[2005] UGCommC 20
The court found that the plaintiff's evidence was uncontradicted and credible. The arrangement to purchase land failed, and the defendant agreed to refund the payment by issuing a cheque, which was dishonoured. Notice of dishonour was communicated to the defendant, and the defendant failed to make good on the refund...
Source-derived case information.
- Citation
- [2005] UGCommC 20
- Parties
- Plaintiff: Edward Mpagi; Defendant: Kasulu Property Masters E. A. Ltd
- Court
- Commercial Court of Uganda
- Jurisdiction
- Uganda
- Case Number
- HCT-00-CC-CS 487 of 2004
- Procedural Posture
- Civil Suit / Judgment
- Outcome
- judgment for the plaintiff
- Legal Topics
- Breach of Contract, Refund of Purchase Price, Land Sale Agreements, Interest Awards
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
Edward Mpagi
Plaintiff
Kasulu Property Masters E. A. Ltd
Defendant
Procedural Posture
Civil Suit / Judgment
Legal Issues
- 1 Whether the plaintiff is entitled to a refund of Shs.5,000,000.00 with interest from the defendant.
Ratio Decidendi
The court found that the plaintiff's evidence was uncontradicted and credible. The arrangement to purchase land failed, and the defendant agreed to refund the payment by issuing a cheque, which was dishonoured. Notice of dishonour was communicated to the defendant, and the defendant failed to make good on the refund despite reminders. The court held that the plaintiff was entitled to a refund of the Shs.5,000,000.00 paid, with interest awarded at 17% per annum from the date of the dishonoured cheque until judgment, and thereafter at the court rate until payment in full. Costs were also awarded to the plaintiff. The defendant's defences were unsupported by evidence and rejected.
Court Disposition
judgment for the plaintiff
Orders
- The defendant shall pay the plaintiff Shs.5,000,000.00.
- Interest at 17% per annum from 28th May 2004 to 11th May 2005, and thereafter at court rate until payment in full.
Full Case Text
Judgment text and source record
2 paragraphs
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\par }\pard\plain \qc \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid16124461 \fs24\lang1024\langfe1024\cgrid\noproof\langnp2057\langfenp1033 {\b\insrsid13729706\charrsid10235029 \par }\pard\plain \s3\qc \li0\ri0\keepn\widctlpar\aspalpha\aspnum\faauto\outlinelevel2\adjustright\rin0\lin0\itap0\pararsid16124461 \b\f36\fs28\lang1024\langfe1024\cgrid\noproof\langnp2057\langfenp1033 {\f0\fs24\insrsid13729706\charrsid10235029 VERSUS \par }\pard\plain \qc \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid16124461 \fs24\lang1024\langfe1024\cgrid\noproof\langnp2057\langfenp1033 {\insrsid2519366\charrsid10235029 \par }{\b\insrsid13729706\charrsid10235029 KASULU PROPERTY}{\b\insrsid2519366\charrsid10235029 MASTERS E. A. LTD }{\b\insrsid13729706\charrsid10235029 DEFENDANT \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0 {\b\insrsid13729706\charrsid10235029 \par \par BEFORE: }{\b\ul\insrsid13729706\charrsid10235029 THE HON. MR. JUSTICE }{\b\ul\insrsid2519366\charrsid10235029 F. M. S. }{\b\ul\insrsid13729706\charrsid10235029 EGONDA}{\b\ul\insrsid2519366\charrsid10235029 -}{\b\ul\insrsid13729706\charrsid10235029 NTENDE}{ \b\insrsid13729706\charrsid10235029 \par \par \par \par }{\b\ul\insrsid10235029\charrsid10235029 JUDG}{\b\ul\insrsid13729706\charrsid10235029 MENT}{\b\insrsid13729706\charrsid10235029 \par }\pard \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid2519366 {\fs28\insrsid2519366\charrsid2519366 \par {\listtext\pard\plain\lang1024\langfe1024\noproof\langnp2057\insrsid13729706\charrsid2519366 \hich\af0\dbch\af0\loch\f0 1.\tab}}\pard \qj \fi-360\li720\ri0\sl360\slmult1\widctlpar \jclisttab\tx720\aspalpha\aspnum\faauto\ls5\adjustright\rin0\lin720\itap0\pararsid2519366 {\insrsid13729706\charrsid2519366 This suit was instituted by the Plaintiff to recover a sum of shs.5 million, interest and costs thereof in respect of an alleged breach by the Defendant, of an agreement to sell 58 decimals of land situated at Lugard Avenue}{\insrsid1382137 ,}{ \insrsid13729706\charrsid2519366 Entebbe to the Plaintiff. The suit was heard ex}{\insrsid1382137 -}{\insrsid13729706\charrsid2519366 parte as neither the Defendant nor its advocate }{\insrsid1382137 turned up for the hearing of}{ \insrsid13729706\charrsid2519366 the suit. \par {\listtext\pard\plain\lang1024\langfe1024\noproof\langnp2057\insrsid13729706\charrsid2519366 \hich\af0\dbch\af0\loch\f0 2.\tab}The Plaintiff, who was also the only witness in }{\insrsid13188928 the case}{\insrsid13729706\charrsid2519366 }{ \insrsid2519366\charrsid2519366 testified}{\insrsid13729706\charrsid2519366 that }{\insrsid2519366\charrsid2519366 he saw }{\insrsid13729706\charrsid2519366 an advert }{\insrsid2519366\charrsid2519366 for }{\insrsid13729706\charrsid2519366 58 decimals of land situated at Lugard Avenue}{\insrsid4024066 ,}{\insrsid13729706\charrsid2519366 opposite Imperial Beach Hotel}{\insrsid4024066 ,}{\insrsid13729706\charrsid2519366 Entebbe, in the Monitor Newspaper of 31}{ \super\insrsid13729706\charrsid2519366 st}{\insrsid13729706\charrsid2519366 March 2000}{\insrsid2519366\charrsid2519366 .}{\insrsid13729706\charrsid2519366 }{\insrsid2519366\charrsid2519366 H}{\insrsid13729706\charrsid2519366 e approached the Defendant company and offered to buy the land. He was taken to inspect the property by an employee of the }{\insrsid1382137 Defendant company from their }{\insrsid13729706\charrsid2519366 Entebbe office. That immediately after inspection he rang the proprietor of the Defendant company Mr. Kasulu and intimated to him that he had decided to buy the plot at the advertised amount of Shs.35 million. Mr. Kasu lu informed him that there was somebody interested in the plot and was going to pay for the same on 5}{\super\insrsid13729706\charrsid2519366 th}{\insrsid13729706\charrsid2519366 April 2004}{\insrsid4024066 .}{\insrsid13729706\charrsid2519366 }{ \insrsid4024066 But}{\insrsid13729706\charrsid2519366 if he wanted to have an \'93advantage\'94 over him he should deliver }{\insrsid4024066 Shs.5,000,000.00 in }{\insrsid13729706\charrsid2519366 cash to the Defendant company\rquote s offices. The Plaintiff }{\insrsid1382137 agreed}{\insrsid13729706\charrsid2519366 to take the \'93advantage\'94 }{\insrsid1382137 and}{\insrsid13729706\charrsid2519366 he delivered the said Shs.5}{\insrsid1382137 ,000,000.00}{ \insrsid13729706\charrsid2519366 to the Defendant company and was given a receipt (Exhibit P2) in acknowledgement thereof. \par {\listtext\pard\plain\lang1024\langfe1024\noproof\langnp2057\insrsid13729706\charrsid2519366 \hich\af0\dbch\af0\loch\f0 3.\tab}The Plaintiff further }{\insrsid2519366\charrsid2519366 testified}{\insrsid13729706\charrsid2519366 that on the 7}{ \super\insrsid13729706\charrsid2519366 th}{\insrsid13729706\charrsid2519366 April 2004, Mr. Kasulu informed him that there was a problem concerning the plot of land and that }{\insrsid1382137 it was not available for }{\insrsid13729706\charrsid2519366 the Plaintiff to }{\insrsid1382137 buy}{\insrsid13729706\charrsid2519366 . He offered an alternative plot which the Plaintiff turned down and demanded a refund }{\insrsid1382137 of}{\insrsid13729706\charrsid2519366 his Shs.5}{\insrsid1382137 ,000,000.00 }{\insrsid13729706\charrsid2519366 . }{\insrsid1382137 O}{\insrsid13729706\charrsid2519366 n the 21}{\super\insrsid13729706\charrsid2519366 st}{\insrsid13729706\charrsid2519366 of May 2004, Mr. Kasulu gave the Plaintiff a postdated cheque }{ \insrsid2519366 to}{\insrsid13729706\charrsid2519366 28}{\super\insrsid13729706\charrsid2519366 th}{\insrsid13729706\charrsid2519366 May 2004 for the }{\insrsid1382137\charrsid2519366 Shs.5}{\insrsid1382137 ,000,000.00}{\insrsid13729706\charrsid2519366 (Exhibit P3) which was dishonoured when he }{\insrsid1382137 presented it for payment}{\insrsid13729706\charrsid2519366 . }{\insrsid1382137 H}{\insrsid13729706\charrsid2519366 e informed the }{\insrsid1382137 Defendant\rquote s Mr. Kasulu}{ \insrsid13729706\charrsid2519366 of the dishonoured cheque both on telephone and by letter which he served him personally. }{\insrsid1382137 D}{\insrsid13729706\charrsid2519366 espite this }{\insrsid1382137 notice }{\insrsid13729706\charrsid2519366 and numerous reminders, the Defendant company has failed to make good the cheque. \par {\listtext\pard\plain\lang1024\langfe1024\noproof\langnp2057\insrsid13729706\charrsid2519366 \hich\af0\dbch\af0\loch\f0 4.\tab}As stated before, the Defendant did not appear to defend the suit. However, in its statement of defence }{\insrsid7735459 it}{ \insrsid13729706\charrsid2519366 contended in paragraph 4(a ) and (b) that the Plaintiff was to purchase a plot of land at Shs. 35 million but paid only a commitment fee of Shs. 5 million. That the Plaintiff failed to pay the balance regardless of demands from the Defendant. Further that the banking of the chequ e was unlawful, given that it was only security for payment and that no notice of dishonour was served on the Defendant. The Defendant prays that the suit be dismissed with costs. \par {\listtext\pard\plain\lang1024\langfe1024\noproof\langnp2057\insrsid7735459 \hich\af0\dbch\af0\loch\f0 5.\tab}}\pard \qj \fi-360\li720\ri0\sl360\slmult1\widctlpar\jclisttab\tx720\aspalpha\aspnum\faauto\ls5\adjustright\rin0\lin720\itap0\pararsid7735459 { \insrsid7735459 No issues were framed by the parties but it would appear to me that there is only one issue to be answered here. And that is whether the plaintiff is entitled to a refund of the Shs5,000,000.00 with interest from the defendant. \par {\listtext\pard\plain\lang1024\langfe1024\noproof\langnp2057\insrsid7735459 \hich\af0\dbch\af0\loch\f0 6.\tab}}\pard \qj \fi-360\li720\ri0\sl360\slmult1\widctlpar\jclisttab\tx720\aspalpha\aspnum\faauto\ls5\adjustright\rin0\lin720\itap0\pararsid16124461 { \insrsid7735459 The defence version set out in its written statement of defence that the plaintiff failed to pay the balance of the purchase price for the plot in question is unsupported by the evidence }{\insrsid1382137 o}{\insrsid7735459 n record. I accept the plaintiff}{\insrsid1382137 \rquote }{\insrsid7735459 s version of events which is }{\insrsid13191613 not contradicted}{\insrsid7735459 . There was a failed arrangement to purchase land and the defendant agreed to refund the payme nt it had received from the plaintiff. In furtherance of that agreement, the defendant issued to the plaintiff a cheque for Shs5,000,000.00 which was dishonoured upon presentation. Notice of dishonour was communicated to the defendant. By the time this m atter came to trial, the defendant had not paid the said amount.}{\insrsid13729706\charrsid2519366 \par {\listtext\pard\plain\lang1024\langfe1024\noproof\langnp2057\insrsid13191613 \hich\af0\dbch\af0\loch\f0 7.\tab}}{\insrsid13191613 I agree with learned counsel for the plaintiff that t}{\insrsid13729706\charrsid2519366 he Plaintiff is entitled to a refund of }{\insrsid13191613 the sum of }{\insrsid13729706\charrsid2519366 Shs.5}{\insrsid13191613 ,000,000.00}{\insrsid13729706\charrsid2519366 paid to the Defendant company. \par {\listtext\pard\plain\lang1024\langfe1024\noproof\langnp2057\insrsid13729706\charrsid2519366 \hich\af0\dbch\af0\loch\f0 8.\tab}}\pard \qj \fi-360\li720\ri0\sl360\slmult1\widctlpar \jclisttab\tx720\aspalpha\aspnum\faauto\ls5\adjustright\rin0\lin720\itap0\pararsid2519366 {\insrsid13729706\charrsid2519366 On the question }{\insrsid13191613 of }{\insrsid13729706\charrsid2519366 whether the Plaintiff is entitled}{\insrsid16124461 to interest on the sum awarded,}{\insrsid13729706\charrsid2519366 interest is awarded by Court at its discretion}{\insrsid13191613 . See }{\insrsid13729706\charrsid2519366 Section 26 Civil Procedure Act}{\insrsid13191613 ,}{ \insrsid13729706\charrsid2519366 Cap 71. }{\insrsid16124461 I}{\insrsid13729706\charrsid2519366 n }{\insrsid16124461 financial}{\insrsid13729706\charrsid2519366 transactions, the rationale is to compensate the litigant for what he would probably earn if his money were not withheld. }{\insrsid16124461 I}{\insrsid13729706\charrsid2519366 nterest is }{\insrsid13191613 awarded at 17% p.a. from the 28}{ \super\insrsid13191613\charrsid13191613 th}{\insrsid13191613 May 2004 till the 11}{\super\insrsid13191613\charrsid13191613 th}{\insrsid13191613 May 2005, the date of judgment, and thereafter at court rate till payment in full.}{ \insrsid13729706\charrsid2519366 }{\insrsid16124461 C}{\insrsid13729706\charrsid2519366 osts }{\insrsid16124461 will}{\insrsid13729706\charrsid2519366 follow the event. \par {\listtext\pard\plain\lang1024\langfe1024\noproof\langnp2057\insrsid16124461 \hich\af0\dbch\af0\loch\f0 9.\tab}}\pard \qj \fi-360\li720\ri0\sl360\slmult1\widctlpar\jclisttab\tx720\aspalpha\aspnum\faauto\ls5\adjustright\rin0\lin720\itap0\pararsid16124461 { \insrsid16124461 Judg}{\insrsid13729706\charrsid2519366 ment is entered for the Plaintiff }{\insrsid13191613 in}{\insrsid13729706\charrsid2519366 the sum of Shs.5,000,000}{\insrsid16124461 .00,}{\insrsid13729706\charrsid2519366 }{\insrsid13191613 with interest}{\insrsid13729706\charrsid2519366 and costs}{\insrsid16124461 of the suit}{\insrsid13729706\charrsid2519366 .}{\insrsid13729706 \par }\pard \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid16124461 {\insrsid16124461 \par Dated at Kampala this 11}{\super\insrsid16124461\charrsid16124461 th}{\insrsid16124461 day of May 2005 \par \par \par \par FMS Egonda-Ntende \par Judge}{\insrsid16124461\charrsid2519366 \par }\pard \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid2519366 {\insrsid13729706\charrsid2519366 \par \par }\pard \qj \li0\ri0\sl480\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0 {\insrsid13729706\charrsid2519366 \par }}