By Sadique Bamwita
KAMPALA
The High Court sitting in Kampala has ordered Paramount Hospital Kampala Ltd to pay Shs.48 million to Medequip Uganda Ltd for breach of a contract for the supply of medical equipment.
In his ruling delivered on September 1, 2026, Acting High Court Judge Justice Peter Kinobe told court that without reasonable doubt Medequip Uganda Ltd was deprived of its money for the supply of medical equipment to Paramount hospital Ltd, which greatly inconvenienced it because the funds could have been used in the course of its business.
“The actions of the Paramount hospital Ltd go to the root of the contract and, in the circumstances, they amount to a fundamental breach,” Justice Kinobe ruled.
In his wisdom, Justice Peter Kinobe ordered Paramount Hospital Kampala Ltd to pay Medequip Uganda Ltd special damages of Shs.42 million and general damages of Shs.6 million.
During court proceedings, Medequip Uganda Ltd told court that it entered into an agreement with Paramount Hospital Kampala Ltd on November 2, 2019, for the supply of medical equipment at a cost of Shs.75 million.
Later Medequip Uganda Ltd delivered the equipment to Paramount Hospital Kampala Ltd in accordance with the terms of the agreement. Paramount hospital was required to pay an initial sum of Shs.30 million within two weeks of delivery through postdated cheques, while the balance was to be paid within six months thereafter.
Medequip Uganda Ltd further contended that, contrary to the agreement, Paramount Hospital Kampala Ltd made an initial payment of Shs.25 million on November 2, 2019, and thereafter made four instalment payments totalling Shs7.9 million.
Since June 2020, Paramount hospital made no further payments, leaving an outstanding balance of Shs51.2 million, inclusive of interest at two per cent per month from the due date until the filing of the suit.
As a result of the breach, Medequip Uganda Ltd said it suffered financial loss and inconvenience, for which it held the Paramount hospital liable.
Medequip Uganda Ltd told court that it served several demand notices were to Paramount hospital, but no response was received.
Although the defendant was served with summons to file a defence together with the plaint, it did not file a written statement of defence.
