George .W. Mirembe Kasujja v Jones West Sebunya and Anor (Civil Suit No. 208 of 2015)

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

Held that a transfer of jointly owned land without the consent of one joint proprietor is fraudulent, illegal and void. Where two brothers were registered as joint proprietors under section 56 of the Registration of Titles Act, the transfer by one brother into the name of their company without the other's participation violated the non-consenting brother's proprietary rights. Forensic evidence established the plaintiff did not sign the transfer documents. The court ordered cancellation of the company's registration and reinstatement of the brothers as joint proprietors, with the land to be subdivided equally between them.

Outcome

Plaintiff's suit allowed; 2nd Defendant's registration cancelled; joint ownership restored; land to be subdivided equally between Plaintiff and 1st Defendant; Counter Claim dismissed

Facts

The Plaintiff and 1st Defendant are brothers who were joint registered proprietors of four plots of land in Luwero District. They both owned shares in the 2nd Defendant company, with the 1st Defendant being the majority shareholder. In 2015, the Plaintiff filed suit seeking equal division of the properties due to irreconcilable business differences. In 2017, during the pendency of the suit, the 1st Defendant transferred the properties into the name of the 2nd Defendant company. The Plaintiff amended his plaint to challenge this transfer as fraudulent. Forensic document examination established that the Plaintiff did not sign the transfer documents. The Plaintiff lodged caveats on the properties in March 2018 and reported the matter to police. The 1st Defendant contended that the properties were always intended for the company and were temporarily registered in the brothers' joint names because partnership deeds are not registrable. The 1st Defendant argued he had funded the purchase and used his personal property as security for company loans.

Issues

1. Whether the transfer of the land described as Bulemezi Block 30 Plot Nos.332, 432, 767 and 770 at Mpande in Luwero District from the joint names of the Plaintiff and the 1st Defendant to the 2nd Defendant's names was lawful?
2. Whether the Plaintiff and the 1st Defendant are the lawful joint owners of the land described as Bulemezi Block 30 Plot Nos. 332, 432, 767 and 770 at Mpande in Luwero District?
3. Whether the Counter claimants are entitled to the remedies sought in the Counter Claim?
4. What remedies are available to the parties?

Orders

• The transfer of the suit properties described as Bulemezi Block 30 Plot Nos.332, 432, 767 and 770 at Mpande in Luwero District from the joint names of the Plaintiff and the 1st Defendant to the 2nd Defendant's names was unlawful.
• The Plaintiff and the 1st Defendant are the lawful joint owners of the suit properties described as Bulemezi Block 30 Plot Nos. 332, 432, 767 and 770 at Mpande in Luwero District.
• The Commissioner for Land Registration is directed to cancel the 2nd Defendant's registration as proprietor of the suit properties and re-instate the Plaintiff and 1st Defendant as joint proprietors/tenants thereof.
• The 1st Defendant is directed to hand over the certificates of title of the suit properties with duly executed mutation forms and transfer instruments to an independent surveyor appointed by Court to facilitate the process of conducting the subdivision of the suit properties into equal shares between the Plaintiff and 1st Defendant within 90 days of the appointment of said Independent Surveyor.
• The fees of the independent surveyor appointed by Court to carry out the subdivision and other costs necessary for the subdivision be met by the Plaintiff and the 1st Defendant jointly in equal shares.
• General damages of UGX 50,000,000/=.
• Costs of the suit.

Rules and key headnotes

Legislation cited (1)

• Registration of Titles Act Cap 230 s.56

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