Kaykay Electronics Sales & Service Ltd v Hitech India (U) Ltd (Civil Suit No. 94 of 2006) [2009] UGCommC 27 (7 October 2009)

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\fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\b\ul\insrsid3225545\charrsid1071697 THE REPUBLIC OF UGANDA \par }{\b\insrsid3225545\charrsid1071697 IN THE HIGH COURT OF UGANDA HOLDEN AT KAMPALA \par COMMERCIAL DIVISION \par HIGH COURT CIVIL SUIT NO.94 OF 2006 \par }\pard \ql \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid1071697 {\b\insrsid3225545\charrsid1071697 KAYKAY ELECTONICS SALE}{\b\insrsid12453108\charrsid1071697 S AND SERVICE}{\b\insrsid3225545\charrsid1071697 LIMITED}{\b\insrsid12453108\charrsid1071697 }{\b\insrsid7896348\charrsid1071697 \'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85 \'85\'85\'85\'85\'85\'85.. PLAINTIFF}{\b\insrsid3225545\charrsid1071697 \par }\pard \ql \fi720\li2880\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin2880\itap0\pararsid1071697 {\b\lang1024\langfe1024\noproof\insrsid2126628\charrsid1071697 {\shp{\*\shpinst\shpleft2880\shptop270\shpright3120\shpbottom1170\shpfhdr0\shpbxcolumn\shpbxignore\shpbypara\shpbyignore\shpwr3\shpwrk0\shpfblwtxt0\shpz0\shplid1028{\sp{\sn shapeType}{\sv 88}}{\sp{\sn fFlipH}{\sv 0}}{\sp{\sn fFlipV}{\sv 0}} {\sp{\sn fLayoutInCell}{\sv 1}}}{\shprslt{\*\do\dobxcolumn\dobypara\dodhgt8192\dppolyline\dppolycount59\dpptx0\dppty0\dpptx24\dppty1\dpptx47\dppty6\dpptx57\dppty9\dpptx67\dppty13\dpptx76\dppty17\dpptx85\dppty22\dpptx93\dppty27\dpptx100\dppty33 \dpptx106\dppty40\dpptx111\dppty46\dpptx115\dppty53\dpptx118\dppty60\dpptx119\dppty68\dpptx120\dppty75\dpptx120\dppty375\dpptx121\dppty383\dpptx122\dppty390\dpptx125\dppty397\dpptx129\dppty404\dpptx135\dppty411\dpptx141\dppty417\dpptx147\dppty423 \dpptx155\dppty428\dpptx164\dppty433\dpptx173\dppty437\dpptx183\dppty441\dpptx193\dppty444\dpptx216\dppty449\dpptx240\dppty450\dpptx216\dppty451\dpptx193\dppty456\dpptx183\dppty459\dpptx173\dppty463\dpptx164\dppty467\dpptx155\dppty472\dpptx147\dppty477 \dpptx141\dppty483\dpptx135\dppty490\dpptx129\dppty496\dpptx125\dppty503\dpptx122\dppty510\dpptx121\dppty518\dpptx120\dppty525\dpptx120\dppty825\dpptx119\dppty833\dpptx118\dppty840\dpptx115\dppty847\dpptx111\dppty854\dpptx106\dppty861\dpptx100\dppty867 \dpptx93\dppty873\dpptx85\dppty878\dpptx76\dppty883\dpptx67\dppty887\dpptx57\dppty891\dpptx47\dppty894\dpptx24\dppty899\dpptx0\dppty900\dpx2880\dpy270\dpxsize240\dpysize900 \dpfillfgcr255\dpfillfgcg255\dpfillfgcb255\dpfillbgcr255\dpfillbgcg255\dpfillbgcb255\dpfillpat0\dplinew15\dplinecor0\dplinecog0\dplinecob0}}}}{\b\insrsid3225545\charrsid1071697 VERSUS \par }\pard \ql \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid1071697 {\b\insrsid9175166\charrsid1071697 HITECH INDIA}{\b\insrsid2126628\charrsid1071697 (U) LTD }{\b\insrsid3755382\charrsid1071697 \'85}{ \b\insrsid2126628\charrsid1071697 \'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85..}{\b\insrsid9175166\charrsid1071697 DEFENDANT}{\b\insrsid2126628\charrsid1071697 S}{\b\insrsid3225545\charrsid1071697 \par }{\b\insrsid3485202\charrsid1071697 ANIL GUPTA \par }\pard \qc \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid1071697 {\b\ul\insrsid3433159\charrsid1071697 \par }{\b\ul\insrsid3225545\charrsid1071697 BEFORE THE HON. JUSTICE GEOFFREY KIRYABWIRE \par }\pard \ql \fi720\li2880\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin2880\itap0\pararsid1071697 {\b\ul\insrsid3433159\charrsid1071697 \par }{\b\ul\insrsid3225545\charrsid1071697 JUDGMENT \par }{\b\ul\insrsid3755382\charrsid1071697 \par }\pard \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid1071697 {\insrsid3485202\charrsid1071697 The plaintiff,}{\b\insrsid3485202\charrsid1071697 }{\insrsid3485202\charrsid1071697 Kaykay Elect}{ \insrsid11087916\charrsid1071697 r}{\insrsid3485202\charrsid1071697 onics Sale}{\insrsid15666648\charrsid1071697 s and}{\insrsid3485202\charrsid1071697 Service Limited, a limited liability compan y incorporated under the laws of Uganda, brought this suit against the first}{\insrsid13446887\charrsid1071697 defendant}{\insrsid3485202\charrsid1071697 ,}{\b\insrsid9045161\charrsid1071697 }{\insrsid3485202\charrsid1071697 Hitech India (U) LTD}{ \insrsid13922083\charrsid1071697 , a limited liability company incorporated under the laws of Uganda}{\insrsid3485202\charrsid1071697 }{\insrsid13446887\charrsid1071697 and the second defendant}{\insrsid3485202\charrsid1071697 Anil Gupta for the recovery of Ug. Shs.79,2}{\insrsid13522974\charrsid1071697 00,000/= (}{\insrsid8526217\charrsid1071697 seventy nine million two hundred }{\insrsid13922083\charrsid1071697 thousand Uganda}{\insrsid6321899\charrsid1071697 shillings)}{ \insrsid3485202\charrsid1071697 }{\insrsid13522974\charrsid1071697 being a refund of a secu}{\insrsid16524785\charrsid1071697 rity deposit, general damages, interest and costs for the suit.}{\insrsid3485202\charrsid1071697 \par }{\insrsid13190769\charrsid1071697 \par }{\insrsid8526217\charrsid1071697 The case for the plaintiff is that }{\insrsid16275714\charrsid1071697 on 1}{\super\insrsid16275714\charrsid1071697 st}{\insrsid16275714\charrsid1071697 }{\insrsid8526217\charrsid1071697 June 2001}{ \insrsid7674712\charrsid1071697 ,}{\insrsid2254835\charrsid1071697 the}{\insrsid11681077\charrsid1071697 y}{\insrsid8526217\charrsid1071697 entered into an agreement with the defendants}{\insrsid11681077\charrsid1071697 under which the plaintiff was}{ \insrsid8526217\charrsid1071697 appointed as}{\insrsid16275714\charrsid1071697 a distributor of}{\insrsid9045161\charrsid1071697 M/S}{\insrsid16275714\charrsid1071697 }{\insrsid9175166\charrsid1071697 H}{\insrsid8526217\charrsid1071697 itech India. That the }{\insrsid16275714\charrsid1071697 plaintiff}{\insrsid11681077\charrsid1071697 was requested by the second defendant}{\insrsid8526217\charrsid1071697 who was the managing }{\insrsid9175166\charrsid1071697 director of}{ \insrsid8526217\charrsid1071697 both }{\insrsid3755382\charrsid1071697 the defendant company and }{\insrsid2580552\charrsid1071697 M/S }{\insrsid2254835\charrsid1071697 Hitech India}{\insrsid11681077\charrsid1071697 (located at plot}{ \insrsid2254835\charrsid1071697 9/50, Kirti Ngar In}{\insrsid11681077\charrsid1071697 dustrial area, New Delhi 110015}{\insrsid2885618\charrsid1071697 hereinafter referred to as \'93Hitech India\'94}{\insrsid11681077\charrsid1071697 )}{ \insrsid2254835\charrsid1071697 }{\insrsid3755382\charrsid1071697 to deposit Ug. Shs.79, 200,000/= (equivalent of US $ 40,000) which money was passed on to the second defendant as a security depos}{\insrsid13390526\charrsid1071697 it for performance and payment. }{\insrsid11300007\charrsid1071697 A}{\insrsid3755382\charrsid1071697 blank cheque was}{\insrsid11681077\charrsid1071697 then}{\insrsid3755382\charrsid1071697 issued, signed and presented by the second defendant to the plain}{\insrsid818071\charrsid1071697 tiff as receipt to be refunded}{\insrsid3755382\charrsid1071697 in the event that t}{\insrsid2885618\charrsid1071697 he arrangement was revoked. However}{\insrsid3755382\charrsid1071697 in January 2006 the plaintiff ceased being a distributor and requested fo}{\insrsid2885618\charrsid1071697 r a refund of}{\insrsid3755382\charrsid1071697 the deposit from the defendant}{\insrsid9521632\charrsid1071697 s}{\insrsid3755382\charrsid1071697 and that }{\insrsid9521632\charrsid1071697 this was not done}{\insrsid8988026\charrsid1071697 \par }{\insrsid9906057\charrsid1071697 The defendants}{\insrsid8023823\charrsid1071697 in }{\insrsid9906057\charrsid1071697 their}{\insrsid8988026\charrsid1071697 }{\insrsid4132539\charrsid1071697 D}{\insrsid9906057\charrsid1071697 efence deny}{ \insrsid8023823\charrsid1071697 the allegations and aver}{\insrsid9906057\charrsid1071697 that the first defendant never had any agreement with the plaintiff}{\insrsid11472935\charrsid1071697 . They aver that the agreement was between the plaintiff and }{\insrsid815183\charrsid1071697 M/S }{\insrsid11472935\charrsid1071697 Hitech India which w}{\insrsid2885618\charrsid1071697 as a separate and}{\insrsid2254835\charrsid1071697 independent legal entity}{\insrsid2885618\charrsid1071697 from the defendan ts}{\insrsid2254835\charrsid1071697 . T}{\insrsid13922083\charrsid1071697 he second defendant}{\insrsid2254835\charrsid1071697 averred that he had}{\insrsid13922083\charrsid1071697 never received }{\insrsid2254835\charrsid1071697 Ug. Shs.79,}{ \insrsid13922083\charrsid1071697 200,000/=}{\insrsid2254835\charrsid1071697 (an }{\insrsid13922083\charrsid1071697 equivalen}{\insrsid2254835\charrsid1071697 t of US $ 40,000)}{\insrsid13922083\charrsid1071697 from the plaintiff}{ \insrsid11472935\charrsid1071697 and that they never issued to the plaintiff}{\insrsid13329200\charrsid1071697 the cheque No. }{\insrsid13329200\charrsid1071697 0142284}{\insrsid13922083\charrsid1071697 .}{\insrsid8988026\charrsid1071697 The defendants }{\insrsid13329200\charrsid1071697 further }{\insrsid8988026\charrsid1071697 averred that the cheque No. }{\insrsid8988026\charrsid1071697 0142284 on which the}{\insrsid2318981\charrsid1071697 plaintiff\rquote s}{ \insrsid8988026\charrsid1071697 claim is premised was stolen from the first defendant\rquote s premises}{\insrsid2318981\charrsid1071697 and a report was made to Bank of Baroda on 15}{\super\insrsid2318981\charrsid1071697 th}{ \insrsid2318981\charrsid1071697 October 2001.}{\insrsid8023823\charrsid1071697 \par }{\insrsid3606998\charrsid1071697 }{\insrsid13922083\charrsid1071697 \par }{\insrsid8023823\charrsid1071697 The parties at the pre trial conference agreed to the following facts:- \par }{\insrsid2640198\charrsid1071697 \par {\listtext\pard\plain\insrsid11300007\charrsid1071697 \hich\af0\dbch\af0\loch\f0 1.\tab}}\pard \qj \fi-360\li720\ri0\sl360\slmult1\widctlpar\jclisttab\tx720\aspalpha\aspnum\faauto\ls1\adjustright\rin0\lin720\itap0\pararsid1071697 { \insrsid11300007\charrsid1071697 The plaintiff}{\insrsid15683652\charrsid1071697 is a private limited company incorporated in Uganda}{\insrsid8023823\charrsid1071697 . \par {\listtext\pard\plain\insrsid15683652\charrsid1071697 \hich\af0\dbch\af0\loch\f0 2.\tab}}{\insrsid15683652\charrsid1071697 The }{\insrsid15666648\charrsid1071697 first }{\insrsid15683652\charrsid1071697 defendant is a private limited company incorporated in Uganda. \par {\listtext\pard\plain\insrsid15683652\charrsid1071697 \hich\af0\dbch\af0\loch\f0 3.\tab}The plaintiff and the defendant have at different times acted as Agents /Representatives OR customers of }{\insrsid8781958\charrsid1071697 M/S }{ \insrsid11300007\charrsid1071697 Hitech}{\insrsid15683652\charrsid1071697 India}{\insrsid2640198\charrsid1071697 based at 9/50, N}{\insrsid15683652\charrsid1071697 ew }{\insrsid11300007\charrsid1071697 Delhi}{\insrsid15683652\charrsid1071697 -110015}{ \insrsid815183\charrsid1071697 .}{\insrsid15683652\charrsid1071697 \par {\listtext\pard\plain\insrsid8781958\charrsid1071697 \hich\af0\dbch\af0\loch\f0 4.\tab}}{\insrsid8781958\charrsid1071697 O}{\insrsid15683652\charrsid1071697 n 1}{\super\insrsid15683652\charrsid1071697 st}{\insrsid15683652\charrsid1071697 }{ \insrsid11300007\charrsid1071697 June}{\insrsid15683652\charrsid1071697 2001 the defendants on behalf of }{\insrsid8781958\charrsid1071697 M/S }{\insrsid11300007\charrsid1071697 Hitech}{\insrsid15683652\charrsid1071697 India based at 9/50,}{ \insrsid8781958\charrsid1071697 }{\insrsid11087916\charrsid1071697 N}{\insrsid15683652\charrsid1071697 ew }{\insrsid11300007\charrsid1071697 Delhi}{\insrsid15683652\charrsid1071697 -110015 appoin}{\insrsid8781958\charrsid1071697 ted the plaintiff as the latter}{\insrsid15666648\charrsid1071697 \rquote s}{\insrsid15683652\charrsid1071697 agent to deal in its goods until 31}{\super\insrsid15683652\charrsid1071697 st}{\insrsid15683652\charrsid1071697 December 2003 and the period was subject to extension}{\insrsid815183\charrsid1071697 .}{\insrsid15683652\charrsid1071697 \par }\pard \qj \li360\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin360\itap0\pararsid1071697 {\insrsid15683652\charrsid1071697 \par }{\insrsid2885618\charrsid1071697 \par \par }\pard \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid1071697 {\insrsid8023823\charrsid1071697 The}{\insrsid2885618\charrsid1071697 parties}{\insrsid8023823\charrsid1071697 agreed}{ \insrsid2885618\charrsid1071697 on the following}{\insrsid8023823\charrsid1071697 issues}{\insrsid2885618\charrsid1071697 for trial}{\insrsid8023823\charrsid1071697 :- \par }{\insrsid2885618\charrsid1071697 \par {\listtext\pard\plain\insrsid547604\charrsid1071697 \hich\af0\dbch\af0\loch\f0 1.\tab}}\pard \qj \fi-360\li720\ri0\sl360\slmult1\widctlpar\jclisttab\tx720\aspalpha\aspnum\faauto\ls3\adjustright\rin0\lin720\itap0\pararsid1071697 { \insrsid547604\charrsid1071697 Whether the defendants issued}{\insrsid815183\charrsid1071697 a cheque N}{\insrsid16200719\charrsid1071697 o. 0142284 to the plaintiff and if so for what purpose?}{\insrsid11300007\charrsid1071697 \par {\listtext\pard\plain\insrsid16200719\charrsid1071697 \hich\af0\dbch\af0\loch\f0 2.\tab}}{\insrsid16200719\charrsid1071697 Whether the defendants owe the plaintiff the sum of Shs. 79,200,000/=? \par {\listtext\pard\plain\insrsid16476579\charrsid1071697 \hich\af0\dbch\af0\loch\f0 3.\tab}}{\insrsid16476579\charrsid1071697 What}{\insrsid16200719\charrsid1071697 are the re}{\insrsid16476579\charrsid1071697 medies available to the parties?}{ \insrsid11340933\charrsid1071697 \par }\pard \qj \li360\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin360\itap0\pararsid1071697 {\insrsid11340933\charrsid1071697 \par }\pard \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid1071697 {\insrsid13991774\charrsid1071697 Mr}{\insrsid11340933\charrsid1071697 . }{\insrsid13991774\charrsid1071697 Yese }{ \insrsid11340933\charrsid1071697 Mugenyi}{\insrsid11340933\charrsid1071697 appeared}{\insrsid11340933\charrsid1071697 for }{\insrsid13991774\charrsid1071697 plaintiff}{\insrsid11340933\charrsid1071697 }{\insrsid11340933\charrsid1071697 while}{ \insrsid11340933\charrsid1071697 Mr. }{\insrsid13991774\charrsid1071697 J. W. }{\insrsid11340933\charrsid1071697 Kwesiga appeared}{\insrsid856721\charrsid1071697 for the def}{\insrsid11340933\charrsid1071697 endant at the beginning of the case however it was lat}{\insrsid13991774\charrsid1071697 er taken over by Mr. }{\insrsid2391617\charrsid1071697 Arinaitwe. }{\insrsid11340933\charrsid1071697 The plaintiff called two (2}{\insrsid856721\charrsid1071697 ) witness}{ \insrsid6357343\charrsid1071697 es}{\insrsid856721\charrsid1071697 }{\insrsid11340933\charrsid1071697 namely}{\insrsid11340933\charrsid1071697 Kishan Charid Kewlani }{\insrsid2885618\charrsid1071697 (}{\insrsid856721\charrsid1071697 PW1}{ \insrsid2885618\charrsid1071697 )}{\insrsid11340933\charrsid1071697 ,}{\insrsid856721\charrsid1071697 the Managing director of }{\insrsid11340933\charrsid1071697 KAYKAY Electronics Sales and Services Ltd}{\insrsid11340933\charrsid1071697 and}{ \insrsid856721\charrsid1071697 }{\insrsid11340933\charrsid1071697 Amit Bhatia }{\insrsid2885618\charrsid1071697 (}{\insrsid11340933\charrsid1071697 PW2}{\insrsid2885618\charrsid1071697 )}{\insrsid856721\charrsid1071697 }{ \insrsid11340933\charrsid1071697 the operational manager of KAYKAY Electronics Sales and Services Ltd}{\insrsid856721\charrsid1071697 . For the defendant}{\insrsid13440949\charrsid1071697 s}{\insrsid856721\charrsid1071697 ,}{ \insrsid856721\charrsid1071697 }{\insrsid11340933\charrsid1071697 Mr. Anil Gupta}{\insrsid856721\charrsid1071697 }{\insrsid13440949\charrsid1071697 (}{\insrsid856721\charrsid1071697 DW1}{\insrsid13440949\charrsid1071697 )}{ \insrsid856721\charrsid1071697 testified. \par }{\insrsid815183\charrsid1071697 \par The defendants in their amended written statement of defence prayed that the first defendant be struck off as a party to this suit since the }{\insrsid2580552\charrsid1071697 distributorship }{\insrsid815183\charrsid1071697 agreement made between the plaintiff and}{\insrsid815183\charrsid1071697 M/S Hitech India}{\insrsid2580552\charrsid1071697 }{\insrsid2580552\charrsid1071697 and not with the first defendant}{\insrsid815183\charrsid1071697 . }{ \insrsid11087916\charrsid1071697 During the trial}{\insrsid2580552\charrsid1071697 , it was an agreed fact by}{\insrsid11087916\charrsid1071697 both the plaintiff and the second defendant in their testimonies that there }{ \insrsid10241186\charrsid1071697 were no direct }{\insrsid11087916\charrsid1071697 dealing between the plaintiff and the first }{\insrsid4421678\charrsid1071697 defendant. }{\cf1\insrsid2580552\charrsid1071697 I have carefully reviewed the evidence in this area. }{\cf1\insrsid8345442\charrsid1071697 Whereas }{\cf1\insrsid10241186\charrsid1071697 the plaintiff company\rquote s witnesses testified that they did not deal directly with the first defendant, both the certificate of distributorship (Exh. P 1) and the letter to The Bank of Baroda stopping suit cheque no. 0142284 were written on the first defendant\rquote s letter heads. The second defendant is also the principal director in the first defendant company and therefore directly controls its actions. The two defendants are really the same and the }{\cf1\insrsid15666648\charrsid1071697 first defendant is really a cloa}{\cf1\insrsid10241186\charrsid1071697 k of the second defendant. Consequently}{\cf1\insrsid8283181\charrsid1071697 the first defendant shall not be struck out as a party to the suit.}{\insrsid11087916\charrsid1071697

\par }{\insrsid13991774\charrsid1071697 \par }\pard \qj \fi-1260\li1260\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin1260\itap0\pararsid1071697 {\b\ul\insrsid12278453\charrsid1071697 Issue 1}{\insrsid13991774\charrsid1071697 :}{\insrsid12278453\charrsid1071697 }{ \b\ul\insrsid12278453\charrsid1071697 Whether the defendants issued a }{\b\ul\insrsid13991774\charrsid1071697 cheque no. 0142284 to the }{\b\ul\insrsid12278453\charrsid1071697 Plaintiff and if so, for what purpose? \par }{\b\ul\insrsid2260520\charrsid1071697 \par }\pard \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid1071697 {\insrsid2584816\charrsid1071697 Counsel for the plaintiff in relying on the testimony of Mr. Kishan Charid Kewlani (PW1) }{ \insrsid2584816\charrsid1071697 submitted that on 1}{\super\insrsid2584816\charrsid1071697 st}{\insrsid2584816\charrsid1071697 June 2001 the plaintiffs entered into an agreement with the defendants, for the plaintiff to be appointed as a distributor of}{ \insrsid12716050\charrsid1071697 M/S}{\insrsid2584816\charrsid1071697 Hitech India. That the plaintiff was requested by the }{\insrsid11341592\charrsid1071697 second }{\insrsid2584816\charrsid1071697 defendant who was the managing director of both the}{ \insrsid13440949\charrsid1071697 first}{\insrsid2584816\charrsid1071697 defendant company and

}{\insrsid12222091\charrsid1071697 M/S }{\insrsid12222091\charrsid1071697 Hitech India, }{\insrsid2584816\charrsid1071697 to deposit Ug. Shs.79, 200,000/=}{ \insrsid10899249\charrsid1071697 (seventy nine million two hu}{\insrsid13440949\charrsid1071697 ndred thousand Uganda shillings}{\insrsid10899249\charrsid1071697 an equivalent of US $ 40,000}{\insrsid13440949\charrsid1071697 )}{ \insrsid12222091\charrsid1071697 ,}{\insrsid2584816\charrsid1071697 which money was passed on to the second defendant as a security deposi}{\insrsid2260520\charrsid1071697 t for performance and payment.}{\insrsid2584816\charrsid1071697 A blank cheque was issued, signed and presented by the second defendant to the plain}{\insrsid2260520\charrsid1071697 tiff as}{\insrsid11366068\charrsid1071697 proof of receipt}{\insrsid2260520\charrsid1071697 to be refunded}{ \insrsid2584816\charrsid1071697 in the event that the arrangement was revoked. That in January 2006 the plaintiff ceased being a distributo}{\insrsid3831145\charrsid1071697 r and requested for a refund of}{\insrsid2584816\charrsid1071697 the deposit fro m the first defendant and that despite persistent demand}{\insrsid12592159\charrsid1071697 s for payment the defendants have}{\insrsid2584816\charrsid1071697 refused to pay}{\insrsid12592159\charrsid1071697 .}{\insrsid2584816\charrsid1071697 }{ \insrsid2260520\charrsid1071697 \par

}{\insrsid12592159\charrsid1071697 \par }{\insrsid2584816\charrsid1071697 It was the testimony of }{\insrsid12592159\charrsid1071697 Mr. Kishan Charid Kewlani}{\insrsid2584816\charrsid1071697 that he got to know Mr. Anil Gupta}{\b\insrsid2584816\charrsid1071697 }{ \insrsid2584816\charrsid1071697 Since 1993 and that they entered into agreement in contention in 1999}{\insrsid12592159\charrsid1071697 .}{\insrsid2584816\charrsid1071697 }{\insrsid12592159\charrsid1071697 H}{\insrsid2584816\charrsid1071697 e was given the certificate of distributorship in 2001 upon giving }{\insrsid9072859\charrsid1071697 Anil Gupta }{\insrsid12592159\charrsid1071697 a deposit of Shs. }{\insrsid9072859\charrsid1071697 79,200,000/=. I}{\insrsid2584816\charrsid1071697 t was}{ \insrsid12592159\charrsid1071697 Kewlani\rquote s}{\insrsid2584816\charrsid1071697 testimony that the letter that he was given appoint}{\insrsid12592159\charrsid1071697 ed him the sole distributor of T}{\insrsid2584816\charrsid1071697 actics Radio}{ \insrsid12592159\charrsid1071697 in Uganda}{\insrsid2584816\charrsid1071697 .}{\insrsid5187978\charrsid1071697 }{\insrsid2584816\charrsid1071697 He further avers that whe}{\insrsid9072859\charrsid1071697 n he was giving the money to Anil Gupta,}{ \insrsid13399714\charrsid1071697 Mr. }{\insrsid2584816\charrsid1071697 Amel Badhia }{\insrsid10571610\charrsid1071697 the operational manager

of KAYKAY Electronics}{\insrsid9072859\charrsid1071697 was present and that he wrote on the}{ \insrsid2584816\charrsid1071697 cheque }{\insrsid12615475\charrsid1071697 No.}{\insrsid12615475\charrsid1071697 0142284 }{\insrsid2584816\charrsid1071697 after Anil Gupta had signed it because }{\insrsid13399714\charrsid1071697 the second defendant \rquote s handwriting is}{\insrsid2584816\charrsid1071697 very poor. }{\insrsid4808775\charrsid1071697 This evidence}{\insrsid12592159\charrsid1071697 was confirmed by the}{\insrsid2584816\charrsid1071697 testimony Mr. Amel Badhia}{ \insrsid4808775\charrsid1071697 .}{\insrsid2584816\charrsid1071697 \par }{\insrsid4808775\charrsid1071697 \par }{\insrsid2584816\charrsid1071697 The }{\insrsid12592159\charrsid1071697 Counsel for the }{\insrsid2584816\charrsid1071697 defendants on the hand submitted that the plaintiffs claim for }{\insrsid4808775\charrsid1071697 Ug. Shs.}{ \insrsid2584816\charrsid1071697 79,2}{\insrsid15280151\charrsid1071697 00,000/= is premised on cheque No.}{\insrsid2584816\charrsid1071697 0142284 as a deposit for }{\insrsid7346717\charrsid1071697 the }{\insrsid2584816\charrsid1071697 agency which was issued by }{\insrsid15280151\charrsid1071697 the defendants to the plaintiff}{\insrsid2584816\charrsid1071697 .}{\insrsid15280151\charrsid1071697 H}{\insrsid2584816\charrsid1071697 e further submitted that

}{ \insrsid15280151\charrsid1071697 the reading of Certificate of A}{\insrsid2584816\charrsid1071697 gency unequivocally shows that the pla}{\insrsid15280151\charrsid1071697 intiff }{\insrsid2584816\charrsid1071697 is appointed by }{ \insrsid2580552\charrsid1071697 M/S }{\insrsid2584816\charrsid1071697 Hitech India}{\insrsid15280151\charrsid1071697 , N}{\insrsid2584816\charrsid1071697 ew Delhi}{\insrsid15280151\charrsid1071697 . }{\insrsid7346717\charrsid1071697 Counsel for the defendants submitted that if}{\insrsid2584816\charrsid1071697 any money was given as a security deposit in th}{\insrsid15280151\charrsid1071697 e manner alleged}{\insrsid5463498\charrsid1071697 ,}{\insrsid7346717\charrsid1071697 then it is}{\insrsid2580552\charrsid1071697 M/S}{\insrsid15280151\charrsid1071697 Hitech India, }{\insrsid7346717\charrsid1071697 that }{\insrsid2584816\charrsid1071697 would}{\insrsid7346717\charrsid1071697 be}{\insrsid2584816\charrsid1071697 legally be liable}{\insrsid7346717\charrsid1071697 as principle}{\insrsid2584816\charrsid1071697 and not the present defendants.}{\insrsid15280151\charrsid1071697 C}{\insrsid2584816\charrsid1071697 ounsel }{\insrsid15280151\charrsid1071697 referred me to the case of}{\insrsid7346717\charrsid1071697 \par \par }{\insrsid15280151\charrsid1071697 }{\b\insrsid15280151\charrsid1071697 M}{\b\insrsid2584816\charrsid1071697

ontogomer}{\b\insrsid15280151\charrsid1071697 ie v United K}{\b\insrsid2584816\charrsid1071697 ingdom }{\b\insrsid15280151\charrsid1071697 Steamship A}{\b\insrsid2584816\charrsid1071697 ssociation}{\b\insrsid15280151\charrsid1071697 }{\b\insrsid2584816\charrsid1071697 (1891)1QB370}{\insrsid2584816\charrsid1071697 at }{\b\insrsid2584816\charrsid1071697 page 3761}{ \insrsid16521375\charrsid1071697 where }{\b\insrsid16521375\charrsid1071697 Wright J}{\insrsid2584816\charrsid1071697 held, \par }{\insrsid7346717\charrsid1071697 \par }\pard \qj \li720\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid1071697 {\i\insrsid2584816\charrsid1071697 \'93The contract }{\i\insrsid15666648\charrsid1071697 is the contract of the principal}{ \i\insrsid2584816\charrsid1071697 not that of the agent and prima facie at common law the only person who can sue is the principal and the only person who can be sued is the principal.\'94 \par }{\i\insrsid16521375\charrsid1071697 \par }\pard \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid1071697 {\insrsid2584816\charrsid1071697 He further submitted that }{\insrsid16521375\charrsid1071697 Mr. Kishan Charid Kewlani }{ \insrsid2584816\charrsid1071697 stated that he never had any dealings with the first defendant.}{\insrsid16521375\charrsid1071697

He}{\insrsid2584816\charrsid1071697 also relies on the evidence}{\insrsid11146103\charrsid1071697 of}{ \insrsid2584816\charrsid1071697 }{\insrsid11146103\charrsid1071697 Mr. Anil Gupta }{\insrsid2584816\charrsid1071697 Who admitted that the signature on the cheque}{\insrsid1968483\charrsid1071697 was his}{\insrsid2584816\charrsid1071697 but that the cheque had been stolen and that he had reported the matter to }{\insrsid1968483\charrsid1071697 Bank of B}{\insrsid2584816\charrsid1071697 aroda.}{\insrsid1968483\charrsid1071697 I}{\insrsid2584816\charrsid1071697 t is the submission of counsel for the defendant that on the whole the }{\insrsid1968483\charrsid1071697 plaintiff has failed to show how}{\insrsid2584816\charrsid1071697 the plaintiff came in}{\insrsid1968483\charrsid1071697 t}{ \insrsid2584816\charrsid1071697 o possession of the firs}{\insrsid1968483\charrsid1071697 t defendant\rquote s cheque with whom }{\insrsid2584816\charrsid1071697 they had no business}{\insrsid1968483\charrsid1071697 relationship}{ \insrsid2584816\charrsid1071697 .}{\insrsid1968483\charrsid1071697 T}{\insrsid2584816\charrsid1071697 he second defendant has clearly shown that the cheque got lost or was stolen from the first defendant}{\insrsid1968483\charrsid1071697 \rquote s premises.}{\insrsid2584816\charrsid1071697 \par }{\insrsid1968483\charrsid1071697 \par }{\insrsid7346717\charrsid1071697 I

have considered the submissions of both Counsel and evidence adduced before Court. }{\insrsid2584816\charrsid1071697 The parties agree that the signature}{\insrsid7346717\charrsid1071697 the cheque (Exh. P2)}{ \insrsid2584816\charrsid1071697 belongs to the second defendant}{\insrsid7346717\charrsid1071697 ;}{\insrsid2584816\charrsid1071697 who does not deny it. However the point in contention is how the cheque came in to the possession of the plaintiff. }{ \insrsid1968483\charrsid1071697 I have }{\insrsid7346717\charrsid1071697 considered the evidence before me }{\insrsid1968483\charrsid1071697 I }{\insrsid7287711\charrsid1071697 am satisfied}{\insrsid5463498\charrsid1071697 that}{ \insrsid7287711\charrsid1071697 there was}{\insrsid1968483\charrsid1071697 an oral transaction }{\insrsid7287711\charrsid1071697 between the parties involving this cheque No.0142284 and }{\insrsid7346717\charrsid1071697 I }{ \insrsid7287711\charrsid1071697 am convinced that the defendant willingly handed over the che}{\insrsid7346717\charrsid1071697 que to the plaintiff. I am not persuaded}{\insrsid7287711\charrsid1071697 by the testimony of Mr. Anil Gupta that the cheque was stolen. }{\insrsid2584816\charrsid1071697 \par }{\insrsid7287711\charrsid1071697 \par }{\insrsid10488698\charrsid1071697 In the case of }{\b\insrsid10488698\charrsid1071697 London Joint Stock Bank .v. Macmillan and Arthur [1918]

A. C 777 at page 789-790 Lord Finlay}{\b\insrsid5661785\charrsid1071697 }{\insrsid5661785\charrsid1071697 of}{ \insrsid10488698\charrsid1071697 the House of Lords held that; \par }{\insrsid7346717\charrsid1071697 \par }\pard \qj \li720\ri720\sl360\slmult1\widctlpar\tx7920\aspalpha\aspnum\faauto\adjustright\rin720\lin720\itap0\pararsid1071697 {\i\insrsid10488698\charrsid1071697 \'93\'85 if the cheque is drawn in such a way as to facilitate or almost invite an increase in the amount of forgery if the cheque should get into the hands of a dishonest person, forgery is not a remote but a very natural consequence of negligence.\'94 \par }{\i\insrsid15467730\charrsid1071697 \par }\pard \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid1071697 {\insrsid15413381\charrsid1071697 The acts of Mr. Anil Gupta }{\insrsid5661785\charrsid1071697 in }{\insrsid15413381\charrsid1071697 signing}{ \insrsid11079048\charrsid1071697 the}{\insrsid15413381\charrsid1071697 blank cheques and leaving them with his employees}{\insrsid5661785\charrsid1071697 from where he alleges they were lost if true}{\insrsid15413381\charrsid1071697 }{ \insrsid5661785\charrsid1071697 is a sign of }{\insrsid15413381\charrsid1071697 negligence. }{\insrsid8341524\charrsid1071697 The }{\insrsid8345442\charrsid1071697 hand written }{\insrsid8341524\charrsid1071697 letter written by

the}{ \insrsid8345442\charrsid1071697 second}{\insrsid8341524\charrsid1071697 defendant}{\insrsid8345442\charrsid1071697 on the letter head of the first defendant}{\insrsid8341524\charrsid1071697 to The Bank of Baroda dated 15}{ \super\insrsid8341524\charrsid1071697 th}{\insrsid8341524\charrsid1071697 October 2001 stopping the cheque (on the grounds of possible theft) about one month after the cheque had been written without more is very suspicious. The cheque is not even printed in the company names as is the practice for company cheques in Uganda. To my mind the cheque issued appears to have been a personal cheque. }{\insrsid5661785\charrsid1071697 That not withstanding on the balance of the evidence before Court it is more probable than not that the said cheque was indeed given to the plaintiff company in the presence of two of its officials.}{\insrsid15467730\charrsid1071697 \par }\pard \qj \li0\ri720\sl360\slmult1\widctlpar\tx7920\aspalpha\aspnum\faauto\adjustright\rin720\lin0\itap0\pararsid1071697 {\insrsid11079048\charrsid1071697 \par }{\insrsid5661785\charrsid1071697 I }{\insrsid13436285\charrsid1071697 find therefore basing on the evidence before me that the cheque was never stolen from the defendants}{\insrsid11079048\charrsid1071697 as alleged}{\insrsid13436285\charrsid1071697 but }{\insrsid11079048\charrsid1071697 was }{\insrsid13436285\charrsid1071697

rather}{\insrsid11079048\charrsid1071697 issued to the plaintiff by the second defendant to act as an acknowledgement of receipt}{\insrsid5661785\charrsid1071697 of the deposit of }{\insrsid11079048\charrsid1071697 $ 40,000 (Forty thousand United States Dollars)}{\insrsid15467730\charrsid1071697 .}{\insrsid10488698\charrsid1071697 \par }\pard \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid1071697 {\insrsid11753331\charrsid1071697 \par }{\insrsid8283181\charrsid1071697 \par }\pard \qj \fi-2160\li2160\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin2160\itap0\pararsid1071697 {\b\ul\insrsid4460745\charrsid1071697 Issue No. 2:}{\insrsid4460745\charrsid1071697 \tab }{\b\ul\insrsid4460745\charrsid1071697 Whether the defendants owe}{\b\ul\insrsid11301831\charrsid1071697 s}{\b\ul\insrsid4460745\charrsid1071697 the plaintiff the sum of Ug. Shs.79,200,000/= \par }{\b\ul\insrsid10357743\charrsid1071697 \par }\pard \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid1071697 {\insrsid8396373\charrsid1071697 It was the testimony of }{\insrsid7366842\charrsid1071697 Mr. Kishan Charid Kewlani }{ \insrsid8396373\charrsid1071697 PW1 that he gave }{\insrsid8396373\charrsid1071697 Mr. Anil Gupta the second defendant the amount of }{\insrsid8396373\charrsid1071697 Ug.

Shs.79,200,000/=}{\insrsid10899249\charrsid1071697 (seventy nine million two hundred thousand Uganda shillings)}{\insrsid8396373\charrsid1071697 as security after being appointed sole distributor of \'93Tactics Radios\'94 however there was no}{\insrsid5661785\charrsid1071697 formal}{ \insrsid8396373\charrsid1071697 receipt given save for the cheque}{\insrsid5661785\charrsid1071697 itself}{\insrsid8396373\charrsid1071697 as he relied on the good relationship that existed between him and Mr. }{\insrsid8396373\charrsid1071697 Anil Gupta}{\insrsid5661785\charrsid1071697 .}{\insrsid8396373\charrsid1071697 }{\insrsid5661785\charrsid1071697 It was }{\insrsid8396373\charrsid1071697 the}{\insrsid5661785\charrsid1071697 ir}{\insrsid8396373\charrsid1071697 understanding that}{ \insrsid5661785\charrsid1071697 the cheque}{\insrsid8396373\charrsid1071697 would be refunded when their business relationship ended. }{\insrsid10357743\charrsid1071697 Mr. K}{\insrsid6362048\charrsid1071697 ewlani}{\insrsid10357743\charrsid1071697 further testified that in 2005 he discovered that the business}{\insrsid6362048\charrsid1071697 of distributing Tactics Radios}{\insrsid10357743\charrsid1071697 had been given to some one else. He therefore terminated the contract orally and o}{ \insrsid7366842\charrsid1071697 n the 20}{\super\insrsid7366842\charrsid1071697 th}{\insrsid7366842\charrsid1071697 June 2006 a

letter was written to Hitech India (U) Ltd demanding for a refund of the }{\insrsid7366842\charrsid1071697 Ug. Shs.79,200,000/= which had been deposited as security for the distributorship agency}{\insrsid6362048\charrsid1071697 of \'93Tactics Radios\'94. }{\insrsid10357743\charrsid1071697 }{\insrsid6362048\charrsid1071697 T}{\insrsid10357743\charrsid1071697 he defendants }{ \insrsid6362048\charrsid1071697 however }{\insrsid10357743\charrsid1071697 did not reply and }{\insrsid6362048\charrsid1071697 now }{\insrsid10357743\charrsid1071697 deny ever receiving the said amount.}{\insrsid7543645\charrsid1071697 \par }{\insrsid8396373\charrsid1071697 \par }{\insrsid11146103\charrsid1071697 }{\insrsid6362048\charrsid1071697 C}{\insrsid11146103\charrsid1071697 ounse}{\insrsid6362048\charrsid1071697 l for the defendants}{\insrsid11146103\charrsid1071697 on the hand submitted that the defendants d}{ \insrsid6357343\charrsid1071697 o not owe the plaintiff the sum}{\insrsid11146103\charrsid1071697 of }{\insrsid11146103\charrsid1071697 Ug. Shs.79,200,000/}{\insrsid6362048\charrsid1071697 = as }{\insrsid11146103\charrsid1071697 there was never a relation ship between the plaintiff and the first defendant}{\insrsid8283181\charrsid1071697 .}{\insrsid11146103\charrsid1071697 }{\insrsid7034582\charrsid1071697 Counsel}{\insrsid11146103\charrsid1071697 for the

defendant}{ \insrsid7034582\charrsid1071697 further submitted}{\insrsid11146103\charrsid1071697 that the plaintiff\rquote s evidence was insufficient to prove any basis for a credit- debtor relationship between the plaintiff and the defendants. }{ \insrsid7034582\charrsid1071697 It is Counsel\rquote s submission }{\insrsid8283181\charrsid1071697 that the}{\insrsid7543645\charrsid1071697 cheque in issue was stolen from the defendants and that the whole claim is fraudulently set up by the plaintiff.}{\insrsid11146103\charrsid1071697 \par }{\b\ul\insrsid7366842\charrsid1071697 \par }{\b\insrsid8396373\charrsid1071697 According to R. W. Hodgin in the Law of Contract of East Africa}{\b\insrsid7366842\charrsid1071697 published by Kenya Literature Bureau at page 12 }{\insrsid7366842\charrsid1071697 a contract is defined as a }{ \insrsid16715683\charrsid1071697 legally}{\insrsid7366842\charrsid1071697 binding agreement between two or more persons and it can be made either orally or in writing.}{\insrsid4460745\charrsid1071697 \par }{\insrsid7366842\charrsid1071697 \par }{\insrsid945935\charrsid1071697 In the case of }{\b\insrsid945935\charrsid1071697 Printing and Numerical Registering Company v Sampson (1875) LR 19 Eq 462, Sir George Jessel}{\insrsid945935\charrsid1071697 said, \par \par }\pard \qj

\li720\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid1071697 {\i\insrsid945935\charrsid1071697 \'93 if there is one thing more than the other that public policy requires is that a man of full age and competent understanding should have the utmost liberty to contract and tha t their contract when entered into freely and voluntarily shall be held sacred and shall be enforced by courts of justice.\'94 \par }{\i\insrsid16715683\charrsid1071697 \par }\pard \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid1071697 {\insrsid16715683\charrsid1071697 Mr. Kishan Charid Kewlani }{\insrsid16715683\charrsid1071697 PW1 testified that }{ \insrsid7946992\charrsid1071697 he}{\insrsid16715683\charrsid1071697 }{\insrsid2775547\charrsid1071697 and}{\insrsid16715683\charrsid1071697 }{\insrsid16715683\charrsid1071697 Mr. Anil Gupta the second defendant }{\insrsid2775547\charrsid1071697 orally agreed that }{\insrsid16715683\charrsid1071697 the amount of }{\insrsid16715683\charrsid1071697 Ug. Shs.79,200,000/= }{\insrsid2775547\charrsid1071697 would be deposited }{\insrsid16715683\charrsid1071697 as security on the understanding that the said amount would be returned upon termination of the distributorship contract.}{\insrsid11885837\charrsid1071697 The plaintiff claims that upon termination of the contract the

defendants did not return the said }{\insrsid11472961\charrsid1071697 amount.}{\insrsid7034582\charrsid1071697 It appears to me that the defendants do not contest that the plaintiff company has terminated their relationship}{\insrsid6450911\charrsid1071697 of distributing the said radios. }{\insrsid7034582\charrsid1071697 There is no counter claim by the }{\insrsid11472961\charrsid1071697 defendants}{\insrsid7034582\charrsid1071697 that the security deposit had in some way been offset to clear u npaid amounts by the plaintiff company.}{\insrsid11472961\charrsid1071697 }{\insrsid7034582\charrsid1071697 Given my earlier finding in issue number one that the said cheque was issued as a security deposit}{\insrsid6450911\charrsid1071697 it follows that deposit which the cheque secured has to be refunded.}{\i\insrsid8396373\charrsid1071697 \par }{\cf1\insrsid1526087\charrsid1071697 \par }{\insrsid13716259\charrsid1071697 On the basis of the above }{\insrsid11610458\charrsid1071697 It is therefore my finding that the }{\insrsid13336238\charrsid1071697 second }{\insrsid11610458\charrsid1071697 defendant owes }{ \insrsid11610458\charrsid1071697 the plaintiff the sum of Ug. Shs.79,200,000/= (seventy nine million two hundred thousand Uganda shillings). \par }\pard\plain \s17\qj \li0\ri0\sb100\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid1071697

\fs24\cf1\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\b\ul\insrsid3754695\charrsid1071697 \par }{\b\ul\insrsid10488698\charrsid1071697 Issue No. 3}{\b\insrsid10488698\charrsid1071697 :}{\insrsid10488698\charrsid1071697 \tab }{\b\ul\insrsid10488698\charrsid1071697 What are the remedies available to the parties? \par }{\b\ul\insrsid6450911\charrsid1071697 \par }\pard\plain \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid1071697 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\insrsid10488698\charrsid1071697 The plaintiff,}{ \b\insrsid10488698\charrsid1071697 }{\insrsid10488698\charrsid1071697 Kaykay }{\insrsid15206298\charrsid1071697 Electronics}{\insrsid10488698\charrsid1071697 Sale Service Limited}{\insrsid10488698\charrsid1071697 prayed for judgment against the defendant}{\insrsid8283181\charrsid1071697 s}{\insrsid10488698\charrsid1071697 and also seek the recovery of Ug. Shs.79,200,000/= (seventy nine million two hundred thousand Uganda shillings), being a refund of a secu rity deposit, general damages, interest and costs for the suit. \par }{\insrsid7237079\charrsid1071697 \par }{\insrsid6450911\charrsid1071697 In light of my earlier findings, }{\insrsid7237079\charrsid1071697 I award the plaintiff the sum of Ug. Shs.79,200,000/= (seventy nine million two hundred thousand Uganda

shillings}{\insrsid1713364\charrsid1071697 )}{ \insrsid8283181\charrsid1071697 against the defendants jointly and severally}{\insrsid7237079\charrsid1071697 w}{\insrsid7407965\charrsid1071697 hich was the amount deposited a}{\insrsid7237079\charrsid1071697 s security for the distributorship ag reement. \par }\pard\plain \s17\qj \li0\ri0\sb100\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid1071697 \fs24\cf1\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\insrsid6450911\charrsid1071697 As to }{ \insrsid10488698\charrsid1071697 General damages, according to }{\b\insrsid10488698\charrsid1071697 Lord Macnaghten }{\insrsid10488698\charrsid1071697 in the case of }{\b\insrsid10488698\charrsid1071697 Storms. V. Hutchinson [1905] AC 515}{ \b\insrsid15666648\charrsid1071697 }{\insrsid15666648\charrsid1071697 held that}{\b\insrsid10488698\charrsid1071697 }{\insrsid6450911\charrsid1071697 general damages}{\b\insrsid6450911\charrsid1071697 }{\insrsid10488698\charrsid1071697 are such as the law will presume to be the direct natural or probable consequence of the act complained of. \par The law presumes damage in respect of any unlawful act }{\insrsid6450911\charrsid1071697 such as}{\insrsid10488698\charrsid1071697 breach of a contract or any injury to a legall}{\insrsid6450911\charrsid1071697 y enforceable right or

interest.}{ \insrsid10488698\charrsid1071697 In the instant case}{\insrsid1713364\charrsid1071697 the plaintiff}{\insrsid6450911\charrsid1071697 \rquote s}{\insrsid1713364\charrsid1071697 }{\insrsid13511490\charrsid1071697 case for}{ \insrsid6450911\charrsid1071697 general}{\insrsid13511490\charrsid1071697 damages }{\insrsid6450911\charrsid1071697 was }{\insrsid13511490\charrsid1071697 not well presented to court. Court was not guided on quant um to be given neither did the plaintiffs specify the amount to be awarded in general damages. In light of the above I award Ug. Shs.}{\insrsid6450911\charrsid1071697 7,9}{\insrsid13511490\charrsid1071697 0}{\insrsid6450911\charrsid1071697 0}{ \insrsid13511490\charrsid1071697 ,000/= (}{\insrsid6450911\charrsid1071697 seven million}{\insrsid2641534\charrsid1071697 }{\insrsid13511490\charrsid1071697 Uganda shillings) as general damages}{\insrsid8283181\charrsid1071697 against both defendants jointly and severally}{\insrsid13511490\charrsid1071697 .}{\b\insrsid10488698\charrsid1071697 \par }{\insrsid12266301\charrsid1071697 Regarding the question of interest, Kaykay Elect}{\insrsid1713364\charrsid1071697 r}{\insrsid12266301\charrsid1071697 onics Sale Service Limited prayed for interest}{\insrsid9326619\charrsid1071697 at court rate }{ \insrsid7237079\charrsid1071697 from the date of cause of action.}{\insrsid4789642\charrsid1071697 \par

}{\insrsid14630304\charrsid1071697 The principle that emerges from decided cases, notably }{\b\insrsid8922706\charrsid1071697 Sietco . V.}{\b\insrsid14630304\charrsid1071697 Noble Builders (U) Ltd SCCA No. 31 of 1995 }{\insrsid14630304\charrsid1071697 is that where a person is entitled to a liquidated amount or specific goods and has been deprived of them through the wrongful act of another person, he should be awarded }{\insrsid14630304\charrsid1071697 interest}{\insrsid14630304\charrsid1071697 from the date of filing the suit. Where, however, damages are to be assessed by the Court, the right to those damages does not arise until they are assessed. In such event, }{\insrsid14630304\charrsid1071697 interest}{\insrsid14630304\charrsid1071697 is only given from the date of judgment.}{\insrsid5731910\charrsid1071697 \par }{\insrsid2641534\charrsid1071697 It is not clear why the plaintiff pray}{\insrsid5731910\charrsid1071697 ed}{\insrsid2641534\charrsid1071697 for}{\insrsid5731910\charrsid1071697 court and not}{\insrsid2641534\charrsid1071697 commercial interest as a business entity. That notwithstanding }{\insrsid5731910\charrsid1071697 since the termination was oral }{\insrsid9326619\charrsid1071697 I accordingly award the plaintiff interest}{\insrsid8283181\charrsid1071697 against both defendants jointly and severally}{\insrsid9326619\charrsid1071697 on the

award}{\insrsid8341524\charrsid1071697 of Shs 79,200,000/= }{\insrsid9326619\charrsid1071697 at }{\insrsid5731910\charrsid1071697 8}{\insrsid6450911\charrsid1071697 % }{\insrsid9326619\charrsid1071697 per annum fr}{\insrsid2641534\charrsid1071697 om date of filing}{\insrsid9326619\charrsid1071697 until payment in full}{\insrsid8341524\charrsid1071697 and 8% on general damages from the date of judg ment until payment in full}{\insrsid9326619\charrsid1071697 . \par }{\insrsid5731910\charrsid1071697 \par }\pard\plain \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid1071697 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\cf1\insrsid8922706\charrsid1071697 As regards costs, the usual result is that they follow the event.}{\insrsid12194797\charrsid1071697 }{\cf1\insrsid8922706\charrsid1071697 The plaintiff }{\cf1\insrsid5731910\charrsid1071697 are }{\cf1\insrsid8922706\charrsid1071697 therefore }{ \cf1\insrsid5731910\charrsid1071697 awarded }{\cf1\insrsid8922706\charrsid1071697 the costs of the suit. \par }{\cf1\insrsid13511490\charrsid1071697 \par \par }\pard \qc \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid1071697 {\b\insrsid13511490\charrsid1071697 \'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85.. \par Geoffrey Kiryabwire \par JUDGE \par

}{\b\insrsid417441\charrsid1071697 \par }{\b\insrsid13511490\charrsid1071697 Date}{\b\insrsid417441\charrsid1071697 :\tab }{\b\ul\insrsid417441\charrsid1071697 08/10/2009}{\b\insrsid13511490\charrsid1071697 \par }\pard \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid1071697 {\b\ul\insrsid13511490\charrsid1071697 \par }{\b\ul\insrsid417441\charrsid1071697 \par \par \par \par \par \par \par \par \par \par \par }\pard\plain \s20\qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid1071697 \f35\fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\f0\insrsid417441\charrsid1071697 \par }\pard\plain \s21\ql \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid1071697 \i\f35\fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\i0\f0\insrsid417441\charrsid1071697 08/10/09 \par 9:35am \par }{\b\i0\f0\insrsid417441\charrsid1071697 \par }{\b\i0\f0\ul\insrsid417441\charrsid1071697 Judgment read and signed in open court in the presence of; \par }{\i0\f0\insrsid417441\charrsid1071697 \par {\listtext\pard\plain\s21 \f1\insrsid417441\charrsid1071697 \hich\af1\dbch\af0\loch\f1 -\tab}}\pard \s21\ql \fi-720\li1080\ri0\sl360\slmult1\widctlpar\jclisttab\tx1080\aspalpha\aspnum\faauto\ls5\adjustright\rin0\lin1080\itap0\pararsid1071697

{ \i0\f0\insrsid417441\charrsid1071697 G. Byamugisha for Plaintiff \par {\listtext\pard\plain\s21 \f1\insrsid417441\charrsid1071697 \hich\af1\dbch\af0\loch\f1 -\tab}Rose Emeru \endash Court Clerk \par }\pard \s21\qc \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid1071697 {\b\i0\f0\insrsid417441\charrsid1071697 \par \'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85 \par Geoffrey Kiryabwire \par JUDGE \par }{\i0\f0\insrsid417441\charrsid1071697 Date:}{\b\i0\f0\insrsid417441\charrsid1071697 }{\b\i0\f0\ul\insrsid417441\charrsid1071697 08/10/2009}{\b\i0\f0\insrsid417441\charrsid1071697 \par }\pard\plain \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid1071697 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\b\ul\insrsid417441\charrsid1071697 \par }\pard\plain \s17\qj \li0\ri0\sb100\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid1071697 \fs24\cf1\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\insrsid8922706\charrsid1071697 \par }}