Wakilii

Mukisa Mpewo Enterprises Ltd v Kampala City Authority (Misc.Application No. 590 of 2013)

High Court · [2014] UGHCCD 48 · 2014 Application Granted — Compensation Awarded AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Application for assessment of compensation pursuant to alternative remedy granted in earlier constitutional enforcement proceedings
Decision
Applicant awarded compensation at full market value in lieu of vacant possession of leased land

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

Held that where a court order grants a lease or compensation as alternative remedies, and the lessor executes a lease but fails to give vacant possession due to third party occupation, the lessee is entitled to the alternative remedy of compensation assessed at the full market value of the land. The proper procedure is to apply for assessment of the alternative remedy already granted, not to file a fresh suit. A lessee who never obtains possession due to third party occupation is deemed to have been evicted and entitled to damages at market value.

Outcome

Applicant awarded compensation at full market value in lieu of vacant possession of leased land

Facts

The Applicant filed Misc. Cause No. 1 of 2012 seeking to enforce its property rights to Plot 1 Spring Road under Article 50 of the Constitution. On 18 July 2012, the court ordered Kampala Capital City Authority to lease the plot to the Applicant or, in case of non-compliance, pay prompt and adequate compensation. On 3 October 2012, KCCA executed a lease agreement with the Applicant and registered the Applicant's interest on its certificate of title. However, KCCA failed to give vacant possession of the land, which remained occupied by third parties (truck drivers). The Applicant's advocates wrote to KCCA on 4 July 2013 requesting removal of trespassers but received no response. The Applicant then filed this application seeking assessment of compensation as the alternative remedy. The Applicant obtained a valuation report assessing the land at UGX 5,200,000,000.

Issues

  1. Whether the Applicant is entitled to assessment of compensation as an alternative remedy where the Respondent executed a lease but failed to give vacant possession.
  2. Whether the proper procedure was to bring a fresh suit for compensation or to apply for assessment under the alternative remedy already granted.
  3. Whether the Applicant, having entered into a lease agreement with the Respondent, is estopped from seeking compensation as an alternative remedy.
  4. What is the measure of compensation where a lessee is never put in possession of leased premises occupied by third parties.

Orders

  • Application granted.
  • Compensation assessed and awarded at UGX 5,200,000,000 (Five Billion Two Hundred Million Shillings).
  • Claim for loss of rent from January 2004 to date (UGX 3,846,623,642) declined as speculative.
  • Costs awarded to the Applicant.

Rules and key headnotes

Civil Procedure — Alternative Remedies — Enforcement — Where Court Grants Alternative Remedies in Original Order
Where a court order grants alternative remedies (specific performance or compensation), and one remedy proves impossible to implement fully, the proper procedure to enforce the alternative remedy is by application under the original proceedings, not by filing a fresh suit. To require a fresh suit would result in res judicata and constitute a multiplicity of proceedings contrary to Section 33 of the Judicature Act.
Land & Property — Leasehold Tenure — Covenant for Quiet Enjoyment — Obligation to Deliver Vacant Possession
Under Section 3(5)(c) of the Land Act, leasehold tenure grants the lessee exclusive possession of land. In every lease agreement there is an implied covenant for quiet enjoyment, under which the landlord must put the tenant in possession of the premises at the outset of the tenancy. Execution of a lease document without delivery of vacant possession does not constitute full compliance with a court order to lease land.
Damages & Quantum — Assessment of Compensation — Market Value Where Purchaser or Lessee Never Obtains Possession
Where a third party is in possession of property at the time of conveyance or execution of a lease, and remains in possession such that the purchaser or lessee is never put in possession, the purchaser or lessee can be taken to have been evicted although never in possession. The normal measure of damages in such circumstances is the market value of the land.
Administrative Law — Enforcement of Court Orders Against Public Authorities — Responsibility for Third Party Occupation
Where a public authority is ordered to lease land to an applicant and execute a lease but fails to evict third parties from the land, the authority cannot avoid its obligation to deliver vacant possession by characterising the occupants as trespassers whom the lessee should evict. The authority bears the obligation to deliver vacant possession and, if it fails to do so, must pay compensation as the alternative remedy.
Damages & Quantum — Speculative Damages — Loss of Rent — Discretion to Disallow
Under Section 98 of the Civil Procedure Act, the court has discretion to decline to award heads of damages that are speculative or would impose unreasonable financial strain on a public authority responsible for service delivery. Claims for loss of rent over extended historical periods may be disallowed on this basis.

Legislation cited (8)

Cases cited (3)

  • A M Dharas & Sons Ltd v Elys Ltd (1963) 1 EA 573
  • Massa Samwiri v Rose Achen (1978) HCB 297
  • Banque Des Marchands de Moscou (Koupetschesky) (In Liquidation) v Kindersley and Another [1950] 2 All ER 549

Full judgment

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

Mukisa Mpewo Enterprises Ltd v Kampala City Authority (Misc.Application No. 590 of 2013) [2014] UGHCCD 48 (28 March 2014)
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.