Wakilii

Banyankore Kweterana Cooperative Union Ltd & Anor v Valcanoes Ltd (Hct-05-cv-ca-008-2008)

High Court · [2012] UGHC 187 · 2012 Application Partly Allowed AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
First instance civil suit for declaration of ownership, eviction, permanent injunction, and general damages for trespass, with counterclaim by defendant asserting lawful ownership
Decision
Defendant declared lawful owner of registered land; defendant ordered evicted from customary land not included in sale agreement; permanent injunctions granted in favour of both parties for their respective properties

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

The court found that the defendant fully paid the purchase price for the registered land as evidenced by Bank of Uganda receipts and caveat withdrawal, thereby lawfully acquiring ownership of the registered parcel. However, the defendant had no right to occupy the plaintiff's customary land holding not included in the sale agreement. The court ordered eviction from the customary land and granted a permanent injunction restraining the defendant from occupying it, while declaring the defendant lawful owner of the registered land and restraining the plaintiff from interfering with it. No damages or mesne profits were awarded.

Outcome

Defendant declared lawful owner of registered land; defendant ordered evicted from customary land not included in sale agreement; permanent injunctions granted in favour of both parties for their respective properties

Facts

The plaintiff owned two parcels of land at Kyambura: one registered (Plot No.4 Bunyaruguru LRV 811 Folio 19, two hectares) and one held under customary tenure. The registered land was mortgaged with Co-operative Bank Ltd (in liquidation). When the plaintiff failed to repay, a sale agreement was concluded with the defendant for UGX 28,000,000. The defendant deposited UGX 2,800,000, with a balance of UGX 25,200,000 payable to Bank of Uganda as Liquidator in six monthly instalments from November 2001. The plaintiff alleged the defendant failed to pay the balance but occupied both parcels of land. The defendant counterclaimed that it paid the full balance and lawfully owned the land. The defendant did not appear at trial. Evidence showed payment receipts to Bank of Uganda and a caveat withdrawal by Bank of Uganda acknowledging full payment of UGX 28,000,000. The plaintiff failed to prove the payments were fraudulent or that the defendant did not pay.

Issues

  1. Whether the suit land belongs to the plaintiff.
  2. What remedies are available to the parties.

Orders

  • Defendant be evicted from any excess land it is occupying which is or was the customary land holding of the plaintiff, other than that comprised in Plot No.4 Kyambura, Bunyaruguru in LRV 811 Folio 19 Bushenyi.
  • Permanent injunction issued restraining the defendant, its agents and workmen from further occupying the said customary land holding of the plaintiff.
  • Declaration that the defendant is the lawful owner of all that registered land comprised in Plot No.4 Kyambura, Bunyaruguru in LRV 811 Folio 19 Bushenyi.
  • Permanent injunction issued against the plaintiff or its agents restraining them from interfering with the defendant's enjoyment of quiet possession of the described registered land.
  • Claim for general damages for trespass dismissed.
  • Claim for mesne profits dismissed.
  • Each party to bear its own costs of the suit.

Rules and key headnotes

Contract Law — Sale of Land — Performance of Payment Obligations — Proof of Payment
Where a sale agreement stipulates that the balance of purchase price shall be paid to a third party liquidator rather than to the vendor's account, and the purchaser produces receipts from that liquidator acknowledging full payment and a caveat withdrawal confirming payment, the purchaser has discharged its payment obligations under the contract unless the vendor proves the acknowledgments are fraudulent.
Evidence — Burden of Proof — Standard of Proof in Civil Cases
In civil cases, the burden of proof requires a reasonable degree of probability such that the tribunal can say it thinks it is more probable than not, but if the probabilities are equal, the burden is not discharged.
Land & Property — Sale of Land — Scope of Sale Agreement — Excess Land
Where a sale agreement specifically describes only registered land, the purchaser acquires no right to occupy additional customary land of the vendor not included in the sale transaction, and such excess land remains the property of the vendor.
Tort Law — Trespass to Land — General Damages — Requirement of Proof
General damages for trespass are awarded at the discretion of court exercised judiciously on sound principles. Where both parties lay claim to ownership of property and the plaintiff adduces no evidence enabling the court to determine quantum of damages beyond listing failure to utilize land and inconvenience, no award of general damages should be made.
Land & Property — Mesne Profits — Burden of Proof
The burden of proving mesne profits lies on the party claiming them and not on the party in adverse possession. The claimant must establish not only the existence of its right but also the extent of the profit received. Failure to do so provides no basis for an award of mesne profits.

Legislation cited (2)

Cases cited (2)

  • Choitram v Hiranad Ghamshamas Dadlani [1958] EA 641
  • Miller v Minister of Pensions [1947] 2 All ER 372

Full judgment

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The original judgment as reported. Read the original PDF before relying on any passage.

Banyankore Kweterana Cooperative Union Ltd & Anor v Valcanoes Ltd (Hct-05-cv-ca-008-2008) [2012] UGHC 187 (21 September 2012)
Source: this page presents Wakilii’s issue analysis and metadata for a publicly reported Ugandan judgment. Any AI-generated summary is marked as such. Judgment text is sourced from the Uganda Legal Information Institute (ulii.org). Wakilii is not affiliated with ULII.