Rajiv Kumar v Patel Sureshbhai Chandubhai
Rajiv Kumar v Patel Sureshbhai Chandubhai (Civil Appeal No: 37 of 2018) [2025] UGCA 206 (20 June 2025)
The Court of Appeal held that the trial judge erred in declining to award interest on the contractual sum solely because the contract was silent on interest. The court found that, under Section 26(2) of the Civil Procedure Act and established case law, courts have discretion to award interest in commercial transactions to compensate a party who has been deprived of the use of their money. The respondent/cross appellant was kept out of the use of UGX 85,000,000 since the date of filing the suit, justifying an award of interest. The court set aside the trial judge's order on interest and substi…
Source excerpt
- Breach Of Contract
- Award Of Interest
- General Damages
- Discretionary Powers
- Contract Enforcement