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Madhvani loses case

By Vision Reporter

Added 27th January 2006 03:00 AM

THE Court of Appeal has ordered a multi-billion business company, Muljibhai Madhvani, to return to F.K Motors (U) Limited property estimated to be worth $109,000 (about sh87m) for wrongful attachment.

THE Court of Appeal has ordered a multi-billion business company, Muljibhai Madhvani, to return to F.K Motors (U) Limited property estimated to be worth $109,000 (about sh87m) for wrongful attachment.

By Hillary Nsambu

THE Court of Appeal has ordered a multi-billion business company, Muljibhai Madhvani, to return to F.K Motors (U) Limited property estimated to be worth $109,000 (about sh87m) for wrongful attachment.

In a unanimous judgment made recently the court, however, ordered F.K Motors to pay $32,154 (about sh59m) it owed Muljibhai Madhvani in rent arrears from 1999 to 2001.

Lady Justice Mpagi-Bahigeine wrote the main judgment. Other justices were Constance Kategaya Byamugisha and Stephen Kavuma.
F.K.Motors have a franchise for South Korean Hyundai cars.

, in Uganda, had defaulted on rent and by March 28, 2001 had accumulated arrears in US$32,154, which prompted the landlord, Muljibhai Madhvani, to instruct Kabu Auctioneers and Court Bailiffs to evicted it and close its business at Plot 11 along Old Port bell Road in Kampala.

However, F.K.Motors, sued Kabu Auctioneers and Court Bailiffs and Muljibhai Madhvani for unlawful closure of its business and retention of property contrary to the Distress for Rent (Court Bailiffs) Act, claiming special and general damages, but lost the case in the High Court.

The trial court had ordered F.K.Motors to pay US$32,154 as rent arrears, US$2,00 plus VAT per month from April to November 2001, US$1,500 per month from December 2001 to June 2003 and costs of the suit plus interest on the monies, hence this appeal.

However, the Court of Appeal agreed with Andrew Bagayi and Mathias Ssekatawa, who represented F.K.Motors, that Muljibhai Madhvani and its agents acted unlawfully in carrying out the eviction, levying distress and detaining the tenant’s properties.

The court blamed Kabu Auctioneers and Court Bailiffs for carrying out the eviction without a warrant or certificate from court, which contravened section 3 of the Distress for Rent (Court Bailiffs) Act.

“This was a flagrant contravention of the Act, which rendered the auctioneers and court bailiffs liable to civil or criminal proceedings under section 3,” the court ruled.

Madhvani loses case

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