Hotloaf bakery ordered to pay $22,000 in flour supply dispute

KAMPALA, Uganda — The Commercial Division of the High Court has ruled in favor of Engaano Millers Ltd. in a debt recovery case against Hotloaf Bakery Ltd., ordering the bakery to pay 82 million Ugandan shillings ($22,000).

In a judgment delivered on June 19, Justice Patience Rubagumya dismissed Hotloaf Bakery’s application for leave to defend the suit, citing the bakery’s admission of debt and lack of triable issues.

Engaano Millers had filed a civil suit seeking to recover 92 million Ugandan shillings ($25,000) from Hotloaf Bakery, stemming from a contract executed on Dec. 5, 2018, for the supply of drum wheat flour.

Hotloaf Bakery acknowledged receiving the flour and admitted its indebtedness but argued it had already paid 20 million Ugandan shillings ($5,500), reducing the outstanding amount to 82 million Ugandan shillings ($22,000).

The bakery requested permission to defend the suit and proposed paying the debt in weekly installments of 5 million Ugandan shillings ($1,375), citing financial hardships.

However, Engaano Millers’ accountant, Naluswa Roy Jacob, opposed the application, insisting Hotloaf Bakery had no plausible defense.

Justice Rubagumya found no triable issues of law or fact that would justify a full trial, ruling that the outstanding amount was not contested by Hotloaf Bakery.

The court awarded interest and legal costs to Engaano Millers, emphasizing that summary procedure is intended for “clear and straightforward cases” where the demand is liquidated and there are no issues for determination by the court.

Hotloaf Bakery must now pay the awarded amount plus interest and legal costs, or face enforcement proceedings.