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Church of Uganda sued over sh2bPublish Date: Jan 26, 2014
Church of Uganda sued over sh2b
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By Hillary Nsambu
 
Kachira Investments Limited, owned by investor Sadrudin Alan, has sued the Registered Trustees of the Church of Uganda – Mbale Diocese, seeking to recover US$1m, approximately over sh2.5b in damages.


The High Court at Mbale has given the respondents 15 days to file a defence against the suit or else the plaintiffs would proceed with the law suit and judgment given without them.

Represented by Deogracius Obedo, Isaac Nabende and Isaac Ssemakadde-Kimaze, Kachra Investments Ltd allege that the Church of Uganda caused it loss of revenue and profit during the three years it has occupied the property without any right, whereas it illicitly benefitted by collecting rent of over sh400m from numerous tenants wrongly subleased.

This followed a High Court judgment in Mbale in which the Church of Uganda was ordered to immediately vacate and give vacant possession of Plots 25-27 situated along Maluku Road to their owner, Kachra Investments Ltd.

Mbale resident judge Henry Kawesa delivered a judgment overturning a ruling and orders made in 2012 by Grade One Magistrate Hope Namisi granting the property to the Church.

The magistrate, however, had also earlier ordered the Church of Uganda to vacate the property for Kachra Investments Ltd, but she reversed her own decision, setting it aside after being moved by the Church to review it (Church) in its favour.

However, Kachra Investments appealed, protesting the magistrate’s second in the review in which she dispossessed it of the property.  
The judge advised the Church of Uganda to file a new suit within 90 days if it felt it has a good case against the company (Kachra Investments Ltd); or else hand over the property voluntarily to its rightful owner.

However, according to the documents from the Ministry of Lands which The New Vision saw, the certificate of title land that had been issued to the Church of Uganda Trustees under FRV 851Folio 3 Plots 19-27 Maluku Road, Mbale was also cancelled.
 
“This is to inform you that the register has been rectified by cancelling the certificate of title which had been issued to the Registered Trustees of the Church of Uganda,” the cancellation by Commissioner Land registration Sarah Kulata Basangwa reads.  
 

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