Dyingoma v Citibank (in liquidation) [2024] UGHC 1220

Observed later treatment

No later-treatment classification is recorded for this judgment.

Citator coverage is limited to judgments in the Wakilii corpus and source-matched treatment records. Absence of a signal is not an assertion that the case remains good law.

Holding

The High Court held that a purchaser who has paid the full purchase price, received signed transfer forms from the vendor, and discharged the vendor's assigned mortgage obligation acquires equitable interest in land superior to the vendor's legal title. Where a bank in liquidation undertook to release a certificate of title upon payment of the outstanding mortgage and the purchaser fulfilled that condition, the bank's liquidator is duty-bound to handover the certificate to the purchaser, notwithstanding the vendor's subsequent death. A vesting order cannot be granted where it was not claimed in the notice of motion.

Outcome

Certificate of title to be released to the Applicant; mortgage vacated

Facts

On 13 June 1997, the Applicant purchased two adjacent plots (Block 277 Plots 58 and 140) from Sebukima Davis. Both plots were subject to mortgages with Greenland Bank (later Citibank). Under a supplementary agreement dated 2 October 1997, Sebukima Davis undertook to discharge his mortgage obligation within three months and deliver an unencumbered certificate of title. On 14 April 1998, Sebukima Davis assigned his outstanding loan obligation to the Applicant and instructed Greenland Bank to transfer Plot 140's title to the Applicant upon payment. On 17 September 1998, the bank confirmed the outstanding balance was UGX 3,498,000 and promised to release the certificate of title to the Applicant if paid. The Applicant paid the outstanding balance. Greenland Bank was placed under statutory liquidation by Bank of Uganda in December 1998. Plot 58 was subsequently registered in the Applicant's name, but the Respondent refused for 25 years to release Plot 140's certificate, insisting it could only be released to administrators of Sebukima Davis's estate. The mortgage was eventually released on 18 April 2024. The Applicant has been in undisturbed occupation of Plot 140, farming elephant grass.

Issues

1. Whether the Certificate of Title for Land Comprised in Busiro Block 277 Plot 140 Land at Kigoma should be released to the Applicant?
2. Whether the Applicant has any interest legal or equitable in land comprised in Block 277 Plot 140 at Kigoma?
3. Whether the land comprised in Block 277 Plot 140 at Kigoma, Wakiso should be vested in the Applicant's name?

Orders

• Application succeeds.
• Orders sought in the notice of motion are granted: the mortgage registered under Instrument Number KLA 178190 is vacated and the Certificate of Title for land comprised in Busiro Block 277 Plot 140 at Kigoma is to be released to the Applicant.
• No order as to costs.
• Each party to bear their own costs.

Rules and key headnotes

Legislation cited (13)

• Judicature Act s.33
• Civil Procedure Act
• Mortgage Act 2009 s.14(1)
• Registration of Titles Act s.92(1)
• Registration of Titles Act s.64
• Registration of Titles Act s.76
• Registration of Titles Act s.120
• Registration of Titles Act s.160
• Registration of Titles Act s.167
• Contracts Act 2010 s.10(1)
• Evidence Act s.114
• Insolvency Act 2011 s.100(1)
• Insolvency Act 2011 s.100(e)(ii)

Cases cited (6)

• Pyrali Shunji Ganji & 3 Others v Coffee Development Authority (Civil Appeal No. 37 of 1997)
• DFCU Bank Ltd v Magezi (Civil Suit No. 547 of 2017)
• Sharif Osman v Hajjo Haruna Mulangwa (Court of Appeal No. 38 of 1995)
• Ismail Jaffer Allibhai & 2 Others v Nandlal Harjiva Karia & Another (Civil Appeal No. 53 of 1995)
• Bank of Uganda & Another v Kaweesi & Others (High Court Miscellaneous Application No. 1047 of 2022)
• Fang Min v Belex Tours and Travel Ltd (Supreme Court Civil Appeal No. 6 of 2013)

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