The Kampala High Court has dismissed a suit filed by Kenyan company Alcon International against the National Social Security Fund (NSSF) seeking the recovery of plant, machinery, equipment and construction materials seized since May 1998.
Justice Musa Ssekaana, in a judgment dated 31 October 2024, dismissed the suit, saying there was no cause of action and that the claim had become time-barred under the Constitution twenty-six years ago.
The Bench agreed that similar issues with the NSSF had also been established in the High Court’s Civil Suit No. 1255 of 1998 and Arbitration Ground No. 4/2001. Cause of action.
Alcon International Limited filed a lawsuit against the NSSF in 2020, alleging that it constructed a 19-storey Workers’ Housing Building at Plot 1, Pilkington Road, Kampala, between 21 July 1994 and 19 May 1998.
However, on May 15, 1998, NSSF allegedly denied Alcon access to the construction site and refused to dismantle the plant, machinery, equipment and materials used in the construction of the garden house. Alcon also claims that NSSF removed and retained its property for its use.
Despite repeated requests, Alcon told the Supreme Court that NSSF refused to return its property, which led to the company’s legal action. Accordingly, Alcon seeks damages for loss of business, general, special, and general damages, interest, and legal costs.
Alcon also requested the court to order the return or refund of the plant, machinery, equipment and materials seized by NSSF.
NSSF denied all allegations against them and raised preliminary objections that the allegations were legally valid because the complaints were long-standing, fraudulent and did not demonstrate jurisdiction to make the decision.
NSSF told Justice Ssekaana that the issues between the parties had been heard and determined by arbitration and that the High Court and the Court of Appeal had approved the award of US$2,781,528.52.
NSSF also told the judge that the High Court, which was hearing Civil Appeal No. 1, was also set aside. The 15th hearing of 2009 between the parties was set aside and Alcon International was told that it had no cause of action and ordered a retrial. The case is being disposed of as Civil Case No. 1. He was dismissed from office due to failure to disclose any cause of action under Law No. 1255 dated 1998.
According to the current court records, the appeal includes the issues accepted in this case.
The court also heard that NSSF had contracted with Alcon International Ltd, a Kenyan company, to build workers’ houses and had given the impression that it was intervening in these matters. However, NSSF said it was not aware that it was doing business with another company until the Court of Appeal in 2007 ruled that Alcon International Ltd had committed fraud by unlawfully offering the contract to the plaintiff without the plaintiff’s knowledge and consent.
“The defendant/NSSF further averred that upon the termination of the contract with Alcon International Limited, all post-termination issues were governed by the contract and that it refused to attend to the taking of the inventory. It therefore denied all allegations of deprivation of the plaintiff of its plant, equipment, machinery and damages suffered as a result”, reads the document.
