Wakilii

Multilines International Ltd v Fresh Cuts (U) Ltd (Civil Suit No. 637 of 2022)

High Court · [2024] UGCOMMC 406 · 2024 Judgment for Plaintiff AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Summary suit for recovery of liquidated debt arising from breach of contract for freight and logistics services
Decision
Judgment entered for the plaintiff with orders for recovery of outstanding debt and costs

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

The High Court Commercial Division granted judgment in a summary suit for recovery of a liquidated debt. The plaintiff freight and logistics provider proved on the balance of probabilities that it provided services to the defendant between November 2019 and November 2021, that the defendant breached the contract by failing to pay despite issuing post-dated cheques which bounced, and that after partial payment USD 11,297.76 and UGX 469,459 remained outstanding. The court awarded the outstanding balance plus costs.

Outcome

Judgment entered for the plaintiff with orders for recovery of outstanding debt and costs

Facts

The plaintiff provided freight and logistics services to the defendant between November 2019 and November 2021 under an agreement that payment would be made within 30 days of invoicing. The defendant defaulted on payment obligations, accumulating unpaid invoices totalling USD 15,297.76 and UGX 469,459. The defendant attempted to clear the debt by issuing post-dated cheques amounting to USD 6,816, which all bounced. On 30 September 2020, the defendant acknowledged an outstanding balance of USD 8,446. The plaintiff served demand notices and made repeated requests for payment to no avail. The defendant was granted leave to appear and defend but failed to file a defence or appear at the scheduling conference. The suit proceeded ex-parte and the plaintiff proved its claim through invoices, email correspondence, copies of bounced cheques, and demand notices. After suit was filed, the defendant paid USD 4,000, leaving a balance of USD 11,297.76 and UGX 469,459.

Issues

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

Orders

  • An order for recovery from the defendant the sum of USD 11,297.76 (United States Dollars Eleven Thousand Two Hundred Ninety-Seven and Seventy-Six Cents) and UGX 469,459 (Uganda Shillings Four Hundred and Sixty-Nine Thousand, Four Hundred and Fifty-Nine).
  • Costs of the suit to the plaintiff.

Rules and key headnotes

Summary Procedure — Order 36 Rule 2 — Liquidated Demand — Definition
A liquidated demand is in the nature of a debt, 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. If ascertainment of a sum of money requires investigation beyond mere calculations, the sum is not a debt or liquidated demand but constitutes damages.
Summary Procedure — Order 36 Rule 2 — Rationale
The rationale for summary procedure is to enable the plaintiff to obtain a quick judgment where there is no evident defence to the claim.
Breach of Contract — Definition
A breach of contract occurs where one or both of the parties fails to fulfil the obligations imposed by the terms of a contract.
Breach of Contract — Remedy — Compensation
Under Section 61 of the Contracts Act Cap 284, where there is a breach of contract, the party who suffers the breach is entitled to receive from the party who breaches the contract compensation for any loss or damage caused. A plaintiff who suffers damage due to a wrongful act of the defendant must be put in the position he would have been in had he not suffered the wrong.
Evidence of Contract — Issuance and Dishonour of Cheques
The issuance of cheques by a defendant to pay for outstanding invoices constitutes an admission of the contractual relationship between the parties, and the failure to honour those cheques indicates failure to make payments for services rendered, which is a breach of the contractual relationship.

Legislation cited (7)

Cases cited (4)

  • United Building Services Limited v Muzira T/A Quickset Builders & Co (Civil Suit No. 154 of 2005)
  • George Begumisa v East African Development Bank (Misc. Application No. 451 of 2010)
  • Nakawa Trading Co. Ltd v Coffee Marketing Board (Civil Suit No. 137 of 1991)
  • Akware Caroline Osilo v Gaaga Enterprises Ltd (Civil Suit No. 271 of 2011)

Full judgment

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

Multilines International Ltd v Fresh Cuts (U) Ltd (Civil Suit No. 637 of 2022) [2024] UGCommC 406 (25 October 2024)
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.