Hassan Hashim v Uganda Land Commision & Anor (HCT-04-CV-CS-0057-2010)
Observed later treatment
No later-treatment classification is recorded for this judgment.
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Holding
The court held that where a lessor with valid registered title sells her equitable interest to a buyer who cannot register due to a fraudulently procured subsequent title, the buyer acquires an equitable interest enforceable against third parties. The first defendant acted without authority by issuing a second certificate of title without a minute from the controlling District Land Board and without cancelling the prior title. The second defendant's title was procured by fraud and declared null and void ab initio. The maxim 'first in time, first in right' applies where competing equitable interests exist.
Outcome
Second defendant's title cancelled. Second defendant to be evicted. Plaintiff awarded damages and costs.
Facts
The plaintiff bought Plot 5 Bishop Masaba Close from Nambuya Jane on 1 July 2010 for UGX 20,000,000 pursuant to a sale agreement. Jane had obtained a valid certificate of title from Mbale District Land Board registered on 2 November 2009. The first defendant Uganda Land Commission subsequently issued a second certificate of title for the same plot to the second defendant Ahamada Nambagala on 2 June 2010, without a minute from the District Land Board and without cancelling the prior title. When the plaintiff attempted to take possession two months after purchase, he found the land fenced off with a structure and discovered through a land search that Nambagala held a later title. Both defendants were served but failed to file defences. Default judgment was entered and the matter proceeded to formal proof.
Issues
- Whether the first defendant acted lawfully in issuing a certificate of title to the second defendant for land already registered in the name of another proprietor.
- Whether the second defendant's title was procured by fraud and should be cancelled.
- Whether the plaintiff, as holder of an equitable interest through an unregistered sale agreement, has standing to challenge the second defendant's title.
- What remedies are appropriate where a subsequent title is issued fraudulently over an earlier registered title.
Orders
- Judgment entered against the defendants jointly and/or severally.
- The 2nd defendant's title is null and void ab initio for having been procured by fraud.
- The 2nd defendant is a trespasser on Plot 5 Bishop Masaba Close Mbale Municipal Council.
- The 2nd defendant's title under Leasehold Register Volume 4102 Folio 4 Plot No.5 Bishop Masaba Close shall be cancelled from the Register Book.
- The 2nd defendant shall be evicted from the suit land.
- The plaintiff is awarded UGX 10,000,000 as general damages.
- The plaintiff is awarded the taxed costs of this suit.
Rules and key headnotes
Legislation cited (3)
- Civil Procedure Rules O.9 r.5
- Civil Procedure Rules O.9 r.10
- Civil Procedure Rules O.9 r.11
Cases cited (3)
- Souza Figueiredo & Co. Ltd v Moorings Hotel Co. Ltd (1961) EA 926
- Walsh v Lonsdale (1882) 21 Ch D 9
- Northern Counties of England Fire Insurance Co v Whipp (1884) 26 Ch D 482
Full judgment
The original judgment as reported. Read the original PDF before relying on any passage.