Wakilii

Kabaco (U) Ltd v Rwimi Subcounty Local Government & Anor (MISC. APPLICATION No. 0041 OF 2007)

High Court · [2010] UGHCCD 6 · 2010 Application Dismissed AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Application for temporary injunction arising from civil suit for breach of contract
Decision
Application dismissed; respondents to remain in quiet possession of the suit premises

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

Held that the applicant failed to establish a prima facie case for temporary injunction where it was in clear breach of contract by exceeding the two-year development period by two and a half years without seeking extension. The court found no irreparable injury would result from refusing the injunction, as the applicant had not commenced any business and any projected losses were speculative. Balance of convenience favoured leaving the status quo undisturbed with the respondents in possession.

Outcome

Application dismissed; respondents to remain in quiet possession of the suit premises

Facts

In 2003, the applicant company and the first respondent local government concluded a contract whereby the applicant was to construct a fuel service station on land at Rwimi Trading Centre. The contract, documented in Land Form 2, required the applicant to develop the land immediately and contained an express warning that any plot not developed within two years would be offered to another person. The applicant accepted the offer on 28 April 2003. Although the applicant commenced some development work, by early 2007 it had not completed the service facilities. In November 2006, the second respondent fenced off the land, preventing the applicant from accessing it. By the time of re-entry, four and a half years had elapsed since the contract was concluded, exceeding the two-year development period by two and a half years. The applicant had completed all pre-requisite processes by end of 2004 but was dependent on a third party, Total (U) Ltd, to whom it intended to lease the land for fuel supply. No fuel station had been constructed and no business commenced on the land. The applicant sought a temporary injunction to preserve the status quo pending determination of the main suit.

Issues

  1. Whether the applicant established a prima facie case with probability of success to warrant the grant of a temporary injunction.
  2. Whether the applicant would suffer irreparable injury if the temporary injunction were not granted.
  3. Where the balance of convenience lies as between the parties.

Orders

  • Application for temporary injunction dismissed.
  • Interim order of injunction previously granted by the Deputy Registrar vacated.
  • Costs of the application to be in the cause.

Rules and key headnotes

Temporary Injunctions — Prima Facie Case — Breach of Contract by Applicant
An applicant who is in clear breach of contract cannot establish a prima facie case with probability of success to warrant the grant of a temporary injunction where the breach consists of exceeding a contractual development deadline by a substantial period without seeking extension from the other party.
Temporary Injunctions — Test for Grant
The principles governing the grant of temporary injunction require the applicant to show: first, that there is a prima facie case with probability of success; second, that unless the injunction is granted, irreparable injury which damages would not adequately compensate might result; and if the court is still in doubt after considering these two factors, it must decide on the basis of where the balance of convenience lies.
Temporary Injunctions — Irreparable Injury — Speculative Losses
Where an applicant has not commenced any business on land and pleaded special damages are mere speculative projections with no representation of real or potential earnings, no irreparable injury can be said to arise from refusal of a temporary injunction, and any loss suffered prior to determination of the suit would be compensable in damages.
Breach of Contract — Time for Performance — Development of Land
Where a contract for use of land contains an express term requiring development within a specified period and warning that failure to develop will result in the land being offered to another person, exceeding that period without seeking extension constitutes a clear breach of contract.

Legislation cited (3)

  • Civil Procedure Rules O.41 r.1(a)
  • Civil Procedure Rules O.41 r.2
  • Civil Procedure Rules O.41 r.9

Cases cited (2)

  • E.L.T. Kiyimba-Kaggwa v Haji Abdu Nasser Katende (HCCS No. 2109 of 1984)
  • American Cyanamid Co v Ethicon Ltd [1975] 1 All ER 504

Full judgment

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

Kabaco (U) Ltd Vs Rwimi Subcounty Local Government & Anor (MISC. APPLICATION No. 0041 OF 2007) [2010] UGHCCD 6 (10 February 2010)
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.