Wakilii

Mugarura and Another v Fahim Hides and Skins Limited (Civil Suit No. 301 of 2003)

High Court · [2003] UGCOMMC 137 · 2003 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 with interlocutory judgment entered after defendant failed to file defence
Decision
Final judgment entered in favour of the 2nd plaintiff Majid Kashabu with special damages, general damages, and interest awarded

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

Held that where a defendant fails to file a defence and interlocutory judgment is entered, unchallenged testimony establishing debt on a balance of probabilities entitles the plaintiff to recover the debt. The court awarded special damages of UGX 5,245,250 for goods sold and delivered, general damages of UGX 2,000,000 for inconvenience, and interest at the commercial rate of 20% per annum from the date of filing suit, reducing the claimed rate of 30% to reflect appropriate commercial interest.

Outcome

Final judgment entered in favour of the 2nd plaintiff Majid Kashabu with special damages, general damages, and interest awarded

Facts

In December 2002, the 2nd plaintiff Majid Kashabu sold an assortment of hides and skins to the defendant company Fahim Hides & Skins Ltd worth UGX 5,245,250. The defendant acknowledged receipt of the goods in writing and promised to pay later but failed to honour its promise despite several reminders. The defendant did not file a defence within the statutory time after receiving court process. On 8 July 2003, the Registrar entered interlocutory judgment against the defendant. At formal proof on 26 August 2003, Kashabu testified as the sole witness. The 1st plaintiff did not give evidence and Kashabu's testimony did not indicate the 1st plaintiff was party to the arrangement with the defendant.

Issues

  1. Whether the plaintiff proved on a balance of probabilities that the defendant owed the claimed sum of shillings 5,245,250/=.
  2. Whether the plaintiff was entitled to interest at 30% per annum on the outstanding debt.
  3. What amount of general damages should be awarded for the inconvenience suffered.

Orders

  • The defendant shall pay the plaintiff a sum of shillings 5,245,250/= as special damages.
  • The defendant shall further pay the plaintiff a sum of shillings 2,000,000/= as general damages.
  • The defendant shall pay the plaintiff interest on the sum of shillings 5,245,250/= at the rate of 20% per annum from the date of filing the suit till payment in full.
  • The defendant shall also bear the costs of the suit.
  • Final judgment entered in favour of the 2nd plaintiff only, as he was the only person who gave evidence.

Rules and key headnotes

Civil Procedure — Interlocutory Judgment — Effect of Failure to File Defence
Where a defendant fails to file a defence within the statutory time after receiving court process, the court may enter interlocutory judgment against the defendant and fix the matter for formal proof of damages and other remedies.
Evidence — Standard of Proof — Civil Cases — Unchallenged Testimony
Where a defendant fails to file a defence and does not challenge the plaintiff's testimony, unchallenged evidence establishing debt on a balance of probabilities entitles the plaintiff to recover the amount claimed.
Damages & Quantum — Interest — Commercial Transactions — Appropriate Rate
Arrangements of a commercial nature attract commercial interest rates. Where a plaintiff claims interest at 30% per annum on a commercial debt, the court may reduce the rate to 20% per annum as the appropriate commercial rate from the date of filing suit until payment in full.
Damages & Quantum — General Damages — Assessment — Inconvenience from Non-Payment
General damages may be awarded to compensate a plaintiff for inconvenience suffered where a defendant refuses to pay for goods sold and delivered, with the quantum assessed based on the circumstances of the case.

Full judgment

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

Mugarura and Another v Fahim Hides and Skins Limited (Civil Suit No. 301 of 2003) [2003] UGCommC 137 (17 September 2003)
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.