Wakanyiira asked court to declare that the transaction was a loan agreement not a sale agreement and that the undervaluation of the properties and cheating of stamp duties was an illegality sufficient to invalidate transfers of the properties.
The Court of
Appeal has ordered Businessman Ben Kavuya to return two properties that he
The properties include plots of land in Bweyogerere and Kataza Kiswa belonging to
the former Kampala Capital City accountant George David Wakanyira.
Wakanyira sued Kavuya, his company Global Capital Save 2004 Ltd and Rutungo
Properties Ltd for illegally taking his property.
Wakanyira says that in 2007, he obtained a loan of 170 Million Shillings from
Kavuya and deposited two of his properties as collateral. The money was to be
paid back in six months at a 10 percent interest rate.
Wakanyira says Kavuya asked him to sign the sale and loan agreements together
with a power of attorney and transfer forms for both properties.
The sale agreement according to the court indicated that Shillings 272 million
as a consideration but Wakanyira said he never received the money.
In August 2010, High Court Judge Geoffrey Kiryabwireruled that the
transaction was a sale and that, there was no evidence of fraudulent sale.
Wakanyiira immediately appealed the ruling.
Wakanyira's lawyer, Stephen Kinyanga says the value of the properties stated in
the transfer forms showed that there were no developments yet the properties
were fully developed.
One of the
defence witnesses Micheal Nywana told the court that he filled in the transfer
forms at a value of Shillings 10 million for each property without looking at the
sale agreement. Nywana told the court that Wakanyira was forced to sign blank
transfer forms and that he had fraudulently testified before the court that he
witnessed Wakanyira sign the forms which were not true.
that the transactions were marred with fraud, and not based on any sale
Wakanyiira asked the court to declare that the transaction was a loan agreement
and not a sale agreement.
Three justices of the Court of Cheborion Barishaki, Richard Buteera and Hellen
Obura ruled that although there was a sale agreement, Wakanyira never intended
to enter into a legal contract of sale of his properties and that it was
illegal and fraudulent for Kavuya and his company to say that the transaction
was a sale.
awarded Shillings 71 Million Shillings in special damages for properties he left behind
upon eviction and Shillings 50 million in general damages.
The justices also awarded interest of 20 percent annually on special damages
from the date of filing the case until payment in full and a 6 percent annual
interest rate on general damages from the date of judgement until payment in
also ordered to clear his loan. However, he should pay an interest of 20
percent annually. The court ruled that although the loan had to be paid back
within 6 months at an interest rate of 10 percent, Wakanyira cannot pay at the interest
rate because he had started paying the loan when he realized that his
properties had been transferred into the names of Rutungu Properties Ltd.
Wakanyira’s case was one of those that were brought before the Bamugemereire
land commission where he petitioned the commission over his property.
In June, High Court in Masaka ordered the cancellation of a title of Kavuya that
he had obtained over 714.3 hectares in Kabula County, Sembabule District.