Kabaka sues UCU over breach of tenancy agreement
The administration block of Mengo famously known as Bulange where the Buganda kingdom headquarters are located. PHOTO/FILE
What you need to know:
- Namulondo Investments faults UCU for failing to honour its tenancy for the 2021/22 finacial year in spite of undertaking to do so.
Uganda Christian University (UCU) has been summoned by court to defend itself within 15 days on accusations of breach of its tenancy agreement worth more than Shs254.3m with the Kabaka of Buganda for premises that were housing the university in Kampala.
In a case filed at the Commercial Division of the High Court, Namulondo Investments, as the lawful agent of the Kabaka of Buganda mandated to manage, let and supervise property and buildings belonging to the Kabaka, accuses UCU of breach of tenancy.
Court summonses indicate that UCU will be required to file a defence within 15 days against the accusations, failure of which Namulondo Investments will proceed with the case and a judgement might be entered without its input.
Acting through Kiddu and Partners Advocates, Namulondo Investments, asserts that on July 9, 2015,the Kabaka and UCU executed a tenancy agreement in respect of premises comprised in Kibuga Block 12 plot 893 land at Mengo for two years from July 1, 2015 and expiring on June 30, 2017.
Court documents indicate that UCU immediately took possession of the premises, which it started to utilise as its Kampala (Butikkiro) Campus until when the tenancy was amended to extend from two to five years, which would go on until June 30, 2020.
Upon expiry of the agreement UCU expressed willingness to renew but the extension was never executed even as UCU continued to occupy the premises, paying rent for the 2021/22 financial year on terms of the expired tenancy.
On May 18, 2021, UCU wrote a letter to Namulondo Investments, citing challenges in meeting rent obligation and confirming it had paid six months ahead to December 2021.
However, on May 21, 2021 Namulondo Investments replied to UCU requesting for a meeting to discuss and resolve all pending tenancy issues but was shocked to receive another letter on June 1 in which UCU notified Namulondo Investments that it would not renew the tenancy beyond December 31.
Namulondo Investments faults UCU for failing to honour its tenancy for the 2021/22 finacial year in spite of undertaking to do so.
Namulondo Investments will prove that UCU’s assertion not to renew the tenancy is misconceived and misleading since the substituting tenancy between the 2021/22 financial year will expire on June 30, 2022.
