Seroma ordered to defend self over breach of contract

Monday May 10 2021
finance02pix

Seroma claims rightful ownership. PHOTO/FILE/COURTESY

By BETTY NDAGIRE

Court has ordered Seroma Limited to file a written defence within 15 days over alleged breach of contract. 
In a case filed at the Commercial Division of the High Court, Mr Sula Mayanja accuses Seroma of going against a contract in which it had agreed to let him its parking space inside Seroma Shoppers Stop Plaza. The agreement, court documents indicate,  was drawn somewhere in May 2018. 

“You are hereby requested to file a defence  ... with 15 days from the date of service of the summons. Should you fail ... Mr Mayanja may proceed with the suit and judgement may be given in the defendant’s absence,”  the summons signed by the Commercial Division of the High Court registrar, read in part.

Acting through AF Mpanga Advocates, Mr Mayanja claims that he informed Seroma that the purpose for renting the parking space was to convert it into a commercial parking lot through which he would create distinct parking spots for shoppers and other interested parties to park their cars at a fee.
Subsequently, Seroma presented proof to Mr Mayanja that it was the rightful owner of the premises and that indeed its parking space was available for renting.  

Seroma, documents indicate, agreed to let out the parking space to Mr Mayanja at a monthly consideration of Shs3m, which would come up to Shs36m per calendar year payable before or at the execution of the contract.

Mr Mayanja contends that on May 16, 2018 he took a credit facility of Shs85m from Post Bank for the purpose of financing the transaction and as it had been agreed deposited Shs36m in Seroma’s account. 

However, despite coming to an agreement and paying the consideration under the contract, Seroma refused to avail Mr Mayanja the rented parking space and an attempt by Mr Muyanja in July 2018 to take possession of the parking space ended up in an assault in which he was beaten by Seroma tenants. 
He was subsequently hospitalised in  July 2018 and continued to nurse wounds up to February2020. 

Advertisement

Mr Mayanja has since learnt from the tenants that there was never a parking space to rent from Seroma thus he is seeking court to enter judgment in his favour with orders to clear a sum of Shs36m, special damages of Shs23m, general damages and interest to the suit, among others.

editorial@ug.nationmedia.com 

Advertisement