Cooper Motors Corp. (U) Ltd v. Blue Executive Bus Services Ltd (HCCS 9 of 2011) [2011] UGCommC 36 (22 May 2011)

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\par (COMMERCIAL DIVISION) \par \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \b\f39\insrsid4214581 HCCS NO. 09 }{\rtlch\fcs1 \af0 \ltrch\fcs0 \b\f39\insrsid7896261 OF 2011 \par \par }\pard \ltrpar\qj \li0\ri0\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid7896261 {\rtlch\fcs1 \af0 \ltrch\fcs0 \b\f39\insrsid7896261 COOPER MOTORS CORPORATION (U) LTD ::::::::::::::::::: PLAINTIFF \par \par }\pard \ltrpar\qc \li0\ri0\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid7896261 {\rtlch\fcs1 \af0 \ltrch\fcs0 \b\f39\insrsid7896261 VERSUS \par \par }\pard \ltrpar\qj \li0\ri0\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid7896261 {\rtlch\fcs1 \af0 \ltrch\fcs0 \b\f39\insrsid7896261 BLUE EXECUTIVE BUS SERVICES LTD :::::::::::::::::::::: DEFENDANT \par }\pard \ltrpar\qj \li0\ri0\sl360\slmult1\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid7896261 {\rtlch\fcs1 \af0 \ltrch\fcs0 \b\f39\insrsid7896261 \par \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \b\f39\ul\insrsid7896261 BEFORE: THE HON. MR. JUSTICE GEOFFREY KIRYABWIRE \par \par J U D G M E N T: \par \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \f39\insrsid7896261 The plaintiff company sued the defendant for 6 buses sold to them for the sum of US$ 318,600 which were not fully paid for. \par \par The parties entered an agreement dated 31}{\rtlch\fcs1 \af0 \ltrch\fcs0 \f39\super\insrsid7896261\charrsid7896261 st}{\rtlch\fcs1 \af0 \ltrch\fcs0 \f39\insrsid7896261 December 2009 and was secured by a guarantee of the Directors of the same day. The director who signed was Mr. Mohmad Suleman. \par \par The plaintiff specifically also in the alternative seeks the recovery of the buses Reg.}{\rtlch\fcs1 \af0 \ltrch\fcs0 \f39\insrsid1583728 Nos. KAU 131}{\rtlch\fcs1 \af0 \ltrch\fcs0 \f39\insrsid1001546 J}{\rtlch\fcs1 \af0 \ltrch\fcs0 \f39\insrsid1583728 , KAU 135J and KAU 139J. This is because three of the six buses delivered to them were returned. The value outstanding at the time of trial is US$ 159,300. Interlocutory Judgment for the sum of US}{\rtlch\fcs1 \af0 \ltrch\fcs0 \f39\insrsid1001546 $}{ \rtlch\fcs1 \af0 \ltrch\fcs0 \f39\insrsid1583728 159,300 was entered by the Deputy Registrar of this court on the 9}{\rtlch\fcs1 \af0 \ltrch\fcs0 \f39\super\insrsid1583728\charrsid1583728 th}{\rtlch\fcs1 \af0 \ltrch\fcs0 \f39\insrsid1583728 February 2011 and the case set down for formal proof. Ms Diana Nabuuso represented the plaintiff company.}{\rtlch\fcs1 \af0 \ltrch\fcs0 \f39\insrsid7896261 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \f39\insrsid15026430 \par The Managing Director of the plaintiff company Mr. Jean Pierre Legueux testified that the defendant took six buses from them but failed to pay for them. Ultimately three of the six buses were returned but three were withheld of the value of US$ 159,300.

\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \f39\insrsid4214581 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \f39\insrsid10240501 Counsel for the plaintiff submitted that the plaintiff company suffered inconvenience and had to borrow money to fill their financial gap. Mr. Legueux testified that they did not meet their financial projections on the sale but had not computed the value. He however testified that they had to take an overdraft in {\*\xmlopen\xmlns2{\factoidname place}}{\*\xmlopen\xmlns2{\factoidname country-region}}Uganda{\*\xmlclose}{\*\xmlclose} shillings with interest at 18% p.a. \par \par Counsel for the plaintiff referred me to the case of }{\rtlch\fcs1 \af0 \ltrch\fcs0 \b\f39\ul\insrsid10240501 The Motor Mart & Exchange (Finance) Ltd vs Hiralal Mohanlal Gandhi & Another (1963) EA 657 -}{\rtlch\fcs1 \af0 \ltrch\fcs0 \f39\insrsid10240501 Court of Appeal Kenya (CAK), where it was held that a hire purchase company should recover its actual damages and that should be assessed according to realities and not fiction.}{\rtlch\fcs1 \af0 \ltrch\fcs0 \f39\insrsid11098712 This sho uld include recovery of money advanced with interest at a reasonable rate up to the time the hiring was terminated less payments/installments made. }{\rtlch\fcs1 \af0 \ltrch\fcs0 \f39\insrsid8813747 She also prayed for interest and costs.}{\rtlch\fcs1 \af0 \ltrch\fcs0 \f39\insrsid10240501 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \f39\insrsid8813747 \par I have considered the pleadings}{\rtlch\fcs1 \af0 \ltrch\fcs0 \f39\insrsid1059735 in this case, the evidence adduced and submissions of counsel. The buses in question are the subject of a hire purchase agreement. The buses were registered under Kenyan Registration numbers and taken away. Only three were returned, the whereabouts of the other three are not known.}{ \rtlch\fcs1 \af0 \ltrch\fcs0 \f39\insrsid8813747 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \f39\insrsid1059735 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \f39\insrsid4214581 Mr. Leg}{\rtlch\fcs1 \af0 \ltrch\fcs0 \f39\insrsid1059735 u}{\rtlch\fcs1 \af0 \ltrch\fcs0 \f39\insrsid4214581 e}{\rtlch\fcs1 \af0 \ltrch\fcs0 \f39\insrsid1059735 ux testified that the US$ 159,300 was outstanding on the three buses for which interlocutory judgment was given. The plaintiff prayed in the alternative for the return of the buses. That is not practicable as the whereabouts of the buses re unknown. I t herefore confirm the interlocutory judgment of US$ 159,300.}{\rtlch\fcs1 \af0 \ltrch\fcs0 \f39\insrsid4214581 }{\rtlch\fcs1 \af0 \ltrch\fcs0 \f39\insrsid1059735 The agreement (Exhibit P.1.) provides in handwritten form an interest of 12% p.a. I so award interest at 12% p.a. from January 2011 until payment in full. \par \par As to general damages, counsel for the p laintiff submitted that US$ 30,000 would suffice. This figure was not supported in evidence. The court however in its discretion awards US$ 16,000 with interest at 4% p.a. from the date of this judgment until payment in full. \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \f39\insrsid4214581 \par I award the plaintiff the costs of this suit. 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