Wakilii

The Observer Media Ltd v Books Plus Ltd - (HCT-00-CC-CS 937 of 2004)

High Court · [2005] UGCOMMC 32 · 2005 Judgment for Plaintiff AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Civil suit for debt and damages; judgment in default of defence
Decision
Judgment entered for plaintiff with special damages, interest and costs

Observed later treatment

No later-treatment classification is recorded for this judgment.

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AI-generated summary. This summary was generated by AI from the full text of the judgment. It may contain errors or omissions—always read the source judgment before relying on it.

Holding

The High Court Commercial Division held that where summons to file defence was served on the defendant's lawyers and no defence was filed, judgment in default was properly entered. Every allegation of fact in the plaint not denied is taken as admitted except against persons under disability. The plaintiff was entitled to recover the debt of Shs.48,189,592 plus interest at 15% per annum from filing until payment in full.

Outcome

Judgment entered for plaintiff with special damages, interest and costs

Facts

The Plaintiff and Defendant entered an agreement on or about 28 April 2004 whereby the Plaintiff would supply newspapers to the Defendant who would distribute, sell and issue payment by cheque. Initially the Defendant paid promptly. In subsequent months the Defendant defaulted on payment. By the time the arrangement ended on 23 October 2004, the Defendant owed the Plaintiff Shs.48,189,592. A demand was placed on the Defendant in June 2004 but payment was not made despite reminders. Summons to file defence was served on the Defendant's lawyers on 29 November 2004. No defence was filed. The Registrar entered judgment in default of defence on 17 December 2004.

Issues

  1. Whether the Defendant is indebted to the Plaintiff as claimed.
  2. What remedies are available to the Plaintiff.

Orders

  • Judgment entered for the Plaintiff against the Defendant.
  • Special damages awarded: Ug. Shs.48,189,592.
  • Interest on special damages at the rate of 15% per annum from the date of filing till payment in full.
  • Costs of the suit awarded to the Plaintiff.

Rules and key headnotes

Civil Procedure — Default Judgment — Service on Defendant's Lawyers — Effect of Non-Filing of Defence
Where summons to file a defence is served on the defendant's lawyers who have been acting for the defendant and no defence is filed, service is effective and judgment in default of defence may properly be entered.
Civil Procedure — Pleadings — Admissions — Effect of Failure to Deny
Every allegation of fact in the plaint which is not denied specifically or by necessary implication is taken to be admitted, except as against a person under disability.
Contract Law — Breach of Contract — Interest on Debt — Discretion of Court
The court has discretion to award reasonable interest on a debt arising from breach of contract. Where the plaintiff is a business concern whose goal is to make profits, interest at 15% per annum from the date of filing until payment in full is appropriate.

Full judgment

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

The Observer Media Ltd v Books Plus Ltd - (HCT-00-CC-CS 937 of 2004) [2005] UGCommC 32 (20 June 2005)
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.