The High Court has ordered Senana Investments Limited and its proprietor, Ms Farida Nabirongo to pay more than Shs100 million to a property firm as damages for breach of contract.
Justice Elizabeth Jane Alividza of the Commercial Division of the High Court noted that the two parties breached a contract when they used and enjoyed the benefits of property without paying.
“This court has found that there is a binding contract between the plaintiff (GKO Medicines) and the first (Senana Investments Limited) and second (Ms Nabirongo) defendants,” Alividza said.
“The plaintiff claimed for special damages of Shs100 million being the money that was not paid by the first and second defendants. This court has determined that there was a breach of contract, Therefore, I award special damages of Shs100 million at an interest of seven per cent per annum from the date of cause of action until payment in full.” Court ruled.
The court also cleared the third accused party, General Motors Limited of any wrongdoing and ordered GKO Medicines Limited to pay Shs12 million with a seven per cent interest per year from the date of filing the case until full payment for unpaid rent resulting from a tenancy agreement they had signed with the complaining firm.
“I am awarding a lower interest rate of seven per cent because the case has delayed in the court system due to many reasons including delayed transcribed proceedings. The losing party should bear this additional burden in the form of interest,” the judge added.
The court also awarded nominal damages of Shs2 million at an interest rate of seven per cent from the date of judgment until full payment as well as legal costs incurred by the complaining company.
Background
In April 2013, GKO Medicines Limited sued Senana Investments Limited and its proprietor Ms Nabirongo jointly with General Motors Limited for recovery of Shs100 million and general damages for breach of contract.
Investigations by the court in 2010 established that GKO Medicines Limited rented premises belonging to General Motors Limited for its Pharmaceutical business and purchased office equipment, fixtures and fittings worth Shs100 million from the previous tenant Victoria Trading Company.
Court records further show that while vacating the premises, GKO medicines Limited entered an oral contract with Senana Investments and Ms Nabirongo for purchase of the suit property being the new tenants but then refused to pay as agreed.
Justice Alividza held that basing on the evidence on record, there was the existence of an enforceable contract between the conflicting parties hence an offer, acceptance and consideration that is being sought for.
“It is an established fact that Senana Investments and Ms Nabirongo did not pay the plaintiff (GKO Medicines Limited) for the said suit property as agreed and thus there was a breach of contract,” ruled Justice Alividza.
