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Uganda National Road Authority v Prof. Ndungutse (Miscellaneous Cause No. 8 of 2021)

High Court · [2021] UGHCCD 102 · 2021 Application Granted AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Consolidated applications by Notice of Motion seeking orders to deposit compensation in court and proceed with road construction on compulsorily acquired land
Decision
Application granted; UNRA permitted to deposit compensation in court and proceed with road construction on acquired land

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

The High Court held that where landowners refuse compensation awards under compulsory land acquisition for public use, Section 6(5) of the Land Acquisition Act permits the acquiring authority to deposit the assessed compensation in court and proceed with the project. The court found that the Assessment officer's award constitutes fair and adequate compensation under the Act, distinct from fair market valuation under willing buyer-willing seller principles. The deposit does not fetter landowners' rights to challenge the adequacy of compensation through pending civil suits or statutory appeals. Public interest projects should not be blocked where the dispute concerns only compensation quantum, not land retention.

Outcome

Application granted; UNRA permitted to deposit compensation in court and proceed with road construction on acquired land

Facts

UNRA initiated compulsory land acquisition for the Buhimba-Kakumiro road project, affecting land owned by Prof. Ndungutse David (1.865 acres) and Bararemwa Edward (3.634 acres) at Kabale-Kyabichwe, Kikuube District. The Assessment officer valued the properties at UGX 9,597,900 and UGX 19,464,900 respectively, totalling UGX 29,062,800. Both respondents refused the awards, arguing they were inadequate because the valuation excluded the value of rock on their land. The respondents had not obtained mining licences for commercial rock extraction. They filed civil suits (H.C.C.S. No. 10 and 11 of 2021) challenging the acquisition and compensation. UNRA applied under Section 6(5) of the Land Acquisition Act to deposit the compensation in court and proceed with construction, citing daily project delays costing USD 38,000 (UGX 136,800,000). The respondents argued the application violated their constitutional property rights and that a pending Constitutional Petition (No. 126 of 2021) challenged the constitutionality of the relevant Land Acquisition Act provisions.

Issues

  1. Whether the court can determine the application when there is a pending petition in the Constitutional Court on a similar matter.
  2. Whether the application raises questions for constitutional interpretation.
  3. What remedies are available to the parties.

Orders

  • The Applicant is allowed to deposit in court the assessed compensation sum total of UGX 29,062,800/- for the benefit of the Respondents.
  • The Applicant on payment of the compensation sum in court is allowed to proceed with the construction of Buhimba - Kakumiro road construction works on the acquired land.
  • Each party shall bear their own costs of this application.

Rules and key headnotes

Compulsory Land Acquisition — Compensation — Deposit in Court under Section 6(5) Land Acquisition Act
Where a person awarded compensation under compulsory land acquisition refuses to accept payment, Section 6(5) of the Land Acquisition Act empowers the High Court to order payment into court on such conditions as it thinks appropriate, enabling the acquiring authority to proceed with the public project.
Compulsory Land Acquisition — Fair and Adequate Compensation — Assessment Officer's Award
Under Section 6(4) of the Land Acquisition Act, the compensation award of the Assessment officer is deemed fair and adequate compensation for property compulsorily acquired for public use. This statutory compensation standard differs from fair market valuation arrived at on a willing seller-willing buyer basis under the Land Act.
Compulsory Land Acquisition — Minerals on Land — Requirement for Mining Licence
Under Sections 3 and 4(2) of the Mining Act, ownership of minerals is vested in Government and no person may commercially exploit minerals without a licence issued under the Act. A landowner claiming compensation for rock (a mineral) on compulsorily acquired land must furnish evidence of a mining licence authorising commercial use to justify such a claim.
Public Projects — Balance of Interests — Access to Courts
Government projects for public benefit should not be blocked where the dispute concerns only the quantum of compensation and not retention of the land. Deposit of compensation in court under Section 6(5) of the Land Acquisition Act does not fetter the landowner's constitutional right under Article 26(2)(b)(ii) to access courts to challenge the adequacy of compensation through civil suits or statutory appeals.
Constitutional Interpretation — Referral to Constitutional Court — Pending Similar Petition
Where a pending Constitutional Petition raises the same constitutional questions as those arising in a subsequent application, it is unnecessary to frame fresh questions for constitutional interpretation or refer the matter to the Constitutional Court, as doing so would unnecessarily clog the Constitutional Court with duplicate matters.

Legislation cited (20)

Cases cited (6)

  • Welt Machinen Engineering Ltd v China Road & Bridge Corp & 2 Others (High Court Civil Suit No. 16 of 2014)
  • China Road & Bridge Corp v Welt Machinen Engineering Ltd (Civil Appeal No. 52 of 2017)
  • Omara Daniel & 2 Others v Attorney General & UNRA (Constitutional Petition No. 126 of 2021)
  • Siraji Bageya & 2 Others v Ochieng David (Civil Appeal No. 130 of 2009)
  • UNRA v Faridah Nantale & 6 Others (High Court Miscellaneous Application No. 35 of 2018)
  • Eutaw Construction Co. Inc. & Another v UNRA (Constitutional Application No. 047 of 2014)

Full judgment

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

Uganda National Road Authority v Prof. Ndungutse (Miscellaneous Cause No. 8 of 2021) [2021] UGHCCD 102 (7 September 2021)
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.