Former Bukooli North MP Gaster Kyawa Mugoya has again found himself at the centre of a land transaction dispute after the High court (commercial division) ordered him to pay more than Shs 400 million in damages, interest and costs arising from a fraudulent land sale in 2007.
Mugoya, a former Mwanga II Court chief magistrate who was dismissed from the judiciary in 2008 and later joined elective politics, on November 9, 2007, sold Kibuga Block 10 Plot 584 at Bukesa–Namirembe in Kampala to real estate dealer, Chimanbhai Ranchodbhai Patel for Shs 300 million.
However, six months after the sale and after Patel had been issued with a special certificate of title, he was summoned by the police to record a statement over allegations of fraud in the transaction. The summons followed complaints lodged by the rightful owner of the land.
Two months later, the Commissioner for Land Registration notified Patel that the special certificate of title had been cancelled on the ground that it had been issued in error. The cancellation followed a Court of Appeal ruling that Mugoya had no proprietary interest in the land.
In his defence, Mugoya contended that he had purchased the land from Stephen Ddamulira, an administrator of the estate of the late Leonard Dumba Matovu. He further claimed that when Ddamulira declined to share the proceeds of the sale with his relatives, they fabricated allegations against him and Patel.
The court heard that in 2010, Mugoya made arrangements to refund the money, but Patel instead filed a civil suit, rather than pursue mediation.
On April 21, 2021, Mugoya lodged an appeal in the Court of Appeal seeking a determination on whether the sale was fraudulent and the extent of the remedies available to Patel.
Patel submitted that Mugoya intended to defraud him by selling land in which he had no proprietary interest. He further argued that Mugoya breached the contract by failing to refund the purchase price, and sought general damages, punitive damages, interest and costs.
Mugoya, on the other hand, argued that he was willing to refund the money in instalments and that Patel was entitled to no more than a refund of the purchase price.
In its decision, the Commercial Court relied on Civil Appeal No. 200 of 2013, Commissioner of Land Registration and two others vs C.R. Patel, in which the Court of Appeal held that the true owners of the land at all material times held the duplicate certificate of title.
The court further found that Mugoya, in collusion with other persons, procured a special certificate of title by falsely declaring that the duplicate title had been lost. Mugoya and Ddamulira were implicated in the fraud.
The Commercial court further held that Mugoya’s undertaking in May 2021 to refund over Shs 327 million of the purchase price imputed knowledge of the fraudulent acquisition and sale.
“There is no doubt that the defendant’s breach innocent deprived the plaintiff
of substantially the whole benefit of the contract. Therefore, general damages in
the instant case can only be awarded for “vexation, frustration, and distress” and
for the wasted time and administrative hassle of the deal falling through, caused
by the breach of a land sale agreement,” reads in part athe judgement by Stephen Mubiru.
In awarding damages, justice Stephen Mubiru considered Patel’s loss in probable business turnover, commercial security and feelings. The judge awarded him Shs 327,463,000 in special damages with interest of 20 per cent per annum, and Shs 65 million in general damages with interest of eight per cent per annum until payment in full.
Mugoya was also ordered to pay costs of the suit. Patel was represented by M/s Paul Sebunya & Co Advocates, while Mugoya was represented by M/s Mushabe Advocates.
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