Sunny Katongole v Kampala Capital City Authority and Others (Civil Appeal No. 116 of 2017)
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Holding
The Court of Appeal dismissed the appeal. It held that a court cannot sanction an illegality once it is brought to its attention. The execution sale of the suit property was riddled with illegalities — no notice to the registered owner, no advertisement or valuation, no return of sale and transfer despite a subsisting caveat — rendering all resulting transactions void ab initio, so no title passed to any purchaser. The trial judge was within her mandate on review under s.82 CPA and O.46 to examine the entire execution process. The appellant was not a bona fide purchaser for value without notice: she had prior knowledge of the true owner and failed to conduct due diligence.
Facts
The suit property (LRV 145 Folio 22 Plot 7 Berkeley Road, Kampala) was owned by the 3rd respondent, who repossessed and registered it in 2005 and lodged a caveat in 2006. The 1st respondent (KCCA) had filed a Chief Magistrate's cause at Mengo against a deceased person to recover property rates of about UGX 2.3 million. The property was attached and purportedly sold for UGX 160 million without notice to the 3rd respondent, without advertisement or valuation, with no return of sale and no money deposited in court. A special certificate of title was issued and the land transferred to Humphrey Katarikawe, then to the appellant, Sunny Katongole, who registered in 2008. On revision (Revision No. 14 of 2009) a consent order set aside the magistrate's orders and directed cancellation of the transfers. The appellant's review application (M.A. 59 of 2015) was dismissed by the High Court, which ordered cancellation of her title and reinstated the 3rd respondent. Evidence showed the appellant's husband had sought to buy the property from the 3rd respondent in 2001, and the same postal address recurred, indicating the appellant's prior knowledge of the true owner.
Issues
- Whether the trial judge erred in dismissing the review application after recognising the appellant as an aggrieved party, and whether she correctly applied Section 82 of the Civil Procedure Act and Order 46 of the Civil Procedure Rules.
- Whether the appellant had a duty in law to investigate the history of previous proprietors and conduct due diligence before purchasing the suit property.
- Whether the appellant was a bona fide purchaser for value without notice of fraud.
- Whether the trial judge properly exercised her discretion and evaluated the evidence, justifying appellate interference.
Orders
- The appeal is dismissed.
- The Orders in Review Application No. 59 of 2015 are confirmed.
- Costs of this Court are awarded to the 3rd respondent.
Key headnotes
Legislation cited (11)
- Civil Procedure Act s.82
- Civil Procedure Act s.48
- Civil Procedure Act s.48(1)
- Civil Procedure Act s.48(4)
- Civil Procedure Act s.49
- Civil Procedure Rules O.46 r.1
- Civil Procedure Rules O.22 r.3
- Civil Procedure Rules O.22 r.51
- Registration of Titles Act s.141
- Judicature (Court Bailiffs) Rules SI 13-16 reg.15(1)
- Judicature (Court of Appeal) Rules r.30(1)(a)
Cases cited (17)
- Kifamunte Henry v Uganda [1998] UGSC 20
- In re Nakivubo Chemists (U) Ltd (1979) HCB 12
- Julius Okwi v Moses Kirunda (Civil Appeal No. 35 of 2008)
- Rosemary Eleanor Karamagi v Angoliga Malimound (Misc. Application No. 733 of 2005)
- Makula International Ltd v His Eminence Cardinal Nsubuga & Anor (1982) HCB 11
- SINBA (K) LTD (supra)
- Kanoonya David v Kivumbi & 2 Others (HCCS No. 616 of 2003)
- Mbogo & Anor v Shah [1968] EA 93
- Peter Mulira v Mitchell Cotts (Civil Appeal No. 16 of 2002)
- Banco Arabe Espanol v Bank of Uganda (SCCA No. 8 of 1998)
- Karooli Mubiru & 21 Others v Edmond Kayiwa & 5 Others (1979) HCB 212
- Ndimwibo Sande & 3 Others v Allen Peace Ampaire (Civil Appeal No. 65 of 2011)
- Hajji Abdu Nasser Katende v Vithalidas Haridas & Co Ltd (Civil Appeal No. 84 of 2003)
- Hannington Njuki v William Nyanzi (HCCS No. 434 of 1996)
- John Bageire v Ausi Matovu (Civil Appeal No. 7 of 1996)
- Fam International Ltd & Ahmed Farah v Mohamed Hamid El-Fatih (Civil Appeal No. 16 of 1993)
- Lazarus Estates Ltd v Beasley [1956] 1 QB 702