The High Court in Kampala has dismissed a case in which Alcon International was seeking compensation from the National Social Security Fund (NSSF) for allegedly confiscating its machinery, equipment, and building materials used to construct the Workers House.
Alcon sued NSSF after the latter terminated its contract in 1998, claiming it was unfairly blocking them from retrieving its equipment and machinery at the Workers House site. When the matter went into arbitration, Alcon was awarded $2.78m.
However, the Supreme Court sent the case back to the High Court for retrial after NSSF rejected the award to Alcon. NSSF argued that Alcon International Kenya Limited had taken over the contract from Alcon International Uganda Limited without its knowledge, which was tantamount to fraud.
According to available court records, the retrial included matters which are claimed under this very suit. The Court also heard that NSSF entered into a contract for the construction of the Workers’ House with Alcon International Ltd, a company incorporated in Kenya and was under the impression that it was dealing with such.
However, NSSF said it only became aware that it was dealing with a different company upon a 2007 decision of the Court of Appeal where it established that Alcon International Limited had fraudulently assigned the building contract to the plaintiff without its knowledge and consent which was illegal and fraudulent.
Last Thursday, Justice Musa Ssekaana ruled that Alcon International had not established a cause of action in retinue against NSSF. Justice Ssekaana in his decision dated October 31st 2024 also said that the claim was time-barred under the Limitation Act, having risen twenty-six years ago.
“It is indeed true that the plaintiff [Alcon] was fraudulent when it entered onto the defendant’s [NSSF] premises well aware that it .. had no contract … as stated by the defendant, an illegality once brought to the attention of court overrides all questions of pleadings including any admissions made thereon. The plaintiff cannot seek to recover from a transaction in which he was illegally performing,” he said.
“Having upheld all preliminary objections raised by [NSSF] in respect of [Alcon’s] suit … this suit is dismissed with costs to the defendant,” he added.
