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Kampala Capital City Authority v Ham Enterprises (U) Limited (Miscellaneous Cause 13 of 2023)

High Court · [2024] UGCOMMC 174 · 2024 Application Partly Allowed AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Application by notice of motion for a summary warrant to recover property rates arrears under Section 29 of the Local Governments (Rating) Act, 2005
Decision
Application partly allowed; summary warrant granted for two properties registered solely in respondent's name; warrant declined for six properties with unclear ownership and insufficient evidence

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Holding

The High Court has concurrent jurisdiction with Magistrates Courts to grant summary warrants for property rates under Section 29 of the Local Governments (Rating) Act where the amount claimed exceeds the pecuniary jurisdiction of Magistrates Courts. A summary warrant may be granted only where the court is satisfied that the person sought to be proceeded against is liable, that the amount is due, and that a demand notice was served. The court granted a partial summary warrant for properties clearly registered in the respondent's name but declined the warrant for properties with inconsistent ownership records and insufficient evidence of liability.

Outcome

Application partly allowed; summary warrant granted for two properties registered solely in respondent's name; warrant declined for six properties with unclear ownership and insufficient evidence

Facts

Kampala Capital City Authority (the Applicant) carried out property valuations in 2017 and a supplementary valuation in 2018 on eight commercial properties associated with Ham Enterprises (U) Limited (the Respondent). The Applicant published the valuation lists in the Gazette and newspapers. The Respondent initially requested installment payments in 2018, which was granted, but later claimed a ten-year tax holiday covering property rates. The Ministry of Finance clarified that property rates were not included in the tax incentives granted to the Respondent. Despite demand notices, the Respondent failed to pay property rates arrears totaling UGX 691,752,443.06. The Respondent had objected to some valuations before the Valuation Court, which reduced certain assessments. Two properties (P117014246 and P117014247) were registered solely in the Respondent's name, while six properties showed both Government of Uganda and Ham Enterprises Limited as owners. The Applicant contended the Respondent held these properties under a Public-Private Partnership for Nakivubo War Memorial Stadium and had acquired leases registered in its name, but search certificates showed varying dates of registration and plot numbers inconsistent with statements of account.

Issues

  1. Whether the High Court is vested with jurisdiction to grant a summary warrant under Section 29 of the Local Governments (Rating) Act.
  2. Whether the Applicant is entitled to a summary warrant to recover UGX 691,752,443.06 from the Respondent.
  3. What remedies are available to the parties.

Orders

  • Application partly succeeds.
  • Applicant granted summary warrant to recover UGX 169,920,000 in property rates from Respondent in respect of commercial properties P117014246 and P117014247 located in the Central Division.
  • Summary warrant declined for properties P117004726, P117004725, P117004724, P118001690, P118001691 and P118001692.
  • Each party to bear its own costs.

Rules and key headnotes

Jurisdiction — High Court — Summary Warrants for Property Rates — Concurrent Jurisdiction with Magistrates Courts
The High Court has unlimited original jurisdiction under Article 139 of the Constitution and Section 14 of the Judicature Act, which is not ousted by Section 29 of the Local Governments (Rating) Act. Where an application for a summary warrant to recover property rates exceeds the pecuniary jurisdiction of Magistrates Courts under Section 207 of the Magistrates Courts Act, the High Court and Magistrates Courts have concurrent jurisdiction to grant the warrant.
Local Governments (Rating) Act — Jurisdiction Provisions — Relationship with Constitutional Provisions on High Court Jurisdiction
A statutory provision conferring jurisdiction on a Magistrate does not oust the unlimited original jurisdiction of the High Court unless the Constitution itself expressly limits that jurisdiction. The High Court's unlimited original jurisdiction is limited only by the Constitution itself, not by Acts of Parliament.
Concurrent Jurisdiction — Choice of Forum — High Court Preferred Where Matters Exceed Lower Court Competence
Where an application contains matters within the ambit of both the High Court and Magistrates Courts, but the pecuniary value exceeds Magistrates Court jurisdiction, the proper forum is the High Court. It is illegal for a Magistrate Court to exercise pecuniary jurisdiction that it does not have.
Property Rates — Summary Warrant — Requirements under Section 29 Local Governments (Rating) Act
Before granting a summary warrant under Section 29(4) of the Local Governments (Rating) Act, the 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 him or her; and (c) he or she has been duly served with a demand notice and two months have lapsed without payment. All three requirements must be satisfied.
Property Rates — Publication Requirements — Effect of Non-Compliance with Electronic Media Publication
While Section 21(2) of the Local Governments (Rating) Act requires publication of valuation lists in electronic media or radio, failure to publish in electronic media does not invalidate the valuation where the notice was properly published in the Gazette and newspapers under Section 21(1), and where the affected party in fact objected to the valuation before the Valuation Court, demonstrating actual knowledge.
Property Rates — Liability to Pay — Burden of Proof — Inconsistent Ownership Records
Where statements of account issued by a local government show property ownership in the names of both Government and a private entity, and search certificates show varying registration dates and plot number discrepancies, the applicant bears the burden of adducing sufficient evidence to establish that the respondent is the person liable for property rates. In the absence of clear evidence resolving ownership contradictions and inconsistencies, a court may decline to grant a summary warrant.

Legislation cited (15)

Cases cited (11)

  • Uganda Telecom Ltd v ZTE Corporation (Supreme Court Civil Appeal No. 3 of 2017)
  • Gagula Benefansio v Wakidaka Merabu (High Court Civil Appeal No. 29 of 2006)
  • Uganda Revenue Authority v Rabbo Enterprises (U) Ltd & Anor (Supreme Court Civil Appeal No. 12 of 2004)
  • Koboko District Local Government v Okujjo Swali (High Court Miscellaneous Application No. 1 of 2016)
  • Ozuu Brothers Enterprises v Ayikoru Milka (High Court Civil Review No. 2 of 2016)
  • Businge Maxim and Another v Sinopec Services (U) Ltd (High Court Civil Suit No. 7 of 2023)
  • Opio Daniel v Otaka Vincent & Lira Municipal Council (Court of Appeal Civil Appeal No. 124 of 2013)
  • Tibwomu Charles Wanenge v Aweko Charles & 3 others (High Court Civil Appeal No. 57 of 2015)
  • Male H.K. Mabirizi v Attorney General (High Court Miscellaneous Application No. 193 of 2021)
  • Kampala Capital City Authority v Aya Investments (U) Ltd t/a Pearl of Africa (High Court Miscellaneous Cause No. 10 of 2019)
  • Uganda Development Bank v Muganga Construction Co. Ltd [1981] HCB 35

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 Ham Enterprises (U) Limited (Miscellaneous Cause 13 of 2023) [2024] UGCommC 174 (3 May 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.