Wakilii

National Cement Company Uganda Limited v Iman Africa Energy Group (Civil Suit No. 453 of 2023)

High Court · [2025] UGCOMMC 543 · 2025 Judgment for Plaintiff AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
First instance civil suit for recovery of unpaid rent, service charges, and utility bills following landlord-tenant default
Decision
Judgment entered in favour of the plaintiff for all amounts claimed plus costs

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

The High Court Commercial Division held that a landlord-tenant relationship existed between the parties following a cession agreement transferring ownership of the leased premises. The defendant breached the tenancy agreement by failing to pay rent, service charges, parking fees, and utility bills for multiple months despite demand notices and notices of re-entry. The plaintiff proved its claim for special damages through the tenancy agreement, cession agreement, and uncontested evidence. The Court awarded the full amounts claimed as special damages plus costs.

Outcome

Judgment entered in favour of the plaintiff for all amounts claimed plus costs

Facts

On 29 March 2021, the defendant entered into a three-year tenancy agreement with Course View Limited for office space on the third floor of Course View Towers, Plot 21, Yusuf Lule Road. The agreement provided for escalating monthly rent (USD 1,512 in year one, USD 1,587.60 in year two, USD 1,667.52 in year three), parking fees of USD 90 monthly, and service charges of USD 420.12 monthly, all exclusive of VAT. On 24 May 2022, the plaintiff purchased the building and the parties executed a tripartite cession agreement with KCB Bank Uganda Limited, making the plaintiff the new landlord on the same terms. From June 2022 to February 2023, the defendant failed to pay rent, service charges, and parking fees for three quarters, and failed to pay utility bills from March 2021 to February 2023. The plaintiff issued demand notices on 22 November 2022 and notices of re-entry on 5 January 2023 and 2 February 2023. On 7 February 2023, the plaintiff re-entered the premises and stored the defendant's property. The defendant, a Mauritius-registered company, did not respond to the notices or clear the arrears. The suit proceeded ex parte after the defendant's advocates withdrew and substituted service was effected in Mauritius.

Issues

  1. Whether the defendant is indebted to the plaintiff to a sum of USD 22,639.17 and UGX 1,925,713.53
  2. What remedies are available to the parties?

Orders

  • The defendant shall pay the plaintiff the sum of USD 18,167.59 as unpaid rent and parking charges.
  • The defendant shall pay the plaintiff the sum of USD 4,471.58 as service charges.
  • The defendant shall pay the plaintiff UGX 1,925,713.53 as unpaid utility charges.
  • The plaintiff is awarded the costs of the suit.

Rules and key headnotes

Contract Law — Landlord and Tenant — Cession Agreement — Transfer of Landlord's Interest
Where a landlord transfers ownership of leased premises to a purchaser and the parties execute a cession agreement introducing the purchaser as the new landlord while retaining the tenant on the same terms, a valid landlord-tenant relationship is established between the purchaser and the tenant, and the original tenancy agreement remains binding on the tenant.
Contract Law — Breach of Contract — Landlord and Tenant — Proof of Default
A landlord proves a tenant's breach of rental obligations through the tenancy agreement, demand notices, notices of re-entry, and uncontested witness testimony showing non-payment of rent, service charges, and utility bills over multiple months.
Civil Procedure — Special Damages — Pleading and Proof — Rental Arrears
Rental arrears, service charges, and utility charges constitute special damages that must be specifically pleaded and particularly proved. Where such amounts are pleaded with precision and proved through the tenancy agreement and uncontested evidence, the plaintiff is entitled to recover the full amounts claimed.

Legislation cited (2)

Cases cited (1)

  • Jennifer Behange, Rwanyindo Aurelia, Paul Bagenzi v School Outfitter (U) Limited (CACA No. 53 of 1999)

Full judgment

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

National Cement Company Uganda Limited v Iman Africa Energy Group (Civil Suit No. 453 of 2023) [2025] UGCommC 543 (28 April 2025)
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.