The High Court in Kampala has overturned a lower court decision that had awarded more than UGX 24 million to a supplier in a commercial dispute involving the supply of spare parts to a tobacco company.
In a judgment delivered on June 10, 2026, Justice Boniface Wamala allowed an appeal filed by Meridian Tobacco Company Ltd against Ssejjemba Investments Ltd, ruling that the respondent had failed to sufficiently prove delivery of the goods it claimed remained unpaid for.
The dispute arose from a suit filed before the Mengo Chief Magistrate’s Court in 2019, where Ssejjemba Investments sought recovery of UGX 17.1 million allegedly owed for spare parts supplied to Meridian Tobacco between 2014 and 2017. The company also sought general damages, interest, and costs.
The trial court had ruled in favour of Ssejjemba Investments, awarding the company UGX 17.1 million in special damages, UGX 7 million in general damages, plus interest and legal costs.
However, Meridian Tobacco challenged the ruling before the High Court, arguing that the supplier had failed to prove that the goods were actually delivered and received.
Through its lawyers, the appellant maintained that the alleged deliveries were unsupported by signed delivery notes, proof of transportation, or evidence showing who received the goods on behalf of the company.
Court heard that the supplier relied on an oral agreement allegedly reached in 2014 and supported by Local Purchase Orders, invoices, delivery notes, and records of previous payments made by the tobacco company.
Justice Wamala agreed that evidence on record showed that the two companies had previously engaged in business transactions and that a contractual relationship could be implied from their conduct.
The judge noted that payments reflected in bank statements supported claims that the parties had prior dealings involving supply of goods.
However, the court found that the key issue was whether the specific goods claimed in the suit had actually been delivered and received.
Justice Wamala faulted the respondent for relying on unsigned delivery notes and what he described as an unverified transaction account statement that formed the basis of the UGX 17.1 million claim.
“The respondent had to prove each item included in the transaction statement if any was to be awarded as special damages,” the judge ruled.
He further observed that operating for more than three years without obtaining signatures on any delivery notes demonstrated poor business practice and weakened the supplier’s case.
The judge also noted that although the respondent claimed the goods were transported by bus from Kampala to Arua, there was insufficient evidence showing actual delivery to the appellant.
As a result, the High Court concluded that the lower court had wrongly awarded both special and general damages without adequate proof.
The court consequently set aside the entire judgment and dismissed the original suit with costs awarded to Meridian Tobacco Company both in the appeal and in the lower court proceedings.
English 