Tarsis B Kabwegyere v Sheikh Adam Semugabe (HCT-00-CC-CS 662 of 2004)
Observed later treatment
No later-treatment classification is recorded for this judgment.
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Holding
The court held that where money is paid for the supply of goods on a consideration which has wholly failed, the payer is entitled to recover the sum as money had and received. The plaintiff proved payment of Shs.20,400,000/- to the defendant for motorcycles that were never delivered. The consideration having wholly failed, the defendant was ordered to refund the sum with interest at 25% per annum from judgment until full payment, plus costs.
Outcome
Judgment entered for the plaintiff; defendant ordered to refund Shs.20,400,000/- with interest and costs
Facts
In July 2003, the plaintiff, an MP, sought to facilitate members of his constituency to obtain motorcycles on hire purchase. He was introduced to the defendant, a motorcycle dealer, by a parliamentary colleague. On 3 October 2003, the plaintiff paid the defendant Shs.20,400,000/- in one installment for the supply of motorcycles, which the defendant signed for on a voucher. The motorcycles were to be delivered within two weeks. The defendant never delivered any motorcycles. He issued a post-dated cheque for Shs.20,000,000/- dated 13 December 2003 promising to pay the balance of Shs.400,000/- in cash, but the cheque was dishonoured. The plaintiff later refunded money that his constituents had deposited under the scheme. Despite being granted leave to defend, the defendant failed to appear at trial following substituted service.
Issues
- Whether the plaintiff paid the defendant a sum of Shs.20,400,000/- for the supply of motorcycles.
- Whether the defendant delivered the motorcycles as agreed.
- Whether the plaintiff is entitled to recover the payment on the basis of total failure of consideration.
Orders
- Judgment entered for the Plaintiff against the Defendant.
- Defendant to refund to the Plaintiff the sum of Shs.20,400,000/- (Twenty million four hundred thousand).
- Defendant to pay interest on the decretal sum at the rate of 25% per annum from the date of judgment till payment in full.
- Defendant to pay costs of the suit.
- Defendant's counterclaim dismissed.
Rules and key headnotes
Legislation cited (1)
Full judgment
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