High Court overturns sh16m ruling
Dec 15, 2009
A BUSINESSMAN, who sued Koboko district local government and was awarded sh16m, is to refund the money after the High Court overturned the ruling.
By Frank Mugabi
A BUSINESSMAN, who sued Koboko district local government and was awarded sh16m, is to refund the money after the High Court overturned the ruling.
Arua High Court judge, John Kwesiga, ruled that the Chief Magistrate’s decision to give Kamus and Sons Enterprises legal costs was marred by irregularities and illegalities.
The company, owned by Agele Kazimoto, dragged the district to court when, despite having submitted the highest bid of sh6.2m, it failed to win the tender to run Koboko town council market.
The firm, which still held the tender, also alleged that its bid price had been fraudulently reduced to sh4.8m in the evaluation results displayed on the notice board.
The sh4.8m was what they were paying for the expiring tender which they lost to another bidder at sh6m.
An administrative review confirmed that they had indeed bid at sh6.2m.
Kamus and Sons Enterprises sued the district at the Chief Magistrate’s court in Arua for sh206m in damages and legal costs.
Magistrate Omodo Nyanga ruled that the district pays the firm sh16m.
However, in his ruling last week, Justice Kwesiga said the magistrate’s jurisdiction at the time was of handling civil suits below sh50m and he, therefore, acted in excess of this.
“This was irregular and, therefore, any orders arising from his decisions cannot be upheld because they are null and illegal,†he said.
Kwesiga further explained that interests of justice demand that courts prohibit illegal and wrongful enrichment of one party to the prejudice of the other.
He also ordered the firm to pay the district taxed costs of the application.
A BUSINESSMAN, who sued Koboko district local government and was awarded sh16m, is to refund the money after the High Court overturned the ruling.
Arua High Court judge, John Kwesiga, ruled that the Chief Magistrate’s decision to give Kamus and Sons Enterprises legal costs was marred by irregularities and illegalities.
The company, owned by Agele Kazimoto, dragged the district to court when, despite having submitted the highest bid of sh6.2m, it failed to win the tender to run Koboko town council market.
The firm, which still held the tender, also alleged that its bid price had been fraudulently reduced to sh4.8m in the evaluation results displayed on the notice board.
The sh4.8m was what they were paying for the expiring tender which they lost to another bidder at sh6m.
An administrative review confirmed that they had indeed bid at sh6.2m.
Kamus and Sons Enterprises sued the district at the Chief Magistrate’s court in Arua for sh206m in damages and legal costs.
Magistrate Omodo Nyanga ruled that the district pays the firm sh16m.
However, in his ruling last week, Justice Kwesiga said the magistrate’s jurisdiction at the time was of handling civil suits below sh50m and he, therefore, acted in excess of this.
“This was irregular and, therefore, any orders arising from his decisions cannot be upheld because they are null and illegal,†he said.
Kwesiga further explained that interests of justice demand that courts prohibit illegal and wrongful enrichment of one party to the prejudice of the other.
He also ordered the firm to pay the district taxed costs of the application.