UETCL V Fredrick Sempebwa and Anor (Civil Appeal No. 106 of 2018) [2021] UGHCCD 33 (26 May 2021)

Ulii

Automated Summary

Key Facts

Uganda Electricity Transmission Company Limited (appellant) appeals against a tribunal's decision in an EDT Complaint (No. 20 of 2017) regarding unpaid compensation for land taken for a wayleave. The parties agreed to adjust the compensation from UGX 211,000,000 to 311,532,203 to account for inflation but disagreed on interest. The tribunal awarded 20% interest, which the appellant claims is a double computation and unreasonable. The court dismissed the appeal, upholding the tribunal's judgment and finding the interest award valid. Grounds of appeal included alleged defects in the tribunal's quorum and procedural errors, but the court determined the tribunal was properly constituted during hearings and the judgment was validly signed by a majority. The appellant also sought remedies to overturn the interest award, but the court ruled against it, awarding costs to the respondents.

Transaction Type

Land compensation for wayleave (right-of-way) by electricity transmission company

Issues

  • Ground 3: Whether the tribunal rightly determined the issue of interest without the parties filing a consent settlement? The court assessed if the tribunal's decision on interest was legally valid despite the lack of a formal signed agreement, citing estoppel principles and procedural rules.
  • Ground 2: Whether the 20% interest awarded by the tribunal amounted to double computation or was unreasonable and unconscionable? The court evaluated if the interest, combined with inflation adjustments, constituted unjust enrichment or legal error, referencing statutory provisions and prior rulings.
  • Ground 4: What remedies are available to the parties? The court concluded on the appropriate legal remedies, including whether to uphold the tribunal's interest award and allocate appeal costs.
  • Ground 1: Whether the failure of all members of the Electricity Disputes Tribunal to sign the judgment in complaint No. 20 of 2017 rendered the judgment defective? The court analyzed whether the absence of a quorum during the signing invalidated the tribunal's decision, considering statutory requirements and precedents.

Holdings

  • The court found that the failure of one tribunal member to sign the judgment did not render it defective, as the tribunal was fully constituted during hearings and the majority signed the decision. The appellant's payment based on the judgment further estopped them from challenging its validity.
  • The court dismissed the appeal with costs awarded to the respondents, affirming the tribunal's upheld judgment. No further remedies were granted to the appellant.
  • The court ruled that the tribunal correctly determined interest without a formal consent settlement, as the parties' actions (including the appellant's payment) indicated tacit agreement. The doctrine of estoppel under Section 114 of the Evidence Act applied.
  • The court upheld the 20% interest award, determining it was not a double computation or unreasonable. The inflation adjustment and interest were treated as separate components, with the latter compensating for the delay in payment from 2011 to 2018.

Remedies

  • The judgment and orders of the tribunal are hereby upheld.
  • Costs of the appeal are awarded to the respondents.

Monetary Damages

437596181.00

Legal Principles

  • The court applied estoppel principles to prevent the appellant from denying the validity of the tribunal's judgment after it had already acted on the decision by making a payment. Section 114 of the Evidence Act was referenced to support this doctrine.
  • The court determined that the 20% interest rate awarded by the tribunal was not unreasonable or unconscionable, citing the need to account for inflation and economic depreciation of currency under the Civil Procedure Act and case law precedents.
  • The court upheld the tribunal's compliance with procedural requirements under the Electricity Act and EDT regulations, emphasizing the necessity of a quorum during hearings and the validity of majority decisions in judgments.

Precedent Name

  • Kifamunte Henry v Uganda
  • Komaketch V Rose Akol
  • Stanbic Bank Uganda Ltd V Uganda Crocs Ltd
  • Peter Mulira v Mitchell Cotts
  • Mark Extraction Enterprises Ltd V M/S Nalongo Orphanage
  • Stanbic Bank Uganda Ltd V Hajji Yahaya Sekalega
  • Esero Kasule V Attorney General
  • J.K Patel V Spear Motors Ltd

Cited Statute

  • Civil Procedure Act
  • Electricity Act
  • EDT (Procedure) Rules
  • Evidence Act
  • EDT (Procedure) Rules 2012

Judge Name

Emmanuel Baguma

Passage Text

  • In conclusion this appeal is hereby dismissed with the following orders; 1. The judgment and orders of the tribunal are hereby upheld. 2. Costs of the appeal are awarded to the respondents.
  • I therefore find that failure of one member out of the three members to sign the judgment does not render the judgment defective.
  • I therefore find that the award by the tribunal did not amount to double computation and neither was it unreasonable nor unconscionable.

Damages / Relief Type

20% interest award totaling UGX 437,596,181