Temangalo case: Indian investors appeal against judgment

KAMPALA - Indian investors have appealed against a judgment that gave away Temangalo Land to National Social Security Fund (NSSF) and businessman Amos Nzeyi.

The 366-acre piece of land is located in Wakiso district.

The Indians, led by Shivji Nazimuddin are challenging the judgment at the Court of Appeal.

The notice of appeal is yet to be served to NSSF, Nzeyi, Abbas Mawanda, Nalukenge Mwami, Edrisi Kintu and the commissioner for land registration. 

Last year, Justice John Eudes Keitirima, the head of the Land Division of the High Court dismissed a suit filed by the Indian nationals against Nzeyi and NSSF, seeking to have them forced off the land.

The Indians under their company, Temangalo Tea Estates Limited, in 2016 filed a suit against NSSF, Nzeyi, and others, seeking, among other things, a declaration that they were trespassers on the land.

However, Justice Ketirima agreed with the submissions of NSSF that the case was time-barred and dismissed it with costs. NSSF purchased part of the land in 1998 from Nzeyi at sh11.2b.

According to the judge, the Temangalo Tea Estates should have filed the case within a period of 12 years, as stipulated by the law. He said the suit was filed 23 years after they repossessed the land.

"All the miscellaneous applications arising out of the civil suit are rejected and struck out with costs to NSSF and Nzeyi alongside Abbas Mawanda, Nalukenge Mwami, Edrisi Kintu and the commissioner for land registration," Keitirima earlier ruled.

The judge observed that although Temangalo Tea Estates claims they filed a suit against Nzeyi in 1993, they did not pursue it.

"One would conclude that the company simply abandoned the application because nothing would have stopped them from pursuing it. Negotiations could not have taken 20 years," he said.

Keitirima added: "This matter was never even pleaded by the company as to the reason they delayed to file the case or as an exemption to the limitation period. Any disability that exempts limitation must be pleaded".

He said since Temangalo Tea Estate cause of action rose in 1993, it instead filed the suit in 2016, which is 23 years after, hence barred by limitation.

Declaration & orders

The Indians wanted to recover the land, order for restoration of their lease on the land, and the cancellation of the certificates of titles.

They claimed that they had owned Temangalo land lease for 79 years, from 1924, before former Ugandan president Idi Amin expelled them in 1972.

They further claimed that the finance minister granted them a repossession certificate on April 28, 1993, under the Expropriated Properties Act.

Court documents show the lease, which forms basis of the suit, is for a period of 79 years, with effect from September 1, 1924, and expired on August 31, 2003.

NSSF Objections

However, NSSF raised preliminary objections before the hearing of the case filed by Temangalo Tea Estates, arguing that the application was barred by limitation.

NSSF further contended that the tea estate company, having obtained a repossession certificate in 1993, the suit for the recovery of land in 2016, 23 years after repossession, is barred by limitation and not maintainable in law.

It further submitted that owners of the estate have since 1993 sat on their rights, if any, and cannot be allowed to maintain the suit.

In reply to the NSSF preliminary objection, Temangalo Tea Estates submitted that the suit was not time-barred by limitation because in November 1993 they sued Nzeyi, who sold the land to NSSF.

They claimed the court advised them to negotiate the matter out of court but Nzeyi refused to cooperate until they discovered that he had sold the land to NSSF.

NSSF building Temangalo estate

Following the judgment, NSSF embarked on a move to acquire consultancy services to design and build Temangalo housing estate.

Recently, NSSF ran an advert in the media calling for consultancy services to supervise the design and development of the 463-acre piece of land, whose phase one will comprise 550 housing units provided with all necessary commercial and social infrastructure as well as service utilities.