Aketa Farmers & Millers Ltd & Anor v Turyamureeba & Anor (Civil Suit No. 241 of 2006) [2012] UGHC 276 (7 December 2012)
[2012] UGHC 276
Aketa Farmers & Millers Ltd & Anor v Turyamureeba & Anor (Civil Suit No. 241 of 2006)
High Court
· [2012] UGHC 276
· 2012
Judgment for Plaintiffs
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Observed later treatment
Cited — treatment unverified
cited in 1 (treatment unverified)
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No adverse treatment recorded
Cited 1 time with no adverse treatment recorded; not yet tested on the merits.
Derived from citing cases in the Wakilii corpus — a deterministic signal, not legal advice.
Judicial journey
Appeal & case history
Follow this matter from the decision below through each appellate court.
Reversed
The decision below was overturned.
See the court’s words
“(b) by a decree or order from which no appeal is allowed by this Act, may apply for”
No later appellate decision was located in the Wakilii corpus. Linked from court records and operative language in the judgments.
AI-generated summary. This summary was generated by AI from the full text of the judgment. It may contain errors or omissions—always read the source judgment before relying on it.
Holding
The court held that the registration of land in the defendants' names was procured by fraud where the registrar's office ignored an application for a special certificate of title, gazette notice, and DAPCB correspondence evidencing the plaintiff's unregistered equitable interest. The first defendant failed to prove he was a bona fide purchaser for value without notice, and his failure to consult occupants or local authorities before registration constituted dishonest dealing amounting to fraud under Registration of Titles Act sections 64 and 176.
Outcome
Registration of both defendants declared null and void; 2nd plaintiff substituted as registered proprietor; defendants permanently restrained from interfering with the property
Facts
The 2nd plaintiff and his deceased brother purchased land in June 1972 but were expelled before registration in August 1972 when the property was taken over by Departed Asian Custodian Board. They applied for a special certificate of title in 1998 and repossessed the property in 2000, subsequently gifting it to the 1st plaintiff company. The plaintiffs occupied the property through tenants and agents from 1995 to 2006. Despite gazette notice and correspondence on record in the lands office evidencing the 2nd plaintiff's unregistered interest, the 2nd defendant was registered as proprietor on 30 March 2006 and transferred the property to the 1st defendant on 5 May 2006. The lands file was reported missing during this period but defendants successfully registered their interests.
Issues
- Who is the rightful owner of the suit premises
- Whether the suit property was fraudulently transferred into the names of the 2nd defendant
- Whether the suit property was fraudulently registered in the names of the 1st defendant
- Whether the plaintiffs are entitled to the reliefs sought
Orders
- Declaration granted that the registration of land comprised in LRV 446 folio 22 situated at plot 19 Mackenzie Vale, Kololo-Kampala in the names of the 2nd defendant and subsequent transfer to the 1st defendant was procured by fraud and is null and void.
- Registrar of Titles ordered to cancel the names of the 1st defendant from the certificate of title in respect of LRV 446 folio 22 and substitute it with registration of the 2nd plaintiff as registered proprietor.
- Permanent injunction issued restraining defendants by themselves or agents from occupying or interfering with plaintiffs' quiet enjoyment of the suit premises.
- General damages awarded in sum of UGX 75,000,000 payable at 8% per annum from date of judgment until payment in full.
- Costs of the suit awarded to the plaintiffs.
Rules and key headnotes
Registered and Unregistered Interests — Equitable Interest from Part Performance
A purchaser who executes a transfer deed and occupies land pursuant to that purchase acquires an equitable unregistered interest in the property capable of protection in equity, notwithstanding that formal registration has not been completed.
Fraud — Registration Despite Notice of Unregistered Interest
Registration of a proprietor constitutes fraud where the lands office ignores an application for a special certificate of title, gazette notice, and correspondence from the Departed Asian Custodian Board evidencing a subsisting unregistered interest, and where the file disappears selectively to facilitate registration to the exclusion of the holder of the unregistered interest.
Bona Fide Purchaser for Value — Burden of Proof
While the burden of proving fraud lies with the plaintiff, the onus of establishing the plea of bona fide purchaser for value without notice of fraud lies with the defendant who sets up such plea, and requires proof of purchase, value paid, and absence of notice of fraud.
Fraud — Failure to Consult Occupants and Authorities
A transferee who deliberately proceeds to obtain title without consulting occupants found in possession of the land or local authorities of the area commits dishonest dealing in land constituting fraud sufficient to impeach registration under the Registration of Titles Act, following the Supreme Court decision in Kampala Land Board v Venansio Babweyaka.
Fraud — Payment to Remove Occupants Rather Than Inquire
Paying occupants found in possession to vacate the premises rather than inquiring from them as to ownership constitutes dishonest dealing and unfair play amounting to fraud with respect to persons with an equitable unregistered interest to whom those occupants report.
Civil Procedure — Default in Filing Defence
Where a party fails to file a defence, the suit proceeds as if that party had filed a defence under Civil Procedure Rules Order 9 rule 10, and the plaintiff remains required to prove allegations against the defaulting defendant to the required standard; failure to file a defence does not amount to admission of facts in the plaint.
Registration of Titles Act — Indefeasibility Subject to Fraud Exception
While section 59 of the Registration of Titles Act confers indefeasible title upon a registered proprietor, the court may impeach that registration on account of fraud by the transferee under sections 64 and 176, and equity will intervene to protect unregistered interests arising from contracts for sale before transfer.
Legislation cited (6)
Cases cited (9)
- Efulaimu Kasiwukira v Samuel Serunjogi (Civil Suit No. 380 of 2008)
- Katarikawe v Katwiremu (1977) HCB 187
- David Sajjaka Nalima v Rebecca Musoke (Civil Appeal No. 12 of 1985)
- Robert Lusweswe v Kasule & Another (Civil Suit No. 1010 of 1983)
- Kampala Bottlers Ltd v Damanico Ltd (Civil Appeal No. 22 of 1992)
- Kampala District Land Board & Another v National Housing & Construction Corporation (Civil Appeal No. 2 of 2004)
- Kampala Land Board & Another v Venansio Babweyaka & Others (Civil Appeal No. 2 of 2007)
- Assets Co. Ltd v Mere Roihi & Others (1905) AC 176
- Marko Matovu & Others v Mohammed Sseviri & Another (Civil Appeal No. 7 of 1978)
Cases citing this judgment (1)
How later Ugandan judgments in the Wakilii corpus have cited this case. Treatment labels come from Sequitur — Uganda’s citator — each backed by a verbatim span from the citing judgment, and are not an assertion that this case is, or is not, good law.
Full judgment
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Aketa Farmers & Millers Ltd & Anor v Turyamureeba & Anor (Civil Suit No. 241 of 2006) [2012] UGHC 276 (7 December 2012)
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