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Transpaper Uganda Limited v Pepper Publications Limited (Civil Suit 69 of 2020)

High Court · [2023] UGCOMMC 174 · 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 and breach of contract
Decision
Judgment entered for the Plaintiff against the Defendant for recovery of debt, damages, interest and costs

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

Held that where a defendant enters a debt settlement agreement compromising an original debt and subsequently defaults on the agreed payment terms, the original debt is reinstated and becomes due and payable. The plaintiff proved on a balance of probabilities that the defendant was indebted under a credit sale agreement and failed to meet the obligations under the debt settlement agreement, having paid only UGX 7,250,000 of the agreed sum. The defendant is liable for the outstanding balance of UGX 1,083,450,204 plus general damages for breach of contract.

Outcome

Judgment entered for the Plaintiff against the Defendant for recovery of debt, damages, interest and costs

Facts

By a Credit Sale Agreement dated 10 April 2017, the Plaintiff granted credit supply facilities to the Defendant. The Defendant accumulated an outstanding debt of UGX 1,090,700,204 by 25 October 2019. On 31 October 2019, the parties entered a Debt Settlement Agreement compromising the original debt to UGX 857,303,326, to be paid within 18 months at a rate of at least UGX 24,000,000 every 30 days. The agreement provided that failure to meet the payment schedule would result in reinstatement of the original debt in full. The Defendant paid only UGX 7,250,000 and failed to maintain the agreed payment schedule. The Plaintiff sued for recovery of the outstanding balance. The Defendant filed a defence denying the claims but did not file a trial bundle, witness statement, or adduce any evidence at trial, and counsel did not cross-examine the Plaintiff's witness.

Issues

  1. Whether the Defendant is indebted to the Plaintiff and if so, to what tune?
  2. Whether the Plaintiff is entitled to the remedies sought?

Orders

  • The Defendant shall pay to the Plaintiff the sum of UGX 1,083,450,204 being the outstanding balance on the Credit Supply Facilities.
  • Interest is awarded on the sum at the rate of 15% per annum from the date of filing this suit until payment in full.
  • The Plaintiff is awarded General Damages of UGX 100,000,000.
  • Interest is awarded on the general damages at the rate of 10% per annum from the date of judgment until payment in full.
  • Costs of the suit are awarded to the Plaintiff.

Rules and key headnotes

Contract Law — Debt Settlement Agreements — Reinstatement of Original Debt Upon Default
Where parties to a debt settlement agreement agree that failure to meet specified payment terms will result in reinstatement of the original debt, and the debtor defaults on those terms, the original debt becomes due and payable in full.
Civil Procedure — Burden of Proof — Failure to Adduce Evidence in Defence
Where a defendant files a written statement of defence but fails to file a trial bundle, produce any witness, or cross-examine the plaintiff's witness, the plaintiff's evidence remains unchallenged and the plaintiff discharges its burden of proof on a balance of probabilities.
Contract Law — Damages for Breach — Assessment of General Damages
In assessing general damages for breach of contract, the court awards such damages as may fairly and reasonably be considered to arise naturally from the breach or as may reasonably have been in the contemplation of both parties at the time of contracting as the probable result of the breach.
Contract Law — Interest on Debt — Court's Discretion
Interest is awarded as compensation for the use or retention by one party of money belonging to or owed to another. The court has discretion under section 26(2) of the Civil Procedure Act to order interest at such rate as it deems reasonable on the principal sum from the date of suit to the date of decree and from the date of decree to the date of payment.

Legislation cited (3)

Cases cited (6)

  • Harbutts Plasticine Ltd v Wayne Tank & Pump Co Ltd [1970] 1 All ER 225
  • Kazinga Channel Office World Ltd v Attorney General (HCCS No. 276 of 2005)
  • Hadley v Baxendale (1854) 9 Exch 341
  • Patel Sureshbhai v Rajiv Kumar (HCCS No. 630 of 2014)
  • Musisi Edward v Babihuga Hilda (2007) HCB 84
  • Haji Asuman Mutekanga v Equator Growers (U) Ltd (SCAA No. 07 of 1995)

Full judgment

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

Transpaper Uganda Limited v Pepper Publications Limited (Civil Suit 69 of 2020) [2023] UGCommC 174 (30 June 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.