Court of Appeal upholds ruling in sh2.8b Ntinda property case

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The Court of Appeal has dismissed an application by Cwezi Properties Limited seeking an extension of time in a debt dispute involving over sh2.8 billion.

After failing to clear the debt within the agreed period, Cwezi Properties Limited, the purchaser of property at Plot 3 Gasper Oda Street in Ntinda, Kampala, asked court for more time to appeal against the timeframe for settling the payment to Tulip Consultancy Limited and to defend the suit.

Justices of the Court of Appeal led by Fredrick Engonda-Ntende, Eva Luswata and Esta Nambayo, on September 11, 2025, dismissed the appeal with costs on the grounds that it lacked merit.

“There is no averment or evidence in the appellant’s affidavits in support of the application for leave to appear and defend what could have sufficed as a bona fide triable issue to warrant the grant of leave to defend civil suit number 505 of 2013. This appeal has failed to demonstrate how the trial judge erred in law or fact by refusing to grant the appellant leave to appear and defend the suit. This appeal is devoid of merit. I would dismiss it with costs,” Justice Ntende said.

The case stems from Civil Suit Number 505 of 2013 in which the appellant challenged a High Court ruling over the purchase of land and developments located at Plot 3 Gasper Oda Street, Ntinda.

According to court records, the appellant entered into a contract with the respondent, Tulip Consultancy Limited, on November 15, 2011, to purchase the property at $760,000 (about sh2.8 billion), payable in two instalments. At the signing of the agreement, the appellant paid $150,000 (about sh570m), with the balance of $610,000 (about sh2.3b) due by March 15, 2012.

The appellant, however, failed to clear the balance within the stipulated period. On May 23, 2012, the parties executed an addendum extending the payment deadline to June 30, 2012, and introducing a penalty interest of 3% per month (36% per annum) on the outstanding balance.

Despite this, by July 26, 2012, the appellant had only paid $455,000 (about sh1.7b), bringing the total to $585,000 (about sh2.2b), still short of the agreed sum. As a result, the parties signed a second addendum granting another six-month extension, this time imposing an inconvenience fee of $84,186 (about sh320m) and a 16% penalty interest on further delays.

The justices noted that even with the extended deadlines, the appellant failed to settle the remaining balance, prompting the respondent to file a summary suit in the High Court.

The High Court later ruled in favour of the respondent, a decision that was challenged in the Court of Appeal.