Wakilii

Naturinda Zerubabeeli v Amutuhaire Lucky (Civil Suit No. 0969 of 2024)

High Court · [2025] UGCOMMC 162 · 2025 Judgment for Plaintiff AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
First instance civil suit for recovery of debt and breach of contract, proceeding exparte after defendant failed to attend scheduled hearings
Decision
Judgment entered for the plaintiff for recovery of UGX 437,500,000, general damages of UGX 70,000,000, interest, and costs

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

The High Court Commercial Division held that the defendant breached a memorandum of understanding dated 15 January 2024 by failing to repay friendly loans totalling UGX 438,000,000. The court found the defendant indebted to the plaintiff for UGX 437,500,000 (after accounting for a partial payment and earlier judgment on admission of UGX 40,000,000). The plaintiff was awarded general damages of UGX 70,000,000 for breach of contract, interest at 15% per annum on the principal sum from 1 September 2024 until payment in full, and costs of the suit.

Outcome

Judgment entered for the plaintiff for recovery of UGX 437,500,000, general damages of UGX 70,000,000, interest, and costs

Facts

The plaintiff extended friendly loans to the defendant totalling UGX 438,000,000 as evidenced by memoranda of understanding dated 31 May 2023, 1 May 2023, and 15 January 2024. The defendant secured the loans with a land title for property in Bulemezi Block 604 Plot 34. The defendant acknowledged the debt in the final memorandum of understanding dated 15 January 2024 and undertook to repay in two instalments by 30 May 2024. The defendant failed to make any repayment instalments. Instead, she withdrew the security, mortgaged the land with Post Bank Uganda, and placed her own caveat. The defendant admitted partial indebtedness of UGX 40,000,000 in her written statement of defence but failed to attend scheduled hearings. The court entered judgment on admission for UGX 40,000,000 on 28 March 2025. The plaintiff proved a payment of UGX 500,000 on 24 April 2024, leaving an outstanding balance of UGX 397,500,000.

Issues

  1. Whether the Defendant breached the memorandum of understanding between the parties dated 15th January 2024?
  2. Whether the Defendant is indebted to the Plaintiff, and if so, how much?
  3. What are the available remedies?

Orders

  • There was a breach of contract by the Defendant.
  • The Defendant is indebted to the Plaintiff and the Plaintiff is entitled to recover UGX 437,500,000 from the Defendant.
  • The Plaintiff is awarded General Damages of UGX 70,000,000.
  • The Plaintiff is awarded interest at the rate of 15% per annum on the outstanding balance of UGX 437,500,000 from 1st September 2024 until payment in full.
  • The Plaintiff is awarded interest on general damages at the rate of 8% per annum from the date of judgment till payment in full.
  • The Plaintiff is awarded the costs of the suit.

Rules and key headnotes

Contract Law — Breach of Contract — Failure to Perform Contractual Obligations
A breach of contract occurs when one party fails or neglects to perform obligations under the contract or performs them in a manner that does not correspond with the agreement. The doctrine of pacta sunt servanda requires parties to honour legally enforceable undertakings.
Contract Law — Acknowledgement of Debt — Admission of Indebtedness
An acknowledgement of debt constitutes an admission which must be clear, distinct, unequivocal, and intentional. There must be no doubt that the debt is being admitted, although the precise amount need not be stated. Such acknowledgement may be made by the person liable to pay or their agent.
Damages & Quantum — General Damages — Restitutio in Integrum Principle
The principle governing damages for breach of contract is restitutio in integrum: a party who sustains loss by reason of breach is, so far as money can do it, to be placed in the same situation with respect to damages as if the contract had been performed. Only claims for damages that are proximate and not too remote are attainable.
Civil Procedure — Exparte Proceedings — Burden of Proof
Despite a matter proceeding exparte due to a party's failure to attend, the plaintiff still bears the burden of proving the case on the balance of probabilities. The court may proceed to decide the suit immediately where a party fails to produce evidence or cause attendance of witnesses after being granted time.
Damages & Quantum — Interest — Court's Discretion in Awarding Interest
The awarding of interest is a matter within the court's discretion under section 26(2) of the Civil Procedure Act. The basis for awarding interest is that the defendant has taken and used the plaintiff's money and benefited from it. Interest should be awarded from the date of default until payment in full.

Legislation cited (6)

Cases cited (15)

  • Stanbic Bank Uganda Ltd v Hajji Yahaya Sekalega T/A Sekalega Enterprises (HCCS No. 185 of 2009)
  • Miller v Minister of Pensions [1947] 2 All ER 372
  • Kirugi and another v Kabiya and three others [1987] KLR
  • Green Boat Entertainment Ltd v City Council of Kampala (Civil Suit No. 0580 of 2003)
  • Ronald Kasibante v Shell Uganda Ltd (Civil Suit No. 542 of 2006)
  • Jani Properties Ltd v Dar-es-salaam City Council (1966) EA 281
  • Madhvani International SA v Attorney General (CACA No. 48 of 2014)
  • Robinson v Harman (1848) 1 Exch 850
  • Waiglobe (U) Ltd v Sai Beverages Ltd (Civil Suit No. 016 of 2017)
  • Stroms v Hutchinson [1905] AC 515
  • Premchandra Shenoi and Another v Maximov Oleg Petrovich (SCCA No. 9 of 2003)
  • Sietco v Noble Builders (U) Ltd (SCCA No. 31 of 1995)
  • Harry Ssempa v Kamabagambire David (HCCS No. 408 of 2014)
  • Lyamuleme David v Attorney General (SCCA No. 4 of 2013)
  • Anglo-Cyprian Trade Agencies Ltd v Paphos Wine Industries Ltd [1951] 1 All ER 873

Full judgment

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

Naturinda Zerubabeeli v Amutuhaire Lucky (Civil Suit No. 0969 of 2024) [2025] UGCommC 162 (27 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.