Uganda Case Law

Namatovu v Kakande (Small Cliams Procedure Revision 3 of 2023)

Namatovu v Kakande (Small Cliams Procedure Revision 3 of 2023) [2024] UGCommC 92 (26 April 2024)

Court

Commercial Court of Uganda

Case number

Small Cliams Procedure Revision 3 of 2023

Judge

Mutesi, J

The High Court found the application competent, confirming its revisionary powers over small claims under Section 83 of the Civil Procedure Act and Rule 4(4) of the Judicature (Small Claims Procedure) Rules. The trial magistrate had jurisdiction to hear the claim, as the subject matter was the recovery of UGX 8,000,000, not enforcement of collateral. The applicant's purported counterclaim was merely an elucidation of her defence and did not constitute a separate cause of action. However, the trial magistrate's enforcement of an agreement resulting in a 400% interest rate over 8 months (600% p…

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• Small Claims Revision
• Friendly Loan Dispute
• Pecuniary Jurisdiction
• Equitable Mortgage
• Unconscionable Interest
• Counterclaim Procedure

Topline Investments Limited v Namuli and Another

Topline Investments Limited v Namuli and Another (Civil Suit 966 of 2023) [2023] UGCommC 64 (28 July 2023)

Court

Commercial Court of Uganda

Case number

Civil Suit 966 of 2023

Judge

Kahigi Asiimwe, J

The court found that the 1st Defendant defaulted on her obligations under the loan agreement and memoranda of understanding by failing to repay the loan and to transfer land as agreed. The 2nd Defendant, as guarantor, became liable upon the 1st Defendant's default. The court determined that the agreed interest rate of 10% per month (120% per annum) was harsh and unconscionable compared to prevailing commercial rates (18-25% per annum). Applying Section 26(1) of the Civil Procedure Act and relevant case law, the court reopened the transaction and awarded interest at 25% per annum. The court he…

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• Loan Default
• Guarantee Liability
• Unconscionable Interest
• Contract Enforcement

Katkar Hanumant S. v Miracle Motors Co. Limited

Katkar Hanumant S. v Miracle Motors Co. Limited (Civil Suit 800 of 2018) [2021] UGCommC 186 (11 October 2021)

Court

Commercial Court of Uganda

Case number

Civil Suit 800 of 2018

Judge

Stephen Mubiru, J

The High Court held Miracle Motors liable for an unpaid loan balance, upheld the contracts, rejected the money-lending illegality argument, and awarded reduced interest and costs.

• Contract Enforceability
• Company Director Authority
• Money Lending Regulation
• Unconscionable Interest
• Special Damages
• Costs Award

Global Capital Save 2004 Ltd v Okiror & Anor

Global Capital Save 2004 Ltd v Okiror & Anor (Civil Appeal No. 151 of 2012) [2020] UGCA 70 (22 June 2020)

Court

Court of Appeal of Uganda

Case number

Civil Appeal No. 151 of 2012

Judge

Egonda-Ntende, JA, Kibeedi, JA, Barishaki, JA

The Court of Appeal upheld findings that a mortgage/loan arrangement was invalid for defective execution, lack of attestation, absence of spousal consent, and unconscionable interest.

• Mortgage Execution
• Money Lending Regulation
• Unconscionable Interest
• Spousal Consent Requirement
• Contract Enforceability
• Mortgage-execution

MK Creditor v Owora

MK Creditor v Owora (Miscellaneous Application No. 143 of 2015) [2017] UGCommC 105 (12 September 2017)

Court

Commercial Court of Uganda

Case number

Miscellaneous Application No. 143 of 2015

The court found that none of the alleged errors raised by the applicant constituted errors apparent on the face of the record. The reference to the Money Lenders Act was clear from the document itself and did not require extraneous explanation. Disagreement with the court's interpretation of forfeiture provisions or unconscionable interest did not amount to manifest errors but were matters open to interpretation or argument. The court emphasized that review is not a substitute for appeal and should only be granted where a clear, self-evident error exists. Since the applicant's complaints requ…

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• Review Of Judgment
• Error On Face Of Record
• Money Lenders Act
• Summary Procedure
• Preliminary Objection
• Unconscionable Interest

Babigumira v Huadar Guandong Chinese Company LTD

Babigumira v Huadar Guandong Chinese Company LTD (Miscellaneous Application No. 214 of 2016) [2016] UGCommC 53 (17 June 2016)

Court

Commercial Court of Uganda

Case number

Miscellaneous Application No. 214 of 2016

The High Court granted conditional leave to defend a summary suit, finding triable issues over the loan’s nature, amount, interest rate, and alleged manipulation.

• Summary Suit Procedure
• Loan Agreement Dispute
• Guarantee Liability
• Unconscionable Interest
• Money Lenders Act Application
• Summary-suit-procedure

Florance Atto-v- Remode Enterprises Ltd (HCT-00-CC-MA 501 of 2006)

Florance Atto-v- Remode Enterprises Ltd (HCT-00-CC-MA 501 of 2006) [2007] UGCommC 6 (24 January 2007)

Court

Commercial Court of Uganda

Case number

HCT-00-CC-MA 501 of 2006

The court found that the applicant raised bona fide triable issues, specifically regarding the harshness and excessiveness of the interest charged under the loan agreement and the respondent's alleged lack of a money lending license at the time of the transaction. The procedural irregularity of citing the wrong order in the summary procedure was deemed curable under Article 126(2)(e) of the Constitution, as it did not cause injustice and the suit was otherwise properly endorsed and accompanied by the necessary affidavit. The applicant's general denial of indebtedness was insufficient, but the…

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• Summary Procedure
• Money Lending
• Unconscionable Interest
• Leave To Defend
• Procedural Irregularity