The forex bureau claims KCCA's closure of Uganda House resulted in profit and credibility loss.
Kampala Capital City Authority (KCCA) has dismissed as baseless a claim for sh723m compensation by BM Forex Bureau over closure of its premises on Uganda House.
KCCA's stance is contained in its written statement of defence filed at the civil division of the High Court in Kampala on June 26. The case arose on May 26.
"The defendant shall contend that any losses or damages suffered by the plaintiff cannot be attributed to the defendant (KCCA) and that the same should be the responsibility of the plaintiff's landlord," the defence states in part.
The forex bureau and money remittance entity petitioned court, claiming KCCA's closure of Uganda House on August 25 last year resulted in profit and credibility loss.
The building was closed over its dilapidated state but reopened four days later after management painted and paved the building as one of the conditions for reopening.
The bureau is arguing that although access was eventually granted, the damage had already been done to the business and it lost credibility.
But KCCA, through its Legal Affairs Directorate, contends that it will raise a preliminary objection to the effect that the suit discloses no case against the Authority.
"The plaintiff's suit discloses no cause of action against it, is barred by law since it arises from the illegal activities of the plaintiffs landlord, is frivolous and vexatious," the defence states in part.
KCCA further notes that it administers the city on behalf of the central government, which empowers it through the Physical Planning Act, 2010, to exercise a public health mandate.
The Authority explains that when it made a routine inspection on the building located on Plot 10 Kampala Road, it had poor drainage and hanging electrical wires.
KCCA justifies the closure, claiming Uganda House management was served an improvement notice, but was ignored.
The case file has been allocated to Justice Stephen Musota. However, a hearing date is yet to be scheduled.