By Infora Media
Kampala — A commercial dispute between city law firm Muwema & Co. Advocates and landlord Downtown Investments Ltd has escalated into a complex legal and criminal battle, drawing widespread attention within Kampala’s business and legal circles.
At the centre of the dispute are rent arrears, a contested option-to-purchase agreement for a prime property in Kololo, and allegations of robbery following the firm’s eviction from Plot 50, Windsor Crescent Road.
The firm’s managing partner, Fred Muwema, insists the dispute stems from a failed property transaction rather than unpaid rent. He argues that the firm exercised an option to purchase the premises in August 2021, offering $1.05 million based on market valuation.
“The lease also gave us an option to purchase the property,” Mr Muwema said, adding that the firm had made significant investments in renovations, including roofing, plumbing and electrical works, since occupying the premises in 2014.
According to Mr Muwema, exercising the purchase option altered the legal relationship between the parties. “When you exercise an option to purchase, you cease to be a tenant. You become a purchaser,” he said.
However, negotiations reportedly stalled following the illness and subsequent death of landlord representative Tusha Ruparelia in December 2021.
Court Ruling Favours Landlord
Downtown Investments maintains that Muwema & Co. remained tenants and had accumulated rent arrears amounting to $148,300. The matter was taken to the Commercial Division of the High Court, where Justice Patricia Mutesi ruled in favour of the landlord.
In a decision delivered on February 20, the court ordered the firm to pay more than $372,000 in rent arrears, damages and mesne profits, and to vacate the premises.
Mr Muwema has since challenged aspects of the ruling, particularly the computation of mesne profits. “Mesne profits must be clearly pleaded and particularised. We do not know where the figure came from,” he said.
Eviction Sparks Criminal Claims
The dispute took a dramatic turn following the firm’s eviction in early March. Downtown Investments says the re-entry was conducted lawfully in the presence of police and local authorities, with an inventory of items removed from the premises documented.
But Muwema & Co. disputes this account, describing the eviction as unlawful and alleging criminal conduct by the landlord’s agents.
The firm has filed a complaint alleging aggravated robbery, claiming that sensitive materials, including more than 1,000 legal files, computers and cash, were taken during the eviction.
“Our work is document-based. The seizure disrupted many transactions and court matters,” Mr Muwema said.
Following the eviction, the law firm has relocated its offices to Nakasero Road and is working to restore normal operations. Despite the move, the dispute remains unresolved, with both civil and criminal proceedings ongoing.
Legal experts say the case raises critical questions about Uganda’s commercial property framework, particularly the interpretation of option-to-purchase clauses, the enforcement of tenancy obligations and the handling of evictions involving business premises.
They also note that unforeseen developments, such as the illness or death of key parties, can significantly disrupt contractual processes and escalate disputes.
As the case unfolds, it is expected to set important precedents for landlord-tenant relations and commercial property law in Uganda.