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International Holdings Uganda Limited v Modern Coast Courier Ltd and Others (Civil Suit No. 1033 of 2023)

High Court · [2025] UGCOMMC 91 · 2025 Judgment for Plaintiff AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
First instance civil suit for breach of tenancy agreement following entry of interlocutory judgment under Order 9 Rule 8 CPR for assessment of damages
Decision
Judgment entered in favor of the plaintiff for rent arrears, legal fees, general damages, interest, and costs following defendants' breach of tenancy agreement and failure to defend

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

The High Court Commercial Division awarded the plaintiff landlord UGX 175,000,000 in rent arrears and USD 600 in legal fees following the defendants' breach of a tenancy agreement and subsequent deed of acknowledgement. The court granted general damages of UGX 30,000,000 for financial inconvenience and loss of business profits, with interest at 18% per annum on all sums. The defendants failed to file a defence after substituted service, and interlocutory judgment was entered under Order 9 Rule 8 CPR. The court applied established principles that special damages must be strictly proved and general damages compensate for natural consequences of breach.

Outcome

Judgment entered in favor of the plaintiff for rent arrears, legal fees, general damages, interest, and costs following defendants' breach of tenancy agreement and failure to defend

Facts

On 5 November 2021, the plaintiff landlord and the first and second defendants executed a written tenancy agreement for premises at Plot 28 Jinja Road Kampala (Pioneer House) for 24 months from 1 December 2021 to 30 November 2023. Rent was USD 3,500 for year one and USD 3,850 for year two, payable in Uganda Shillings. The defendants took possession and operated under the fourth defendant's management but failed to pay rent, accumulating arrears of UGX 175,000,000. On 3 April 2023, the second defendant executed a Deed of Acknowledgement of Indebtedness undertaking to pay in three equal monthly instalments by end of June 2023. The second defendant issued 18 post-dated Stanbic Bank cheques of UGX 9,725,000 each, but six were dishonoured on 23 April 2023 for being invalid. Despite promises to pay by RTGS and repeated demands, the defendants failed to pay and vacated the premises on 8 May 2023. The defendants did not file a defence despite substituted service. Interlocutory judgment was entered on 22 April 2024 and the matter proceeded to assessment of damages.

Issues

  1. Whether a valid contract existed between the Plaintiff and the Defendants?
  2. Whether the Defendants breached the contract?
  3. What remedies are available to the Plaintiff?

Orders

  • The Plaintiff is entitled to payment of UGX 175,000,000 being rent arrears and USD 600 as legal fees.
  • The Plaintiff is awarded general damages of UGX 30,000,000.
  • The Plaintiff is awarded interest at 18% per annum from the date of default until payment in full on the rent arrears and legal fees.
  • The Plaintiff is awarded interest on the general damages at 18% per annum from the date of judgment until payment in full.
  • The Plaintiff is awarded the costs of the suit.

Rules and key headnotes

Civil Procedure — Interlocutory Judgment — Order 9 Rule 8 CPR — Burden and Standard of Proof at Assessment
Where an interlocutory judgment has been entered under Order 9 Rule 8 of the Civil Procedure Rules for failure to file a defence, the burden of proof at the assessment stage remains on the plaintiff and the standard of proof is on the balance of probabilities, whether the suit proceeds inter partes or ex parte.
Damages & Quantum — Special Damages — Proof Requirements — Rent Arrears
Special damages are exceptional in character and must be specifically pleaded and proved strictly. Where a plaintiff claims rent arrears as special damages and produces a tenancy agreement, a deed of acknowledgement of indebtedness, dishonoured cheques, and corroborative witness testimony from the property manager who dealt directly with the defendants, special damages are proved.
Damages & Quantum — General Damages — Breach of Contract — Loss of Rental Income
General damages for breach of a tenancy agreement are awarded to compensate the landlord for financial inconvenience, loss of business profits, and the deprivation of rental income that would have been used to develop the real estate business. The quantum is assessed having regard to the value of the subject matter, the economic inconvenience suffered, and the nature and extent of the breach.
Damages & Quantum — Interest — Section 26(2) Civil Procedure Act — Restitutio in Integrum
Under Section 26(2) of the Civil Procedure Act, a court may award three types of interest: interest on the principal sum for any period prior to the institution of the suit, interest on the principal sum from the date of filing the suit to the date of the decree, and interest on the aggregate sum from the date of the decree to the date of payment in full. The purpose of an interest award is restitutio in integrum, to restore the plaintiff as nearly as possible to the position he would have been in had the injury not occurred, compensating for deprivation of the use of money.
Damages & Quantum — Interest Rate — Commercial Cases — Inflation and Currency Depreciation
In commercial cases, the court should take into account ever-rising inflation and drastic depreciation of the currency when setting the interest rate. A plaintiff is entitled to such rate of interest as would not neglect the prevailing economic value of money but would insulate him against further economic vagaries, inflation, and depreciation of the currency in the event that the money awarded is not promptly paid when it falls due.

Legislation cited (5)

Cases cited (12)

  • Hajji Asumani Mutekanga v Equator Growers (U) Ltd (SCCA No. 7 of 1995)
  • [1939] 1 KB 748
  • [1905] AC 515
  • [2002] 1 EA 305
  • Sarah Kyarimpa v Harriet Kasozi (HCCS No. 794 of 2016)
  • Kibimba Rice Ltd v Umar Salim (SCCA No. 17 of 1992)
  • Solomon Semakula Kayinda v Auger Revival Ministries Ltd (HCCS No. 0880 of 2020)
  • [1999] EA 175
  • [1947] 1 All ER 469
  • [1981] 3 All ER 716
  • Mohanlal Kakubhai Radia v Warid Telecom Ltd (HCCS No. 234 of 2011)
  • [1981] HCB 35

Full judgment

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

International Holdings Uganda Limited v Modern Coast Courier Ltd and Others (Civil Suit No. 1033 of 2023) [2025] UGCommC 91 (14 May 2025)
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.