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Aim Motors v Traminco (U) Ltd (Civil Suit No. 755 of 2020) [2021] UGCommC 109 (24 March 2021)
- Citation
- [2021] UGCommC 109
- Status
- Judgment
- Jurisdiction
- Uganda
- Court
- Commercial Court of Uganda
- Panel
- Gaswaga, J
- Case number
- Civil Suit No. 755 of 2020
- Language
- English
More details
- Court
- Commercial Court of Uganda
- Panel
- Gaswaga, J
- Case number
- Civil Suit No. 755 of 2020
- Language
- English
On this page
Professional case brief
Research organized from the available case record
01
Holding and result
The court found that the defendant had admitted indebtedness and failed to contest the claim, and the evidence on record clearly established a debt of Ugx 578,150,000/= owed to the plaintiff. The suit was undefended, and there was no challenge to the plaintiff's evidence. The court therefore entered judgment for the plaintiff for the claimed sum, with interest at 8% per annum from the date of judgment until payment in full, and awarded costs of the suit.
Court disposition
judgment for plaintiff
Orders
- Defendants to pay the plaintiff Ugx 578,150,000/=
- Defendants to pay interest at 8% per annum on the above sum from date of judgment until payment in full.
- Defendants to pay costs of the suit.
02
Material facts
Parties
AIM Motors
PlaintiffTraminco (Uganda) Ltd
DefendantAmounts and remedies
- Principal Debt: UGX 578,150,000
- Interest Rate Per Annum: UGX 8
03
Procedural history
Posture
Civil Suit / Judgment
04
Questions and positions
Legal issues
- 01
Whether the defendant is indebted to the plaintiff for the sum claimed.
- 02
Whether the plaintiff is entitled to interest on the claimed sum.
- 03
Whether the plaintiff is entitled to costs of the suit.
Party arguments
- Applicant
- The plaintiff contended that the defendant solicited, obtained, and used its machinery and skilled personnel for road construction works, admitted indebtedness of Ugx 545,700,000/=, and further incurred additional charges amounting to Ugx 32,450,000/=, totaling Ugx 578,150,000/=. The defendant failed to pay despite repeated demands.
- Respondent
- The defendant did not file a defence or appear in court to contest the claim. Their application for leave to appear and defend was dismissed for want of prosecution.
05
Court’s reasoning
Legal principles
- 01
Civil Procedure Act, Cap 71
A party that admits indebtedness and fails to contest the claim is liable for the debt as established by the evidence on record.
- 02
Section 26, Civil Procedure Act, Cap 71
Interest may be awarded on judgment debts at a reasonable rate from the date of judgment until payment in full.
06
Ratio, limits and disposition
Ratio decidendi
The court found that the defendant had admitted indebtedness and failed to contest the claim, and the evidence on record clearly established a debt of Ugx 578,150,000/= owed to the plaintiff. The suit was undefended, and there was no challenge to the plaintiff's evidence. The court therefore entered judgment for the plaintiff for the claimed sum, with interest at 8% per annum from the date of judgment until payment in full, and awarded costs of the suit.
Court disposition
judgment for plaintiff
- Defendants to pay the plaintiff Ugx 578,150,000/=
- Defendants to pay interest at 8% per annum on the above sum from date of judgment until payment in full.
- Defendants to pay costs of the suit.
Source and reliance status
Commercial Court of Uganda
This page organises the available record for research. Confirm quotations, current status, and subsequent treatment against the official source before relying on the case.
Judgment reading view
Judgment text
The complete available source text.
Commercial Court of Uganda
Judgment
THE REPUBLIC OF UGANDA
IN THE HIGH COURT OF UGANDA AT KAMPALA
[COMMERCIAL DIVISION]
Civil Suit No. 755 of 2020
AIM MOTORS::::::::::::::::::::::::::::::::::::::::::::::::::::::::PLAINTIFF
VERSUS
TRAMINCO (UGANDA) LTD:::::::::::::::::::::::::::::::::DEFENDANTS
BEFORE; HON. JUSTICE DUNCAN GASWAGA
JUDGMENT
[1] This is a judgment on a claim for recovery of a liquidated sum of Ugx 578,150,000/= (Uganda Shillings five hundred seventy eight million, one hundred fifty thousand) with interest at a rate of 8% and costs of the suit. The cause of action arose as follows; that sometime in the year 2018, the defendant carried out road-construction works along Pallisa-Mbale road which required the use of certain machines to wit; 2 excavators, 2 ATD machines, a compactor, 2 wheel loaders, a grader and a bull dozer. The operation of the said machines equally required duly trained industrial machinery vehicle experts, constant supply of spare parts and related expenditures. In order to fulfil the above obligations, the defendant solicited, obtained and used the machinery and skilled personnel of the plaintiff between August 2018 and February 2019. On the 20th of December 2018, in pursuit of a settlement, the defendant admitted indebtedness of Ugx 545,700,000/= (Uganda Shillings Five Hundred Forty-Five Million
Seven Hundred Thousand) and also undertook to pay it. Also, the plaintiff additionally hired machinery between January 2019 and February 2019 to wit; a wheel loader (China), wheel loader (JCB), Excavator (220 Hunda) and Excavator (340 Hunda) for construction of Paliisa-Kamonkoli 44km project amounting to 32,450,000/= and from that time the plaintiff's pleas for payment to the defendant have been ignored.
- [2] It should be noted that the defendants filed M. A. No, 1221 of 2020 for leave to appear and defend which was later on 10/03/2021 dismissed at the instance of the respondent's counsel for want of prosecution when the defendants refused, ignored and or failed to turn up in court without excuse. This therefore left the main suit un defended. - [3] <sup>I</sup> have had opportunity once again to peruse the pleadings. <sup>I</sup> find that the evidence on record clearly establishes a debt of Ugx 578,150,000/= (Uganda Shillings five hundred seventy eight million, one hundred fifty thousand) owed by the defendants. The debt is not challenged. - [4] Accordingly, <sup>I</sup> hereby enter judgment against the defendants jointly and severally in the following terms;
a) that the defendants pay to the plaintiff a sum of Ugx 578,150,000/= (Uganda Shillings five hundred seventy-eight million, one hundred fifty thousand)
b) that the defendants pay an interest rate of 8% p.a on (a) above from date of judgment till payment in full.
c) costs of the suit.
Dated, signed and delivered at Kampala this 24th day of March, 2021
Duncan Gaswaqa
JUDGE
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