Bawa Singh Bharj (Properties) Ltd v Estate Consultants Ltd and Others (Civil Suit No. 331 of 1997)
Observed later treatment
No later-treatment classification is recorded for this judgment.
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Holding
The High Court held that transfers of two industrial plots registered in the plaintiff's name were procured through fraud, including use of a forged power of attorney purportedly executed by a deceased person and fraudulent stamp duty certificates. The court found that the third defendant's legal representative was privy to multiple anomalies that should have raised suspicion, and such knowledge was imputable to the third defendant. The court declared the transfers null and void, ordered cancellation of the third defendant's registration, and awarded general damages of UGX 10,000,000.
Outcome
Transfers declared null and void, plaintiff's registration as proprietor to be reinstated, third defendant's registration to be cancelled
Facts
The plaintiff company held leasehold titles to two industrial plots first registered in 1969. Following the 1972 expulsion of Asians, the properties were vested in the Departed Asians Property Custodian Board. Repossession certificates were issued to the plaintiff in 1995 but were collected in 1996 by Abdul Hakim Shuja using a purported power of attorney from one Pritam Singh Bharj. Shuja was a director of the first defendant company. The properties were purportedly transferred through the second defendant to the third defendant. The plaintiff discovered the power of attorney was forged as the purported donor had died in September 1995, before both the alleged grant date and the incorporation of the first defendant company in April 1996. Transfer documents contained numerous irregularities including pre-dated signatures, fraudulent stamp duty certificates with incorrect serial numbers and amounts, and transfers executed before the transferor company was registered as proprietor.
Issues
- Whether fraud was committed during the transfer of the suit properties from the plaintiff to the second defendant and whether the defendants were privy to such fraud
- Whether the defendants acted fraudulently in transferring the suit properties from the second defendant to the third defendant
- Whether the transfer of Plot 227 from the second to third defendant was ever completed
- Whether the transfer instruments were duly stamped
- Whether the third defendant is a bona fide purchaser of the suit properties
Orders
- Declaration that the plaintiff is the owner and registered proprietor of Plot 227 Sixth Street Industrial Area Kampala LRV 295 Folio 11 and Plot 229 Sixth Street Industrial Area Kampala LRV 439 Folio 14
- Declaration that the transfers of the suit properties to the third defendant are null and void
- Order to the Chief Registrar of Titles to cancel the registration of the third defendant as proprietors of the suit property
- Order to the Chief Registrar of Titles to cancel the special certificates of title issued in respect of Plot 227 and Plot 229 Sixth Street Industrial Area Kampala
- Order to the Chief Registrar of Titles to reinstate the plaintiff's name on the Register as proprietor of the suit property
- General damages of Shs 10,000,000 with interest at 25% per annum from the date of judgment until payment in full
- Injunction restraining the defendants, their servants, workmen, agents and successors in title from entering on the plaintiff's property or interfering with the plaintiff's enjoyment of the suit property
- Order for the Chief Registrar to remove the third defendant's caveats from the Register of the suit properties
- Costs of the suit with interest at 5% per annum from the date of judgment until payment in full
Rules and key headnotes
Legislation cited (4)
Cases cited (7)
- Assets Co Ltd v Mere Roihi and Others [1905] AC 176
- Jared v Clements [1903] 1 Ch 428
- Kampala Bottlers Ltd v Damamco (U) Ltd (Civil Appeal No. 22 of 1992)
- Pilcher v Rawlins (1872) 7 Ch App 259
- Wilkes v Spooner [1911] 2 KB 473
- Attorney General v Bishophated Guano Co (1879) 11 Ch D 327
- Ssali v Bwesigye [1978] HCB 188
Full judgment
The original judgment as reported. Read the original PDF before relying on any passage.