Nile Breweries Ltd v Nabongo Fred T/A Nabi Impex (HCT-00-CC-CS 223 of 2008) [2010] UGCommC 23 (11 July 2010)

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{\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 \ltrpar\qc \li0\ri0\sl360\slmult1 \widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid7810677 \rtlch\fcs1 \af0\afs24\alang1025 \ltrch\fcs0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\rtlch\fcs1 \af0 \ltrch\fcs0 \b\insrsid544118\charrsid7810677 THE REPUBLIC OF UGANDA \par IN THE HIGH COURT OF UGANDA AT KAMPALA \par (COMMERCIAL COURT DIVISION) \par \par HCT - 00 - CC - CS - 223 - 2008 \par \par }\pard \ltrpar\qj \li0\ri0\sl360\slmult1\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid7810677 {\rtlch\fcs1 \af0 \ltrch\fcs0 \b\insrsid544118\charrsid7810677 NILE BREWERIES LTD :::::::::::::::::::::::::::::::::::::::::::::}{\rtlch\fcs1 \af0 \ltrch\fcs0 \b\insrsid13598207\charrsid7810677 ::::::}{\rtlch\fcs1 \af0 \ltrch\fcs0 \b\insrsid4993337\charrsid7810677 ::}{\rtlch\fcs1 \af0 \ltrch\fcs0 \b\insrsid13598207\charrsid7810677 ::::::}{\rtlch\fcs1 \af0 \ltrch\fcs0 \b\insrsid544118\charrsid7810677 : PLAINTIFF \par }\pard \ltrpar\qc \li0\ri0\sl360\slmult1\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid7810677 {\rtlch\fcs1 \af0 \ltrch\fcs0 \b\insrsid544118\charrsid7810677 \par VERSUS \par \par }\pard \ltrpar\qj \li0\ri0\sl360\slmult1\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid7810677 {\rtlch\fcs1 \af0 \ltrch\fcs0 \b\insrsid544118\charrsid7810677 NABONGO FRED T/A NABI IMPEX :::::::::::::::::::::::::}{ \rtlch\fcs1 \af0 \ltrch\fcs0 \b\insrsid13598207\charrsid7810677 :::::::::::::::}{\rtlch\fcs1 \af0 \ltrch\fcs0 \b\insrsid544118\charrsid7810677 ::: DEFENDANT \par \par BEFORE: THE HON. JUSTICE GEOFFREY KIRYABWIRE \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \b\insrsid11689219\charrsid7810677 \par }\pard \ltrpar\ql \li0\ri0\sl360\slmult1\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid7810677 {\rtlch\fcs1 \af0 \ltrch\fcs0 \b\insrsid544118\charrsid7810677 JUDGMENT: \par }\pard \ltrpar\qc \li0\ri0\sl360\slmult1\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid7810677 {\rtlch\fcs1 \af0 \ltrch\fcs0 \b\insrsid11689219\charrsid7810677 \par }\pard \ltrpar\qj \li0\ri0\sl360\slmult1\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid7810677 {\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid544118\charrsid7810677 The plaintiff Nile Breweries Ltd brought this suit against the defendant }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid11689219\charrsid7810677 Nabongo Fred T/A Nabi Impex for the recovery of Ug. Shs.82,832,484/= (Ei ghty two million eight hundred thirty two thousand four hundred and eighty four Uganda shillings) being the cost of beer supplied by the plaintiff}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid5198836\charrsid7810677 to the defendant, interest, }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid7038180\charrsid7810677 Value Added T}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12810675\charrsid7810677 ax }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid11689219\charrsid7810677 refund of Ug. Shs.14,909,847/= (fourteen million nine hundred nine thousand eight hundred and forty seven Uganda shillings) and costs for the suit.}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid16154205\charrsid7810677 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid16342678\charrsid7810677 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid11689219\charrsid7810677 The brief facts of the case are that}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid16342678\charrsid7810677 on 3}{\rtlch\fcs1 \af0 \ltrch\fcs0 \super\insrsid16342678\charrsid7810677 rd}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid16342678\charrsid7810677 October 2002}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid11689219\charrsid7810677 the plaintiff entered }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid14964149\charrsid7810677 into a Distributor}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid16342678\charrsid7810677 agreement with the defendant under which, it was agreed that the plaintiff would supply beer to the defendant pursuant to the agreement up to the time when their business transactions would cease. It is the plaintiff\rquote s case that upon signing the agreement, the defe}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid15030237\charrsid7810677 ndant was supplied with different quantities of beer on different dates, which the defendant paid for leaving a}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid2626550\charrsid7810677 balance of Ug. Shs.82,832,484/=}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid15030237\charrsid7810677 (Eighty two million eight hundred thirty two thousand four hundred and eighty four Uganda shillings). The plaintiff avers that the defendant did not pay the full amount owed to the plaintiff}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid15012803\charrsid7810677 }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid7038180\charrsid7810677 including the Value Added T}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid15012803\charrsid7810677 ax}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13501883\charrsid7810677 (hereinafter referred to as VAT)}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid15012803\charrsid7810677 levied at a rate of 18% on the total amount of beer supplied which was paid by the plaintiff. It is the plaintiff\rquote s case that despite the several reminders, the defendant has neglected, failed and or refused to pay the outstanding balance due to the plaintiff and this has therefore greatly inc}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid6307568\charrsid7810677 onvenienced the plaintiff in its}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid15012803\charrsid7810677 oper}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid6307568\charrsid7810677 ations and smooth running of the}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid15012803\charrsid7810677 business. }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid11689219\charrsid7810677 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid7023741\charrsid7810677 \par The defendant in his defen}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid3828440\charrsid7810677 ce however denied any liability and averred }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid9046444\charrsid7810677 that he entered into an agreement with the plaintiff on 3}{ \rtlch\fcs1 \af0 \ltrch\fcs0 \super\insrsid9046444\charrsid7810677 rd}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid9046444\charrsid7810677 October 2002. The defendant contends that he never breached the agreement in any way nor did he owe the purported Ug. Shs.82,832,484/= or any other money to the plaintiff under the agreement. The defendant further averred that he has never entered into any agreeme nt with the plaintiff to supply him beer on credit and that he fully paid }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid3828440\charrsid7810677 for all the beer he was supplied with under the agreement. The defendant contended that the VAT Tax liability cannot arise under a non existent debt on his part. The defendant therefore prayed that the plaintiff\rquote s case is dismissed with costs.}{ \rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid7023741\charrsid7810677 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid16342678\charrsid7810677 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid11689219\charrsid7810677 At the scheduling conference the following issues were framed; \par {\listtext\pard\plain\ltrpar \rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid11689219\charrsid7810677 \hich\af0\dbch\af0\loch\f0 1.\tab}}\pard \ltrpar\qj \fi-360\li720\ri0\sl360\slmult1 \widctlpar\wrapdefault\aspalpha\aspnum\faauto\ls1\adjustright\rin0\lin720\itap0\pararsid7810677 {\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid11689219\charrsid7810677 Whether the defendant is indebted to the plaintiff and if so in what sum? \par {\listtext\pard\plain\ltrpar \rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid11689219\charrsid7810677 \hich\af0\dbch\af0\loch\f0 2.\tab}Whether the plaintiff is entitled to the remedies sought?}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid7023741\charrsid7810677 \par }\pard \ltrpar\qj \li0\ri0\sl360\slmult1\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid7810677 {\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid7023741\charrsid7810677 \par }{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid10640036\charrsid7810677 Mr. Jet John Tumwebaze }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid7023741\charrsid7810677 appeared for the plaintiff while}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid10640036\charrsid7810677 Mr. } {\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid10640036\charrsid7810677 Kafuko}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid10640036\charrsid7810677 a}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid7023741\charrsid7810677 ppeared for the defendant. The plai}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid405125\charrsid7810677 ntiff called one witness namely,}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid7023741\charrsid7810677 }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid405125\charrsid7810677 Mr. }{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid405125\charrsid7810677 Richard I}{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid7023741\charrsid7810677 tazi (PW1)}{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid405125\charrsid7810677 an Accountant at Nile Breweries Ltd. }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid405125\charrsid7810677 F}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid7023741\charrsid7810677 or the defendant }{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid10640036\charrsid7810677 Nabongo Fred (DW1)}{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid405125\charrsid7810677 a policeman/businessman}{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid10640036\charrsid7810677 }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid10640036\charrsid7810677 t}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid7023741\charrsid7810677 estified.}{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \b\insrsid7023741\charrsid7810677 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \b\insrsid405125\charrsid7810677 \par }\pard \ltrpar\qj \fi-2160\li2160\ri0\sl360\slmult1\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin2160\itap0\pararsid7810677 {\rtlch\fcs1 \af0 \ltrch\fcs0 \b\insrsid7023741\charrsid7810677 Issue No.1: \tab Whether the defendant is indebted to the plaintiff and if so in what sum? \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid7023741\charrsid7810677 \par }\pard \ltrpar\qj \li0\ri0\sl360\slmult1\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid7810677 {\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8728817\charrsid7810677 Counsel for the plaintiff in his submission referred court to the evidence adduced by }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid93058\charrsid7810677 Mr.}{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid93058\charrsid7810677 Richard Itazi (PW1) }{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid8728817\charrsid7810677 who testified }{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid93058\charrsid7810677 that on the 3}{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \super\insrsid93058\charrsid7810677 rd}{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid93058\charrsid7810677 of October 2002 the plaintiff}{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid14964149\charrsid7810677 entered into a distributor Agreement (Marked Exhibit}{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid9177531\charrsid7810677 P.1}{ \rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid14964149\charrsid7810677 ) with the defendant for the supply of beer}{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid3277197\charrsid7810677 . }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid3277197\charrsid7810677 Mr.}{ \rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid3277197\charrsid7810677 Itazi testified that the defendant paid for the beer he was supplied with however leaving a balance of }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid3277197\charrsid7810677 Ug. Shs.82,832,484/}{ \rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid6498387\charrsid7810677 =}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid3277197\charrsid7810677 . Mr.}{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid3277197\charrsid7810677 Itazi further testified that, a reconciliation of the debt on beer was carried out and the defendant himself signed a letter dated }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid3277197\charrsid7810677 6}{\rtlch\fcs1 \af0 \ltrch\fcs0 \super\insrsid3277197\charrsid7810677 th}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid3277197\charrsid7810677 November 2002 (exhibit P.5)}{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid3277197\charrsid7810677 agreeing to a debt of Ug. Shs.92,128,341/= as at 11}{ \rtlch\fcs1 \ab\af0 \ltrch\fcs0 \super\insrsid3277197\charrsid7810677 th}{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid3277197\charrsid7810677 November 2002.}{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid8728817\charrsid7810677 It was }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8728817\charrsid7810677 Mr.}{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid8728817\charrsid7810677 Itazi\rquote s testimony that the system of payment of the plaintiff company is that once a customer places an order for beer, that beer is supplied together with delivery notes/ invoices. The customer can pay for the beer at a later date after selling the beer and th at that is how indebtness to the company arises. He further testified that once the customer makes a payment, the payment is allocated to the oldest debt.}{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid12795723\charrsid7810677 }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12795723\charrsid7810677 Mr.}{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid12795723\charrsid7810677 Itazi therefore testified that the defendant failed to honour his debt obligation to the plaintiff and the plaintiff company stopped supplying the defendant with beer.}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid7537918\charrsid7810677 }{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid9177531\charrsid7810677 Counsel for the plaintiff }{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid8728817\charrsid7810677 also }{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid9177531\charrsid7810677 made reference to the testimony of Mr. Nabongo Fred (DW1) who testified that he would pay for the beer before it was supplied and that all empty bottles were returned to the plaintiff.}{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid7411645\charrsid7810677 }{ \rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid7537918\charrsid7810677 \par \par }{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid7411645\charrsid7810677 It was the submission of counsel for the plaintiff that, }{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid7537918\charrsid7810677 the evidence of the Mr. Nabongo had a lot of contradictions. Counsel for the plaintiff submitted that on 17}{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \super\insrsid7537918\charrsid7810677 th}{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid7537918\charrsid7810677 January 2007 beer worth Ug. Shs.18,200,000/= on invoice No. 68242 was supplied to the defendant who claimed that he had paid for it on 23}{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \super\insrsid7537918\charrsid7810677 rd}{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid7537918\charrsid7810677 January 2007, 7 days after the supply. On 26}{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \super\insrsid7537918\charrsid7810677 th}{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid7537918\charrsid7810677 January 2}{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid5400198\charrsid7810677 007}{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid7537918\charrsid7810677 beer worth }{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid5400198\charrsid7810677 Ug. Shs.}{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid7537918\charrsid7810677 19,280,000/= on invoice No.69108 was supplied to the defendant and he allegedly paid for it on }{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid5400198\charrsid7810677 6}{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \super\insrsid7537918\charrsid7810677 th}{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid7537918\charrsid7810677 }{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid5400198\charrsid7810677 February}{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid7537918\charrsid7810677 2007}{ \rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid5400198\charrsid7810677 , 12 days after supply. However on 08}{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \super\insrsid5400198\charrsid7810677 th}{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid5400198\charrsid7810677 February 2007 beer worth Ug. Shs.16,400,000/= on invoice No.70133 was supplied to the defendant and he allegedly paid for it on 10}{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \super\insrsid5400198\charrsid7810677 th}{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid5400198\charrsid7810677 January 2007, a month before it was supplied. It is counsel for the plaintiff\rquote s submission that, }{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid7411645\charrsid7810677 it is unreasonable nor does it make business sense that beer was paid for on 10}{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \super\insrsid7411645\charrsid7810677 th}{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid7411645\charrsid7810677 January 2007 a month before it was taken on 08}{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \super\insrsid7411645\charrsid7810677 th}{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid7411645\charrsid7810677 February 2007}{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid1589275\charrsid7810677 yet}{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid7411645\charrsid7810677 in that very month of January 2007 two other orders }{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid6241131\charrsid7810677 for beer were su}{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid12150401\charrsid7810677 pplied and allegedly paid for after they had been supplied}{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid1589275\charrsid7810677 .}{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid14702475\charrsid7810677 It was counsel for the plaintiff\rquote s submission that the invoice No. 70133 worth Ug. Shs.16,400,000/= remains unpaid and that invoice No.72555 indicate s that 800 crates/ empties were received by the defendant yet only 198 empties were returned leaving a balance of 602 crates/empties}{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid11957892\charrsid7810677 amounting to }{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid14702475\charrsid7810677 Ug. Shs.9,632.000/=}{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid13116102\charrsid7810677 (nine million six hundred and thirty two thousand shillings)}{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid14702475\charrsid7810677 .}{ \rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid3501285\charrsid7810677 Counsel for }{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid14428853\charrsid7810677 the plaintiff submitted that an }{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid3501285\charrsid7810677 empties}{ \rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid14428853\charrsid7810677 \rquote }{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid3501285\charrsid7810677 reconciliation (marked exhibit P.4) was done at the defendant\rquote s premises in Iganga and it was found that as at 17}{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \super\insrsid3501285\charrsid7810677 th}{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid3501285\charrsid7810677 august 2005 the outstanding balance of crates that had not been returned was 4,671.44 crates. Counsel further s}{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid14428853\charrsid7810677 ubmitted that the cost per crate was Ug. Shs.16,000/=}{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid3243830\charrsid7810677 (sixteen thousand shillings)}{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid14428853\charrsid7810677 which brought the total outstanding amount for crates to Ug. Shs.74,743,040/=}{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid3243830\charrsid7810677 (seventy four million seven hundred forty three thousand and forty shillings)}{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid11957892\charrsid7810677 . Counsel for the plainti ff submitted that the huge outstanding amounts goes to explain why future payments were allocated to settle the oldest debts leaving the last four invoices as unpaid.}{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid8521656\charrsid7810677 }{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid15355267\charrsid7810677 Counsel for the plaintiff therefore submitted that the defendant is indebted to the plaintiff to the sum claimed in the plaint and prayed that the court finds as such. \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid3814099\charrsid7810677 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12928510\charrsid7810677 Counsel for the defendant how}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13042486\charrsid7810677 ever submitted that the defendant on relying on the }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid6498387\charrsid7810677 Customer Payments A}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13042486\charrsid7810677 ccount for Nabi Impex showed court that he had paid for the beers supplied on invoice No.70133, No.75518, No.68242 and No.72555}{ \rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid16464787\charrsid7810677 (Marked exhibit P.2)}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid6498387\charrsid7810677 . Counsel for the defendant submitted that these four invoices amounted to Ug. Shs.71,280,000/= and not Ug. Shs.82,832,484/= as claimed by the plaintiff. Counsel for the defendant further submitted that the four invoices clearly showed that all empties/crates were returned to the plaintiff and signed for by the plaintiff\rquote s workers who were delive}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid1196156\charrsid7810677 ring the beers to the defendant\rquote s stores and therefore he owed no money to the plaintiff}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid5976645\charrsid7810677 for the empties. It was}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid1196156\charrsid7810677 counsel for the defendant\rquote s submission that the }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12746080\charrsid7810677 payments for the beers were}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid1196156\charrsid7810677 made in Standard Bank on the plaintiff\rquote s account and it is reflected on the Customer Payments Account for Nabi Impex at pages 6 and 7. Counsel for the defendant further submitted that the payments were made before the supply and at other times after the supply of beer.}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12746080\charrsid7810677 }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13766867\charrsid7810677 It was counsel for the defendant\rquote s submission that to rely on the letters adduced in evidence by the plaintiff and marked exhibit P.3, P.5, P.6 and P.7 would amount to departure from the plaintiff\rquote s pleadings as the cause of action arose on the 30}{\rtlch\fcs1 \af0 \ltrch\fcs0 \super\insrsid13766867\charrsid7810677 th}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13766867\charrsid7810677 day of October 2007.}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid5258946\charrsid7810677 He further submitted that the Ug. Shs.95,628 ,341/= which the defendant owed the plaintiff as at 6}{\rtlch\fcs1 \af0 \ltrch\fcs0 \super\insrsid5258946\charrsid7810677 th}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid5258946\charrsid7810677 November 2002 had long been paid for through the system of deductions from }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid16464787\charrsid7810677 the payments made by}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid5258946\charrsid7810677 the defendant }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid16464787\charrsid7810677 which were used }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid5258946\charrsid7810677 to pay }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid16464787\charrsid7810677 for }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid5258946\charrsid7810677 earlier invoices. Counsel for the defendant therefore submitted that the plaintiff has failed to prove its claim against the defendant and that court should find that the defendant does not owe Ug. Shs.82,832,484/= to the plaintiff.}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid9177531\charrsid7810677 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid5258946\charrsid7810677 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12928510\charrsid7810677 I have perused the submissions of both counsels and the evidence adduced in court in this matter. This issue hinges on }{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid2317478\charrsid7810677 whether or not }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid2317478\charrsid7810677 the defendant is indebted to the plaintiff to a tune of Ug. Shs.82,832,484/=}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12928510\charrsid7810677 .}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid3945663\charrsid7810677 }{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid12928510\charrsid7810677 To understand the }{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid10293468\charrsid7810677 manner in which payments were to be effected }{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid12928510\charrsid7810677 in this matter, one needs to start by reviewing the }{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid10293468\charrsid7810677 rights and obligations of }{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid12928510\charrsid7810677 the parties}{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid10293468\charrsid7810677 under the contract}{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid12928510\charrsid7810677 . It is not a disputed fact that on the 3}{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \super\insrsid12928510\charrsid7810677 rd}{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid12928510\charrsid7810677 of October 2002 the plaintiff entered into a distributor Agreement (Marked Exhibit P.1) with the defendant for the supply of beer. The agreement under clause 7.1.6 states that; \par }{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \i\insrsid2379381\charrsid7810677 \par }\pard \ltrpar\qj \li720\ri993\sl360\slmult1\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin993\lin720\itap0\pararsid7810677 {\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \i\insrsid12928510\charrsid7810677 \'93The distributor shall pay }{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \i\insrsid13899437\charrsid7810677 Nile Breweries Limited (NBL) for each order of the products placed, which payment shall be effected in a manner as stipulated by NBL from time to time and in accordance with his permitted credit terms as stipulated by NBL from time to time\'94}{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \i\insrsid12928510\charrsid7810677 \par }\pard \ltrpar\qj \li0\ri0\sl360\slmult1\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid7810677 {\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid2379381\charrsid7810677 \par }{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid13899437\charrsid7810677 The agreement clearly does not state the manner in which payment for beer was to b}{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid7805534\charrsid7810677 e effected however it stipulates}{ \rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid13899437\charrsid7810677 that the manner of payment would be determined by Nile Breweries Limited. Mr. Richard Itazi an Accountant of the }{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid8085414\charrsid7810677 plaintiff }{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid13899437\charrsid7810677 company testified that usually when an order is made for beer, }{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid2891638\charrsid7810677 a customer is invoiced with the beer and the be}{ \rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid15210033\charrsid7810677 er is delivered to his premises. }{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid7822562\charrsid7810677 A}{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid8007107\charrsid7810677 fter the delivery}{ \rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid15210033\charrsid7810677 of the beer, the customer }{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid2891638\charrsid7810677 makes the pa}{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid13899437\charrsid7810677 yment}{ \rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid15210033\charrsid7810677 and receipts are issued out to the customer as proof of the payments.}{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid348425\charrsid7810677 Mr. Itazi testified when any payments are made or empties are returned they are allocated against earlier o}{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid2896009\charrsid7810677 utstanding uncleared invoices. }{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid348425\charrsid7810677 He testified that it is possible for a customer to make a payment for a delivery that he took today but when it comes to the allocation of that payment, it will go to}{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid8085414\charrsid7810677 a previous uncleared payment and in the instant case}{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid348425\charrsid7810677 what remained uncleared}{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid8085414\charrsid7810677 are the }{ \rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid5717611\charrsid7810677 four }{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid8085414\charrsid7810677 invoices }{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid7934214\charrsid7810677 (}{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid8085414\charrsid7810677 marked exhibit P.2}{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid7934214\charrsid7810677 )}{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid8085414\charrsid7810677 . }{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid348425\charrsid7810677 The plaintiff}{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid12483440\charrsid7810677 adduced in evidence a list of all the }{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid2891638\charrsid7810677 tra}{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid15819223\charrsid7810677 nsactions right from the time }{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid9075726\charrsid7810677 the }{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid15819223\charrsid7810677 plaintiff}{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid2891638\charrsid7810677 begun busine }{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid15819223\charrsid7810677 ss with the defendant}{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid2891638\charrsid7810677 . }{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid15819223\charrsid7810677 Mr. Itazi test ified that the documents included invoices to the defendant}{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid2891638\charrsid7810677 , the beer delivered, }{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid15819223\charrsid7810677 the movement of }{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid2891638\charrsid7810677 empties, emp}{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid15819223\charrsid7810677 ties that went with the beer,}{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid2891638\charrsid7810677 emp}{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid15819223\charrsid7810677 ties that were returned and the}{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid2891638\charrsid7810677 payment }{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid15819223\charrsid7810677 that was effected by the defendant}{ \rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid2891638\charrsid7810677 . }{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid15819223\charrsid7810677 These documents were tendered in court and marked exhibit P.2. It was Mr. Itazi testimony that }{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid2891638\charrsid7810677 as at 30}{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \super\insrsid2891638\charrsid7810677 th}{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid15819223\charrsid7810677 April 2009 the total outstanding balance}{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid5462371\charrsid7810677 was Ug. Shs.}{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid2891638\charrsid7810677 99,762,484/=. }{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid15819223\charrsid7810677 Mr. Itazi}{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid11293028\charrsid7810677 further testified that}{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid2891638\charrsid7810677 }{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid11293028\charrsid7810677 the defendant }{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid2891638\charrsid7810677 had a collateral amount, these were payments that the customer was making to offset the balance}{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid11293028\charrsid7810677 amounting to 16,930,000/=, and therefore the net }{ \rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid2891638\charrsid7810677 outstanding debt as at 30}{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \super\insrsid2891638\charrsid7810677 th}{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid2891638\charrsid7810677 April 2009,}{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid11293028\charrsid7810677 was}{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid2891638\charrsid7810677 82,832,484/=. }{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid11293028\charrsid7810677 Further more, the plaintiff adduced in evidence a letter dated 6}{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \super\insrsid11293028\charrsid7810677 th}{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid11293028\charrsid7810677 November 2002 (Marked Exhibit P.5) in which the defendant acknowledged his indebtedness}{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid8351992\charrsid7810677 }{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid11293028\charrsid7810677 to the plaintiff }{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid8351992\charrsid7810677 as at 31}{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \super\insrsid8351992\charrsid7810677 st}{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid8351992\charrsid7810677 October 2002 amounting to}{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid11293028\charrsid7810677 Ug. Shs.92,128,341/=(ninety two million one hundred twenty eight thousand three hundred and forty one shillings)}{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid8521656\charrsid7810677 and an Empties Reconciliation as at 17}{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \super\insrsid8521656\charrsid7810677 th}{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid8521656\charrsid7810677 August 2005 (Exhibit P.4) in which the defendant acknowledges that the outstanding crates/empties that had not yet been returned amounted to 4,671.44}{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid6249350\charrsid7810677 .}{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid2891638\charrsid7810677 \par }{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \b\highlight7\insrsid11293028\charrsid7810677 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid16402178\charrsid7810677 Apart from the general denial of the defendant that he owed no money to th}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid7019802\charrsid7810677 e plaintiff}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid16402178\charrsid7810677 and the reference made by the defendant to Customer Payments Account for Nabi Impex which he claimed showed that he had paid for the beers supplied on invoice No.70133, No.75518, No.68242 and No.72555 (Marked exhibit P.2) }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid6249350\charrsid7810677 ,}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid16402178\charrsid7810677 }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid6249350\charrsid7810677 t}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid16402178\charrsid7810677 he defendant has presented nothing not even a copy of his own }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid6249350\charrsid7810677 receipts }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid16402178\charrsid7810677 to show that he had paid }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid7489571\charrsid7810677 for }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid16402178\charrsid7810677 all }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid6249350\charrsid7810677 the beer that was supplied to him. This is significant as the plaintiff has tendered in evidence a letter dated }{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid6249350\charrsid7810677 6}{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \super\insrsid6249350\charrsid7810677 th}{ \rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid6249350\charrsid7810677 November 2002 (Marked Exhibit P.5) and an Empties Reconciliation dated 17}{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \super\insrsid6249350\charrsid7810677 th}{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid6249350\charrsid7810677 August 2005 (Exhibit P.4) in which the defendant acknowledged his indebtedness to the plaintiff. The defendant has presented no }{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid14486966\charrsid7810677 evidence to show that these debt}{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid6249350\charrsid7810677 s were ever cleared.}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid6249350\charrsid7810677 It would therefore appear to me that despite the defendant\rquote s claim that he was not indebted to the plaintiff company the evidence before court clearly shows to the contrary that the defendant is still indebted to the plaintiff.}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid338379\charrsid7810677 The testimony of Mr. }{ \rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid338379\charrsid7810677 Nabongo}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid338379\charrsid7810677 that the defendant is not indebted I am afraid is inconsistent and not credible.}{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid2891638\charrsid7810677 \par }\pard\plain \ltrpar\s15\qj \li0\ri0\sb100\sa100\sbauto1\saauto1\sl360\slmult1\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid7810677 \rtlch\fcs1 \af0\afs24\alang1025 \ltrch\fcs0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid338379\charrsid7810677 In the premises, as regards the first issue, this court finds that the defendant is indebted to the plaintiff in the sum claimed. \par }\pard\plain \ltrpar\qj \li0\ri0\sl360\slmult1\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid7810677 \rtlch\fcs1 \af0\afs24\alang1025 \ltrch\fcs0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid11689219\charrsid7810677 \par }\pard \ltrpar\qj \fi-2160\li2160\ri0\sl360\slmult1\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin2160\itap0\pararsid7810677 {\rtlch\fcs1 \af0 \ltrch\fcs0 \b\insrsid7023741\charrsid7810677 Issue No.2: \tab Whether the plaintiff is entitled to the remedies sought? \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid7023741\charrsid7810677 \par }\pard \ltrpar\qj \li0\ri0\sl360\slmult1\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid7810677 {\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid15355267\charrsid7810677 The plaintiff prayed for the recovery of Ug. Shs.82,832,484/= (Eighty two million eight hundred thirty two thousand four hundred and eighty four Uganda shillings) being the cost of beer supplied by the plaintiff to the defendant, interest of 25% from 28}{ \rtlch\fcs1 \af0 \ltrch\fcs0 \super\insrsid15355267\charrsid7810677 th}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid15355267\charrsid7810677 September 2007, the time the money was demanded and not paid, until payment in full, Vat refund of}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8533835\charrsid7810677 }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid15355267\charrsid7810677 Ug. Shs.14,909,847/= (fourteen million nine hundred nine thousand eight hundred and forty seven Uganda shillings) and costs for the suit. \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid15342502\charrsid7810677 \par The plaintiff prayed for the recovery of Ug. Shs.82,832,484/= in the plaint being the cost of beer supplied by the plaintiff to the defendant.}{\rtlch\fcs1 \af0 \ltrch\fcs0 \b\insrsid15342502\charrsid7810677 }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \insrsid15342502\charrsid7810677 The plaintiff has adduced in evidence various documents }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \insrsid14027525\charrsid7810677 namely; }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \insrsid16668640\charrsid7810677 Nabi Impex Account Status as at 30/04/09, an account statement and }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid14027525\charrsid7810677 invoice No.70133, No.75518, No.68242 and No.72555 (Marked exhibit P.2), }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \insrsid14027525\charrsid7810677 showing the amount owed}{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \insrsid15342502\charrsid7810677 by the defendant }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \insrsid16668640\charrsid7810677 to the plaintiff. According to the statement, the total amount owed by the defendant is }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid16668640\charrsid7810677 Ug. Shs.99}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8939097\charrsid7810677 ,}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid16668640\charrsid7810677 762}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8939097\charrsid7810677 ,}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid16668640\charrsid7810677 483.95/= this amount according to the statement is reduced}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid2644560\charrsid7810677 by Ug. Shs.16,930,000/=}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8939097\charrsid7810677 which was unapplied cash paid on 17}{\rtlch\fcs1 \af0 \ltrch\fcs0 \super\insrsid8939097\charrsid7810677 th}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid790048\charrsid7810677 July 2003}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8939097\charrsid7810677 , leaving a total of}{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \insrsid8939097\charrsid7810677 }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8939097\charrsid7810677 Ug. Shs.82,832,484/=.}{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \insrsid8939097\charrsid7810677 I}{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \insrsid12649026\charrsid7810677 n light of my findings in issue No.1}{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \insrsid8939097\charrsid7810677 above, I accordingly award the plaintiff}{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \insrsid13848781\charrsid7810677 the sum of }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13848781\charrsid7810677 Ug. Shs.82,832,484/= (Eighty two million eight hundred thirty two thousand four hundred and eighty four Uganda shillings) being the cost of beer supplied by the plaintiff to the defendant}{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \insrsid7023741\charrsid7810677

\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid10575524\charrsid7810677 \par The plaintiff in addition prayed for Value Added Tax}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid1639580\charrsid7810677 (VAT)}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid10575524\charrsid7810677 refund of Ug. Shs.14,909,847/= (fourteen million nine hundred nine thousand eight hundred and}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid1639580\charrsid7810677 forty seven Uganda shillings). According to the invoices and the Statement (marked exhibit P.2), the total amount owed by the defendant to plaintiff is inclusive of the VAT. On that ground, I accordingly decline to award the sum of Ug. Shs.14,909,847/=}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid2127908\charrsid7810677 }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid1639580\charrsid7810677 (fourteen million nine hundred nine thousand eight hundred and forty seven Uganda shillings) prayed for by the plaintiff as being a VAT refund.}{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \insrsid1398469\charrsid7810677 \par }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \insrsid10575524\charrsid7810677 \par }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \insrsid1398469\charrsid7810677 The plaintiff also prays for interest on the amount }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8533835\charrsid7810677 of 25%}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid5976645\charrsid7810677 p.a. }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8533835\charrsid7810677 from 28}{\rtlch\fcs1 \af0 \ltrch\fcs0 \super\insrsid8533835\charrsid7810677 th}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8533835\charrsid7810677 September 2007, the time the money was demanded and not paid, until payment in full and costs for the suit.}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid1398469\charrsid7810677 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8533835\charrsid7810677 \par It is a firmly established principle that an award of interest is made at the discretion of court. It is clear that the plaintiff ou}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid3281941\charrsid7810677 gh}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8533835\charrsid7810677 t to be compensated by an award of interest for the loss thereby occasioned to it by the defendant. I therefore award the plaintiff interest on the principle amount at the rate of 21% per annum }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid1639580\charrsid7810677 from 28}{\rtlch\fcs1 \af0 \ltrch\fcs0 \super\insrsid1639580\charrsid7810677 th}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid1639580\charrsid7810677 September 2007, the time the money was demanded and not paid, until payment in full. I also award the plaintiff}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8533835\charrsid7810677 costs for the suit. \par }\pard \ltrpar\qj \li0\ri240\sb100\sa100\sbauto1\saauto1\sl360\slmult1\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin240\lin0\itap0\pararsid7810677 {\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8533835\charrsid7810677 The plaintiff is not awarded general damages as they did not pray for them. \par }\pard \ltrpar\qj \li0\ri0\sl360\slmult1\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid7810677 {\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8533835\charrsid7810677 The court enters jud}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid1639580\charrsid7810677 gment in favour of the plaintiff.}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8533835\charrsid7810677 \par \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid1639580\charrsid7810677 \par }\pard \ltrpar\qc \li0\ri0\sl360\slmult1\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid7810677 {\rtlch\fcs1 \af0 \ltrch\fcs0 \b\insrsid8533835\charrsid7810677 \'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85..

\par Geoffrey Kiryabwire \par JUDGE \par }\pard\plain \ltrpar\s15\qj \li3600\ri0\sb100\sa100\sbauto1\saauto1\sl360\slmult1\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin3600\itap0\pararsid7810677 \rtlch\fcs1 \af0\afs24\alang1025 \ltrch\fcs0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\rtlch\fcs1 \af0 \ltrch\fcs0 \b\insrsid8533835\charrsid7810677 Date}{\rtlch\fcs1 \af0 \ltrch\fcs0 \b\insrsid2106580\charrsid7810677 : 12/07/2010 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid2106580\charrsid7810677 \par }\pard\plain \ltrpar\qj \li0\ri0\sl360\slmult1\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid7810677 \rtlch\fcs1 \af0\afs24\alang1025 \ltrch\fcs0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\rtlch\fcs1 \af0 \ltrch\fcs0 \b\insrsid2106580\charrsid7810677 \par \par \par \par \par \par \par \par \par \par }\pard\plain \ltrpar\s20\ql \li0\ri0\sa120\sl360\slmult1\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid7810677 \rtlch\fcs1 \af0\afs24\alang1025 \ltrch\fcs0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 { \rtlch\fcs1 \ai\af0 \ltrch\fcs0 \insrsid2106580\charrsid7810677 12/07/2010 \par 9:54am \par }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \b\insrsid2106580\charrsid7810677 \par Judgment read and signed in open court in the presence of; \par }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \insrsid2106580\charrsid7810677 \par {\listtext\pard\plain\ltrpar \s20 \rtlch\fcs1 \ai\af0 \ltrch\fcs0 \f1\insrsid2106580\charrsid7810677 \hich\af1\dbch\af0\loch\f1 -\tab}}\pard \ltrpar\s20\ql \fi-720\li1080\ri0\sl360\slmult1\widctlpar \jclisttab\tx1080\wrapdefault\aspalpha\aspnum\faauto\ls3\adjustright\rin0\lin1080\itap0\pararsid7810677 {\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \insrsid2106580\charrsid7810677 Ruth Naisamula \endash Court Clerk \par }\pard \ltrpar\s20\qc \li0\ri0\sa120\sl360\slmult1\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid7810677 {\rtlch\fcs1 \ab\ai\af0 \ltrch\fcs0 \b\insrsid2106580\charrsid7810677 \par \'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85 \par Geoffrey Kiryabwire \par JUDGE \par Date: 12/07/2010 \par }\pard\plain \ltrpar\qj \li0\ri0\sl360\slmult1\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid7810677 \rtlch\fcs1 \af0\afs24\alang1025 \ltrch\fcs0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\rtlch\fcs1 \af0 \ltrch\fcs0 \b\insrsid2106580\charrsid7810677 \par }\pard\plain \ltrpar\s15\qj \li3600\ri0\sb100\sa100\sbauto1\saauto1\sl360\slmult1\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin3600\itap0\pararsid7810677 \rtlch\fcs1 \af0\afs24\alang1025 \ltrch\fcs0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid2106580\charrsid7810677 \par }\pard \ltrpar\s15\ql 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