Financial services firm, Global Capital Save 2004 Ltd, its sister company, Rutungu Properties Ltd together with their proprietor and Chairman, businessman Ben Kavuya have said they are dissatisfied with the Court of Appeal ruling on a dispute involving two city properties and shall proceed to seek justice in the Supreme Court.
The case stems from a 2007 transaction in which financial services firm, Global Capital Save 2004 Limited says it bought properties, comprised in Block 236 Plot 2062 Kyadondo (land at Bweyogerere) and Vol 2965 Folio 18 Plot 17 Bunyoyi Lane (land at Kataza Kiswa) from a one Wakanyira George David at a sum of UGX272 million to enable him to repay a defaulted loan at Housing Finance Bank.
Following the transaction, the company went ahead to obtain the land titles from the bank, took ownership and proceeded to transfer them into the names of its sister company- Rutungu Properties Ltd, a property development arm.
However, Wakanyira in 2007 went to the High Court (Commercial Division), challenging the said transaction.
He said that he had instead obtained a loan from the financial institution and signed forms transferring the property to the financial services firm, only as collateral.
Mr Wakanyira instead says that on the 15th January 2007 he borrowed UGX 170,000,000 from the financial services firm which was to be paid back within 6 months at an interest rate of 10% per month and gave land titles to two of his properties as security for the said loan. He also contended that he was asked to sign two agreements of sale, a power of attorney and a transfer form as further security for the loan. He denied receiving the said UGX272,000,000.
Wakanyira however failed to present the said loan agreement although he admits that UGX158,940,397/= was paid into his bank account in Housing Finance Bank on the 18th January 2007.
The financial services firm however showed court copies of transfer forms that Wakanyira signed in favour of M/s Rutungu Properties Ltd as well as the sale agreement.
Delivering his ruling, the then Honourable Judge of the High Court, Geoffrey Kiryabwire said: “There is no evidence of a loan agreement at all. There is also the issue of two instalments said to have been given to the plaintiff (Wakanyira) being the difference between the outstanding value of the Housing Finance Bank loan and the purchase price of the suit properties which the plaintiff (Wakanyira) did not sufficiently address. In such a situation based on the evidence on record, I am inclined to agree with the submissions of counsel for the defendants that the only agreement before the court is the agreement of sale.”
“I, therefore, find in answer to the first issue that this agreement was a sale agreement between the parties,” Kiryabwire ruled.
All the other grounds were also dismissed as well.
Wakanyira then appealed to the Court of Appeal in 2010.
The Court of Appeal on 12th October 2021, ruled in favour of Wakanyira. Controversially however, even though Wakanyira failed to present the said loan agreement, the Court of Appeal went ahead to order that that Wakanyira pays Global Capital Save 2004 Limited the UGX170 million that he allegedly borrowed- and at with no interest moreover.
Global Capital Save 2004 Limited has said it is dissatisfied with the Court of Appeal ruling and has now instructed its lawyers to appeal the case at the Supreme Court.
Global Capital Save 2004 Limited, together with Rutungu Properties Ltd and their proprietor have instructed renowned lawyer and former Deputy Attorney General Mwesigwa Rukutana to join Nyanzi, Kiboneka and Mbabazi Advocates in the appeal.
“We represent the respondents in the above matter wherein judgment was delivered on the 12th day of October 2021. The respondents being dissatisfied with the decision of the Honourable Justices of the Court of Appeal and the orders therein wish to appeal to the Supreme Court of Uganda. We, therefore, apply to be availed with the full record of proceedings and judgment before the Court to enable the Appellants to prepare a Memorandum of Appeal and pursue their appeal,” a letter addressed to the Court of Appeal Registrar filed by Nyanzi Kiboneka and Mbabazi Advocates that this website has seen reads.
The letter is dated 14th October 2021.
This website has also seen a notice of joint instructions letter from Mwesigwa Rukutana M/s Mwesigwa Rukutana & Co. Advocates to the Court of Appeal Registrar confirming they are joining the appeal.
“Take notice that we, M/s Mwesigwa Rukutana 8 Co. Advocates, have been instructed by the respondents to join the Counsel on record and represent them in the intended appeal. Any service of notices, correspondences, pleadings or any documents relating to this matter should be copied to us and served at the above-indicated address,” reads the 14th October letter.