Wakilii

Gamukama and Another v Triple Mpungu General Trading Store Limited and Another (Civil Suit No. 17 of 2003)

High Court · [2012] UGHC 423 · 2012 Judgment for Plaintiff AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
First instance civil suit for declaration of ownership and cancellation of registration
Decision
Certificate of title cancelled; registration ordered in the names of the three original purchasers; damages and costs awarded to the plaintiffs

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

Held that the first defendant company was incorporated fraudulently by the second defendant to deprive the plaintiffs of property they had already purchased jointly with the second defendant. The purported second sale to the company was null and void because title had already passed to the three individual purchasers. Registration of the company as proprietor was obtained through fraud by presenting documents without the plaintiffs' knowledge or consent. The court cancelled the company's certificate of title and ordered registration in the names of the three original purchasers.

Outcome

Certificate of title cancelled; registration ordered in the names of the three original purchasers; damages and costs awarded to the plaintiffs

Facts

The plaintiffs and the second defendant were tenants of the Departed Asians Property Custodian Board in respect of plot 74 Mbarara High Street. In 1995 the Board advertised the property for sale and offered it to Triple Mpungu Traders at UGX 40,025,150. The plaintiffs paid UGX 36,226,350 and the second defendant paid UGX 10,650,000. A certificate of purchase was issued on 1st December 2000 in the names of the two plaintiffs and the second defendant as individuals, since Triple Mpungu Traders was a partnership that could not own property. The plaintiffs delegated the second defendant to process the joint title. The second defendant then incorporated the first defendant company in May 2001 and obtained a second certificate of purchase and subsequent certificate of title in the company's name without the plaintiffs' knowledge. The plaintiffs discovered the title was registered to the company and they were being excluded from ownership.

Issues

  1. Who was Triple Mpungu Traders that purchased the suit property?
  2. Whether the 1st defendant was registered as proprietor through fraud.
  3. What remedies are available to the parties?

Orders

  • Declaration that plot 74 High Street, Mbarara belongs to Elly Amani Gamukama, Elizabeth Kyasiimire and Edward Kanoti.
  • Declaration that the purported sale of the property to the 1st defendant was null and void.
  • Order under section 177 of the Registration of Titles Act that the certificate of title issued to the 1st defendant and registered on 30th May 2002 be cancelled.
  • The Registrar is directed to substitute the cancelled certificate by making entries in the register indicating the proprietors as Elly Amani Gamukama, Elizabeth Kyasiimire and Edward Kanoti.
  • Damages of UGX 30,000,000 awarded to the plaintiffs.
  • Interest on damages at court rate from the date of judgment until payment in full.
  • Costs of the suit to the plaintiffs.

Rules and key headnotes

Land & Property — Fraudulent Registration — Definition of Fraud in Land Dealings
Fraud in land transactions comprises dishonest dealings in land such as depriving a purchaser for value in occupation of the land of his unregistered interest.
Land & Property — Transfer of Title — Passage of Title Upon Full Payment of Purchase Price
Once the full purchase price for property is paid, title passes to the purchasers and it is only these purchasers who have capacity to transfer title to a third party.
Company Law — Incorporation — Fraudulent Incorporation to Defeat Proprietary Interests
A company incorporated after property has been purchased by individuals and used to obtain registration in the company's name without the knowledge or consent of the original purchasers is fraudulently incorporated to defeat the purchasers' proprietary interests.
Company Law — Corporate Transactions — Requirement for Shareholders' Resolutions
A company cannot transact business of the nature of acquiring property without a shareholders' resolution filed with the registrar of companies in accordance with section 143 of the Companies Act.
Land & Property — Cancellation of Registration — Registrar's Power Under Section 177 RTA
Where registration as proprietor is obtained through fraud, the court may order cancellation of the certificate of title under section 177 of the Registration of Titles Act and direct the registrar to substitute it with the names of the rightful proprietors.
Damages & Quantum — General Damages — Award of Nominal Damages for Deprivation of Proprietary Rights
Where a plaintiff is deprived of proprietary interests through fraudulent conduct but remains in possession and continues to collect rent, the court may award nominal damages to compensate for loss of opportunity to renovate or rebuild the property and for the jeopardy caused to the plaintiff's plans and expectations.

Legislation cited (4)

Cases cited (3)

  • Katarikawe v Katwiremu and Another (1977) HCB 187
  • Kampala Bottlers v Damanico (U) Ltd (Supreme Court Appeal No. 22 of 1992)
  • Matovu and 2 Others v Sseviri and Another (1979) 174

Full judgment

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

Gamukama and Another v Triple Mpungu General Trading Store Limited and Another (Civil Suit No. 17 of 2003) [2012] UGHC 423 (10 May 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.