Court Orders Uganda Investment Authority To Cough Millions To Tirupati For Breach Of Contract

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Mukono High Court Judge Florence Nakachwa has ordered Uganda Investment Authority (UIA) to pay Tirupati Development Limited sixty million damages and all the money which was paid by the plaintiff in the process of acquiring the land located situated in Goma Division , Mukono district.Block 113 Plots No. A019

In her ruling , the judge noted that there is enough evidence to prove that Tirupati and UIA entered into agree to acquire the land comprised in Kyaggwe Block 113 Plots No. A019 and A020 situated at Namanve Kiwanga-Mawutu and Nantabulirwa, Goma Division, Mukono but later on the same land was given to another company without informing the first.

“The Defendant neither filed its written statement of defence nor entered physical appearance in court despite effective service of court process. Proof of service was on court record. Accordingly, this suit proceeded ex-parte.”

In the evidence presented in court during the hearing stage, Prosecution witness one (PW1) who is one of the Directors of Tirupati told court that in 2008 they applied for lease on the said land , they received an invoice of USD 22,880 from UIA which they went ahead and paid.

He further testified that vide letters dated 28th October, 2010 and 5th January, 2011, the Defendant authorized the Commissioner Land

 

Registration to provide surveying services on behalf of the Plaintiff in respect of the two plots , Tirupati paid land fees for the surveying to be conducted.

 

“That the Plaintiff went ahead and procured a NEMA certificate and paid a total of UGX. 7,000,000/=, That the Plaintiff also procured architectural plans for the intended project. And that the Defendant well aware of the preceding developments on the suit land has in bad faith refused to give the Plaintiff land titles with the intention of unlawfully and illegally taking away the Plaintiffs land and allocating it to third parties.”

 

Court ruled that basing on evidence on record Tirupati requested for the land title in order to register its lease hold title but to-date it has not been handed over by the UIA which has led the plaintiffs into losses since all their development projects stalled.

“This court therefore orders that the defendant: (a)pays US $ 22,880 to the plaintiff as money paid in compliance with the lease agreement; (b)pays UGX 7,000,000 to the plaintiff as money paid to NEMA for environment impact assessment;(c) pay general damages of UGX.60,000,000/= awarded to the

 

Plaintiff (d) the interest of 69% per annum on the items in (a), (b).” ruled justice Nakachwa.

 

She also awarded costs of the suit to Tirupati Development Limited.

Background

The Plaintiff brought this suit against the Defendant for specific performance, declaration that the Plaintiff is the owner of the suit land;permanent injunction; a declaration that the Defendant is in breach of the terms of the lease agreement entered into with the Plaintiff, a consequential order transferring or vesting the suit land into the Plaintiff’s name.

In the alternative, an order that the Defendant Compensates the Plaintiff the current monetary value of the suit land, special and general damages, interest and costs of the suit.

In 2008, the Plaintiff applied for allocation of land from the Defendant and in 2011 it was granted. The Plaintiff got leases for land comprised in Kyaggwe Block 113 Plots No. A019 and A020 situated at Namanve Kiwanga-Mawutu, Nantabulirwa, Goma Division, Mukono District.

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UG Standard

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