Wakilii

Union Trade Centre v Attorney General of the Republic of Rwanda and Others (Reference No.10 of 2013)

East African Court of Justice · [2020] EACJ 14 · 2020 Application Granted AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Reference under Articles 5(3)(g), 6(d), 7(1)(a) and (2), 8(1), 27 and 30 of the Treaty for the Establishment of the East African Community, following retrial de novo ordered by Appellate Division
Decision
Reference allowed with declarations, compensation, and orders for accountability

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

The East African Court of Justice held that Rwanda violated Treaty obligations by unlawfully taking over and auctioning Union Trade Centre's mall. The Commission's actions were not justified under Rwanda's abandoned property law, as the mall was not abandoned property within the statute's meaning. The takeover and subsequent auction by Rwanda Revenue Authority breached Treaty principles of rule of law, transparency, and accountability. The Court found Rwanda internationally responsible for these wrongful acts, awarded USD $500,000 in general damages, and ordered accountability for all proceeds from the mall between October 2013 and September 2017.

Outcome

Reference allowed with declarations, compensation, and orders for accountability

Facts

Union Trade Centre (UTC), a Rwandan company incorporated in 1997 to manage a private mall in Kigali, had its mall taken over by the Nyarugenge District Property Management Commission on 2 October 2013 under Law No. 28/2004 relating to abandoned property. The Commission redirected rental payments from tenants to a designated account. UTC's majority shareholder, Tribert Rujugiro, was abroad at the time. On 27 September 2017, the Rwanda Revenue Authority auctioned the mall for alleged tax arrears of RwF 1,174,334,658, selling it for RwF 6,877,150,000 to Kigali Investment Company. UTC maintained it had always complied with tax obligations and had a credit facility with Bank of Kigali. The Commission's letter to tenants stated the mall had been placed in its hands under abandoned property legislation.

Issues

  1. Whether the Reference is time-barred and should be struck off the record.
  2. Whether the Applicant has locus standi.
  3. Whether the Respondent was properly sued before this Honourable Court.
  4. Whether the Respondent's actions of taking over the Applicant's mall and consequently auctioning it are inconsistent with and/or in contravention of Articles 5(3)(g), 6(d), 7(1)(a) and (2), and 8(1)(a), (b) and (c) of the Treaty.
  5. What are the remedies available to the parties.

Orders

  • Declaration issued that the Respondent's actions of taking over the UTC mall and subsequently selling it off are illegal and contravene Articles 5(3)(g), 6(d), 7(1)(a) and (2), and 8(1)(a) and (c) of the Treaty.
  • The Respondent is directed to furnish the Applicant with accountability for the rental and sale proceeds realized from the UTC mall between 1st October 2013 to 27th September 2017.
  • Compensation in general damages awarded in the sum of USD $500,000 (five hundred thousand).
  • Simple interest at 6% per annum awarded against the compensation from the date of judgment until payment in full.
  • Costs awarded to the Applicant.

Rules and key headnotes

State Responsibility — Attribution of Conduct — Entities Exercising Governmental Authority
Under Article 5 of the ILC Articles on State Responsibility, conduct of an entity empowered by internal law to exercise elements of governmental authority is attributable to the State, provided the entity is acting in that capacity. The internal law must specifically authorize the conduct as involving the exercise of public authority; general regulation of community affairs is insufficient.
Abandoned Property — Statutory Interpretation — Contextual and Purposive Approach
A statute relating to management of abandoned property arising from genocide must be interpreted in light of its preamble and context. Where the preamble indicates the law addresses properties abandoned following genocide and taken over by returning diaspora and genocide survivors, property that was never abandoned in that context does not fall within the statute's scope, even if the owner is temporarily abroad.
Treaty Interpretation — Supremacy of Community Law over Municipal Law
Under Article 8(4) of the EAC Treaty, Community organs, institutions and laws take precedence over similar national ones on matters pertaining to implementation of the Treaty. A Partner State cannot invoke provisions of its internal law as justification for failure to perform Treaty obligations. Municipal law is relevant only to determine compliance with specific Treaty principles such as rule of law.
Locus Standi — Residence Requirement — Corporate Entities
Under Article 30(1) of the EAC Treaty, locus standi to institute a Reference is conferred on any person resident in a Partner State. A company incorporated and domiciled in a Partner State has locus standi regardless of domestic law requirements for corporate authorization. Corporate governance processes such as shareholder resolutions do not confer or negate locus standi but relate to internal authorization for litigation.
Limitation Periods — Computation of Time — Cause of Action
For purposes of computing the two-month limitation period under Article 30(2) of the EAC Treaty, time runs from the date the action complained of in the Reference first accrued, not from an earlier decision that the respondent contends was the relevant act. The complainant is entitled to define its own cause of action; the respondent's alternative characterization constitutes its defence.
Property Rights — Right to Use and Enjoyment — Common Market Protocol
Article 15(1) of the Common Market Protocol provides that access to and use of land and premises shall be governed by national policies and laws of Partner States. This provision places an obligation on regional governments and citizens to abide by national laws in property management. Unlawful dispossession of property rights by a state entity applying inapplicable law violates both municipal law and Treaty obligations.
Tax Administration — Procedural Requirements — Rectification Notices
Where domestic tax legislation grants taxpayers a specified period (such as thirty days) to respond to tax rectification notices and provides that any rectification note not respecting such provisions is void, failure to afford the taxpayer the statutory period renders the tax assessment process illegal, null and void.

Legislation cited (47)

  • Treaty for the Establishment of the East African Community Article 5(3)(g)
  • Treaty for the Establishment of the East African Community Article 6(d)
  • Treaty for the Establishment of the East African Community Article 7(1)(a)
  • Treaty for the Establishment of the East African Community Article 7(2)
  • Treaty for the Establishment of the East African Community Article 8(1)
  • Treaty for the Establishment of the East African Community Article 8(4)
  • Treaty for the Establishment of the East African Community Article 27
  • Treaty for the Establishment of the East African Community Article 30
  • Treaty for the Establishment of the East African Community Article 30(1)
  • Treaty for the Establishment of the East African Community Article 30(2)
  • Treaty for the Establishment of the East African Community Article 40
  • Protocol for the Establishment of the East African Common Market Article 15(1)
  • East African Court of Justice Rules of Procedure, 2013 Rule 1(2)
  • East African Court of Justice Rules of Procedure, 2013 Rule 24
  • East African Court of Justice Rules of Procedure, 2013 Rule 19(1)
  • East African Court of Justice Rules of Procedure, 2013 Rule 19(5)
  • East African Court of Justice Rules of Procedure, 2013 Rule 19(7)(a)
  • East African Court of Justice Rules of Procedure, 2019 Rule 59
  • East African Court of Justice Rules of Procedure, 2019 Rule 127(1)
  • Rwanda Law No. 28 of 2004 relating to the Management of Abandoned Property
  • Rwanda Law No. 28 of 2004 Article 2(4)
  • Rwanda Law No. 28 of 2004 Article 3
  • Rwanda Law No. 28 of 2004 Article 10
  • Rwanda Law No. 28 of 2004 Article 11
  • Rwanda Law No. 28 of 2004 Article 13(d)
  • Rwanda Law No. 28 of 2004 Article 13(f)
  • Rwanda Law No. 39 of 2015 relating to the Management of Abandoned Property
  • Rwanda Law No. 21 of 2012 relating to Civil, Commercial, Labour and Administrative Procedure Article 31(1)
  • Rwanda Law No. 21 of 2012 Article 31(3)
  • Rwanda Law No. 15 of 1997
  • Rwanda Law No. 8 of 2009 Determining the organization, functioning and responsibilities of the Rwanda Revenue Authority
  • Rwanda Law No. 25 of 2015 Article 27
  • Rwanda Law No. 25 of 2015 Article 27(2)
  • Rwanda Law No. 25 of 2015 Article 27(5)
  • Vienna Convention on the Law of Treaties, 1969 Article 27
  • Vienna Convention on the Law of Treaties, 1969 Article 31
  • Vienna Convention on the Law of Treaties, 1969 Article 32
  • International Law Commission Articles on the Responsibility of States for Internationally Wrongful Acts, 2001 Article 2
  • International Law Commission Articles on the Responsibility of States for Internationally Wrongful Acts, 2001 Article 2(a)
  • International Law Commission Articles on the Responsibility of States for Internationally Wrongful Acts, 2001 Article 2(b)
  • International Law Commission Articles on the Responsibility of States for Internationally Wrongful Acts, 2001 Article 4
  • International Law Commission Articles on the Responsibility of States for Internationally Wrongful Acts, 2001 Article 5
  • International Law Commission Articles on the Responsibility of States for Internationally Wrongful Acts, 2001 Article 33(2)
  • International Law Commission Articles on the Responsibility of States for Internationally Wrongful Acts, 2001 Article 35
  • International Law Commission Articles on the Responsibility of States for Internationally Wrongful Acts, 2001 Article 36
  • International Law Commission Articles on the Responsibility of States for Internationally Wrongful Acts, 2001 Article 38(1)
  • African Charter on Human and Peoples' Rights Article 14

Cases cited (18)

  • Attorney General of the Republic of Uganda & Another v Omar Awadh & 6 Others (EACJ Appeal No. 2 of 2012)
  • Attorney General of the Republic of Kenya v Independent Medical Legal Unit (EACJ Appeal No. 1 of 2011)
  • Hon. Fred Mukasa Mbidde v Attorney General of the Republic of Burundi & Another (EACJ Application No. 6 of 2018)
  • Modern Holdings Ltd v Kenya Ports Authority (EACJ Reference No. 1 of 2008)
  • Phillips Petroleum Co. Iran vs. Islamic Republic of Iran, Award No. 326-10913-2, Iran-United States Claims Tribunal Reports, Vol. 21 (1989)
  • Noble Ventures Inc. vs. Romania, ICSID Case No. ARB/01/11, 2005
  • Henry Kyarimpa v Attorney General of the Republic of Uganda (EACJ Appeal No. 6 of 2014)
  • Attorney General of the Republic of Uganda v Tom Kyahurwenda (EACJ Case Stated No. 1 of 2014)
  • Samuel Mukira Muhochi v Attorney General of the Republic of Uganda (EACJ Reference No. 5 of 2011)
  • British American Tobacco (BAT) v Attorney General of the Republic of Uganda (EACJ Reference No. 7 of 2017)
  • Attorney General of the Republic of Burundi v Secretary General of the East African Community & Another (EACJ Reference No. 2 of 2018)
  • Helnan International A/S vs. The Arab Republic of Egypt, ICSID Case No. ARB 05/19, 2006
  • Male H. Mabirizi K. Kiwanuka v Attorney General of the Republic of Uganda (EACJ Reference No. 6 of 2019)
  • Bosnia & Herzegovina vs. Serbia & Montenegro, Application of the Convention on the Prevention and Punishment of the Crime of Genocide, Judgment, ICJ Reports 2007
  • Hon. Dr. Margaret Zziwa v Secretary General of the East African Community (EACJ Appeal No. 2 of 2017)
  • Grand Lacs Supplier S.A.R.L v Attorney General of the Republic of Burundi (EACJ Reference No. 6 of 2016)
  • Attorney General of the Republic of Burundi v Secretary General of the East African Community & Another (EACJ Appeal No. 2 of 2019)
  • Elettronica Sicula S.P.A. [Elsi] Judgment, [ICJ REPORTS], 1989

Full judgment

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Union Trade Centre v Attorney General of the Republic of Rwanda and Others (Reference No.10 of 2013) [2020] EACJ 14 (26 November 2020)
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.