UGANDA, Wakiso | Real Muloodi News | In a significant legal development, the High Court has ruled in favour of a tenant, ordering a landlord to pay over USh73 million due to the wrongful termination of a tenancy agreement.
Justice Boniface Wamala delivered the verdict, stipulating that Naome Kibaaju, the landlord, must compensate Evarest Banyenzaki, the proprietor of African Pot Restaurant situated on Entebbe Road in Wakiso District, for special damages, general damages, interest, and incurred costs resulting from the unlawful termination.
Justice Wamala’s judgment, dated February 14, 2024, outlined the details of the case, affirming Banyenzaki’s claim that there was an existing contract and providing evidence through various receipts demonstrating consistent monthly rent payments to Kibaaju.
The court found Banyenzaki’s evidence credible and reliable, emphasising that Kibaaju had continued to accept rent payments beyond the agreed two-year period, indicating an ongoing tenancy relationship.
Furthermore, Justice Wamala concluded that Kibaaju failed to establish any breach of contract on Banyenzaki’s part, discrediting her counterclaim.
Despite Kibaaju’s assertion of arrears amounting to USh36 million for the period from February to November 2016, the court ruled in favour of Banyenzaki, highlighting his adherence to the terms of the rental agreement.
Banyenzaki’s defence rested on the assertion that he had entered into a rental agreement with Kibaaju on February 15, 2015, for premises at Plot 9 Entebbe Road, with monthly rent set at shillings two million.
He further maintained that the contract was verbally renewed in January 2017. At the time of terminating the agreement in April 2017, Banyenzaki stated that he had already paid rent up to June 2017, with no outstanding arrears.
With the High Court’s decision, the landlord Kibaaju is now mandated to pay the tenant Banyenzaki USh43.2 million for special damages and USh30 million as general damages, along with interest at a rate of 18% per annum from the date of filing the suit until full payment.
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