Car firm to pay sh475m for trespass

By David Ssempijja

The commercial court has ordered local vehicle dealers Aisha Group to pay over sh475m after losing a case in which the firm was accused of illegally occupying land at Naguru.

Future Group, also a car importer, sued Aisha Group for trespassing on the land located at LRV 4074 Folio 25 Plot 2 Naguru.

When Future Group first asked Aisha Group to vacate the property, they contacted then Kampala mayor Nasser Ssebaggala, who wrote to the Kampala District Land Board seeking cancellation of Future Group’s certificate of title saying it was forged. The title was found to be genuine.

In his May 10 ruling, judge Joseph Murangira said a survey report showed that Aisha Group had illegally occupied Future Group’s land by an area of 0.42 acres. Future Group sued Aisha Group in October 2010, seeking an order for possession, mesne profits (money Aisha Group may have earned from using the property), a permanent injunction against trespass and a declaration restraining the land board from cancelling the title, all of which court granted.

Court observed that because Future Group was deprived of the rights to utilise its land, it was forced to rent at $14,000 per month, which qualified the company for mesne profits, as well as general and exemplary damages.

“Had Future Group been using that land, they would have been getting income of sh25m per month. I take that as total mesne profit to the plaintiff from the date of filling this suit, till payment in full,” Murangira ruled. This means if Aisha

Group pays all the money this month, it will amount to sh475m, minus costs of the suit also estimated in hundreds of millions.