Wakilii

Wild Cheeta Tours & Travel Ltd v Ssamba Nsubuga (Civil Suit No. 603 of 2013)

High Court · [2014] UGCOMMC 29 · 2014 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 arising from breach of loan agreement, heard after interlocutory judgment was obtained following defendant's failure to file defence
Decision
Judgment entered for the Plaintiff with orders for payment of principal, interest, general damages and costs

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

Court held that the defendant breached a loan agreement by failing to repay UGX 5,000,000 and all subsequent undertakings to pay. Interest beyond the contract period is at the court's discretion. The court awarded UGX 7,087,450 being the principal plus contractual interest to the end of the agreed period, then exercised discretion to add 20% per annum for three years unpaid to compensate the plaintiff, totalling UGX 8,504,940. General damages of UGX 10,000,000 awarded for breach of contract and inconvenience caused by repeated broken promises.

Outcome

Judgment entered for the Plaintiff with orders for payment of principal, interest, general damages and costs

Facts

In January 2011, the defendant requested a friendly loan from the plaintiff company. The plaintiff granted a short-term loan of UGX 5,000,000 repayable within two months at a mutually agreed interest rate of 15% per month. The defendant provided the log book of his motor vehicle as security. The defendant failed to repay the loan within the agreed time despite numerous demands and was granted extensions. By December 2012 the amount with accrued interest had reached UGX 59,000,000. The defendant admitted liability and issued three cheques totalling UGX 59,000,000 but all three cheques were dishonoured when presented. Despite further demands and meetings with lawyers, the defendant failed to pay. Summons were served, no defence was filed, and interlocutory judgment was obtained in December 2013.

Issues

  1. Whether the defendant breached the contract.
  2. If so, what is the amount due to the Plaintiff?
  3. What reliefs if any is the Plaintiff entitled to?

Orders

  • The Defendant to pay the Plaintiff the outstanding sum of UGX 8,504,940.
  • General damages for breach of contract of UGX 10,000,000.
  • Costs of the suit.

Rules and key headnotes

Contract Law — Breach of Contract — Definition and Occurrence
A breach of contract occurs when one or both parties fail to fulfill the obligations imposed by the terms of the contract.
Banking & Finance — Interest — Entitlement Based on Agreement or Statute
The general rule is that interest can be claimed if the claim is based on an agreement for it in the document sued upon or by statute.
Banking & Finance — Interest — Award of Interest Beyond Contract Period — Court Discretion
To award interest beyond the contract period is left to the discretion of court, taking into account the facts of each case. In equity, interest is awarded whenever a wrongdoer deprives a company of money which it needs for use in its business to compensate for the loss occasioned.
Damages & Quantum — General Damages — Breach of Contract — Inconvenience and Discomfort
Substantial physical inconvenience or even inconvenience that is not strictly physical, and discomfort caused by breach of contract will entitle the plaintiff to general damages.
Damages & Quantum — General Damages — Definition and Assessment
General damages in breach of contract are what a court may award when it cannot point out any measure by which they are to be assessed, except the opinion and judgment of a reasonable man.

Cases cited (8)

  • Nakawa Trading Co Ltd v Coffee Marketing Board (High Court Civil Suit No. 137 of 1991)
  • Roko Construction Co Ltd v Attorney General (High Court Civil Suit No. 517 of 2005)
  • E.M. Cornwall & Co. Ltd Vs Desai (1941) 6 ULR 103
  • Waller Steiner Vs Moir [1975] 1QB 373
  • Harbutt's Plasticine Ltd Vs Wayne Tank & Pump Co. Ltd [1970] 1 QB 447
  • Sietco v Noble Builders (U) Ltd (Supreme Court Civil Appeal No. 31 of 1995)
  • Robbialac Paints (Uganda) Ltd Vs K.B. Construction Ltd [1976] HCB 45
  • Hajji Asuman Mutekanga v Equator Growers (Uganda) Ltd (Supreme Court Civil Appeal No. 7 of 1995)

Full judgment

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

Wild Cheeta Tours & Travel Ltd v Ssamba Nsubuga (Civil Suit No. 603 of 2013) [2014] UGCommC 29 (25 March 2014)
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.