[2004] UGCommC 15

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\fs24\lang2057\langfe2057\cgrid\langnp2057\langfenp2057 \sbasedon0 \snext16 \styrsid16724224 footer;}{\*\cs17 \additive \sbasedon10 \styrsid16724224 page number;}} {\*\latentstyles\lsdstimax156\lsdlockeddef0}{\*\pgptbl {\pgp\ipgp0\itap0\li0\ri0\sb0\sa0}}{\*\rsidtbl \rsid2576926\rsid3411944\rsid9724418\rsid9850938\rsid15752696\rsid16724224}{\*\generator Microsoft Word 11.0.5604;}{\info{\title THE REPUBLIC OF UGANDA } {\author Administrator}{\operator skivumbi}{\creatim\yr2009\mo4\dy9\hr13\min29}{\revtim\yr2009\mo4\dy9\hr13\min51}{\version4}{\edmins22}{\nofpages8}{\nofwords1911}{\nofchars10893}{\*\company JSI}{\nofcharsws12779}{\vern24689}}\paperw11906\paperh16838 \widowctrl\ftnbj\aenddoc\noxlattoyen\expshrtn\noultrlspc\dntblnsbdb\nospaceforul\formshade\horzdoc\dgmargin\dghspace180\dgvspace180\dghorigin1800\dgvorigin1440\dghshow1\dgvshow1 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{\insrsid16724224 \chftnsepc \par }}\sectd \linex0\headery708\footery708\colsx708\endnhere\sectlinegrid360\sectdefaultcl\sectrsid9850938\sftnbj {\footer \pard\plain \s16\ql \li0\ri0\widctlpar \tqc\tx4153\tqr\tx8306\pvpara\phmrg\posxr\posy0\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid13962900 \fs24\lang2057\langfe2057\cgrid\langnp2057\langfenp2057 {\field{\*\fldinst {\cs17\insrsid16724224 PAGE }}{\fldrslt { \cs17\lang1024\langfe1024\noproof\insrsid9724418 1}}}{\cs17\insrsid16724224 \par }\pard \s16\ql \li0\ri360\widctlpar\tqc\tx4153\tqr\tx8306\aspalpha\aspnum\faauto\adjustright\rin360\lin0\itap0\pararsid16724224 {\insrsid16724224 \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 \s15\qc \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1 \widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid2576926 \fs24\lang2057\langfe2057\cgrid\langnp2057\langfenp2057 {\b\lang1033\langfe2057\langnp1033\insrsid15752696\charrsid9850938 THE REPUBLIC OF UGANDA \line }{ \b\lang1033\langfe2057\langnp1033\insrsid2576926 \par }{\b\lang1033\langfe2057\langnp1033\insrsid15752696\charrsid9850938 IN THE HIGH COURT OF UGANDA AT KAMPALA \line (COMMERCIAL DIVISION) \line }{\b\lang1033\langfe2057\langnp1033\insrsid2576926 \par CIVIL SUIT NO. 715 OF 2002 \line \par KAGIMU MAN1SULU}{\b\lang1033\langfe2057\langnp1033\insrsid15752696\charrsid9850938 }{\lang1033\langfe2057\langnp1033\insrsid15752696\charrsid9850938 ................}{\lang1033\langfe2057\langnp1033\insrsid2576926 ................}{ \lang1033\langfe2057\langnp1033\insrsid15752696\charrsid9850938 ..................}{\lang1033\langfe2057\langnp1033\insrsid2576926 .........\'85\'85..}{\lang1033\langfe2057\langnp1033\insrsid15752696\charrsid9850938 ..... }{ \b\lang1033\langfe2057\langnp1033\insrsid2576926 PLAINT}{\b\lang1033\langfe2057\langnp1033\insrsid15752696\charrsid9850938 IFF \line }{\b\lang1033\langfe2057\langnp1033\insrsid2576926 \par }{\b\lang1033\langfe2057\langnp1033\insrsid15752696\charrsid9850938 VERSUS \line }{\b\lang1033\langfe2057\langnp1033\insrsid2576926 \par }\pard \s15\ql \fi-720\li720\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\ipgp1\pararsid2576926 {\b\lang1033\langfe2057\langnp1033\insrsid15752696\charrsid9850938 1. }{ \b\lang1033\langfe2057\langnp1033\insrsid2576926 \tab }{\b\lang1033\langfe2057\langnp1033\insrsid15752696\charrsid9850938 D. K. EDUCATIONAL SCHOOLS, \line NURSERY, PRIMARY & SECONDARY \line SCHOOL \line }{\b\lang1033\langfe2057\langnp1033\insrsid2576926

\par }{\b\lang1033\langfe2057\langnp1033\insrsid15752696\charrsid9850938 2. }{\b\lang1033\langfe2057\langnp1033\insrsid2576926 \tab }{\b\lang1033\langfe2057\langnp1033\insrsid15752696\charrsid9850938 DAVID KANYEREZI }{ \b\lang1033\langfe2057\langnp1033\insrsid2576926\charrsid9850938 NKATA...................................}{\b\lang1033\langfe2057\langnp1033\insrsid2576926 .}{\b\lang1033\langfe2057\langnp1033\insrsid2576926\charrsid9850938 ........ }{ \b\lang1033\langfe2057\langnp1033\insrsid15752696\charrsid9850938 DEFENDANTS \line }{\b\lang1033\langfe2057\langnp1033\insrsid2576926 \par }\pard \s15\ql \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid2576926 {\b\lang1033\langfe2057\langnp1033\insrsid15752696\charrsid9850938 BEFORE: }{ \b\ul\lang1033\langfe2057\langnp1033\insrsid15752696\charrsid9850938 THE HON. LADY JUSTICE M. S. ARACH }{\ul\lang1033\langfe2057\langnp1033\insrsid2576926 -}{\ul\lang1033\langfe2057\langnp1033\insrsid15752696\charrsid9850938 }{ \b\ul\lang1033\langfe2057\langnp1033\insrsid15752696\charrsid9850938 AMOKO \line JUDGMENT: }{\b\lang1033\langfe2057\langnp1033\insrsid15752696\charrsid9850938 \line }{\lang1033\langfe2057\langnp1033\insrsid15752696\charrsid9850938 The Plaintiff sued the Defend}{\lang1033\langfe2057\langnp1033\insrsid2576926 ants for recovery of 22,000,000/}{\lang1033\langfe2057\langnp1033\insrsid15752696\charrsid9850938 = special damages plus interest thereon, general damages and costs of t he suit. \line }{\lang1033\langfe2057\langnp1033\insrsid2576926 \par }\pard \s15\ql \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid16724224 {\lang1033\langfe2057\langnp1033\insrsid15752696\charrsid9850938 The brief facts of the case are as follows: \line On the 19}{\lang1033\langfe2057\super\langnp1033\insrsid15752696\charrsid2576926 th}{\lang1033\langfe2057\langnp1033\insrsid2576926 December 2001, the 2}{\lang1033\langfe2057\super\langnp1033\insrsid2576926\charrsid2576926 n}{ \lang1033\langfe2057\super\langnp1033\insrsid15752696\charrsid2576926 d}{\lang1033\langfe2057\langnp1033\insrsid15752696\charrsid9850938 Defendant being the Director of the 1}{\lang1033\langfe2057\super\langnp1033\insrsid15752696\charrsid2576926 st}{ \lang1033\langfe2057\langnp1033\insrsid15752696\charrsid9850938 Defendant requested for a loan of 22,000,000/= from the Plaint}{\lang1033\langfe2057\langnp1033\insrsid2576926 iff, for and on behalf of the 1}{ \lang1033\langfe2057\super\langnp1033\insrsid2576926\charrsid2576926 s}{\lang1033\langfe2057\super\langnp1033\insrsid15752696\charrsid2576926 t}{\lang1033\langfe2057\langnp1033\insrsid15752696\charrsid9850938 Defendant. He undertook to pay the loan in two (2) }{\lang1033\langfe2057\langnp1033\insrsid2576926\charrsid9850938 installments}{\lang1033\langfe2057\langnp1033\insrsid15752696\charrsid9850938 of 15,000,000/= and 7,000,000/=, respectively. The 2d Defendant signed an Acknowledgement in which he acknowledged receipt of the loan and stated the mode of payment. As an assurance of payment the 2 Defendant issued to the Plaintiff a post-dated cheque NO. 425425 of Trans Africa Bank for 22,000,000/= dated}{\lang1033\langfe2057\langnp1033\insrsid2576926 15/2/2002. When the said cheque }{\lang1033\langfe2057\langnp1033\insrsid15752696\charrsid9850938 was presented for payment it was dishonoured for lack of sufficient funds on the account and the Defendants were duly notified of the dishonour and nothing was done after that to ensure payment. \line }{\lang1033\langfe2057\langnp1033\insrsid2576926

\par }{\lang1033\langfe2057\langnp1033\insrsid15752696\charrsid9850938 The Plaintiff through his lawyers then served }{\lang1033\langfe2057\langnp1033\insrsid2576926 the Defendants with a notice of }{ \lang1033\langfe2057\langnp1033\insrsid15752696\charrsid9850938 intention to sue but the Defendants failed to comply. A summary suit was filed and on 14/2/2003 the Defendants were giv en leave to appear and defend the suit. They filed a Written Statement of Defence on 21/2/2003 in which they denied the debt. They averred that they were only indebted in the sum of 3,000,000/= and had actually paid a total of 6,000,000/=. They also averr ed that they had incurred a total of Ug. Shs. 5,000,000m as school fees for the Plaintiff\rquote s children education in the 1}{\lang1033\langfe2057\super\langnp1033\insrsid15752696\charrsid2576926 st}{ \lang1033\langfe2057\langnp1033\insrsid15752696\charrsid9850938 Defendant school to wit; Kalungi Abdu, Nalukenge Joweria and Kakande Ali. No counterclaim, however, was made. \line }{\lang1033\langfe2057\langnp1033\insrsid2576926 \par }{\lang1033\langfe2057\langnp1033\insrsid15752696\charrsid9850938 Hearing of the suit begu n on 12/11/2003, the Defendants failed to attend court on all occasions and no reasons were given for their absence. On 30/4/2004, court ordered that the matter proceed ex parte. \line }{\lang1033\langfe2057\langnp1033\insrsid2576926 \par }{\lang1033\langfe2057\langnp1033\insrsid15752696\charrsid9850938 Mr. Musamali appeared for the Plaintiff. He adduced the evidence of two witn}{\lang1033\langfe2057\langnp1033\insrsid2576926 esses. PW1 -}{ \lang1033\langfe2057\langnp1033\insrsid15752696\charrsid9850938 Kagimu Manisuli, the Plaintiff, who was also the manager of Ssekaka tours }{\lang1033\langfe2057\langnp1033\insrsid2576926 and travel at the time and PW2 -}{ \lang1033\langfe2057\langnp1033\insrsid15752696\charrsid9850938 Kajumbe George a friend of the Plaintiff\rquote s who was present during the transaction which is the }{\lang1033\langfe2057\langnp1033\insrsid2576926 subject matter of this suit. \line }{ \lang1033\langfe2057\langnp1033\insrsid15752696\charrsid9850938 \par The issues for trial were: \line }{\lang1033\langfe2057\langnp1033\insrsid2576926 \par }\pard \s15\ql \fi-720\li720\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\ipgp1\pararsid2576926 {\lang1033\langfe2057\langnp1033\insrsid15752696\charrsid9850938 1. }{ \lang1033\langfe2057\langnp1033\insrsid2576926 \tab }{\lang1033\langfe2057\langnp1033\insrsid15752696\charrsid9850938 Whether the Defendants are indebted to the Plaintiff in the sum of \line 22,000,000/= \line }{ \lang1033\langfe2057\langnp1033\insrsid2576926 \par }{\lang1033\langfe2057\langnp1033\insrsid15752696\charrsid9850938 2. }{\lang1033\langfe2057\langnp1033\insrsid2576926 \tab }{\lang1033\langfe2057\langnp1033\insrsid15752696\charrsid9850938 What remedies are available to the Plaintiff? \line }{ \lang1033\langfe2057\langnp1033\insrsid2576926 \par }\pard \s15\ql \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid16724224 {\lang1033\langfe2057\langnp1033\insrsid15752696\charrsid9850938 Regarding the 1}{ \lang1033\langfe2057\super\langnp1033\insrsid15752696\charrsid2576926 st}{\lang1033\langfe2057\langnp1033\insrsid15752696\charrsid9850938 issue, PW1 testifi}{\lang1033\langfe2057\langnp1033\insrsid2576926 ed that in December 2001, the 2}{ \lang1033\langfe2057\super\langnp1033\insrsid2576926\charrsid2576926 nd}{\lang1033\langfe2057\langnp1033\insrsid15752696\charrsid9850938 Defendant whom he knows personally went to his office to borrow money. The 2}{ \lang1033\langfe2057\super\langnp1033\insrsid2576926\charrsid2576926 nd}{\lang1033\langfe2057\langnp1033\insrsid15752696\charrsid9850938 Defendant told him that he needed the money to pay construction workers in the school and the teachers. He lent him 22,000,000/= which he got from different sources. He got 6,000,000/= from a man called Semanda }{ \lang1033\langfe2057\langnp1033\insrsid2576926 Bernard, 2,000,000/}{\lang1033\langfe2057\langnp1033\insrsid15752696\charrsid9850938 = from his bank account, 12,000,000/= from his office and 2,000,000/= from the proceeds of the sale of his vehicle a Mitsubishi Fuso Reg. No. UDU 963. When he had collected the total of 22,000,000/= he went together with Kajumbe George (}{ \lang1033\langfe2057\langnp1033\insrsid2576926 PW2) on 19/12/2001, to the 2}{\lang1033\langfe2057\super\langnp1033\insrsid2576926\charrsid2576926 n}{\lang1033\langfe2057\super\langnp1033\insrsid15752696\charrsid2576926 d}{ \lang1033\langfe2057\langnp1033\insrsid15752696\charrsid9850938 Defendant\rquote s office at the 1st Defendant\rquote s premises to give the money to him. He testified that, }{\lang1033\langfe2057\langnp1033\insrsid2576926 after giving the money to the 2 }{\lang1033\langfe2057\super\langnp1033\insrsid2576926\charrsid2576926 nd}{\lang1033\langfe2057\langnp1033\insrsid2576926 Defendant, the 2}{\lang1033\langfe2057\super\langnp1033\insrsid2576926\charrsid2576926 nd}{ \lang1033\langfe2057\langnp1033\insrsid15752696\charrsid9850938 Defendant gave him a note (Exhibit P1) in which he acknowledged receipt of the money and stated that payment would be in two (2) }{ \lang1033\langfe2057\langnp1033\insrsid2576926\charrsid9850938 installments}{\lang1033\langfe2057\langnp1033\insrsid15752696\charrsid9850938 of }{\lang1033\langfe2057\langnp1033\insrsid2576926 15,000,000/= to be paid in the 1}{ \lang1033\langfe2057\super\langnp1033\insrsid15752696\charrsid2576926 s}{\lang1033\langfe2057\super\langnp1033\insrsid2576926\charrsid2576926 t}{\lang1033\langfe2057\langnp1033\insrsid15752696\charrsid9850938 w}{ \lang1033\langfe2057\langnp1033\insrsid2576926 eek of Term 1 of 2002 and then }{\lang1033\langfe2057\langnp1033\insrsid15752696\charrsid9850938 7,000,000/= two weeks later. The 2\rquote Defe}{\lang1033\langfe2057\langnp1033\insrsid2576926 ndant also gave him cheque No. }{\lang1033\langfe2057\langnp1033\insrsid15752696\charrsid9850938 425425 of Trans Africa Bank dated 15/2/2002 for the sum of 22,000,000/= which is referred to in the note (Exhibit P1). When he presented the cheque in March it was dishonoured for lack of suffici}{\lang1033\langfe2057\langnp1033\insrsid2576926 ent funds on the account. He \line }{ \lang1033\langfe2057\langnp1033\insrsid15752696\charrsid9850938 told the}{\lang1033\langfe2057\langnp1033\insrsid15752696\charrsid3411944 }{\lang1033\langfe2057\langnp1033\insrsid3411944 2}{ \lang1033\langfe2057\super\langnp1033\insrsid3411944\charrsid3411944 n}{\lang1033\langfe2057\super\langnp1033\insrsid15752696\charrsid3411944 d}{\b\lang1033\langfe2057\langnp1033\insrsid15752696\charrsid9850938 }{ \lang1033\langfe2057\langnp1033\insrsid15752696\charrsid9850938 Defendant who asked for sometime. After waiting for a while, he went to his lawyers who summoned the 2}{\lang1033\langfe2057\super\langnp1033\insrsid15752696\charrsid3411944 nd}{ \lang1033\langfe2057\langnp1033\insrsid3411944 Defendant. The 2}{\lang1033\langfe2057\super\langnp1033\insrsid3411944\charrsid3411944 n}{\lang1033\langfe2057\super\langnp1033\insrsid15752696\charrsid3411944 d}{ \lang1033\langfe2057\langnp1033\insrsid15752696\charrsid9850938 Defendant attended the meeting with the Chairman of the 1}{\lang1033\langfe2057\super\langnp1033\insrsid3411944\charrsid3411944 st}{ \lang1033\langfe2057\langnp1033\insrsid15752696\charrsid9850938 Defendant a Mr. Kasajja Stephen. Nothing was written down but they agreed to pay the money soon. However, nothing has been done so far. \line }{ \lang1033\langfe2057\langnp1033\insrsid3411944 \par }{\lang1033\langfe2057\langnp1033\insrsid15752696\charrsid9850938 Th e Plaintiff also testified that he knew that the money would be paid back because he had on a previous occasion lent the Defendants money, which had been repaid. He had also seen the V Defendant\rquote s savings book which was shown to him by the 2 Defendant which showed that the 1st defendant had received about 90,000,000= from school fees at the beginning of the term. \line }{\lang1033\langfe2057\langnp1033\insrsid3411944 \par }{\lang1033\langfe2057\langnp1033\insrsid15752696\charrsid9850938 The Plaintiff also testified that the 2}{\lang1033\langfe2057\super\langnp1033\insrsid3411944\charrsid3411944 nd}{\lang1033\langfe2057\langnp1033\insrsid3411944 Defendant owns the 1}{ \lang1033\langfe2057\super\langnp1033\insrsid15752696\charrsid3411944 s}{\lang1033\langfe2057\super\langnp1033\insrsid3411944\charrsid3411944 t}{\lang1033\langfe2057\langnp1033\insrsid15752696\charrsid9850938 Defendant and was the only person managing the 1st Defendant at the time he lent them the money. He testified that he lent the money because he knew that it was going to be used for the school, the 1}{ \lang1033\langfe2057\super\langnp1033\insrsid15752696\charrsid3411944 st}{\lang1033\langfe2057\langnp1033\insrsid15752696\charrsid9850938 Defendant. Therefore, both the 1st and 2nd Defendants were responsible to pay the money. \line }{ \lang1033\langfe2057\langnp1033\insrsid3411944 \par }{\lang1033\langfe2057\langnp1033\insrsid15752696\charrsid9850938 Kajumba George (PW1) testified that he first me}{\lang1033\langfe2057\langnp1033\insrsid3411944 t the 2}{\lang1033\langfe2057\super\langnp1033\insrsid3411944\charrsid3411944 n}{ \lang1033\langfe2057\super\langnp1033\insrsid15752696\charrsid3411944 d}{\lang1033\langfe2057\langnp1033\insrsid15752696\charrsid9850938 Defendant on}{\lang1033\langfe2057\langnp1033\insrsid3411944 8}{ \lang1033\langfe2057\super\langnp1033\insrsid3411944\charrsid3411944 th}{\lang1033\langfe2057\langnp1033\insrsid15752696\charrsid9850938 \line December 2001 when he was wo}{\lang1033\langfe2057\langnp1033\insrsid3411944 rking for the Plaintiff. The 2}{ \lang1033\langfe2057\super\langnp1033\insrsid3411944\charrsid3411944 n}{\lang1033\langfe2057\super\langnp1033\insrsid15752696\charrsid3411944 d}{\lang1033\langfe2057\langnp1033\insrsid15752696\charrsid9850938 Defendant had \line gone to the Plaintiff \rquote s office to ask for a loan. He testified that on }{\lang1033\langfe2057\langnp1033\insrsid3411944 19}{\lang1033\langfe2057\super\langnp1033\insrsid15752696\charrsid3411944 th}{\lang1033\langfe2057\langnp1033\insrsid15752696\charrsid3411944 }{ \lang1033\langfe2057\langnp1033\insrsid15752696\charrsid9850938 December 2001 he accompanied the Plaintiff to give the 2}{\lang1033\langfe2057\super\langnp1033\insrsid15752696\charrsid3411944 nd}{\lang1033\langfe2057\langnp1033\insrsid3411944 Defendant the }{\lang1033\langfe2057\langnp1033\insrsid15752696\charrsid9850938 22,000,000/= and witnessed the signing }{\lang1033\langfe2057\langnp1033\insrsid3411944 of the Acknowledgement and the }{ \lang1033\langfe2057\langnp1033\insrsid15752696\charrsid9850938 handing over of the cheque. He also testified that the }{\lang1033\langfe2057\langnp1033\insrsid3411944 money the Plaintiff gave the 2}{ \lang1033\langfe2057\super\langnp1033\insrsid3411944\charrsid3411944 n}{\lang1033\langfe2057\super\langnp1033\insrsid15752696\charrsid3411944 d}{\lang1033\langfe2057\langnp1033\insrsid3411944 Defendant was in denomination}{ \lang1033\langfe2057\langnp1033\insrsid15752696\charrsid9850938 s of 1,000/=, 10,000/= and 20,000/= and that the 2}{\lang1033\langfe2057\super\langnp1033\insrsid15752696\charrsid3411944 nd}{\lang1033\langfe2057\langnp1033\insrsid15752696\charrsid9850938 Defendant counted the money before the Plaintiff and himself. \line }{\lang1033\langfe2057\langnp1033\insrsid3411944 \par }{\lang1033\langfe2057\langnp1033\insrsid15752696\charrsid9850938 Counsel submitted that PW1 had clearly shown the court that he lent the Defendants the money claimed for which he received an Acknowledgement and a post-dated cheque for the amount loaned. He argued that it}{\lang1033\langfe2057\langnp1033\insrsid3411944 had been shown that the 2}{\lang1033\langfe2057\super\langnp1033\insrsid3411944\charrsid3411944 nd}{\lang1033\langfe2057\langnp1033\insrsid15752696\charrsid9850938 Defendant undertook to borrow the money for and on behalf of the 1st Defendant. That the Plaintiff lent the money believing that he was giving it to both parties. Counsel submitted that the Defendants had failed to }{ \lang1033\langfe2057\langnp1033\insrsid3411944\charrsid9850938 fulfill}{\lang1033\langfe2057\langnp1033\insrsid15752696\charrsid9850938 the obligations imposed by the Acknowledgement. He relied on the case of }{ \b\lang1033\langfe2057\langnp1033\insrsid15752696\charrsid9850938 NAKAWA TRADING CO. LTD. V. COFFEE MARKETING BOARD C. }{\lang1033\langfe2057\langnp1033\insrsid15752696\charrsid9850938 S. 137 of 1991 where Justice Byamugisha held that a breach of contract occurs when one or both parties fail to }{\lang1033\langfe2057\langnp1033\insrsid3411944\charrsid9850938 fulfill}{\lang1033\langfe2057\langnp1033\insrsid15752696\charrsid9850938 the obligations im posed by the terms of the contract. Counsel, therefore, submitted that since the Defendants had failed to retire their indebtedness to the Plaintiff and the money was still due and owing, the court should enter judgment against the Defendant in favour of the plaintiff for the sum claimed. \line }{\lang1033\langfe2057\langnp1033\insrsid3411944 \par }{\lang1033\langfe2057\langnp1033\insrsid15752696\charrsid9850938 I have considered the evidence and the law on the issue. Although special damages must be proved strictly, it is not a requirement that they must at all times be supported documentary evi}{ \lang1033\langfe2057\langnp1033\insrsid3411944 dence as was held in }{\b\lang1033\langfe2057\langnp1033\insrsid3411944\charrsid3411944 KYAMBADDE}{\lang1033\langfe2057\langnp1033\insrsid3411944 }{ \b\lang1033\langfe2057\langnp1033\insrsid15752696\charrsid9850938 V. MPIGI DISTRICT ADMINISTRATION }{\lang1033\langfe2057\langnp1033\insrsid3411944 [1983] HCB 44. I find that the }{\lang1033\langfe2057\langnp1033\insrsid15752696\charrsid9850938 Plaintiff has proved that he lent the money to the Defendants. The issue is, therefore, answered in the affirmative. \line With regard to the second issue, the Plaintiff prayed for: \line a) Payment of the 22,000,000/= \line b) General da}{ \lang1033\langfe2057\langnp1033\insrsid3411944 mages for breach of contract. \line c}{\lang1033\langfe2057\langnp1033\insrsid15752696\charrsid9850938 ) Interest at the court rate on (a) and (b) \line d) Costs of the suit \line e) Any other relief court may deem fit and just. \line From the evidence on record, the Plaintiff has testified that he is entitled to be paid 22,000,000/= by the Defendants. He showed that he lent the Defendants 22,000,000/= and the 2\rquote defendant gave him a post-dated cheque. The cheque bounced and the money is still due and owing. I find that the Plaintiff is entitled to the 22,000,000/= claimed. \line }{\lang1033\langfe2057\langnp1033\insrsid3411944 \par }{\lang1033\langfe2057\langnp1033\insrsid15752696\charrsid9850938 The Plaintiff also prayed for general damages for breach of contract. He testified that he suffered financial difficulties as a result of the Defendants failure to repay the loan. The business that he was running, Ssekaka Tours and Travel was forced to close down because of lack of financing. He exhibited in court the company\rquote s Certificate of Incorporation and certified copies of the company\rquote s Memorandum and Articles of Association and. The Plaintiff also testified that he was unable to pay his children\rquote s school fees and he was forced to go back to his former employment in a garage in Ndeeba to earn a living, where he earns between 10} {\lang1033\langfe2057\langnp1033\insrsid3411944 ,000/= and 15000/= on a good \line }{\lang1033\langfe2057\langnp1033\insrsid15752696\charrsid9850938 workday. He added that he no longer has a bank account because he cannot sav e and he used up all his savings. \line }{\lang1033\langfe2057\langnp1033\insrsid3411944 \par }{\lang1033\langfe2057\langnp1033\insrsid15752696\charrsid9850938 PW2 testified that before the Plaintiff advanced the loan to the defendants he was wealthier than the other Directors of the business were and he was the major financier. However, after the Defendants failed to repay the loan the Plaintiff was forced to go to work in a garage. He also testified that he was no longer employed with the Plaintiff\rquote s company because it run out of money as the plaintiff could not finance it anymore. \line }{ \lang1033\langfe2057\langnp1033\insrsid3411944 \par }{\lang1033\langfe2057\langnp1033\insrsid15752696\charrsid9850938 Counsel for the Plaintiff relied on the cases of }{\b\lang1033\langfe2057\langnp1033\insrsid15752696\charrsid9850938 KABONA BRODTHERS \line AGENCIES V. UGANDA METAL PRODUCTS AND ENAMELLING CO. \line LTD. }{\lang1033\langfe2057\langnp1033\insrsid15752696\charrsid9850938 [1981] HCB 74 and }{\b\lang1033\langfe2057\langnp1033\insrsid15752696\charrsid9850938 ROBBIALAC PAINTS (U) LTD. V. K. B. \line CONSTRUCTION LTD [1976] HCB }{\lang1033\langfe2057\langnp1033\insrsid15752696\charrsid9850938 45 in the former, Justice Ouma relied on }{\b\lang1033\langfe2057\langnp1033\insrsid15752696\charrsid9850938 HEDLEY V. }{ \lang1033\langfe2057\langnp1033\insrsid15752696\charrsid9850938 BAXEN }{\b\lang1033\langfe2057\langnp1033\insrsid15752696\charrsid9850938 DALE }{\lang1033\langfe2057\langnp1033\insrsid15752696\charrsid9850938 (1843-1860) AER 461, where it was held that, \line }{\lang1033\langfe2057\langnp1033\insrsid3411944 \par }\pard \s15\ql \li720\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\ipgp1\pararsid3411944 {\i\lang1033\langfe2057\langnp1033\insrsid15752696\charrsid9850938 \'93 Where two parties have made a contract which one of them has broken, the damages the other party ought to receive in respect of such breach of contract should be such as may fairly and reasonably be considered wither arising naturally from the course of things fr}{\i\lang1033\langfe2057\langnp1033\insrsid3411944 om such breach of contract itself}{\i\lang1033\langfe2057\langnp1033\insrsid15752696\charrsid9850938 or be supposed to have been in the counterplan of both, at the time they made the contract as the probable result of the breach of it.\'94 \line }{\i\lang1033\langfe2057\langnp1033\insrsid3411944 \par }\pard \s15\ql \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid16724224 {\lang1033\langfe2057\langnp1033\insrsid15752696\charrsid9850938 In the latter cited case, Justice Saied held that it is now settle that substantial physical inconvenience or even inconvenience that }{\lang1033\langfe2057\langnp1033\insrsid3411944 is not strictly physical and }{ \lang1033\langfe2057\langnp1033\insrsid15752696\charrsid9850938 discomfort caused by a breach of contract will entitle the Plaintiff to damages. He, therefore, submitted that should award the Plaintiff damages. \line }{ \lang1033\langfe2057\langnp1033\insrsid3411944 \par }{\lang1033\langfe2057\langnp1033\insrsid15752696\charrsid9850938 In the case of }{\b\lang1033\langfe2057\langnp1033\insrsid15752696\charrsid9850938 FULUGENSIO SEMAKO V.}{\b\lang1033\langfe2057\langnp1033\insrsid15752696\charrsid3411944 }{ \b\lang1033\langfe2057\langnp1033\insrsid15752696\charrsid3411944 EDIRISA}{\lang1033\langfe2057\langnp1033\insrsid15752696\charrsid9850938 }{\b\lang1033\langfe2057\langnp1033\insrsid15752696\charrsid9850938 SSEBUGWAWO }{ \lang1033\langfe2057\langnp1033\insrsid15752696\charrsid9850938 [1974] HCB 15, Justice Butagira made an award for damages after looking at past awards of damages in similar cases and having taken into account the circumstances of the case. In that case counsel did not address court on the issue of quantum of damages. In this case however counsel has addressed court on the issue of quantum of damages and has he put before court material that would enable it to arrive at a reasonable figure for damages. I therefore find t hat the Plaintiff and counsel have shown that the Plaintiff is entitled to general damages. The principal behind awarding general damages is not to enrich the party but to show that the court has taken into account the inconvenience suffered by him. It is therefore, important that general damages are not awarded for remote damages. Every breach of contract is expected to cause damage, both remote and non-remote. In my view, damage such as the Plaintiff\rquote s failure to continue with his business or to pay fees for his kids is too remote and cannot be blamed entirely on the breach in this matter. The Plaintiff should not have lent out all his capital including savings to the Plaintiffs. The court must restrict itself to damages that could and should have been fo reseen as likely to occur by the contracting parties in the event of breach. Therefore, I find that the sum of 1,000,000/= is sufficient as general damages in this case. \line \par The Plaintiff also prayed for in}{\lang1033\langfe2057\langnp1033\insrsid9724418 terest on the sum of 22,000,000/}{\lang1033\langfe2057\langnp1033\insrsid15752696\charrsid9850938 = and on the genera l damages. With regard to the amount of the loan, that is, 22,000,000/=, the recognised principle for awarding interest is that the party has lost the use of his money for producing more money and so he should be compensated for such loss. I, therefore, f ind that interest should be awarded on the 22,000,000/= at 15% p.a. from the date of default till payment in full. \line }{\lang1033\langfe2057\langnp1033\insrsid9724418 \par }{\lang1033\langfe2057\langnp1033\insrsid15752696\charrsid9850938 By virtue of S. 26 of the Civil Procedure Act, CAP 71, which allows the court to award interest on the sum, adjudged. The Plaintiff is entitl ed to interest on general damages from the date of judgment till payment in full. Interest shall be at the court rate. \line }{\lang1033\langfe2057\langnp1033\insrsid9724418 \par }{\lang1033\langfe2057\langnp1033\insrsid15752696\charrsid9850938 The Plaintiff also prayed for costs of the suit. I find that this is a proper case for the Plaintiff to be awarded costs of the suit. \line }{\lang1033\langfe2057\langnp1033\insrsid9724418

\par }{\lang1033\langfe2057\langnp1033\insrsid15752696\charrsid9850938 In the result, I find that the Plaintiff has proved his case and enter judgment against the Defendant in favour of the Plaintiff as follows: \line (a) Shs.22}{ \lang1033\langfe2057\langnp1033\insrsid9724418\charrsid9850938 , 000,000}{\lang1033\langfe2057\langnp1033\insrsid15752696\charrsid9850938 /= as the amount of the loan. \line (b) Interest on (a) at 15% per annum from the date of default till payment in full. \line (c) Shs.1}{\lang1033\langfe2057\langnp1033\insrsid9724418\charrsid9850938 , 000,000}{\lang1033\langfe2057\langnp1033\insrsid15752696\charrsid9850938 /= as General Damages. \line (d) Interest on \'a9 at the court rate till payment in full. \line (e) Costs of the suit. \line }{\lang1033\langfe2057\langnp1033\insrsid9724418 \par }{\b\lang1033\langfe2057\langnp1033\insrsid15752696\charrsid9724418 M.}{\lang1033\langfe2057\langnp1033\insrsid15752696\charrsid9850938 }{\b\lang1033\langfe2057\langnp1033\insrsid15752696\charrsid9850938 S. ARACH }{ \lang1033\langfe2057\langnp1033\insrsid9724418 - }{\b\lang1033\langfe2057\langnp1033\insrsid15752696\charrsid9850938 AMOKO \line JUDGE. \line }{\lang1033\langfe2057\langnp1033\insrsid9724418 14/6/2004 \line }{ \lang1033\langfe2057\langnp1033\insrsid15752696\charrsid9850938 \par }\pard\plain \ql \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid16724224 \fs24\lang2057\langfe2057\cgrid\langnp2057\langfenp2057 {\lang1033\langfe2057\langnp1033\insrsid15752696\charrsid9850938 \par }}