The Court of Appeal has stopped Kampala Capital City Authority (KCCA) from leasing land (Plot 52 Port Bell Road) to anyone until the court rules whether A. Dean and Company Limited must be granted a lease of the same land.
While delivering his ruling on Tuesday, three judges lead by Justice Stephen Musota also issued an order of certiorari to quash the decision by KCCA not to extend A. Dean and Company Limited (Appellant)’s lease on the land in question.
The Three Judges; Justice Richard Buteera, Justice Catherine Bamugemereire and Stephen Musota unanimously agreed and also issued an order of mandamus compelling KCCA to again give the Appellant a fair hearing before a decision can be made on whether to renew the lease or not.
The court also issued an injunction restraining KCCA from leasing the suit land to any person until after giving A. Dean and Company Limited a fair hearing.
The Court of Appeal’s decision was against the ruling of the High Court at Nakawa by Justice Masalu Musene given on 24th January 2015.
Case background
On 26th June 2008, KCCA leased the said land, to Nowomugisha Sadrack Nzaire for an initial term of 5 years from 12th May 2008 or a period from 12th May 2008 to the date of issue by the lessor KCC of an Occupation Permit for the Development whichever was shorter. The development obligation in the lease required the lessee to carry out the development of a Hostel and Apartments on the land.
The initial term of the lease was extendable to 49 years (the full term) subject to payment of rent, substantial performance by the lessee or no material breach of the covenants by the lessee. Nzaire asked the respondent to transfer the lease and he transferred to the Appellant who was registered as a proprietor of the suit lease on 15th March 2012.
In the same year, the Appellant submitted architectural drawings and building plans to the KCCA for approval. On 18th February 2013, the Appellant applied to the KCCA for an extension of the lease to full term to enable them (The appellant) to access funding from financiers. However, KCCA through its director of legal Affairs declined the Appellant’s request alluding that it was the Kampala District Land Board. Yet at this time, the lease was due to expire on 11th May 2013.
On 6th May 2013, the Appellant wrote to KCCA complaining that their building plans had neither been approved nor rejected by the planning department. However, KCCA wrote to Nzeire informing him that the lease was terminated since they failed to fulfil the development obligations as stipulated in the lease agreement and that the conditional period of five years expired and he had not applied for renewal of the lease.
The Appellant applied to request KCCA to rescind the decision to terminate the lease. On 10th March,20l4 KCCA director of Legal Affairs wrote to the Appellant advising that the decision to terminate the lease was not taken by the KCCA Executive Director.
As a result, the Appellant decided to go to the court requesting for the court to order KCCA to review his said lease on the land in question and also prayed that the court issue an injunction restraining KCCA from leasing the said land to any other person.
Nevertheless, the court ruled in favour of KCCA alluding that it was a breach of contract by the Appellant and his party Nzaire. The Appellant was dissatisfied with the High Court and lodged an appeal in the Court of Appeal.
In their appeal, A. Dean and Company Limited noted that the learned trial Judge erred in law and in fact when he held that the appellant which was the registered proprietor of the lease of the suit land was not entitled to a hearing on whether the lease term would be extended.
In their ruling, all three Judges of the Court of Appeal agreed that the learned trial judge erred in the law and in fact when he failed to properly evaluate the evidence on record thereby arriving at the wrong conclusion that the appellant was a stranger at the lease.
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