Wakilii

Muiltilines International Limited v C &G Andigies Group Limited (Civil Suit 184 of 2023)

High Court · [2023] UGCOMMC 69 · 2023 Judgment for Plaintiff AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Summary suit under Order 36 Rule 2 for recovery of liquidated debt arising from unpaid invoices; formal proof hearing for balance after partial default judgment
Decision
Judgment entered for the Plaintiff for the balance of USD 84,721.52 plus costs

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

In a summary suit for recovery of debt under Order 36, where the plaintiff initially claimed USD 155,910 but only USD 71,188.48 was supported by invoices at default judgment stage, the court held that the plaintiff was entitled to the remaining balance of USD 84,721.52 upon formal proof. The court found that the defendant had entered into a freight forwarding contract with 30-day payment terms, breached its payment obligations, and confirmed the outstanding balance in writing to auditors.

Outcome

Judgment entered for the Plaintiff for the balance of USD 84,721.52 plus costs

Facts

On 25 November 2011, the plaintiff and defendant entered into a contract for freight forwarding and logistics services with 30-day payment terms. From July 2020, the defendant defaulted on payment obligations and accumulated unpaid invoices totaling USD 155,910. The plaintiff's auditors KPMG requested confirmation of the outstanding amount, and the defendant's accounts officer confirmed the balance of USD 155,910 by email in September 2021. Despite demands and meetings, including an agreement to clear the debt by 17 June 2022, the defendant failed to pay. The plaintiff filed a summary suit under Order 36. The defendant applied for leave to appear and defend but failed to attend court on two occasions, resulting in dismissal of the application. Default judgment was entered for USD 71,188.48 (the amount supported by invoices), and the matter was set down for formal proof of the balance of USD 84,721.52.

Issues

  1. Whether the Plaintiff is entitled to the balance of the sum claimed in the plaint

Orders

  • Judgment entered for the Plaintiff against the Defendant for USD 84,721.52.
  • Costs of the suit awarded to the Plaintiff.

Rules and key headnotes

Civil Procedure — Summary Suits — Order 36 Procedure — Liquidated Demands
Under Order 36 Rule 2 of the Civil Procedure Rules, a summary suit may be instituted where the plaintiff seeks only to recover a debt or liquidated demand in money payable by the defendant arising upon a contract. A liquidated demand is a specific sum of money due and payable under or by virtue of a contract which is either already ascertained or capable of being ascertained as a mere matter of arithmetic.
Civil Procedure — Summary Suits — Mixed Claims — Partial Summary Judgment
Where a plaint endorsed for summary procedure contains claims correctly endorsed and other claims, the court may deal with the claims correctly specially endorsed as if no other claim had been included and allow the action to proceed as respects the residue of the claim, setting down the unproven balance for formal proof.
Contract Law — Breach of Contract — Payment Obligations — Credit Terms
Where parties enter into a contract providing for payment within a specified credit period, failure by the debtor to pay within that period constitutes a breach of contract entitling the creditor to recover the outstanding sum.
Evidence — Burden of Proof — Civil Matters — Balance of Probabilities
In civil matters, the burden of proof as to any particular fact lies on the person who wishes the court to believe in its existence, and the plaintiff must adduce evidence to prove the case on the balance of probabilities.
Contract Law — Acknowledgment of Debt — Confirmation by Debtor
Where a debtor confirms an outstanding balance in writing to the creditor's auditors and includes senior management in the confirmation, such acknowledgment constitutes evidence of the debt and the debtor's awareness of the obligation.

Legislation cited (6)

Cases cited (5)

  • Shipping Gl (U) Limited v P.N Mashru Limited (Misc. Application No. 1099 of 2017)
  • George Begumisa v East African Development Bank (Misc. Application No. 451 of 2010)
  • Uganda Transport Co. Ltd v Count de la Pasture (1954) 21 EACA 163
  • William Kasozi v DFCU Bank Ltd (Civil Suit No. 1326 of 2000)
  • Nakana Trading Co. Ltd v Coffee Marketing Board (Civil Suit No. 137 of 1991)

Full judgment

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

Muiltilines International Limited v C &G Andigies Group Limited (Civil Suit 184 of 2023) [2023] UGCommC 69 (8 September 2023)
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.