Mukasa v Kanyike (Civil Appeal 13 of 2022)
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Holding
The Supreme Court held that the nemo dat quod non habet rule, which governs sale of goods, does not apply to land registered under the Registration of Titles Act: Section 2(1) ousts inconsistent rules and the Torrens system protects bona fide purchasers over prior interest holders, so the Court of Appeal erred in applying nemo dat (Ground 2 succeeded). Nevertheless, the Appellant was not a bona fide purchaser for value without notice, because his sale agreement and own admission showed he knew of the Respondent's prior interest before purchase (Ground 3 failed). The preliminary objection on the attorney's authority and the Respondent's interchangeable names was overruled. The appeal was dismissed and the Court of Appeal decision upheld, with no order as to costs.
Facts
In 1994 the Respondent (Andrew Douglas Kanyike) bought land comprised in Kyadondo Block 216 Plot 455 at Buye from Naume Nankya, through Eric Mukasa and Elijah Serubiri who held signed transfer forms, and took possession. He became the registered proprietor. The Appellant (Patrick Mukasa) later bought the same land from Jane Nanfuka, administrator of Naume Nankya's estate, and was registered as proprietor in 2009. Following a caveat and complaint by Nanfuka, the Commissioner for Land Registration cancelled the Respondent's name without notifying him and registered Nanfuka, then the Appellant. The Respondent sued to restore his title. The High Court and Court of Appeal found the cancellation unlawful for failure to give statutory notice, and held that the Appellant was not a bona fide purchaser for value without notice: his sale agreement expressly recorded the Respondent's continuing claim to the land, and he admitted in court that he bought subject to that interest.
Issues
- Whether the Respondent's authorized attorney had locus standi to lodge and prosecute the suit, given an allegedly defective Power of Attorney and inconsistent use of the Respondent's names.
- Whether the Court of Appeal erred in upholding a judgment that condemned the Commissioner for Land Registration who was not a party to the suit.
- Whether the nemo dat quod non habet rule applies to transactions in land registered under the Registration of Titles Act.
- Whether the Appellant was a bona fide purchaser for value without notice of the suit land.
- Whether the Court of Appeal failed in its duty to re-evaluate the evidence as a whole.
Orders
- The preliminary objection raised by the Appellant is overruled.
- Ground 2 (that nemo dat quod non habet does not apply to land transactions) succeeds; Ground 3 fails.
- Ground 1 fails.
- Ground 4 is struck out for being vague.
- The decision of the Court of Appeal dismissing the appeal is upheld.
- The appeal is dismissed with no order as to costs.
Key headnotes
Legislation cited (16)
- Registration of Titles Act s.2(1)
- Registration of Titles Act s.59
- Registration of Titles Act s.146(1)
- Registration of Titles Act s.148
- Registration of Titles Act s.176
- Registration of Titles Act s.182
- Land Act s.91
- Land Act s.91(8)
- Sale of Goods Act s.22(1)
- Constitution of Uganda Article 44
- Constitution of Uganda Article 119(4)(c)
- Constitution of Uganda Article 119(5)
- Constitution of Uganda Article 250(2)
- Rules of the Supreme Court r.44
- Rules of the Supreme Court r.82(1)
- Rules of the Supreme Court r.98
Cases cited (7)
- Fredrick J.K Zaabwe v Orient Bank Ltd and 6 Others (Civil Appeal No. 4 of 2006)
- Kampala Bottlers Ltd v Damanico (U) Ltd (Civil Appeal No. 22 of 1992)
- Mukisa Biscuit Manufacturing Co Ltd v West End Distributors Ltd [1969] EA 696
- Mutembuli Yusuf v Nagwomu Moses Musamba & Electoral Commission (Election Petition Appeal No. 43 of 2016)
- R v Hassan bin Said (1942) 9 EACA 62
- Bishopsgate Motor Finance Corpn Ltd v Transport Brakes Ltd [1949] 1 KB 322
- Sejjaka Nalima v Rebecca Musoke (Civil Appeal No. 12 of 1985)