Sajjabi v Heng Rong International Limited (Civil Suit 991 of 2020) [2022] UGCommC 188 (29 September 2022)

THE REPUBLIC OF UGANDA

IN THE HIGH COURT OF UGANDA AT KAMPALA (COMMERCIAL DIVISION)

CIVIL SUIT NO. 991 OF 2020

FRED KIZZA SAJJABI ::::::::::::::::::::::::::::::::::::

VERSUS

HENG RONG INTERNATIONAL LIMITED ::::::::::::::::::::::::::::::::::::

BEFORE: HON. LADY JUSTICE ANNA B. MUGENYI JUDGMENT

I have listened to the submissions of the counsel of the Plaintiff who sought court's permission to proceed in the absence of Counsel for the Defendant with whom it had been agreed to attend Court on 28/9/2022; but the said Counsel did not attend Court as agreed and neither was an explanation for his absence given to the Court or counsel for the Plaintiff. Court granted Counsel for the Plaintiff to proceed as prayed.

The main issue for the Court's determination, the parties having entered a partial consent to the principal amount of USD 175,000 being paid by the Defendant; is whether the Plaintiff is entitled to interest and costs as prayed.

As properly guided by the Counsel for the Plaintiff; the general rule is that interest can only be claimed if it is based on an agreement or by statute as held in Roko Construction v AG, Civil Suit 517/2005.

I have had the opportunity to look at the agreement between the parties dated $4/9/2017$ . Clause 6 of the said agreement provides that:

"In case of any loss or damage caused or suffered by the buyer as a result of this sale or breach of this agreement, the seller agrees to indemnify the buyer in totality with a surcharge of 50% interest of the monies paid to him by the buyer. Likewise the same rule shall be enjoyed by the vendor in case of breach by the purchaser."

According to the Partial Consent Judgment endorsed by all the parties, the Defendant paid the principal sum of USD 175,000 sometime in April or May 2022, though Clause 3

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of the agreement in issue all payments were supposed to be made by 411012017. Clearly the Defendant did not comply with the terms of the agreement and is liable to pay a surcharge of 50% interest on the monies paid to the vendor by the purchaser as agreed by the parties.

In the circumstance, this court will award interest of 50% on the sum of USD 175,000 paid by the Defendant to the Plaintift during April/May 2022.

With regard to the payment of the costs; according to Clause 3 of the Partial Consent Judgment, the pafties agreed that the costs follow the cause.

The duty of this Court is to enforce contract terms freely agreed to by the parties; and I have no reason to deny the Plaintiff costs of the suit that have been agreed on by the parties themselves. In the premises; costs follow the event as agreed and the same are awarded to the Plaintiff.

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