Download

Uganda Judgment

Commercial Court of Uganda

Tarsis B Kabwegyere v Sheikh Adam Semugabe (HCT-00-CC-CS 662 of 2004) [2005] UGCommC 36 (30 June 2005)

On this page

Professional case brief

Research organized from the available case record

Source document

01

Holding and result

The court found that the plaintiff paid Ug. Shs.20,400,000 to the defendant for the supply of motorcycles, evidenced by a signed voucher and corroborated by three witnesses. The defendant failed to deliver any motorcycles and did not refund the money. The consideration for the payment wholly failed, entitling the plaintiff to recover the sum paid. The defendant's counterclaim was unsupported by evidence and dismissed. The plaintiff was awarded the claimed sum, interest at 25% per annum from judgment until payment in full, and costs of the suit.

Court disposition

judgment_for_plaintiff

Orders

  • Defendant to refund Ug. Shs.20,400,000 to the plaintiff.
  • Defendant to pay interest on the decretal sum at 25% per annum from the date of judgment until payment in full.
  • Defendant to pay costs of the suit.
  • Defendant's counterclaim is dismissed.

02

Material facts

Parties

Tarsis B. Kabwegyere

Plaintiff

Sheikh Adam Semugabe

Defendant Counsel: M/S Ngaruye Ruhindi, Spencer & Co. Advocates

Amounts and remedies

  • Principal Sum Awarded: UGX 20,400,000

03

Procedural history

  1. Posture

    Civil Suit / Final Judgment

04

Questions and positions

Legal issues

Party arguments

Applicant
The plaintiff argued that he paid the defendant Ug. Shs.20,400,000 for the supply of motorcycles on hire purchase for his constituency. The motorcycles were to be delivered within two weeks, but none were supplied. The plaintiff presented evidence of payment and the defendant's signed voucher. The plaintiff sought a refund, interest, and costs.
Respondent
The defendant claimed he agreed to supply 200 motorcycles in four phases, with Shs.60m to be advanced per phase. He alleged he received only Shs.14,400,000 in cash and a post-dated cheque of Shs.6m, which was dishonoured. He did not appear to substantiate these claims or provide evidence of delivery.

05

Court’s reasoning

  1. 01

    Common law doctrine; referenced in judgment text.

    Money paid on a consideration which has wholly failed is recoverable as money had and received.

  2. 02

    General contract law principles.

    A party who receives money for a contractual obligation must refund it if the consideration fails.

06

Ratio, limits and disposition

Ratio decidendi

The court found that the plaintiff paid Ug. Shs.20,400,000 to the defendant for the supply of motorcycles, evidenced by a signed voucher and corroborated by three witnesses. The defendant failed to deliver any motorcycles and did not refund the money. The consideration for the payment wholly failed, entitling the plaintiff to recover the sum paid. The defendant's counterclaim was unsupported by evidence and dismissed. The plaintiff was awarded the claimed sum, interest at 25% per annum from judgment until payment in full, and costs of the suit.

Obiter and limits

  • Attempts to serve the defendant personally and through his lawyers were unsuccessful, necessitating substituted service.
  • The plaintiff refunded his constituents after the defendant failed to deliver the motorcycles, showing the seriousness of the failed consideration.

Court disposition

judgment_for_plaintiff

  • Defendant to refund Ug. Shs.20,400,000 to the plaintiff.
  • Defendant to pay interest on the decretal sum at 25% per annum from the date of judgment until payment in full.
  • Defendant to pay costs of the suit.
  • Defendant's counterclaim is dismissed.

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.

Source document

Judgment reading view

Judgment text

The complete available source text.

Source document

Commercial Court of Uganda

Judgment

[2005] UGCommC 36

{\rtf1\ansi\ansicpg1252\uc1\deff0\stshfdbch0\stshfloch0\stshfhich0\stshfbi0\deflang1033\deflangfe1033{\fonttbl{\f0\froman\fcharset0\fprq2{\*\panose 02020603050405020304}Times New Roman;}{\f36\fswiss\fcharset0\fprq2{\*\panose 020b0604030504040204}Tahoma;} {\f251\froman\fcharset238\fprq2 Times New Roman CE;}{\f252\froman\fcharset204\fprq2 Times New Roman Cyr;}{\f254\froman\fcharset161\fprq2 Times New Roman Greek;}{\f255\froman\fcharset162\fprq2 Times New Roman Tur;} {\f256\froman\fcharset177\fprq2 Times New Roman (Hebrew);}{\f257\froman\fcharset178\fprq2 Times New Roman (Arabic);}{\f258\froman\fcharset186\fprq2 Times New Roman Baltic;}{\f259\froman\fcharset163\fprq2 Times New Roman (Vietnamese);} {\f611\fswiss\fcharset238\fprq2 Tahoma CE;}{\f612\fswiss\fcharset204\fprq2 Tahoma Cyr;}{\f614\fswiss\fcharset161\fprq2 Tahoma Greek;}{\f615\fswiss\fcharset162\fprq2 Tahoma Tur;}{\f616\fswiss\fcharset177\fprq2 Tahoma (Hebrew);} {\f617\fswiss\fcharset178\fprq2 Tahoma (Arabic);}{\f618\fswiss\fcharset186\fprq2 Tahoma Baltic;}{\f619\fswiss\fcharset163\fprq2 Tahoma (Vietnamese);}{\f620\fswiss\fcharset222\fprq2 Tahoma

(Thai);}}{\colortbl;\red0\green0\blue0;\red0\green0\blue255; \red0\green255\blue255;\red0\green255\blue0;\red255\green0\blue255;\red255\green0\blue0;\red255\green255\blue0;\red255\green255\blue255;\red0\green0\blue128;\red0\green128\blue128;\red0\green128\blue0;\red128\green0\blue128;\red128\green0\blue0; \red128\green128\blue0;\red128\green128\blue128;\red192\green192\blue192;}{\stylesheet{\ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 \snext0 Normal;}{ \s1\qc \li0\ri0\keepn\widctlpar\aspalpha\aspnum\faauto\outlinelevel0\adjustright\rin0\lin0\itap0 \b\f36\fs28\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 \sbasedon0 \snext0 heading 1;}{\s2\qj \li0\ri0\sl480\slmult1 \keepn\widctlpar\aspalpha\aspnum\faauto\outlinelevel1\adjustright\rin0\lin0\itap0 \b\f36\fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 \sbasedon0 \snext0 heading 2;}{\*\cs10 \additive \ssemihidden Default Paragraph Font;}{\* \ts11\tsrowd\trftsWidthB3\trpaddl108\trpaddr108\trpaddfl3\trpaddft3\trpaddfb3\trpaddfr3\tscellwidthfts0\tsvertalt\tsbrdrt\tsbrdrl\tsbrdrb\tsbrdrr\tsbrdrdgl\tsbrdrdgr\tsbrdrh\tsbrdrv \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0 \fs20\lang1024\langfe1024\cgrid\langnp1024\langfenp1024 \snext11 \ssemihidden Normal Table;}{\s15\qj

\li0\ri0\sl480\slmult1 \widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0 \f36\fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 \sbasedon0 \snext15 Body Text;}{\s16\ql \li0\ri0\widctlpar\tqc\tx4320\tqr\tx8640\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 \sbasedon0 \snext16 footer;}{\*\cs17 \additive \sbasedon10 page number;}}{\*\latentstyles\lsdstimax156\lsdlockeddef0}{\*\rsidtbl \rsid612294\rsid2959909\rsid12812054}{\*\generator Microsoft Word 11. 0.6568;}{\info{\title THE REPUBLIC OF UGANDA}{\author Imeldah}{\operator Harry Mak}{\creatim\yr2006\mo5\dy17\hr11\min2}{\revtim\yr2006\mo5\dy17\hr11\min2}{\version2}{\edmins0}{\nofpages3}{\nofwords782}{\nofchars4462}{\*\company Commercial court} {\nofcharsws5234}{\vern24579}}\margl1728\margr1152 \widowctrl\ftnbj\aenddoc\noxlattoyen\expshrtn\noultrlspc\dntblnsbdb\nospaceforul\formshade\horzdoc\dgmargin\dghspace180\dgvspace180\dghorigin1728\dgvorigin1440\dghshow1\dgvshow1 \jexpand\viewkind1\viewscale100\pgbrdrhead\pgbrdrfoot\splytwnine\ftnlytwnine\htmautsp\nolnhtadjtbl\useltbaln\alntblind\lytcalctblwd\lyttblrtgr\lnbrkrule\nojkernpunct\rsidroot12812054 \fet0{\*\ftnsep \pard\plain \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\insrsid612294 \chftnsep \par }}{\*\ftnsepc

\pard\plain \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\insrsid612294 \chftnsepc \par }}{\*\aftnsep \pard\plain \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\insrsid612294 \chftnsep \par }}{\*\aftnsepc \pard\plain \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\insrsid612294 \chftnsepc \par }}\sectd \linex0\endnhere\sectlinegrid360\sectdefaultcl\sftnbj {\footer \pard\plain \s16\ql \li0\ri0\widctlpar\tqc\tx4320\tqr\tx8640\pvpara\phmrg\posxc\posy0\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\field{\*\fldinst {\cs17\insrsid612294 PAGE }}{\fldrslt {\cs17\lang1024\langfe1024\noproof\insrsid2959909 1}}}{\cs17\insrsid612294 \par }\pard \s16\ql \li0\ri0\widctlpar\tqc\tx4320\tqr\tx8640\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0 {\insrsid612294 \par }}{\*\pnseclvl1\pnucrm\pnstart1\pnindent720\pnhang {\pntxta .}}{\*\pnseclvl2\pnucltr\pnstart1\pnindent720\pnhang {\pntxta .}}{\*\pnseclvl3\pndec\pnstart1\pnindent720\pnhang {\pntxta .}}{\*\pnseclvl4\pnlcltr\pnstart1\pnindent720\pnhang {\pntxta )}} {\*\pnseclvl5\pndec\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta

)}}{\*\pnseclvl6\pnlcltr\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}{\*\pnseclvl7\pnlcrm\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}{\*\pnseclvl8 \pnlcltr\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}{\*\pnseclvl9\pnlcrm\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}\pard\plain \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\fs28\insrsid612294 \par }\pard\plain \s1\qc \li0\ri0\keepn\widctlpar\aspalpha\aspnum\faauto\outlinelevel0\adjustright\rin0\lin0\itap0 \b\f36\fs28\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\insrsid612294 THE REPUBLIC OF UGANDA \par }\pard\plain \qc \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\b\f36\fs28\insrsid612294 \par IN THE HIGH COURT OF UGANDA AT KAMPALA \par (COMMERCIAL }{\b\f36\fs28\insrsid12812054 COURT }{\b\f36\fs28\insrsid612294 DIVISION) \par \par }{\b\f36\fs28\insrsid12812054 HCT-00-CC-CS-0}{\b\f36\fs28\insrsid612294 662 OF 2004 \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0 {\b\f36\fs28\insrsid612294 \par \par TARSIS B. KABWEGYERE :::::::::::::::::::::::::::::: PLAINTIFF \par \par }\pard\plain \s1\qc \li0\ri0\keepn\widctlpar\aspalpha\aspnum\faauto\outlinelevel0\adjustright\rin0\lin0\itap0

\b\f36\fs28\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\insrsid612294 VERSUS \par }\pard\plain \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\b\f36\fs28\insrsid612294 \par SHEIKH ADAM SEMUGABE ::::::::::::::::::::::::::::: DEFENDANT \par \par \par BEFORE: }{\b\f36\fs28\ul\insrsid612294 THE HONOURABLE MR. JUSTICE YOROKAMU BAMWINE}{\b\f36\fs28\insrsid612294 \par \par \par }{\b\f36\fs28\ul\insrsid612294 J U D G M E N T}{\b\f36\fs28\insrsid612294 : \par \par }\pard\plain \s15\qj \li0\ri0\sl480\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0 \f36\fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\insrsid612294 The Plaintiff\rquote s claim against the Defendant is for recovery of Ug. Shs.20,400,000- received by the Defendant from the Plaintiff and costs of the suit. The case wa s filed under 0.33 of the Civil Procedure Rules. Under Misc. Application No. 0664/2004 the Defendant was granted leave to defend the suit. He filed a defence through M/S Ngaruye Ruhindi, Spencer & Co. Advocates of Mbarara. In May 2005, there was an att e mpt to serve the Defendant through his lawyers. They wrote back to say that they no longer had instructions in the matter. An attempt to serve him personally was fruitless. The Court made an order for substituted service. Still he did not

appear. The Plaintiff was accordingly allowed to state his claim and prove it in the absence of the Defendant. \par }\pard\plain \qj \li0\ri0\sl480\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\f36\insrsid612294 From the evidence as presented to Court, in July 2003, the Plaintiff was desirous of facilitating some of the members of his constituency to obtain motorcycl es for them, on hire purchase basis. The Plaintiff was introduced to the Defendant, a dealer in motorcycles, by his colleague Hon. Ellioda Tumwesigye of Sheema North. The Plaintiff approached the Defendant on the same issue and upon the Defendant \rquote s confi rmation that he would obtain and supply the said motorcycles, the Plaintiff paid the Defendant a sum of Shs.20,400,000- in one installment. The Defendant signed for it. The motorcycles were supposed to be delivered within 2 weeks after the said payment. To date, the Defendant has not delivered a single motorcycle nor has he made any effort to refund the said money. The evidence of PW1 Prof. Kabwegyere, PW2 Enock Nkongi and PW3 Comfort Tumwesigye Kabwegyere is the same on this point. \par \par From their evidence, I\rquote m satisfied that the Plaintiff paid and the Defendant received money for the delivery of motorcycles to the Plaintiff\rquote s Constituency. In his defence,

the Defendant had averred that he agreed with the Plaintiff that he would supply a total of 200 motor cycles in 4 phases. That for each phase 50 motorcycles would be supplied on the arrangement that for each phase, Shs.60m would first be advanced to the Defendant, and upon delivery of the 50 motor cycles, the balance would be paid to him. He claims that he received only Shs.14,400,000- in cash and a post dated cheque of Shs.6m from one Nkonge as an advance payment. He claims that the cheque for Shs.6m was dishonoured. He has not appeared to substantiate his allegations against the Plaintiff. \par I have considered the evidence of the three witnesses. It is to the effect that on 3/10/2003 the Defendant went to the Plaintiff\rquote s office in Ishaka for money for the said motorcycles. That he took it under his signature on a voucher. The voucher is on record as P. Exh.

11. It shows that Shs.20,400,000- was signed for. There is further evidence that the Defendant attempted to refund the same to the Plaintiff, as per P. Exh.1 dated 13/12/2003 with a promise that he would pay the balance of Shs.400,000- in cash, bu t the said cheque bounced on presentation. To date, this money has not been paid. I have seen no reason to doubt their evidence. I\rquote m satisfied that the Defendant received it. \par \par As to whether the Defendant delivered the motorcycles, there is no evidence th at he did. The evidence on record is that he did not supply them. There is also evidence that following constant checks and demands/threats to the Plaintiff and his employees in Ishaka, the Plaintiff later refunded what his constituents had deposited un der the scheme. I\rquote m satisfied that no motorcycle has been delivered to date. \par \par As to whether the Plaintiff is entitled to the remedies sought, I think this is quite obvious. Money which is paid to one person which rightfully belongs to another, as where mo ney is paid by A to B on a consideration which has wholly failed, is said to be money had and received by B to the use of A. It is recoverable through an action by A. From the evidence of PW1, PW2 and PW3, the consideration for which the payment was mad e to the Defendant has wholly failed. Therefore, the Defendant is under obligation to refund it. It

is the Plaintiff\rquote s prayer that he be refunded a sum of Shs.20,400,000- and that the Defendant pays interest on it at the rate of 25% per annum from the dat e of Judgment till payment in full. These prayers are granted to him. The Defendant shall also pay the costs of the suit. \par \par In view of the above orders, the Defendant\rquote s counter claim which is unsupported by evidence cannot stand. It is dismissed. \par \par In the result, Judgment is entered for the Plaintiff against the Defendant. He is ordered to: \par }\pard \qj \fi-720\li720\ri0\sl480\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0 {\f36\insrsid612294 i.\tab Refund to the Plaintiff a sum of Shs.20,400,000- (Twenty million four hundred thousand). \par ii.\tab Pay interest on the decretal sum at the rate of 25% per annum from the date of Judgment till payment in full. \par }\pard \qj \li0\ri0\sl480\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0 {\f36\insrsid612294 iii.\tab Pay costs of the suit. \par \par It shall be so. \par \par \par Yorokamu Bamwine \par }\pard\plain \s2\qj \li0\ri0\sl480\slmult1\keepn\widctlpar\aspalpha\aspnum\faauto\outlinelevel1\adjustright\rin0\lin0\itap0 \b\f36\fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\insrsid612294 J U D G E \par }\pard\plain \qj \li0\ri0\sl480\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\f36\insrsid612294 30/06/2005 \par }}

Source wording is retained. Consult the source document for its original formatting and pagination.

Authorities

Authorities used by the court

Cases, legislation, regulations, and constitutional provisions identified in the available record.

Civil Procedure Rules (Order 33)

Legislation

Legislation referenced in the available case record.

Case-aware research

Ask AI about this case

The judgment and available research above are public. New questions open in a separate private conversation grounded in this case.

About this JurisAssist collection

This page organizes the available case record for research. Verify quotations, current status, and subsequent treatment against the source document. Corrections can be reported to hello@esheria.ai.

Legal information, not legal advice. Research summaries do not replace the judgment.