Appeal Court orders Businessman to pay arrears of 20 Years for Bicycles

Court has ordered businessman John Tiborugaba Kasangaki to pay with interest, $53,871 as outstanding funds for bicycles and spare parts he received more than two decades ago from a group Indian traders.

The court also ordered Kasangaki to pay Shs15m as compensation for the inconveniences caused to the traders; Rajeev Jain, Rajesh Jain and Sanjeev Jain under their R&R Bikes Limited.

In a unanimous judgement delivered on Monday, the Court of Appeal judges; Elizabeth Musoke, Geoffrey Kiryabiwre and Irene Mulyagonja dismissed an appeal in which Kasangaki, a bicycle dealer had sought to overturn a lower court judgment that directed him to pay same amount of money.

The judges also ordered Kasangaki to pay legal incurred by the Indian businessmen both in the High Court and in the Court of Appeal.

The Court of Appeal decision arose from a 1997 contract between the businessman Kasangaki and traders of Indian origin; Rajeev Jain, Rajesh Jain and Sanjeev Jain trading as R&R Bikes for supply of bicycles and spare parts worth $151,271.

Court heard that Kasangaki, trading as Jokas, Bullion Miners JK and Roadmaster Jokas signed a contract with three Indian nationals and their agent, Vishal Bhajshi and only paid $97,400 leaving a balance of $53,871 which he did not pay despite several requests to remit the same.

Justice Musoke dismissed Kasangaki’s claims that the three traders were not known to him saying that it was R&R Bikes which supplied the five consignments whose payment was never completed.

“In my view, for the appellant (Kasangaki) to allege that 1, 2 and 3 respondents were strangers to him, even after they disclosed that they were partners in R & R Bikes which he dealt with is not only deceitful and a show of bad faith but an attempt to evade the outstanding obligations to pay for the goods which he received,” she added.

Kasangaki was represented by Dr James Akampumuza while the Indian traders were represented by Fredrick Samuel Ntende.

In regard to Kasangaki’s claim that he paid the money to the 4^th accused (Vishal), the court said the payment did not discharge his outstanding contractual obligations since the payment for relevant goods was agreed to be done by honouring the bills of exchange drawn on his account in favour of the supplier company; R&R Bikes which was not done.

“I must observe that while the 4^th respondent’s evidence was somewhat unsatisfactory and left the possibility that he might have received some money from Kasangaki, any such money could not be said to have been received on the account of R&R Bikes nor could it be applied towards settling his indebtedness,” said Justice Musoke in the lead judgement.

She advised that the businessman can only bring an action against the 4^th respondent to recover any money he paid to him.

“It is my finding that payment for the relevant goods was supposed to be effected by honouring the relevant bills of exchange drawn on the appellant (Kasangaki) in favour of R & R Bikes. As this was not done, the moneys paid to the 4^th respondent could not be considered as having settled any outstanding obligation,” Justice Musoke ruled.