The High Court Commercial Division has issued a decree in relation to the last year ruling in whch Select Garment boss , Billy Ahimbisibwe defeated Forest Mall/ Old Stanley Hotel owner Stanslas Isiagi.
A court decree is a formal ordert ssued by a court of law, typically after a trial or heariing . It is a legally binding decision that outlines the rights and obligations of the parties involved in a lawsuit.
A decree is a key step in the procees of enforcing the judgement and recover the monies in cases which are commercial in nature.
According to the decree issued this week by the High Courr registar, the court reaffirmed special damges of USD131,257 comprised in USD123,601 for fittings and fixtures , and USD7,656 being security deposit and UGX99, 320,855 comprised of UGX52,800,000 for accomdation and locally aquired materials and UGX46,520,856 for stock that was confisicated , UGX30m in exemplary punitive aggravated and 70m in general damages, all at an interest of 20 and 6% as monies Isiagi must pay to Select Garments as soon as possible.
The High Court in Kampala last year ordered Stanley Hotel Ltd, Trading as Forest Mall to pay more than UGX700m to Select Garment over wrong eviction.
The court, presided over by High Court judge Patience Rubagumya delivered the verdict in Kampala after 11 years of court battle.
Ahimbisibwe filed the suit against Forest Mall Boss for breach of tenancy agreement.
He also demanded for declarations that he was not indebted to Forest Mall in rental arrears as claimed.
He also accused Forest Mall boss of breached of Tenancy/Lease Agreement and demanded for general damages, exemplary/punitive/aggravated damages, special damages, 20% interest, and costs of the suit.
The suit was premised on the background that; Select Garments and the Stanley Hotel aka Forest Mall executed a Tenancy Agreement wherein Forest Mall leased to Select Garments part of the 1st floor of its property known as Forest Mall,Lugogo covering an area of 348 square meters, with effect from 1st December, 2010 at a monthly rent of USD 22 per square meter and a service charge of USD 1,044 per month.
The said tenancy was for six years. Under the Agreement, Select Garments was to receive the premises in a shell form.
Upon taking possession of the premises, Select Garments carried out extensive and expensive high level corporate branding and installations necessary to operate a high end store.
By 10th October, 2012 Select Garments was in rental arrears and Forest Mall instituted Civil Suit No.451 of 2012 seeking to recover the same.
A Default Judgment was entered against Select Garments and a warrant of execution was granted.
However, before execution could commence, the parties entered into a Consent Agreement wherein Select Garments was to pay Forest Mall USD 50,000 in cash in full settlement of all the rent arrears up to 31st December, 2012, which it did.
“The parties also agreed that with effect from 1st January, 2013 the Plaintiff was to pay the Defendant a flat rate of USD 4,000 per month which it did but on 26th May, 2014 the Plaintiff was served with an eviction/demand notice claiming rent arrears of USD 293,070 to be paid within 7 days,” the judgment noted.
“To that, the Plaintiff instituted the current suit contesting the demand notice and the intended eviction on grounds that it was not in arrears since it fully paid up its rent as agreed until May, 2014 when it was evicted/blocked from accessing the premises.”
Select Garments also averred that some of its properties were confiscated by Forest Mall officials and all the movable items seized by the bailiff Mr. Patrick Talenga of Marshall Agents Auctioneers & Court Bailiffs.
Select Garments denied all the allegations and filed Civil Suit No.451 of 2012 whose ruling was delivered Wednesday.
“In conclusion, the Plaintiff is hereby awarded special damages of USD 131,257 (United States Dollars One Hundred Thirty One Thousand Two Hundred Fifty Seven Only) comprising of USD 123,601 for the fittings and fixtures and USD 7,656 being the security deposit fee and UGX 99,320,856/= (Uganda Shillings Ninety Nine Million Three Hundred Twenty Thousand Eight Hundred Fifty Six Only) comprising of UGX 52,800,000/= for accommodation and locally procured materials and UGX 46,520,856 for the stock that was confiscated by the Defendant, the ruling stated.
Court further awarded interest at the rate of 20% per 10 annum from the date of filing the suit until payment in full.
“Interest is awarded on the sums at the rate of 6% per annum from the date of Judgment until payment in full. Costs of the suit are awarded to the Plaintiff. The Counterclaim fails,” Judge Rubagumya concluded.
“I won the matter 11 years down the road, judgment has come in our favour. The man illegally stopped our business. We were not indebted to him as he claimed. He now has to make good by sweating over Ugx700m,” Ahimbisibwe said after the ruling.
Very soon bailliffs will be moving on Isiagi to recover the money
