Wakilii

Gondoram and Another v Gibson (C.A. 18-1930.)

East African Court of Appeal · [1930] EACA 36 · 1930 Appeal Allowed AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Appeal from Supreme Court of Kenya dismissal of action for damages based on alleged breach of quarrying agreement
Decision
Matter remitted to Supreme Court for trial on the merits

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

The Court of Appeal (Sheridan CJ and Griffin CJ; Pickering CJ dissenting) held that a document described as an indenture but creating a licence to quarry stone coupled with a grant of the quarried stone did not require registration as it conferred no interest in land, and was valid as an agreement despite not being under seal, the word indenture having been used without appreciation of its technical implications.

Outcome

Matter remitted to Supreme Court for trial on the merits

Facts

The appellants entered into a two-year agreement with the respondent granting them a licence to enter land, quarry stone, erect huts, and remove quarried stones for a monthly rent of Shs. 130. The document was headed 'This Indenture' but was signed only, not sealed. When the respondent refused the appellants permission to enter the land, they sued for damages for breach of contract. The Supreme Court dismissed the action on the ground that the document was invalid for want of registration under the Registration of Titles Ordinance Cap. 142, treating it as a lease creating an interest in land.

Issues

  1. Whether a document described as an indenture but not executed under seal is valid as an agreement or licence.
  2. Whether the document created an interest in land requiring registration under the Registration of Titles Ordinance.
  3. Whether the document constituted a lease or a licence coupled with a grant.
  4. Whether a licence coupled with a grant must be under seal to be valid.

Orders

  • Appeal allowed with costs.
  • Case remitted to the Supreme Court for trial.
  • Declaration that the document is not ineffectual in the absence of registration and seal.

Rules and key headnotes

Licences — Licence Coupled with Grant — Distinction from Lease
A document granting a licence to enter land for the limited purpose of quarrying stones and to do anything necessarily incidental to that purpose, together with the right to remove the quarried stones, constitutes a licence coupled with a grant and not a lease, even where it confers irrevocable sole and exclusive authority for a term exceeding twelve months.
Registration of Titles — Interest in Land — Licence Coupled with Grant
A licence to quarry stones coupled with a grant of the stones when quarried does not create an interest in land requiring registration under the Registration of Titles Ordinance, as the licensee acquires no property in the stones until they are severed from the earth.
Formalities — Licence Coupled with Grant — Requirement of Seal
A licence coupled with a grant does not require execution under seal to be valid and may be created by simple agreement.
Indentures — Use of Term Without Execution as Deed — Validity as Agreement
Where parties describe a document as an indenture but execute it by signature only without seal, and the word indenture has been used without clear appreciation of its implications in English law, the document may be given effect as an ordinary agreement sufficient to create the relationship intended by the parties.
Indentures — Purported Execution — Effect of Non-Compliance (Dissenting View)
Where parties use the word indenture in a document, they should be taken to understand what the word connotes, and if the document purports to be an indenture but has not been duly executed under seal, it should be held inoperative.

Legislation cited (2)

  • Registration of Titles Ordinance Cap. 142 s.32
  • Registration of Business Names Ordinance

Cases cited (6)

  • Heap v Hartley (L.R. 42 Ch.D. 461)
  • Muskett v. Hill
  • Wood v Leadbitter (13 M. & W. 846)
  • Lowe v Adams (2 Ch.D. 598)
  • Stynn v Simpson (8 E.A.L.R. 164)
  • Stephens v. Allen

Full judgment

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

Gondoram and Another v Gibson (C.A. 18-1930.) [1930] EACA 36 (1 January 1930)
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.