Wakilii

Swarna Garikapati v Abhayamm Health Care Africa Ltd (Civil Suit No. 317 of 2025)

High Court · [2025] UGCOMMC 282 · 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 money following default judgment
Decision
Judgment entered for the plaintiff with monetary award and costs following defendant's default

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

The High Court Commercial Division entered judgment for the plaintiff following the defendant's default. The court awarded UGX 60,000,000 as the principal sum owed under a business services agreement, plus UGX 12,000,000 in general damages for economic inconvenience. Interest was awarded at 20% per annum on the principal from filing date and 6% per annum on general damages from judgment date, with costs to the plaintiff.

Outcome

Judgment entered for the plaintiff with monetary award and costs following defendant's default

Facts

In September 2023, the plaintiff and defendant entered into a business agreement whereby the plaintiff would purchase and take over the business operations and licence of Ishmerai Pharmaceuticals (SMC) Ltd on behalf of the defendant. On 16 November 2023, the plaintiff acquired the business as agreed. Subsequently, the plaintiff paid for renewal of the acquired licence, facilitated the process of amending the licence into the defendant's name, paid rent for the defendant's business premises at Ivory Plaza on William Street, and paid the pharmacist. The defendant was issued with a licence to operate a retail pharmacy on 10 July 2024. The parties agreed that the expenses, together with the plaintiff's service fees totalling UGX 60,000,000, were to be paid by end of May 2024. After handing over the documents in June 2024, the plaintiff demanded payment but the defendant failed to pay despite several reminders. The plaintiff issued formal demand notices on 9 August 2024 and 5 November 2024. The defendant failed to file a defence despite substituted service being effected, and an interlocutory judgment was entered.

Issues

  1. Whether the Plaintiff is entitled to general damages?
  2. Whether the Plaintiff is entitled to interest and costs of the suit?

Orders

  • The Defendant shall pay the Plaintiff the sum of UGX 60,000,000/= being payment for her services and refund for the expenses incurred in the purchase of Ishmerai Pharmaceuticals (SMC) Ltd and transfer of the same to the Defendant.
  • The Defendant shall pay the Plaintiff general damages amounting to UGX 12,000,000/=.
  • The Defendant shall pay interest at the rate of 20% per annum on the sum of UGX 60,000,000/= from the date of filing the suit until payment in full.
  • The Defendant shall pay interest at the rate of 6% per annum on the sum of UGX 12,000,000/= from the date of Judgment until payment in full.
  • Costs of the suit are awarded to the Plaintiff.

Rules and key headnotes

Contract Law — Breach of Contract — Compensation for Loss — Assessment of General Damages
Under Section 60(1) of the Contracts Act Cap. 284, a court may award compensation for any loss or damage caused to one party due to another's breach of contract. General damages should be compensatory and restore satisfaction, as far as money can do, to the injured plaintiff. In assessing quantum, courts are guided by the value of the subject matter, the economic inconvenience suffered, and the nature and extent of the breach.
Civil Procedure — Default Judgment — Formal Proof — Burden on Plaintiff
Where a court sets down a suit for formal proof after a default order has been entered under Order 9 rule 8 of the Civil Procedure Rules, the plaintiff is under a duty to place before the court evidence to sustain the averments in the plaint.
Damages & Quantum — Interest — Discretion of Court — Just and Reasonable Rate
Under Section 26(2) of the Civil Procedure Act, a court may award interest at a rate that is just and reasonable. In determining a just and reasonable rate, courts take into account the ever-rising inflation and drastic depreciation of the currency. A plaintiff is entitled to such rate of interest as would not neglect the prevailing economic value of money but would insulate against economic vagaries and currency depreciation.

Legislation cited (6)

Cases cited (10)

  • Oriental Insurance Brokers Limited v Transocean (U) Limited (Supreme Court Civil Appeal No. 55 of 1995)
  • Stroms Vs Hutchinson 1905 AC at 515
  • Besimira Moses v Attorney General (Civil Suit No. 143 of 2015)
  • Kirungi and Another Vs Kabiya and Others [1987] KLR 347
  • Kabandize John Baptist and 21 Others v Kampala Capital City Authority (Court of Appeal Civil Appeal No. 36 of 2016)
  • Takiya Kashwahiri and Another v Kajungu Denis (Court of Appeal Civil Appeal No. 85 of 2011)
  • Uganda Commercial Bank Vs Deo Kigozi [2002] 1 EA 305
  • Milly Masembe v Sugar Corporation (U) Ltd and Another (Supreme Court Civil Appeal No. 1 of 2000)
  • Mohanlal Kakubhai Radia v Warid Telecom Uganda Ltd (High Court Civil Suit No. 224 of 2011)
  • Uganda Development Bank Vs Muganga Construction Co. Ltd [1981] H.B 35

Full judgment

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

Swarna Garikapati v Abhayamm Health Care Africa Ltd (Civil Suit No. 317 of 2025) [2025] UGCommC 282 (1 September 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.