The trial court exonerated the company from paying the money on the ground that it was excessive for the land that measured much less than the 15 acres..
The Court of Appeal has stopped Outreach To Africa Limited from paying sh44m to Steven Manigamukama, who allegedly sold it a-15-acre-piece of land, but instead allegedly delivered only 6.908 acres.
However, the court ordered the company to deposit the amount of money in the court registry pending the final decision of the question "whether the seller was entitled to the money, as balance of sh74m that had been agreed upon for the whole 15 acreage of the land.
Justice Elizabeth Musoke chaired the Coram. The other members were Justices Hellen Obura and Cheborion Barishaki.
The court had heard that Outreach To Africa Limited purchased the land from Manigamukama for a consideration of a total of sh74m of which it paid an initial installment of sh30m, leaving a balance of sh44m; which was supposed to be paid upon completion the transfer of the land title.
However, the company refused to pay the balance of sh44m, arguing that the land did not measure up to 15 acres as had allegedly been the understanding between both parties.
Upon refusal by the company to pay the balance, the seller sued it seeking to recover the sh44m as balance of the purchase price of the chunk of land.
The trial court exonerated the company from paying the money on the ground that it was excessive for the land that measured much less than the 15 acres.
However, upon appeal, the High Court reversed the trial court's decision, saying that the seller was entitled to the balance of the purchase price, arguing that the acreage of the land was not a term of the agreement.
Outreach To Africa Ltd then appealed and hence made the application to stop the payment, pending the final disposal of the case