Kabuuza v Mukeeze Muwanga (Civil Appeal No. 87 of 2017)
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Holding
The Court of Appeal allowed the appeal, holding that fraud must be specifically pleaded and proved against each defendant individually. The respondent's plaint alleged fraud against the appellant without setting out particulars, and the evidence established fraud only against the appellant's predecessor in title, Ms. Nasuna. The trial Judge erred in imputing fraud to the appellant merely because his transferor was fraudulent. Consequently the appellant's defence of bona fide purchaser for value without notice was not displaced, and his certificate of title, being conclusive of ownership, was not impeached. The respondent's suit against the appellant was dismissed with costs.
Facts
The respondent claimed to have purchased approximately two acres of land (Plot 225, Kyadondo Block 196) from Ms. Jowelia Nalubuga in 1986, paying full consideration but not obtaining title because he resided in the USA. While he was married to Ms. Esther Nasuna (1982–1995), Nasuna allegedly procured transfer forms from Ms. Jowelia by falsely claiming the respondent's authority, registered herself as proprietor in 1995, subdivided the land into Plots 790 and 791, and sold Plot 790 to the appellant, her relative, for USD 5,000. The respondent sued for cancellation of the titles for fraud. The High Court found Nasuna's registration fraudulent, held the appellant aware of the fraud, cancelled the titles, granted a permanent injunction, and awarded UGX 20,000,000 general damages. The appellant, who pleaded he was a bona fide purchaser without notice, appealed.
Issues
- Whether the respondent had proved an enforceable interest in the suit land capable of being asserted against the appellant.
- Whether the respondent had granted the suit land to Ms. Nasuna as a gift inter vivos.
- Whether the trial Judge erred in finding the appellant was registered before he purchased the land.
- Whether fraud was sufficiently pleaded and proved against the appellant so as to justify cancellation of his certificate of title.
- Whether the appellant qualified as a bona fide purchaser for value without notice.
Orders
- Appeal allowed.
- Judgment of the learned trial Judge against the appellant set aside.
- Order substituted dismissing the respondent's suit in the trial Court against the appellant.
- Respondent to pay the appellant's costs of the appeal and of the proceedings in the Court below.
Key headnotes
Legislation cited (7)
- Civil Procedure Rules S.I 71-1 Order 6 Rule 3
- Civil Procedure Rules S.I 71-1 Order 1 Rule 10
- Registration of Titles Act s.176(c)
- Registration of Titles Act s.146
- Judicature (Court of Appeal Rules) Directions S.I 13-10 Rule 30(1)(a)
- Judicature (Court of Appeal Rules) Directions S.I 13-10 Rule 78(1)
- Judicature (Court of Appeal Rules) Directions S.I 13-10 Rule 83(1) and (2)
Cases cited (9)
- Yowasi Kabiguruka v Samuel Byarufu (Civil Appeal No. 18 of 2008)
- Yeseri Waibi vs. Edisa Lusi Byandala [1982] 28
- William Mukasa v Uganda [1964] 1 EA 698
- Ndimwibo and 3 Others v Ampaire (Civil Appeal No. 65 of 2011)
- Lawrence Musebeni Baguma v Namugala David and Another (Civil Appeal No. 40 and 41 of 2010)
- Tifu Lukwago v Samwiri Kizza and Another (Civil Appeal No. 13 of 1996)
- B.E.A Timber Co v Inder Singh Gill [1969] EA 463
- Inter-Freight Forwarders (U) Ltd v East African Development Bank (Civil Appeal No. 33 of 1992)
- Kifamunte Henry v Uganda (Criminal Appeal No. 10 of 1997)