Resty Nantongo v David Kayondo [1994] UGSC 1
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Holding
The defendant held the only registered interest in the disputed land, a lease registered in September 1993 together with permission to build, neither of which the plaintiff had challenged. The Supreme Court held that a temporary injunction will not lie to restrain a party from exercising rights under an unchallenged registered lease. To restrain the exercise of an alleged right the plaintiff must show substantial grounds for doubting that right, and a very strong case is needed to interfere with an admitted right on an alleged equity. The plaintiff failed to meet that standard, so no balance-of-convenience inquiry was necessary and no injunction should have issued. The appeal was allowed and the interim injunction discharged with costs in both courts.
Facts
Both the plaintiff Kayondo and the defendant Resty Nantongo negotiated to buy land known as Kibuga Block 7 plot No. 67 at Ndeeba from its owner, Segujja. Kayondo entered an agreement and obtained an executed transfer, which he presented for registration on 26 August 1993. Registration failed because Resty, who had agreed to buy the same land on 30 July 1993, had lodged a caveat on the title; her own transfer was executed but not registered. Neither buyer secured registered title. Resty then obtained a lease of the land, registered on 10 September 1993, giving her a registered interest with the right to enter and develop the land, and on 1 November 1993 obtained Kampala City Council permission to build. Another High Court judge had extended Resty's caveat. Despite Resty's registered lease, the trial judge granted Kayondo injunctions restraining Resty from entering the land and from carrying out developments, without addressing the lease in his ruling.
Issues
- Whether a temporary injunction should have been granted to restrain the defendant from entering and developing the land where she held the only registered interest in it, namely a registered lease.
- Whether the plaintiff established a sufficiently strong case to justify restraining the defendant's exercise of an admitted, registered right.
Orders
- Appeal allowed.
- Interim injunction discharged.
- Costs of the appeal awarded to the appellant in both the Supreme Court and the High Court.
Key headnotes
Cases cited (1)
- HATERS V. AKIRA BRANCH (NO.. 2) (1972) E.A. 347, 350