Rédaction Africa Links 24 with The Observer
Published on 2024-04-07 06:31:24
The Commercial Court has recently ruled in favor of tea nursery operators from ten districts, ordering the government to compensate them with over Shs 60 billion for their tea seedlings. This decision was made by Justice Harriet Grace Magala following an unsuccessful appeal by the government against the tea operators. The operators involved in the case include Frank Byaruhanga, Dr. Francis Runumi, George Owakukiroru, Caleb Tumwesimira Kipande, Sam Arineitwe Kajolo, Julius Tumushabe, Julius Kanyamunyu, and Rev. Bernard Byamugisha.
In 2019, these farmers filed a lawsuit against the Attorney General and the National Agricultural Advisory Services (NAADS) seeking compensation for tea seedlings that perished in their nursery beds due to the government’s failure to honor a guarantee demand issued by the Ministry of Agriculture, Animal Industry, and Fisheries. Following negotiations out of court, a consent judgment was reached and endorsed by the court registrar on January 8, 2021.
According to the consent judgment, it was established that the number of tea seedlings estimated to have been planted in the specified districts totaled 106,640,606, valued at Shs 42 billion. Out of this amount, Shs 8 billion had already been paid to eligible nursery bed operators, and NAADS committed Shs 7 billion for payment. The remaining balance of Shs 27 billion was agreed to be paid in phases with a 20% interest applied. Additionally, 40% of the total value of the tea seedlings that the government was unable to procure would be paid after a joint verification exercise by both parties.
The farmers then sought the execution of the consent judgment and taxed bill of costs before the court registrar, who ordered the respondents to pay them over Shs 60 billion plus a 20% interest. Following an appeal by NAADS and the Attorney General, Justice Magala dismissed their appeal and upheld the order for the government to pay over Shs 60 billion to the farmers. However, she reduced the interest to 10%, noting that the agreed-upon interest was indeed 10%, not 20%.
The judge emphasized that once a consent judgment is endorsed by the court, it becomes a full and final settlement of the dispute and cannot be altered without due process. This ruling highlights the importance of honoring agreements reached through legal channels and ensuring that parties fulfill their obligations as outlined in the judgment.
In conclusion, the compensation of over Shs 60 billion to tea farmers by the government serves as a reminder of the need for accountability and responsibility in fulfilling commitments made to individuals and organizations. Just as the farmers have held the government accountable for their losses, it is imperative for all parties to uphold their end of agreements to promote trust and fairness in legal proceedings.
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