Wakilii

Hassan Ali Ahmed v Tororo Municipal Council and Another (Civil Suit 362 of 1987)

High Court · [1994] UGHC 113 · 1994 Judgment for Plaintiff AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
First instance civil suit for recovery of property or compensation following unlawful re-entry by municipal authority and subsequent lease to third party
Decision
Plaintiff awarded judgment against the second defendant with option for return of premises or compensation of UGX 13,500,000 plus interest. Claim against first defendant dismissed though irregularity found.

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

Held that although a municipal council's re-entry onto premises occupied by a licensee without reasonable notice was procedurally irregular, it did not void a subsequent lease to a third party holding a certificate of title under the Registration of Titles Act. The constitutional right to property under Article 13 requires compensation. The party who benefited from occupation of the premises is liable to compensate the dispossessed licensee for the value of the building, or alternatively to return the premises.

Outcome

Plaintiff awarded judgment against the second defendant with option for return of premises or compensation of UGX 13,500,000 plus interest. Claim against first defendant dismissed though irregularity found.

Facts

In 1968 the plaintiff applied to Tororo Municipal Council for a plot and was allocated plot No. 45 on Busia Road. He erected a 14-room semi-permanent house on the plot and paid annual ground rent of UGX 20. In 1979 during the war he fled to Kenya. On his return in 1986 he found the house occupied by others. The Municipal Council had re-entered the premises without notice in 1979 and in May 1985 granted a lease to the second defendant, who paid UGX 1,360,000 to one Samu Kabise (who claimed ownership) and took possession. The second defendant obtained a certificate of title and rented out the house, which had 15 rooms.

Issues

  1. Whether the re-entry by the first defendant to the suit premises was lawful.
  2. Whether or not the second defendant acquired good title from the first defendant.
  3. Whether or not the plaintiff is entitled to the suit premises or compensation.
  4. If the plaintiff is entitled to compensation, from whom?
  5. What is the quantum of damages?

Orders

  • Judgment entered in favour of the plaintiff against the second defendant.
  • The second defendant shall handover the premises comprised in plot No. 52 Busia Road, Tororo to the plaintiff.
  • In the alternative, if the second defendant cannot handover the premises, he shall compensate the plaintiff UGX 13,500,000.
  • If the second defendant chooses to compensate, he shall pay interest at 30% per annum from the date of judgment to date of payment in full.
  • It is at the option of the second defendant whether to handover the premises or to compensate the plaintiff.
  • If the second defendant opts to handover the premises, he shall surrender the certificate of title to the Registrar of Titles for cancellation.
  • The second defendant shall pay the plaintiff the taxed costs of the suit.
  • As regards the 1st defendant, though he acted irregularly, he is not liable to the plaintiff. The claim against him is dismissed, but he shall meet his own costs.

Rules and key headnotes

Land & Property — Licensees — Re-entry by Controlling Authority — Duty to Give Notice
Where a licensee occupies land allocated by a municipal council under the Public Lands Act and pays annual ground rent but holds no lease, equity requires that before the council re-enters the land it must give the licensee reasonable notice of its intention to re-enter, notwithstanding that section 32 of the Public Lands Act 1969 applies only to leaseholders.
Land & Property — Certificate of Title — Indefeasibility — Irregularity in Prior Proceedings
A certificate of title issued under the Registration of Titles Act is conclusive evidence of title under section 56 of that Act. A procedural irregularity in the controlling authority's re-entry (such as failure to give notice) does not void a subsequent lease to a third party who obtains a certificate of title, but the irregularity must be remedied by payment of compensation to the dispossessed party in accordance with Article 13 of the Uganda Constitution.
Administrative Law — Procedural Fairness — Notice Requirement
A controlling authority's failure to give reasonable notice before re-entering premises is a procedural irregularity which, while not rendering the authority's power to lease the land illegal, creates liability to pay fair compensation to the party deprived of property.
Land & Property — Compensation — Entitlement of Non-Leaseholder
A licensee who is not a leaseholder is not affected by sections 22(7) and 22(9) of the Public Lands Act which prohibit leaseholders from claiming existing buildings from the controlling authority after termination of a lease. A licensee whose building is appropriated is entitled to compensation or return of the property under Article 13 of the Constitution and section 37 of the Public Lands Act.
Damages & Quantum — Compensation for Property — Liability of Beneficial Occupier
Where premises are occupied and enjoyed by a third party following an irregular re-entry by a controlling authority, the party who has derived the benefit of occupation is liable to compensate the dispossessed owner for the value of the building or to return the premises, rather than the controlling authority which committed the procedural irregularity.

Legislation cited (9)

Cases cited (1)

  • Ronald Donato Kanyara v Hassan Ali Ahamed (Civil Appeal No. 1 of 1990)

Full judgment

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

Hassan Ali Ahmed v Tororo Municipal Council and Another (Civil Suit 362 of 1987) [1994] UGHC 113 (26 July 1994)
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.