Mark Rubatsimbira and Another v Babigumira Andrew and Another (Civil Suit No. 783 of 2021)
Observed later treatment
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Holding
The court held that the defendants lawfully terminated the land procurement contract under clauses 5 and 7 of the addendum. The plaintiffs received information via WhatsApp that the title had been registered in the first defendant's name but failed to pay the outstanding balance within 14 days as required. The literal interpretation of the contract clauses supported automatic termination. The plaintiffs' suit for specific performance was dismissed. The defendants were ordered to refund UGX 177,100,000 paid by the plaintiffs for total failure of consideration.
Outcome
Plaintiffs' suit dismissed; counterclaim granted; first defendant ordered to refund UGX 177,100,000 to plaintiffs; tenancy agreement declared subsisting
Facts
The plaintiffs entered into a five-year tenancy agreement with the defendants for land comprised in Kyadondo Block 194 Plot 44, Kungu. On 21 June 2018, the parties executed an addendum transforming the tenancy into a sale agreement for 55 decimals at UGX 302,500,000. The plaintiffs paid UGX 177,100,000 in instalments. The defendants registered the title in the first defendant's name and sent a WhatsApp message informing the first plaintiff. The plaintiffs did not pay the outstanding balance within 14 days. The defendants terminated the agreement by letter dated 6 August 2018, invoking clauses 5 and 7 of the addendum. The plaintiffs remained in occupation of the land with developments including a gate, football pitch, toilet structure, and perimeter wall. The plaintiffs sued for specific performance, claiming the termination was unlawful. The defendants counterclaimed for declarations that the addendum was validly terminated and the tenancy agreement subsisted.
Issues
- Whether the plaint discloses any reasonable cause of action?
- Whether the defendants are in breach of the sale agreement/procurement contract dated 21st June 2018?
- Whether the addendum to the tenancy agreement and procurement agreement automatically terminated within clause 7?
- Whether the defendants rightfully terminated the agreement?
- Whether the defendants' counterclaim discloses any cause of action against the plaintiffs/counter defendants?
- What remedies are available to the parties?
Orders
- Plaintiffs' suit dismissed.
- Counterclaim succeeds.
- Declaration that the addendum to the tenancy agreement executed between the plaintiffs and defendants dated 21st June 2018 was lawfully terminated.
- Declaration that the tenancy agreement between the plaintiffs and defendants dated 1st January 2017 still subsists.
- Order directing the 1st defendant to refund UGX 177,100,000 to the plaintiffs for total failure of consideration.
- Costs of the suit and the counterclaim awarded to the defendants.
Rules and key headnotes
Legislation cited (3)
- Civil Procedure Rules O.7 r.11(a)
- Evidence Act s.101(1)
- Evidence Act s.103
Cases cited (4)
- Kapeka Coffee Works Ltd v NPART (Court of Appeal Civil Appeal No. 3 of 2000)
- Auto Garage & others v Motokov (No.3) [1971] EA 514
- Chandan Kumar v Majook John (High Court Civil Suit No. 752 of 2019)
- Dooba Developments Ltd v MacLagan Investments Ltd [2016] EWHC 2944 (Ch)
Cases citing this judgment (1)
How later Ugandan judgments in the Wakilii corpus have cited this case. Treatment labels come from Sequitur — Uganda’s citator — each backed by a verbatim span from the citing judgment, and are not an assertion that this case is, or is not, good law.
Full judgment
The original judgment as reported. Read the original PDF before relying on any passage.