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Kampala Capital City Authority v Fuelex Uganda Limited (Miscellaneous Cause 62 of 2023)

High Court · [2024] UGCOMMC 135 · 2024 Application Granted AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Application by notice of motion for summary warrant to recover unpaid property rates
Decision
Summary warrant granted to recover outstanding property rates

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

The High Court granted a summary warrant under section 29 of the Local Governments (Rating) Act 2005 to Kampala Capital City Authority to recover UGX 93,502,237 in unpaid property rates from Fuelex Uganda Limited. The court found that all statutory conditions were satisfied: the respondent was liable for the property rates, the amount was due, and the respondent had been duly served with a demand notice more than two months before the application was filed. The application proceeded ex parte as the respondent failed to enter appearance despite multiple forms of service.

Outcome

Summary warrant granted to recover outstanding property rates

Facts

Kampala Capital City Authority (KCCA), a statutory body charged with administering Kampala Capital City, conducted valuations of properties in Central, Kawempe and Makindye Divisions in 2017 and 2019 for purposes of determining property rates payable. Fuelex Uganda Limited owned twelve commercial properties across these three divisions which were valued and subjected to approved rates of 6% (later reduced to 4% for some periods). Despite gazette notices being published notifying the public of the coming into force of valuation lists and rates, Fuelex failed to pay the accumulated property rates totaling UGX 93,502,237. KCCA issued a demand notice cum notice of intention to sue on 10 January 2023, which was served and received at Fuelex's Makindye station on 25 January 2023. Fuelex made no payments thereafter. KCCA filed this application on 30 June 2023. Despite service through multiple methods including registered post, publication in New Vision newspaper, email to the managing director, and physical delivery to the receptionist, Fuelex did not enter appearance or file any reply. The court granted an order to proceed ex parte on 30 January 2024.

Issues

  1. Whether the Applicant should be granted a summary warrant to recover UGX 93,502,237 from the Respondent?
  2. What remedies are available to the parties?

Orders

  • The Applicant is hereby granted a summary warrant to recover UGX 93,502,237 (Uganda Shillings Ninety Three Million Five Hundred Two Thousand Two Hundred Thirty Seven Only) due to it in property rates from the Respondent in respect of its commercial properties described as P117008027, P117008028, P117008029 located in the Central Division, P319008144, P319008145, P319008146, P319038361, P319038362, P319038363, P319038364 located in the Kawempe Division, P419018999 and P419019000 located in the Makindye Division.
  • Costs of the application are awarded to the Applicant.

Rules and key headnotes

Administrative Law — Recovery of Property Rates — Summary Warrant — Requirements under Local Governments (Rating) Act
Before granting a summary warrant for recovery of unpaid property rates under section 29(4) of the Local Governments (Rating) Act 2005, a court must be satisfied that: (a) the person sought to be proceeded against is liable to pay the amount; (b) the amount is due from that person; and (c) that person has been duly served with a demand notice and two months have lapsed without payment of the property rates due.
Civil Procedure — Ex Parte Proceedings — Effect of Failure to Reply — Unchallenged Evidence
Where an applicant supports an application by affidavit evidence and the respondent does not reply by affidavit or otherwise despite being duly served, and the supporting evidence is credible in itself, the facts stand as unchallenged and are presumed to be admitted.
Administrative Law — Local Government Powers — Kampala Capital City Authority — Power to Levy and Collect Property Rates
Kampala Capital City Authority is a statutory body corporate with the legal mandate and obligation to value, levy and collect property rates from all owners and tenants of commercial and residential rented properties within its jurisdiction on behalf of the Central Government.
Civil Procedure — Service of Process — Substituted Service — Multiple Methods of Service
Where physical service on a respondent proves unsuccessful, the court may order substituted service through multiple methods including registered post, publication in a newspaper of wide circulation, service on a receptionist at business premises, and email to known email addresses of the company's managing director. Service effected through any of these methods is deemed sufficient to satisfy procedural requirements.

Legislation cited (15)

Cases cited (4)

  • Serefaco Consultants Ltd v Euro Consult BV and Another (Civil Application No. 16 of 2007)
  • William Akankwasa v Registrar of Titles (HCMA No. 33 of 2008)
  • Samwiri Masa v Rose Achieng [1978] HCB 297
  • Kampala Capital City Authority v Aya Investments (U) Ltd t/a Pearl of Africa (HCMA No. 10 of 2019)

Full judgment

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

Kampala Capital City Authority v Fuelex Uganda Limited (Miscellaneous Cause 62 of 2023) [2024] UGCommC 135 (12 April 2024)
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.