good reasons the court otherwise orders. A successful party can only be denied costs if it is proved that, but for their conduct, the action would not have been brought. Where a plaintiff succeeds in the main purpose of the suit, costs will be awarded to the plaintiff.

Legislation cited (4)

Cases cited (3)

  • Struggle (U) Ltd v Pan African Insurance Co Ltd [1990-1994] KLR 50
  • Uganda Revenue Authority v Stephen Mabosi (Civil Appeal No. 26 of 1995)
  • Uganda Development Bank v Mugongo Construction Co Ltd (1981) H.C.B 35

Full judgment

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

GoodWill Lab Supplies v National Drug Authority (Civil Suit No. 58 of 2021) [2022] UGCommC 88 (23 September 2022)
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.