Wakilii

M/S African Textile Mill Ltd v Techno Fire Appliances Ltd (CIVIL SUIT NO. 07 OF 1998)

High Court · [2005] UGHCCD 27 · 2005 Judgment for Plaintiff AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
First instance civil suit for breach of contract and recovery of money
Decision
Judgment entered for plaintiff with recovery of contract price for undelivered goods and services, plus general damages and costs

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

The court held that the defendant breached a contract for the supply, installation, and servicing of fire-fighting equipment by failing to deliver goods worth Shs. 9,095,000/= and failing to service existing equipment worth Shs. 1,827,672/=, despite receiving full payment. The plaintiff was entitled to recover Shs. 12,372,322/= for non-delivery under the Sale of Goods Act s.50, plus general damages of Shs. 500,000/= for breach of contract, with interest at bank rate from filing to judgment, and court rate thereafter.

Outcome

Judgment entered for plaintiff with recovery of contract price for undelivered goods and services, plus general damages and costs

Facts

On 7 April 1993, African Textile Mill Ltd (plaintiff) entered into a contract with Techno Fire Appliances Ltd (defendant) for the supply, installation, and servicing of fire-fighting equipment at the plaintiff's factory in Mbale for Shs. 44,050,350/=. The plaintiff paid Shs. 44,000,000/= in three instalments (50% on execution, followed by two subsequent payments). The defendant made three partial deliveries in April, June, and September 1993 but failed to deliver fire hoses worth Shs. 8,100,000/=, incomplete filing cabinets worth Shs. 1,500,000/=, and one hydraulic hose reel worth Shs. 995,000/=. The defendant also failed to service existing equipment worth Shs. 1,827,672/= as stipulated in the contract, and did not install or provide training. The contract was to be completed within five weeks of execution. Despite correspondence between the parties, the defendant never produced delivery notes to prove full performance and called no witnesses at trial.

Issues

  1. Whether the plaintiff and defendant entered into a contract to supply, install and service fire-fighting equipment worth Shs. 44,050,350/=
  2. Whether the defendant was paid the contract sum
  3. Whether the defendant was in breach of contract
  4. What remedies are available to the plaintiff

Orders

  • Judgment entered for the plaintiff against the defendant.
  • Plaintiff to recover the sum of Shs. 12,372,322/=.
  • Plaintiff to be paid general damages for breach of contract of Shs. 500,000/=.
  • Plaintiff to have costs of the suit.
  • Sum awarded in No. 1 to carry interest at bank rate from date of filing suit till date of judgment, and thereafter at court rate till payment in full.
  • Award of general damages and costs to attract interest at court rate from date of judgment till payment in full.

Rules and key headnotes

Contract Law — Breach of Contract — Non-Delivery of Goods — Measure of Damages
Under the Sale of Goods Act s.50(2), the measure of damages for non-delivery is the estimated loss directly and naturally resulting in the ordinary course of events from the seller's breach of contract, which includes recovery of the contract price paid for goods and services not delivered.
Evidence — Burden of Proof — Civil Cases — Uncontroverted Evidence
Where a party alleges full performance of a contract but adduces no evidence to support that allegation and does not call witnesses or produce documentary proof such as delivery notes despite being asked to do so, that party fails to discharge the burden of proof imposed by the Evidence Act s.103.
Contract Law — Variation of Contract — Time for Performance — Proof of Alteration
Where a contract stipulates a specific completion date, a party alleging that the completion date was altered by subsequent agreement bears the burden of proving that alteration. In the absence of such evidence, the original contract terms remain binding.
Damages & Quantum — Interest — Commercial Transactions — Rate of Interest
Awards arising out of commercial or business transactions attract higher rates of interest than awards of general damages. Where the plaintiff is a commercial entity and money has been locked up since the breach, interest should be awarded at bank rate from filing of the suit to judgment, and at court rate thereafter.
Evidence — Documentary Evidence — Failure to Produce Supporting Documents
Where a witness claims that expenditure was incurred to remedy a breach of contract but produces no documentary evidence to back up the claim despite being meticulous in producing documents for other claims, the court will not award damages under that head.

Legislation cited (4)

Cases cited (5)

  • J K Patel v Spear Motors Ltd (Supreme Court Civil Appeal No. 4 of 1991)
  • Sebuliba v Co-operative Bank Ltd [1982] HCB 129
  • Miller v Minister of Pensions [1947] 2 All ER 373
  • Harbutt's Plasticine Ltd v Wayne Tank & Pump Co Ltd [1970] 1 All ER 225
  • Ecta (U) Ltd v Geraldine Namubiru & Another (Supreme Court Civil Appeal No. 29 of 1994)

Full judgment

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

M_S African Textile Mill Ltd v Techno Fire Appliances Ltd (CIVIL SUIT NO. 07 OF 1998) [2005] UGHCCD 27 (6 July 2005)
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.