Court allows transporter to defend sh655m commercial dispute

KAMPALA - The Commercial Division of the High Court has allowed Blue Pearls Company Limited, a provider of cargo, passenger transportation, logistics and clearing services, to defend a sh655.1 million suit.

On April 24, 2026, Justice Patience Rubagumya permitted the company to file an interlocutory application out of time, enabling it to defend the suit brought against it by Oryx Energies Uganda Limited.

“Having resolved the issue in the affirmative, the applicant (Pearls Company Limited), is hereby granted leave to file its written statement of defence out of time. Accordingly, this application is granted with the following orders: The Interlocutory judgment entered against the applicant civil suit number 1411 of 2024 is hereby set aside.

The applicant is hereby ordered to file and serve its written statement of defence within 15days from this date of this ruling. The respondent shall file and serve its reply to the written statement of defence of service, “Rubagumya said.

Background

Court records indicate that on August 21, 2020, Oryx Energies Uganda Limited filed a civil suit against Blue Pearls Company Limited, seeking recovery of sh655,129,147, along with damages, interest and costs.

Blue Pearls Company Limited filed its defence on September 9, 2020. However, the suit later abated on November 30, 2022, after Oryx Energies Uganda Limited allegedly failed to take the necessary procedural steps to progress the matter.

Two years later, on November 19, 2024, Oryx Energies Uganda Limited instituted a fresh suit seeking to recover the same amount for goods supplied.

Blue Pearls Company Limited contends that it was purportedly served through a notice published in one of the local newspapers, but maintains that it neither saw nor became aware of the summons.

It states that it only learned of the suit on March 17, 2026, after being informed by its lawyers.

Blue Pearls Company Limited further argues that it has always been ready and willing to defend the claim and has a bona fide and triable defence. It adds that Oryx Energies Uganda Limited would suffer no prejudice if the interlocutory judgment is set aside, noting that its failure to appear in court was due to lack of knowledge of the proceedings.

In response, Oryx Energies Uganda Limited, through an affidavit sworn by its Legal and Compliance Manager, Mercy Najjuma, opposed the application, asserting that the applicant’s lawyer, Tom Magezi, was duly served with the plaint and summons to file a defence on December 16, 2024.