Idd Sengooba v Nakamya Marion Ssozi and Others (Civil Suit No. 392 of 2019)
Observed later treatment
No later-treatment classification is recorded for this judgment.
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Holding
Held that the Plaintiff failed to prove he was a bona fide purchaser for value without notice. The court found that the 3rd Counter Defendant fraudulently obtained title through a sale agreement containing false statements about the vendor's indebtedness. The Plaintiff's purchase was tainted by constructive notice of fraud, evidenced by electricity bills remaining in the original owner's name. The Counter Claimant, as lawful beneficiary of the deceased registered proprietor's estate, had locus standi to bring the counterclaim. Plaintiff's suit dismissed; counterclaim allowed with orders cancelling fraudulent registrations and awarding damages.
Outcome
Plaintiff's claim dismissed. Counterclaim allowed with cancellation of fraudulent registrations, permanent injunction issued, and damages awarded to Counter Claimant as beneficiary of the deceased registered proprietor's estate.
Facts
In 2007, Peter Ssozi was registered as proprietor of land at Nabbingo, Kyengera. In 2011, the land was mortgaged to Centenary Bank by Marion Nakamya Ssozi (Peter Ssozi's wife). In August 2012, Lubowa Muhammed paid UGX 4,000,000 to discharge the mortgage and was registered as proprietor in December 2012. In May 2013, Idd Sengooba purchased the property from Lubowa for UGX 150,000,000 and was registered in August 2013. Sengooba took possession and collected rent. In November 2013, Marion Nakamya and Peter Ssozi's family members occupied part of the property, claiming ownership. Peter Ssozi died in 2020. Marion Nakamya, as beneficiary of his estate, counterclaimed that the transfers to Lubowa and Sengooba were fraudulent. Evidence showed electricity bills remained in Peter Ssozi's name until 2015, contradicting claims of legitimate transfer.
Issues
- Whether the Counter Claimant has locus standi to maintain the Counter claim against the Counter Defendants?
- Whether the 3rd Counter Defendant obtained registration of title to the suit property through fraud?
- Whether the Plaintiff/4th Counter Defendant obtained registration of title to the suit property through fraud?
- Whether the Plaintiff/4th Counter Defendant is a bona fide purchaser for value of the suit property?
- Whether the 5th and 6th Counter Defendants are liable for the alleged acts and omissions that led to the transfer of suit property to the 3rd Counter Defendant and subsequently to the Plaintiff/Counter Defendant?
- What remedies are available to the parties?
Orders
- Plaintiff's suit dismissed with costs to the Defendant.
- Declaration that the suit property was fraudulently acquired by the 3rd and 4th Counter Defendants.
- Order for cancellation of the names of the 3rd and 4th Counter Defendants from the suit land title.
- Declaration that the suit property comprised in Busiro Block 333 Plot 887 measuring 0.44 hectares forms part of the estate of the late Peter Ssozi.
- Declaration that the Counter Claimant is a lawful beneficiary of the suit property.
- Permanent injunction restraining the 1st, 2nd, 3rd and 4th Counter Defendants, their servants and/or agents and those persons under their control from carrying on any further activities on the suit property.
- Order vacating any existing caveats placed by the 1st - 4th Counter Defendants on the suit property.
- Special damages of UGX 124,700,000/= against the 1st, 2nd, 3rd and 4th Counter Defendants.
- General damages of UGX 65,000,000/= against the 1st, 2nd, 3rd and 4th Counter Defendants.
- Interest at 15% per annum on special and general damages until payment in full.
Rules and key headnotes
Legislation cited (3)
Cases cited (7)
- Zaabwe v Orient Bank Ltd and 5 Others (Supreme Court Civil Appeal 2007)
- Israel Kabwa v Martin Banoba Musiga (Civil Appeal No. 52 of 1995)
- Lwanga v Mubiru and 3 Others (Court of Appeal 2024)
- Jones v Smith [1841] 1 Hare 43
- Yakobo M. N Senkungu & others v Cresencio Mukasa (Civil Appeal No. 17 of 2014)
- Vivo Energy (U) Ltd v Lydia Kisitu (Supreme Court Civil Appeal No. 07 of 2015)
- Uganda Post Limited v Mukadisi (Civil Appeal No. 13 of 2022)
Full judgment
The original judgment as reported. Read the original PDF before relying on any passage.