Wakilii

Tour and Travel Center Ltd v Winnie Azeirwe t a Trek & Travel Shop (Civil Suit No. 1047 of 2022)

High Court · [2023] UGCOMMC 299 · 2023 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; proceeded exparte after defendant failed to file defence
Decision
Judgment entered for the Plaintiff; Defendant to pay outstanding contractual amount, interest, general damages, and costs

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

In an exparte debt recovery suit, the court held that where a defendant acknowledges indebtedness in writing and fails to fulfill payment obligations under a contractual arrangement for supply of air tickets on credit, this constitutes breach of contract. The plaintiff is entitled to recover the outstanding contractual sum, interest at 18% per annum from filing until full payment, and general damages for financial loss and disruption to cash flow. The court awarded USD 27,704.50 as the outstanding amount, 18% interest per annum, and UGX 10,000,000 as general damages.

Outcome

Judgment entered for the Plaintiff; Defendant to pay outstanding contractual amount, interest, general damages, and costs

Facts

Between 16 January 2019 and 24 June 2022, the defendant approached the plaintiff with an offer that the plaintiff advance credit in supply of air and travel tickets for the defendant's agents and nominees. The plaintiff accepted and supplied air tickets for international travel. By 24 June 2022, the defendant's account stood in debt to USD 29,647.50. The plaintiff demanded payment on 8 August 2022. The defendant acknowledged the debt on 12 January 2023, confirmed part payment of USD 1,700, and proposed a repayment plan of USD 500 per month. Some payments were made, and by 17 July 2023, the outstanding balance stood at USD 27,704.50. The defendant failed to file a defence, and interlocutory judgment was entered. The matter proceeded exparte for formal proof.

Issues

  1. Whether the Defendant is indebted to the Plaintiff?
  2. Whether the Plaintiff is entitled to the remedies sought?

Orders

  • The Defendant to pay the Plaintiff the outstanding contractual amount of USD 27,704.50.
  • Interest is awarded on the above amount at 18% per annum from the date of filing this suit till payment in full.
  • The Defendant is to pay the Plaintiff UGX 10,000,000 as general damages.
  • Costs of the suit to the Plaintiff.

Rules and key headnotes

Contract Law — Breach of Contract — Failure to Pay for Goods Supplied on Credit
A breach of contract occurs when a party neglects, refuses or fails to perform any part of its bargain or any term of the contract without a legitimate legal excuse. Where a defendant fails to fulfill payment obligations under a contractual arrangement for supply of goods on credit, this constitutes breach of contract.
Contract Law — Damages — Compensation for Breach — Restitutio in Integrum
A plaintiff who suffers damage due to breach of contract must be put in the position he would have been in had he not suffered the wrong. The general principle underlying the award of general damages in contract is that the claimant is entitled to full compensation for his losses (restitutio in integrum). In assessing quantum of damages, courts are guided by the value of the subject matter, the economic inconvenience a party has been put through, and the nature and extent of the breach.
Commercial Law — Interest on Commercial Debts — Judicial Discretion
Interest on contractual debt is awarded at the discretion of the court and must be exercised judiciously considering all circumstances of the case. Where a defendant has kept the plaintiff's money for more than two years in a commercial arrangement, interest of 18% per annum from the time of filing suit until full payment is appropriate.
Civil Procedure — Exparte Proceedings — Burden of Proof
Where a matter proceeds exparte against a defendant who fails to file a defence, the burden of proof remains on the plaintiff to prove the case on the balance of probabilities.

Legislation cited (4)

Cases cited (6)

Full judgment

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

Tour and Travel Center Ltd v Winnie Azeirwe t a Trek & Travel Shop (Civil Suit No. 1047 of 2022) [2023] UGCommC 299 (7 December 2023)
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.