Uganda Case Law

Cairo International Bank v M. Janjua

Cairo International Bank v M. Janjua (Civil Appeal 3 of 2010) [2011] UGSC 30 (25 January 2011)

Court

Supreme Court of Uganda

Case number

Civil Appeal 3 of 2010

Judge

Odoki, CJ, J.W.N.Tsekooko, JSC, Katureebe, JSC, G. M. Okello, JSC, Tumwesigye, JSC

The Supreme Court held that the guarantee issued by Cairo International Bank was enforceable. The condition precedent requiring tax clearance certificates applied only to taxes on the assets, not to the respondent or his companies personally. Furthermore, section 166(7) of the Income Tax Act exempted the assets in question from tax, rendering the condition precedent inoperative and superfluous. The respondent had made sufficient demand for payment, and the appellant's insistence on unnecessary certificates was unjustified. On the issue of interest, the Court found that while the respondent cl…

Source excerpt

• Bank Guarantees
• Contractual Conditions Precedent
• Enforcement Of Guarantees
• Interest Awards
• Summary Suits
• Remedies In Commercial Disputes