Wakilii

East Africa Boreholes Limited v Oyam District Local Government & 2 Others (Miscellaneous Cause 4 of 2018)

High Court · [2023] UGHC 347 · 2023 Application Dismissed AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Application for judicial review seeking prerogative orders of certiorari, prohibition, mandamus, and damages arising from contract termination by local government authority
Decision
Application for judicial review dismissed; contract termination by local government upheld

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

The High Court held that the applicant established locus standi for judicial review under Judicature (Judicial Review) (Amendment) Rules. However, the court found that the respondent local government's termination and reallocation of construction contracts to a second bidder, after the applicant had notified the respondent of equipment breakdown, was justified. The application for prerogative orders was dismissed with no order as to costs.

Outcome

Application for judicial review dismissed; contract termination by local government upheld

Facts

The applicant, East Africa Boreholes Limited, was awarded three contracts by Oyam District Local Government for construction of 18 deep boreholes valued at UGX 347,194,120, with a three-month performance period commencing November and December 2017. The applicant experienced equipment breakdown and imported spare parts from India. On 5 February 2018, the applicant gave early warning and requested contract extension. The respondents terminated the contracts by letter dated 15 February 2018, pending formalization by the contracts committee, and moved to award the contracts to the next best evaluated bidder. The applicant brought judicial review seeking certiorari, prohibition, mandamus, damages, and costs.

Issues

  1. Whether there is a fit and proper case for judicial review.
  2. Whether the 1st and 2nd Respondents' actions to terminate the contract of the Applicant and award the same to the second bidder are ultra vires, irregular, and illegal.
  3. Whether the Applicants are entitled to the remedies sought.

Orders

  • Application dismissed.
  • Each party to bear their own costs.

Rules and key headnotes

Administrative Law — Judicial Review — Locus Standi — Direct or Sufficient Interest
Under Rule 3A of the Judicature (Judicial Review) (Amendment) Rules SI 32 of 2019, any person who has a direct or sufficient interest in a matter may apply for judicial review. A party who is aggrieved by administrative decisions and whose interest is directly affected satisfies the locus standi requirement.
Administrative Law — Judicial Review — Evidential Burden — Uncontroverted Affidavit Evidence
Where facts are sworn to in an affidavit and are not denied or rebutted by the opposite party, the presumption is that they are accepted as the truth.
Administrative Law — Illegality — Definition and Scope
Illegality in administrative law arises when a decision-making authority acts without jurisdiction, ultra vires, or contrary to the provisions of law or its principles. Acting without jurisdiction or ultra vires or contrary to law are instances of illegality.
Judicial Review — Grounds for Relief — Illegality, Irrationality, Procedural Impropriety
To succeed in an application for judicial review, the applicant must show that the decision or act complained of is tainted with illegality, irrationality, or procedural impropriety.
Contract Law — Government Contracts — Termination — Justification for Termination After Notice of Delay
Where a contractor notifies the contracting authority of performance difficulties and requests an extension, but the contracting authority terminates the contract and reallocates it to another bidder, such termination may be justified where the contractor ultimately fails to execute the contract within stipulated timelines.

Legislation cited (6)

Cases cited (7)

  • Massa v Achen [1978] HCB 297
  • Ojangole Patricia & 4 Others v Attorney General (HCMC No. 303 of 2013)
  • Geraldine Sail Busuulwa v National Social Security Fund & Another (HCMC No. 032 of 2016)
  • Thugitho Festo v Nebbi Municipal Council (HCMA No. 15 of 2017)
  • Fuelex Uganda Ltd v Attorney General & Others (HCMC No. 48 of 2014)
  • Daniel K.N. Semambo v National Animal Genetic Resource Centre (HCMC No. 30 of 2017)
  • Council of Civil Service Unions v Minister for Civil Service [1985] AC 374

Full judgment

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The original judgment as reported. Read the original PDF before relying on any passage.

East Africa Boreholes Limited v Oyam District Local Government & 2 Others (Miscellaneous Cause 4 of 2018) [2023] UGHC 347 (21 February 2023)
Source: this page presents Wakilii’s issue analysis and metadata for a publicly reported Ugandan judgment. Any AI-generated summary is marked as such. Judgment text is sourced from the Uganda Legal Information Institute (ulii.org). Wakilii is not affiliated with ULII.