Wakilii

Petrol(u) Ltd v Sailesh Kumar Mambhai Patel (HCCS No. 696 of 2002)

High Court · [2004] UGHC 61 · 2004 Judgment for Plaintiff AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
First instance civil suit for recovery of payment for petroleum products supplied, heard ex parte after defendant's non-appearance
Decision
Judgment entered for plaintiff for the liquidated sum, interest, general damages, and costs. Counterclaim dismissed with costs.

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

In a commercial dispute over unpaid petroleum products valued at Shs.35,057,429, the High Court Commercial Division entered judgment in favour of the plaintiff supplier where the defendant dealer failed to appear at trial. The court found the claim proved through delivery notes bearing the defendant's stamp and signature, awarded the liquidated sum with 20% interest per annum, and general damages of Shs.3,000,000 for breach of the dealership agreement.

Outcome

Judgment entered for plaintiff for the liquidated sum, interest, general damages, and costs. Counterclaim dismissed with costs.

Facts

Petro (U) Ltd, a petroleum products supplier, entered into a dealership agreement with Sailesh Kumar Mambhai Patel in 2000. The defendant operated a petrol station in Mbale as the plaintiff's dealer and was also the landlord of the station. In May 2002, the plaintiff supplied the defendant with petroleum products under two invoices dated 23 May 2002 (Shs.19,405,000) and 30 May 2002 (Shs.18,210,000), totaling Shs.37,615,000. The products were received by the defendant's manager Apollo (also known as Paulo), and delivery notes bore the defendant's company stamp and seal. The defendant failed to pay for the products and instead sent a fax asking the plaintiff to take over the station due to poor health. When both parties conducted handover reports, the plaintiff took over remaining stock valued at Shs.2,557,571, which was credited against the debt. Despite repeated demands, the defendant refused payment, citing illness. The defendant filed a counterclaim for Shs.69,346,846 arising from various dealings. After multiple adjournments sought by the defendant, neither the defendant nor his counsel appeared at the final hearing despite having sought adjournment for settlement discussions.

Issues

  1. Whether the money claimed is due and outstanding.
  2. What remedies are available to the plaintiff.

Orders

  • Judgment entered in favour of the plaintiff.
  • Defendant to pay Shs.35,057,429.
  • Interest on the liquidated sum at 20% per annum from date of filing until payment in full.
  • General damages of Shs.3,000,000 awarded.
  • Interest on general damages at court rate from date of judgment until payment in full.
  • Costs of the suit awarded to the plaintiff.
  • Counterclaim dismissed with costs under Order 9 rule 19 CPR.

Rules and key headnotes

Civil Procedure — Ex Parte Proceedings — Non-Appearance by Defendant — Order 9 rule 17(1)(a) CPR
Where a defendant fails to appear when a suit is called on for hearing after multiple adjournments, and the defendant's counsel applies for adjournment by letter without arranging for another advocate to hold brief despite being indisposed, the court may properly proceed ex parte under Order 9 rule 17(1)(a) of the Civil Procedure Rules.
Civil Procedure — Counterclaims — Dismissal for Non-Appearance — Order 9 rule 19 CPR
Under Order 9 rule 19 of the Civil Procedure Rules, where a defendant who has filed a counterclaim fails to appear when the suit is called on for hearing, the court shall dismiss the counterclaim with costs unless the plaintiff admits the claim.
Commercial Law — Dealership Agreements — Proof of Delivery and Acceptance
In a claim for payment for goods supplied under a dealership agreement, delivery notes bearing the defendant's company stamp and the signature of the defendant's authorized official constitute sufficient proof of delivery and acceptance of the goods in the absence of controverting evidence.
Contract Law — Breach of Contract — General Damages — Commercial Supply Contracts
Where a dealer receives petroleum products under a dealership agreement and refuses payment despite repeated demands, instead asking the supplier to take over the station, this constitutes a breach of the dealership agreement entitling the supplier to general damages for the inconvenience caused.

Legislation cited (2)

Full judgment

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

Petrol(u) Ltd v Sailesh Kumar Mambhai Patel (HCCS No. 696 of 2002) [2004] UGHC 61 (28 June 2004)
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.