The Uganda Investment Authority has been ordered to pay shillings 150 million to Tirupati Development Ltd for breach of contract.

Justice Florence Nakachwa directed UIA to pay damages and costs for breach of contract over land: $22,880 (about shillings 83 million) that Tirupati paid for the lease, shillings seven million paid to the National Environment Management Authority (NEMA) for environment impact assessment and shillings 60 million as general damages.

“The plaintiff being the successful party is entitled to the costs of the suit. Having found both issues in the plaintiff’s (Tirupati) favour, the judgment is hereby entered and I hold that the defendant (UIA) is in breach of the lease agreement between it and the plaintiff,” Nakachwa ruled.

Background

The order arose from a suit filed by Tirupati Development Limited management in a case where UIA in 2011 leased 1.5 acres located at Kyaggwe block 113 plot A 019 and 020 at Kiwanga-Mawutu, Nantabulirwa Goma division in Mukono municipality.  

Court documents indicate that the UIA on October 28, 2010, authorised the commissioner for land registration to survey the two plots in connection to the lease on behalf of Tirupati. Tirupati paid for the survey to be conducted and on September 17, 2012, UIA granted the lease to Tirupati to take possession of the land.

According to the management of Tirupati, they have been demanding the title from UIA since they took possession of the land in vain and they subsequently filed a suit for breach of contract.

Tirupati Development Ltd is a privately owned company in Uganda which specialises in real estate investment and development.