Court to rule on Mbarara Gatsby application in late June
MBARARA– An application filed on May 11, 2022, by Mbarara Gatsby Small Scale Enterprises Association Limited [MGSSEAL] seeking to join Uganda Investment Authority [UIA] in a court suit against the tenants of Gatsby industrial park, is set for ruling on June 28, 2022.
Lady Justice Joyce Kavuma of Mbarara High Court said court would determine whether MGSSEAL is free to join UIA in the main case where tenants are challenging UIA for handing over the Gatsby industrial park’s land title to MGSSEAL, also operating in the same industrial park.
David Kamukama, lawyer for the respondents, said, “Filing the rejoinder to our case is unnecessary because for us we sued Uganda investment authority, not MGSSEAL”.
“They are seeking court to permit them to be on the record to be heard for which we object because we know whom we sued and know where our remedy lies but they cannot provide that remedy,” Kamukama added.
Kamukama’s prayer is that MGSSEAL’s application is dismissed by court as his clients battle with UIA in the main case.
However, Abbas Advocates, representing the applicants [MGSSEAL] did not show up in court.
The applicants submitted, “If the applicant is added as a defendant/respondent, it would avoid multiplicity of suits as all questions involved in this matter would have been completely settled.”
“Unless the applicant is joined as a defendant/respondent in the matter, this Honourable Court risks being misled by the Respondents/applicants,” reads the application
Background
Victor Kansiime, of Millionstars Health Products Limited says tenants under their umbrella Ankole Small Scale Industrial Association [ASSIA] are challenging the manner in which UIA made MGSSEAL a landlord of industrial park when they are part of the many business operating in the same premise.
Other eight aggrieved tenants include; Agribusiness and Real Estate Investments, Active Living Uganda Limited, Bontao [U] Limited, Bold Energy Limited, Esperanza Distributors Limited among others.
On August 17, 2021, the state minister for investment and privatization Evelyn Anite oversaw the handover of the park land title to MGSSEAL.
Kansiime said MGSSEAL issued letters and threats to the rest of the tenants threatening to evict them from the industrial park, a thing they are challenging in court.
“As tenants we were subjected to intense pressure, intimidation and threats before we ran to court and a temporary court injunction was put,” he said.
Kansiime said they are 24 companies under ASSIA operating from Gatsby Industrial Park.
MGSSEAL occupies 5.1 hectares of the contested land that has 60 housing units and accommodates 60 different enterprises.
ASSIA was unable to pay back the loan of shs 2.09 billion secured from East African Development Bank [EADB]. President Museveni would ask the government through UIA to pay off the loan to secure the association’s property from attachment.
And in 2021, Museveni ordered UIA to give back the land title to ASSIA. However, UIA, alongside minister Anite would hand over the land title to MGSSEAL, which made ASSIA run to court.
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