Wakilii

Haji Zubairi Musoke v Betty Nagayi (Civil Suit No. 389 of 2010)

High Court · [2011] UGHC 173 · 2011 Judgment for Plaintiff AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
First instance civil suit for declaration of title, removal of caveat, and damages
Decision
Judgment entered for the Plaintiff; caveats vacated; damages awarded

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

The High Court held that the Plaintiff was a bona fide purchaser for value of land comprised in Kyadondo Block 113 Plot nos. 340-373, having purchased Plot 39 in 2004 after conducting a search and finding the title free of encumbrances. The Defendant, who lodged caveats without reasonable cause and failed to file a defence, had no caveatable interest in the property. The court ordered the caveats vacated and awarded general damages of UGX 5,000,000 under s.142 of the Registration of Titles Act for loss of profit and inconvenience caused by the wrongful lodging of caveats.

Outcome

Judgment entered for the Plaintiff; caveats vacated; damages awarded

Facts

In 2004, the Plaintiff purchased land comprised in Mengo Kyadondo Block 113 Plot 39 from Standard Schools Ltd after conducting a Registry of Titles search showing the property free of encumbrances. He was registered as proprietor in September 2006. In 2009, he subdivided the property into smaller plots numbered 340-373 of Block 113 for ease of sale. In March 2009, the Defendant lodged a caveat on the subdivided plots alleging forgery and fraud, claiming the Plaintiff had forged title and that Standard Schools Ltd did not exist. The Plaintiff discovered the caveat through the LC Chairman who showed him the Defendant's letter to the Registrar of Titles. The Plaintiff was not notified of the caveat. Since its lodging, prospective buyers have refused to purchase the plots, citing the caveat. The Defendant was served through substituted service by publication but failed to file a defence.

Issues

  1. Whether the Plaintiff is a bona fide purchaser for value of the property comprised in Kyadondo Block 113 Plot nos. 340-373.
  2. Whether the Defendant has a caveatable interest in the property comprised in Kyadondo Block 113 Plot nos. 340-373.
  3. Whether the caveats lodged by the Defendant should be vacated.
  4. Whether the Plaintiff is entitled to damages for loss of profit and inconvenience caused by the lodging of the caveats.

Orders

  • The Plaintiff is a bona fide purchaser for value of the property comprised in Mengo Kyadondo Block 113 Plot no. 39 (now Kyadondo Block 113 Plot nos. 340-373) at Bumbu Kiteezi.
  • The Defendant does not have any caveatable interest in the property comprised in Kyadondo Block 113 Plot nos. 340-373 at Bumbu Kiteezi.
  • The caveats lodged by the Defendant on Kyadondo Block 113 Plot nos. 340-373 vide Instrument No. KLA 407675 on 6th March 2009 be vacated/lifted.
  • The Defendant pays UGX 5,000,000 as general damages to the Plaintiff for the inconvenience and loss of profit.
  • Costs of the suit awarded to the Plaintiff.

Rules and key headnotes

Land & Property — Bona Fide Purchaser for Value — Registration of Title — Indefeasibility
A purchaser who conducts a Registry of Titles search showing the property free of encumbrances and subsequently gets registered as proprietor is a bona fide purchaser for value entitled to protection of their registered title.
Land & Property — Caveats — Removal — Absence of Caveatable Interest
A caveat lodged without a caveatable interest and without reasonable cause is liable to be vacated by the High Court under section 142 of the Registration of Titles Act.
Civil Procedure — Ex Parte Proceedings — Failure to File Defence — Effect
Where a defendant has been properly served and fails to file a defence within the time allowed, the plaintiff may set down the suit for hearing ex parte under Order 9 rule 12(2) of the Civil Procedure Rules, and the defendant is deemed to have admitted the allegations.
Civil Procedure — Burden of Proof — Ex Parte Proceedings
Whether a suit proceeds ex parte or not, the burden remains on the plaintiff to prove his or her case on the balance of probabilities.
Damages & Quantum — Wrongful Lodging of Caveat — Compensation
Under section 142 of the Registration of Titles Act, a person who lodges a caveat without reasonable cause is liable to compensate any person who sustains damage, including loss of profit and inconvenience, as the High Court deems just.

Legislation cited (5)

Cases cited (6)

  • Kubibaire v Kakwenzire [1977] HCB 37
  • Musoke v Kaye [1976] HCB 171
  • Kampala District Land Board & George Mitala v Venancio Babweyana (Civil Appeal No. 2 of 2007)
  • Kyagulanyi Coffee Ltd v Steven Tomusange (Civil Appeal No. 9 of 2001)
  • Mbogo & Anor v Shali [1968] EA 93
  • Assist (U) Ltd v Italian Asphalt & Haulage Ltd & Anor (HCCS No. 1291 of 1999)

Full judgment

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

Haji Zubairi Musoke Vs Betty Nagayi (Civil Suit No. 389 of 2010) [2011] UGHC 173 (7 December 2011)
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.