Court orders Ozuu Brothers’ Directors to pay shs50m damages

By Andrew Cohen Amvesi   

ARUA. The Commercial Division Court in Kampala has ordered the directors of Ozuu Brothers limited (Ltd) to pay a sum of shs50m as exemplary damages for defying court orders.

The contested Ozuu Brothers building in Arua town which was sold against court order. PHOTO BY ANDREW COHEN AMVESI

In a leaked ruling of April 21, 2022, court ordered that shs30m will be paid to William Etria and Richard Aderubo, the applicants of the suit while shs20m will be deposited in court as penalty for contempt of court order within a period of one month from the date of the ruling.

The ruling was part of the main suit no. 001 of 2015 in which the applicants dragged Ozuu Brothers Ltd and its directors Samuel Ejidra, Benjamin Nyakuni Alioni and Moses Draza to court demanding for their shares from the company.

Part of the ruling made by Justice Kakooza.

The applicants were part of the team of directors of the company before they were kicked out of the business thus running to court to seek justice.

However, in the course of hearing the matter, the court ordered that all the company property should not be sold until the matter in court is settled.

But later, the applicants ran back to the same court with evidence of sale agreement of the company property vide LRV 4014, Folio 25, Plot No 39 and LRV 3230 Folio 22, Plot No. 41 at Adumi Road in Arua Municipality (now Arua City), dated September 3, 2020 between the first respondent as Vendor and Jasco Enterprise (U) LTD as purchaser. The building in question sitting on Plot No. 41 houses KCB Bank Arua branch.

It is on this ground that Justice Cornelia Kakooza Sabiiti ruled that the first respondent (Ozuu Brothers Ltd) and the second respondent (Samuel Ejidra) are in contempt of some of the court orders in CCMA No. 1208 of 2016.

“The agreements of sale of land comprised in LRV 4014, Folio 25, Plot 39 and LRV 3230, Folio 22, Plot No. 41 at Adumi Road in Arua Municipality were done illegally against court orders, they are null and void. The applicants are awarded exemplary damages of shs30,000,000 against the 1st and 2nd respondent, each to bear 50 per cent, it should be paid within 30 days from the date of this ruling,” Kakooza ordered.

“The sum of shs20,000,000 is awarded against the 1st and the 2nd respondents (each to pay 50 per cent) as penalty for the contempt and shall be deposited in court within 30 days from the date of this ruling,” Kakooza further ordered.

The Judge also ruled that the 1st and the 2nd respondents shall bear the costs of the suit.

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