Mugarura and Another v Fahim Hides and Skins Limited (Civil Suit No. 301 of 2003) [2003] UGCommC 137 (17 September 2003)

### **THE REPUBLIC OF UGANDA**

## **IN THE HIGH COURT OF UGANDA AT KAMPALA**

## **COMMERCIAL DIVISION**

#### **CIVIL SUIT NO. 301 OF 2003**

**1. ABIAS MUGARURA**

**2. MAJID KASHABU PLAINTIFFS**

## **VERSUS**

# **FAHIM HIDES & SKINS LTD DEFENDANT**

Before: The Hon. Mr. Justice E. S. Lugayizi

#### **JUDGMENT**

The plaintiffs sued the defendant for breach of contract and prayed for Court's remedies as follows:

1. A sum ofshillings 5,245,250/= as special damages.

2. An order for interest on the sum ofmoney in paragraph <sup>1</sup> above at the rate of 30% from the date offiling the suit till payment in full.

3. General damages.

4. Costs.

5. Any other reliefCourt may deem fit to grant.

Despite receipt of Court process the defendant did not file a defence within the statutory time. Consequently the plaintiffs, through their advocates, applied for an interlocutory judgment against the defendant. On 8/7/2003 the Registrar entered an interlocutory judgment against the defendant. Court then fixed the matter for formal proof. During formal proof that took place on 26/8/2003 Mr. Arinaitwe represented the plaintiffs and put up one witness called Majid Kashabu (PW1). In very briefterns Kashabu testified as follows.

That he knows the Defendant Company; and in December 2002 he sold to it an assortment of hides and skins worth a sum of shillings 5,245,250/=. In turn the defendant acknowledged receipt of the said goods under Exh. Pl and promised to pay him later. However, the defendant did not honour its word; and despite several reminders afterwards it failed to pay him. Finally he sued the defendant seeking the remedies earlier on outlined.

Since the defendant did not file a defence to the plaintiffs' suit Kashabu's testimony stands on record unchallenged. For that reason Court is satisfied that Kashubu has, on a balance of probabilities, proved that the defendant owes him a sum ofshillings 5,245,250/= which he is entitled to recover from it.

In addition to the above remedy the plaintiffs prayed for interest on the outstanding debt. They fixed the interest at 30%. They wanted it to run from the date of filing the suit till payment in full. However, the underlying question here is whether the plaintiffs are entitled to such high interest. The answer to that question is in the affirmative, for the arrangement between the parties herein was of a commercial nature that

attracts commercial interest. For that reason Court is satisfied that it must grant Kashabu interest on the above sum ofmoney at the commercial rate of 20% p.a. from the time offiling the suit till payment in full.

The plaintiffs further prayed Court to grant them general damages. In his final submissions Mr. Arinaitwe was of the view that a sum of shillings 5m/= is sufficient to compensate the plaintiffs for the inconvenience they have so far suffered since the defendant refused to pay them in respect of the goods sold to it. Taking into account all Court will grant Kashabu a sum ofshillings 2m/= as general damages.

Since costs follow the event, the defendant will also bear the costs of the suit.

All in all Court must enter final judgment in favour ofthe plaintiff; and it is hereby ordered so under the terms below:

- 1. The defendant shall pay the plaintiff a sum ofshillings 5,245,250/= as special damages. - 2. The defendant shall further pay the plaintiff a sum ofshillings 2m/= as general damages. - 3. The defendant shall pay the plaintiff interest on the sum of money in paragraph <sup>1</sup> above at the rate of 20% p.a. from the date of filing the suit till payment in full. - 4. The defendant shall also bear the costs ofthe suit.

Lastly, Court wishes to explain that it has had to enter final judgment in favour of the 2nd plaintiff only because he is the only person who gave evidence in this matter. In all his evidence Kashabu he did not indicate that the 1st plaintiff was party to the arrangement Kashabu had with the defendant.

**Read before: At** 2.45 p.m.

Mr. Arinaitwe for the plaintiffs