Ebrahim Alarakhia Kassam and 2 Others vs Salik (U) Ltd and 3 Others (Civil Appeal No 4 of 1997) [1998] UGCA 17 (1 December 1998) | Expropriated Properties Act | Esheria

Ebrahim Alarakhia Kassam and 2 Others vs Salik (U) Ltd and 3 Others (Civil Appeal No 4 of 1997) [1998] UGCA 17 (1 December 1998)

Full Case Text

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MR. JUSTICE S. T. MANYINDO, DCJ; \line }{\b\insrsid14561185\charrsid14561185 }{\b\insrsid7221314\charrsid14561185 HON. MR. JUSTICE G. M. OKELLO, J. A.; AND \line }{\b\insrsid14561185\charrsid14561185 }{ \b\insrsid7221314\charrsid14561185 HON. MR. JUSTICE S. G. ENGWAU}{\insrsid7221314\charrsid2434550 , }{\b\insrsid7221314\charrsid14561185 J. A.}{\insrsid7221314\charrsid2434550 }{\insrsid8997378 \par }{\b\insrsid8997378\charrsid8997378 CIVIL APPEAL NO.4 OF 1997}{\b\insrsid10762363 \par BETWEEN}{\insrsid7221314\charrsid2434550 \line \line }{\b\insrsid8997378\charrsid5310426 EB}{\b\insrsid7221314\charrsid5310426 RAHIM }{\b\insrsid8997378\charrsid5310426 ALARAK1A KASSAM}{ \b\insrsid7221314\charrsid5310426 AND }{\b\insrsid8997378\charrsid5310426 2 OTHERS\'85\'85\'85\'85\'85APPELLANTS \par }{\b\insrsid10762363\charrsid5310426 AND \par }{\b\insrsid7221314\charrsid5310426 SALIK (U) LTD AND }{\b\insrsid8997378\charrsid5310426 3 OTHERS\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85.}{\b\insrsid7221314\charrsid5310426 RESPONDENTS }{\b\insrsid8997378\charrsid5310426 \par }{\insrsid7221314\charrsid2434550 \line }{\insrsid7221314\charrsid8997378 (Appeal}{\i\insrsid7221314\charrsid2434550 }{\insrsid7221314\charrsid8997378 arising from the judgment and orders of the High Court (Mpagi-Bahigeine J. }{\insrsid8877072 as }{ \insrsid8877072\charrsid8997378 then}{\insrsid8877072 she}{\insrsid7221314\charrsid8997378 }{\insrsid8877072\charrsid8997378 was)}{\insrsid7221314\charrsid8997378 in HCCS No. 191 of 1992 dated 9th Jan. 96.) }{\insrsid8877072 \par }{\b\ul\insrsid8877072\charrsid10975572 JUDGEMENT OF G. M OKELLO}{\b\ul\insrsid1012519\charrsid10975572 , J. A}{\insrsid7221314\charrsid8997378 \line }{\insrsid10975572 }{\insrsid7221314\charrsid2434550 This is an appeal against the judgment and orders of the High Court (Mpagi-Bahi}{\insrsid3681391 geine J. as she then was) in H}{\insrsid7221314\charrsid2434550 CCS No.191/92, dated 9th January 1996, whereby judgment was entered in }{ \insrsid1577461\charrsid2434550 favor}{\insrsid7221314\charrsid2434550 of the respondent}{\insrsid4610797 s }{\insrsid7221314\charrsid2434550 in the sum of Shs. 70,000,00O/ as the cost of reconstructions of the suit premises with interest at Court \rquote s rate and costs.}{\insrsid4610797 \par }{\insrsid7221314\charrsid2434550 \line The facts giving rise to the appeal are briefly that the appellants were the original pro}{\insrsid4610797 prietors of Plots 51/2 Kampala }{\insrsid7221314\charrsid2434550 10 Road hereinafter referred to as the suit premises. Ownership of the premises is not in issue. The appellants left Uganda in 1972 as \'93departed Asians\'94 following the expulsion of Asians Community from the Country whereupon the suit premises became vested in the Departed Asians Property Custodian Board (DAPCB) for management. The 1st and}{\insrsid1577461 2nd respondents became allocate}{ \insrsid7221314\charrsid2434550 es of the premises wh ich they occupied until 1985 when the premises were allegedly gutted down by fire. With permission of the DAPCB, the 1st, 2nd and 3rd respondents reconstructed the premises on the plans approved by the Kampala City Council. \line On completion of the reconstructions work, the 1st, 2nd and 3rd respondents left the premises and the 4th respondent took over and occupied them. \line The appellants repossessed the premises in 1991 and duly served the respondents with the necessary notice to vacate the same. The respondents instead instituted a suit in the High Court clai}{\insrsid4610797 ming the sum of Shs. 70,000,000/}{ \insrsid7221314\charrsid2434550 = as their costs for the reconstructions. The appellants ente}{\insrsid4610797 red the necessary appearance }{\insrsid4610797\charrsid2434550 and}{\insrsid4610797 filed a joint w}{\insrsid7221314\charrsid2434550 ritten Statement of Defence. In their Defence, the appellants denied the respondents\rquote claim and objected to the suit as being prem}{\insrsid4610797 ature for failure to comply }{\insrsid7221314\charrsid2434550 with the provisions of the Expropriated Properties Act (EPA) 1982. They also counter claimed against the respondents. \line The suit was heard by Mpagi-Bahigeine J. as she then was, and she entered judgment for the respondents with orders already stated above. Hence this appeal on the following grounds: }{\insrsid4610797 \par [}{\insrsid7221314\charrsid2434550 1}{\insrsid4610797 ] }{\insrsid7221314\charrsid2434550 The le}{\insrsid4610797 arned trial Judge erred in law}{\insrsid7221314\charrsid2434550 and fact when she held that Exhibit P3 \line was an ap}{\insrsid4610797 proved plan for renovations }{\insrsid7221314\charrsid2434550 and rep}{\insrsid4610797 airs of the suit premises from }{\insrsid7221314\charrsid2434550 Kampala City Council.}{\insrsid4610797 \line [2]}{\insrsid7221314\charrsid2434550 }{\insrsid460895 }{\insrsid7221314\charrsid2434550 The learn}{\insrsid4610797 ed trial Judge erred in law to }{\insrsid7221314\charrsid2434550 rely on}{\insrsid4610797 the valuation report tendered }{\insrsid7221314\charrsid2434550 as Exh}{\insrsid4610797 ibit P4 as evidence in law for }{\insrsid7221314\charrsid2434550 purpose}{\insrsid460895 s of verifying and proving the }{\insrsid7221314\charrsid2434550 claim fo}{\insrsid460895 r compensation for renovations}{\insrsid7221314\charrsid2434550 ren}{ \insrsid460895 dered on Expropriated Property }{\insrsid7221314\charrsid2434550 whereas }{\insrsid460895 the law had specific laid down }{\insrsid7221314\charrsid2434550 proced}{\insrsid460895 ures and a committee to verify }{ \insrsid7221314\charrsid2434550 such com}{\insrsid460895 pensation claims prescribed in }{\insrsid7221314\charrsid2434550 the Expropriated Properties Act.}{\insrsid460895 \par }{\insrsid7221314\charrsid2434550 \line [3]}{\insrsid460895 }{\insrsid7221314\charrsid2434550 That the learned Judge should have restricted}{\insrsid460895 this claim to the procedure \line }{\insrsid7221314\charrsid2434550 laid down under the Expropriated Property Ac}{\insrsid460895 t by referring the matter to \line }{\insrsid7221314\charrsid2434550 the Verification Committee}{\insrsid5310426 \par }{\insrsid5310426\charrsid2434550 }{\insrsid7221314\charrsid2434550 [4] That the suit as brought was misconceived and premature as the respondents could only have lodged an appeal against the Verification Committee }{\insrsid10190128 decision of compensation and }{\insrsid7221314\charrsid2434550 accordingly the learned Judge erred in law to entertain the suit.\line [5) The learned Judge erred in law and on the facts to hold that in a compensation claim matter for renovations under the Expropriated Properties Act, the normal standard of proof and ordinary rules of proof applicabl}{\insrsid8082237 e to liquidated claims apply}{\insrsid7221314\charrsid2434550 whereas the law with regards to compensation claims of Expropriated Properties have been stipulated by statute law and case law}{\insrsid8082237 .}{\insrsid489942 \par }{\insrsid5310426\charrsid2434550 }{\insrsid7221314\charrsid2434550 [6}{\insrsid9243980\charrsid2434550 ] }{\insrsid9243980 The}{\insrsid7221314\charrsid2434550 learned trial Judge erred in law to find that the valuation report Exhibit P4 was overwhelmingly convincing as evidence of proof of renovations rendered on the suit premises despite }{\insrsid8082237 the fact that the value}{ \insrsid7221314\charrsid2434550 had not carried out a physical inspection of the}{\insrsid9243980 }{\insrsid7221314\charrsid2434550 premises nor was any information sought from DAPCB as to the nature of renovations required and made by the Plaintiffs}{ \insrsid9243980 . \par }{\insrsid5310426\charrsid2434550 }{\insrsid7221314\charrsid2434550 [7}{\insrsid12205872\charrsid2434550 ]}{\insrsid12205872 The}{\insrsid7221314\charrsid2434550 learned}{\insrsid9243980 Judge erred in law and fact }{\insrsid7221314\charrsid2434550 in }{\insrsid9243980 holding that the 2nd and 3rd \line }{\insrsid7221314\charrsid2434550 Defendants did not appear to defend the suit in law whereas they had entered \line appearance and filed a defence.}{\insrsid9243980 \par }{\insrsid12205872 [8] }{\insrsid7221314\charrsid2434550 The learned Judge erred in entering judgment against the 2nd and 3rd}{\insrsid12205872 Defendants under Order 9 Rule 5 of C. P. R. \line [9] }{\insrsid7221314\charrsid2434550 The learned Judge erred in law and fact to award a sum of Shs.70,000,000/= as special damages which sum was never specifically proved at the hearing or in evidence.}{\insrsid12205872 \par [10]}{\insrsid12205872\charrsid2434550 }{\insrsid12205872 The}{\insrsid7221314\charrsid2434550 learned Judge erred in law and fact to}{\insrsid12205872 hold that the plaintiffs were }{\insrsid7221314\charrsid2434550 enti}{\insrsid12205872 tled to the compensation for}{\insrsid7221314\charrsid2434550 renovations claimed in suit whereas the Plaintiffs had not specifically proved their claims as pleaded in the Plaint taking into consideration the fact that part of the purported renovations were made by the former 1st and 4th Plaintiffs who had withdrawn from the suit and had not made any assignment of }{\insrsid12205872 their rights to claim to the Plaintiffs. \line [11] }{\insrsid12205872\charrsid2434550 The}{\insrsid7221314\charrsid2434550 learned Judge erred in law and fact to completely disregard the Defendants\rquote Counter-Claim for rent as against the rent from the period of repossession up}{\insrsid5310426 }{\insrsid7221314\charrsid2434550 to June, 1993.}{\insrsid4794364 \par }{\insrsid7221314\charrsid2434550 [12) The trial}{\insrsid4794364 Judge erred in law and fact }{\insrsid7221314\charrsid2434550 to grant final judgment awarding \line compe}{\insrsid4794364 nsation for renovations to the }{ \insrsid7221314\charrsid2434550 Plaintiffs in the circumstances and on \line the evid}{\insrsid4794364 ence of the Plaintiffs per se. \par }{\insrsid7221314\charrsid2434550 The above grounds were argued in blocs of Grou}{\insrsid4794364 nds 2, 3, 5, and }{\insrsid7221314\charrsid2434550 6; 7, and 8; and 4, 9, 10,}{\insrsid4794364 and 12. Grounds 1 and 11 were }{ \insrsid7221314\charrsid2434550 abandoned. With leave of the court, counsel for both parties submitted written submissions. The }{\insrsid4794364 bloc of grounds 2, 3, 5, and}{\insrsid7221314\charrsid2434550 6 was argued first.}{\insrsid4794364 \par }{\insrsid7221314\charrsid2434550 \line The thrust of the complaint raised by counsel for the appellants in that bloc of grounds 2, 3, 5 and 6 was against the failure by the trial Judge to have had regard to the requirements provided for by the Expropriated Properties Act 1982 (EPA) for determination of claims for compensation for improvements made to property to which (EPA) applies but who instead wrongly applied the ordinary rules of pro}{\insrsid4794364 of. It was the argument of Mr. }{\insrsid7221314\charrsid2434550 Mulira, learned Counsel for the appe}{\insrsid4794364 llants, that whereas Section }{\insrsid7221314\charrsid2434550 11 (2) of the EPA enjoins a former own}{\insrsid4794364 er of a property to which }{\insrsid7221314\charrsid2434550 the EPA applies, to pay for impro}{\insrsid4794364 vements made to such property, }{\insrsid7221314\charrsid2434550 the claimant must first submit his/her claim to the Verification \line Committee for verification. He relied on Regulation 8 (1) of the Expropriated Properties (Reposses}{\insrsid4794364 sion and Disposal) Regulation, }{\insrsid7221314\charrsid2434550 1983 (S.1 No. 6 of 1983}{\insrsid4794364\charrsid2434550 ). }{\insrsid7221314\charrsid2434550 Counse}{\insrsid4794364 l further submitted that, upon }{\insrsid7221314\charrsid2434550 the receipt of such a claim, the Minister responsible for Finance \line with assistance from the Boar}{\insrsid7557765 d of valuers established under s}{\insrsid7221314\charrsid2434550 ection 2 of the Properties and}{\insrsid7557765 Business (Acquisi tion) Decree }{\insrsid7221314\charrsid2434550 No.11 of }{\insrsid7557765\charrsid2434550 1975}{\insrsid7221314\charrsid2434550 determines the value}{\insrsid7557765 payable for the improvement }{\insrsid7221314\charrsid2434550 claimed and communicates the decision to the claimant. Counsel \line cited }{\b\ul\insrsid7221314\charrsid7557765 Section 12 of the EPA (Supra)}{\ul\insrsid7221314\charrsid2434550 }{\insrsid6632108 as, authority for this }{ \insrsid7221314\charrsid2434550 proposition. He submitted furth}{\insrsid6632108 er that only when the claimant }{\insrsid7221314\charrsid2434550 is dissatisfied with the Minist}{\insrsid6632108 er\rquote s decision that he may seek }{ \insrsid7221314\charrsid2434550 redress from the High Court by way }{\insrsid6632108 of appeal under Section 14 (1) }{\insrsid7221314\charrsid2434550 of the EPA. Counsel contended, an}{\insrsid6632108 d rightly in my view, that the High Court has no original }{\insrsid7221314\charrsid2434550 ju}{\insrsid6632108 risdiction over claims for }{\insrsid7221314\charrsid2434550 compensation for improvements}{\insrsid6632108 made to property to which EPA }{ \insrsid7221314\charrsid2434550 applies. He pointed out that in the instant case, there was no evidence that the respondent ever submitted his claim to the Verification Committee for verification}{\insrsid6632108 or that the Minste}{ \insrsid7221314\charrsid2434550 r had determined the amount to be paid by the appellants as compensation to the respondent for the improvements made to the suit property.}{\insrsid6632108 \par }{\insrsid7221314\charrsid2434550 \line The above argument was presented before the trial Judge arid she rejected it in her judgment in t}{\insrsid6632108 he following terms;}{\insrsid7221314\charrsid2434550 \line }{\insrsid6632108 }{ \insrsid7221314\charrsid2434550 \'93---once improvements or renovations are proved by any norm}{\insrsid6632108 al standard of proof to have been}{\insrsid7221314\charrsid2434550 carried out, the ordinary rules of proof applicable to liquidated claims apply and once the court is satisfied the claim becomes payable.}{\insrsid6632108 \'94 \par }{\insrsid7221314\charrsid2434550 \line It is important to note that there is no dispute that the suit property is one to which the EPA a}{\insrsid6632108 pplies. A certificate of its }{\insrsid7221314\charrsid2434550 repossession was issued by the Minster in }{\insrsid1577461\charrsid2434550 favor}{\insrsid7221314\charrsid2434550 of the appellant. Under Section 11 (2) of the EPA, the appellants as the former }{\insrsid6632108\charrsid2434550 owner}{\insrsid6632108 ,} {\insrsid6632108\charrsid2434550 thereof}{\insrsid7221314\charrsid2434550 is enjoined to pay for any improvements mad}{\insrsid6632108 e to the property. That Section }{\insrsid7221314\charrsid2434550 provides:}{\insrsid6632108 \par \'93Where pro}{\insrsid7221314\charrsid2434550 pe}{\insrsid6632108 rty or business is returned to }{\insrsid7221314\charrsid2434550 a former owner or transferred to a joint }{\insrsid6632108 }{\insrsid7221314\charrsid2434550 venture company or retained by the government in accordance with the pr}{\insrsid6632108 ovisions of t}{\insrsid7221314\charrsid2434550 his Act, the}{\insrsid6632108 former owner or the Company}{\insrsid7221314\charrsid2434550 or Government as the case may be, shall be liable to pay for the value of any improvements in such property or business to the person or body that effected such improvement.\'94}{\insrsid6632108 \par }{\insrsid7221314\charrsid2434550 \line Section 12 of the EPA, 1982 enjoins the Minister to seek guidance from the Board of Valuers established under Section 2 of }{\insrsid6161691\charrsid2434550 Decree No}{\insrsid7221314\charrsid2434550 . 11 of 1975 to determine the value of any improvements claimed}{\insrsid6161691 to have been made to property t}{\insrsid7221314\charrsid2434550 o which EPA applies. A claimant is require}{\insrsid6161691 d under regulation 8}{ \insrsid7221314\charrsid2434550 (1) of the Expropriated Properties (Repossession and Disposal) Regulations 1983, to first submit the claim to the Verification Committee within a specified period for verification. The Regulation provides:}{\insrsid6161691

\par \'938. }{\insrsid7221314\charrsid2434550 (1}{\insrsid6161691\charrsid2434550 ). }{\insrsid7221314\charrsid2434550 Any person who has }{\insrsid6161691 a claim of any }{\insrsid7221314\charrsid2434550 interest of}{\insrsid6161691 whateve r description in any \line }{\insrsid7221314\charrsid2434550 property or business affected by the provisions of this Act, other than a claim for repossession, may within ninety days from the commencement of the Act, lodge such claim with the Verification Committee by writing under his hand to the Chairman of }{ \insrsid6161691 the }{\insrsid7221314\charrsid2434550 Committee.}{\insrsid6161691 \par }{\insrsid7221314\charrsid2434550 \line 8 (2). Any p}{\insrsid6161691 erson who lodges a claim under }{\insrsid7221314\charrsid2434550 the proceedi}{\insrsid6161691 ng sub-regulation shall give }{\insrsid6161691\charrsid2434550 details}{ \insrsid7221314\charrsid2434550 of the origin, nature and substance of such claim.\'94}{\insrsid6161691 \par }{\insrsid7221314\charrsid2434550 \line Section 14 (1) of the EPA reads as follows: \line \'93Any person who is aggrieved by the decision made by the Minister under this Act \line within a period of thirty days from the date of communication of the decision to such person appeal to the High C}{\insrsid6161691 ourt against such decision.\'94 \line }{\insrsid7221314\charrsid2434550 \line I agree. This position was also taken by the Principal Judge quite rightly, in }{\ul\insrsid7221314\charrsid2434550 Shaban}{\ul\insrsid3410630 Matovu Vs Sikindar Hussein Esm}{\ul\insrsid7221314\charrsid2434550 ail and others, HCCS No. 283 of 1992 )unreported) }{\insrsid7221314\charrsid2434550 in which he dismissed the }{\insrsid3410630\charrsid2434550 Plaintiff\rquote s}{\insrsid7221314\charrsid2434550 claim for refund of money spent on improvements.}{ \insrsid11022167 \par }{\insrsid7221314\charrsid2434550 \line In that case, the Plaintiff made some improvements to a property to which the EPA applied. The property was repossessed by the}{\insrsid11022167 former owner. The plaintiff instituted a suit \line in the high court against the former owner }{\insrsid12665603 claiming a refund of the money which the claimant allegedly spent on the improvements. He had neither submitted his claim to the verification}{\insrsid6061454 committee for verification as required by law nor was his case by way of appeal. The learned principal Judge dismissed the sui}{\insrsid1538131 t.}{\insrsid7221314 \par }{\insrsid1538131 I am unable to agree with the argument of Prof. Kakooza, learned counsel for the respondent that the High court has original Jurisdiction over such claims because Article 139(1) of the constitution of Uganda 1995 and section 16(10) of the Judicature statu te no.13 of 1996 give the high court unlimited original jurisdiction in any matter in Uganda. Those provisions, with respect, were cited out of context}{\insrsid7172995 . Section 14(1) of EPA is not in conflict with those provisions of the laws cited.}{ \insrsid1276994 }{\insrsid7172995 It gives to the high court appellate jurisdiction over }{\insrsid1276994 the matter}{\insrsid9638141 . There is no question of ouster of jurisdiction of the high court over the matter.}{\insrsid1538131 \par }{\insrsid6962214 For those reasons I agree that the high court has no original jurisdiction to entertain claim for improvements made to property to which EPA applies. The trial in this case was therefore a nullity. Grounds 2, 3, 5, and 6 were accordingly well }{\insrsid12064665 taken. In}{\insrsid6962214 view of the above }{\insrsid12064665 finding;}{\insrsid6962214 I would rest the matter here, as no useful purpose will be served by considering the remaining grounds. I would allow the appeal, set aside the judgment and orders of the trial court. In place, I would substitute a judgment}{\insrsid12064665 dismissing the }{\insrsid6962214 respondent\rquote s suit with costs here and in the court below.}{\insrsid12064665 \par }{\insrsid6962214 Dated at Kampala this }{\insrsid12064665 2}{\super\insrsid12064665\charrsid6962214 nd}{\super\insrsid12064665 }{\insrsid12064665 day of December 1998}{\insrsid6962214 \par }{\b\insrsid12064665\charrsid12064665 G. M OKELLO}{\b\insrsid12064665 \par }{\b\insrsid12064665\charrsid12064665 JUSTICE OF APPEAL}{\insrsid12064665\charrsid12064665 \par }{\b\insrsid12064665 \par }{\b\ul\insrsid12064665\charrsid12064665 JUDGEMENT OF MANYINDO, DCJ. \par }{\insrsid12064665 I have read the judgment of Okello, JA, just delivered. \par I agree with it and the ord}{\insrsid10495503 ers proposed in that judgment a}{\insrsid12064665 s Engwau, JA also agrees it is so ordered. \par Dated at Kampala this 2}{\super\insrsid12064665\charrsid12064665 nd}{\super\insrsid12064665 }{\insrsid12064665 day of December 1998. \par }{\b\insrsid12064665\charrsid12064665 S. T MANYINDO}{\b\insrsid12064665 \par }{\b\insrsid12064665\charrsid12064665 DEPUTY CHIEF JUSTICE}{\b\insrsid12064665 \par }{\b\ul\insrsid12064665\charrsid12064665 JUDGEMENT OF S. G ENGWAU. J. A}{\b\ul\insrsid12064665 \par }{\insrsid12064665 I have had the benefit of reading the }{\insrsid3623844 judgment}{\insrsid12064665 of Okello, J. A in draft and I agree with it. \par In the circumstances I would allow this appeal with the orders proposed by him. \par Dated at Kampala this 2}{\super\insrsid12064665\charrsid12064665 nd}{\super\insrsid3623844 }{\insrsid3623844 day of December 1998.}{\insrsid12064665 \par }{\b\insrsid3623844\charrsid3623844 S. G. ENGWAU \par JUSTICE OF APPEAL \par }{\b\ul\insrsid12064665\charrsid12064665 \par }{\b\insrsid12064665 \par }{\b\insrsid12064665\charrsid12064665 \par \par }{\insrsid12064665\charrsid12064665 \par }\pard\plain \ql \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid8653202 \fs24\lang2057\langfe1033\cgrid\langnp2057\langfenp1033 {\lang1033\langfe1033\langnp1033\insrsid7221314\charrsid2434550 \par }{\insrsid10825639\charrsid2434550 \par }}