John Bwanika t/a Shepherds Grammar School v Gladys Nalumansi Gabunga and 6 Others (Civil Suit 918 of 2019)
Observed later treatment
No later-treatment classification is recorded for this judgment.
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Holding
The court held that a tenancy creates both contractual and proprietary interests that survive the landlord's death: under section 33(2) of the Contracts Act the deceased landlord's obligations devolved to his administrators, so the estate remained bound by the plaintiff's tenancy. The plaintiff was not a tenant by occupancy and had no statutory first option to purchase. The sale of the kibanja to the sixth defendant was illegal for want of the landowner's (the Kabaka's, through Buganda Land Board) consent, and a Family Division sale order did not exempt compliance with the law. The suit was partly allowed: general damages of UGX 20,000,000 and costs were awarded, while a permanent injunction, specific performance, exemplary damages and interest were refused.
Outcome
Suit partly allowed; the sale to the 6th Defendant declared illegal for lack of the landowner's consent, the tenancy relationship affirmed, general damages of UGX 20,000,000 and costs awarded to the Plaintiff, and prayers for a permanent injunction, specific performance, exemplary damages and interest denied.
Facts
In 1999 the plaintiff entered a tenancy agreement with the late Joseph Gabunga, kibanja holder of the suit property in Kibuye, Makindye, and established Shepherds Grammar School there. Successive agreements (1999, 2005 and 2010) governed the relationship; the 2010 agreement ran for ten years with an automatic renewal clause and expressly bound Gabunga's successors in title. Gabunga died in 2014 and his estate passed to the 1st-5th defendants as administrators, to whom the plaintiff continued paying rent. In 2018 the administrators obtained a consent judgment in the Family Division permitting sale of the property, and in 2019 sold it to the 6th defendant for UGX 80,000,000. Consent was said to have been obtained from the Omutongole rather than the Buganda Land Board, which holds the land in trust for the Kabaka, the registered owner. The plaintiff was served an eviction notice in April 2019 but did not vacate and remained in possession, later being ordered by the Makindye court to pay rent to the 6th defendant. The plaintiff sued for declarations, specific performance, a permanent injunction and damages.
Issues
- Whether there is a subsisting tenant-landlord relationship between the Plaintiff and the estate of the late Joseph Gabunga.
- Whether the Plaintiff was entitled to be given the first option to purchase the suit land.
- Whether the transactions between the Defendants regarding the suit land, made without due consideration of the Plaintiff's interest or rights, are illegal, null and void.
- What remedies are available to the parties.
Orders
- There is an existing landlord-tenant relationship between the 1st-5th Defendants and the Plaintiff for the suit property.
- The land sale transaction between the 1st-5th Defendants and the 6th Defendant is illegal for lack of the land owner's consent.
- Ownership of the suit property is reverted to the 1st-5th Defendants as administrators of the estate of the late Joseph Gabunga.
- The 1st-5th Defendants' notice of eviction issued to the Plaintiff in April 2019 was a breach of the tenancy agreement.
- The prayers for a permanent injunction, specific performance, exemplary damages and interest are denied.
- The Plaintiff is granted general damages of twenty million shillings (UGX 20,000,000).
- The Plaintiff is awarded costs of the suit.
Rules and key headnotes
Legislation cited (14)
- Contracts Act Cap 284 s.9(1)
- Contracts Act Cap 284 s.33(2)
- Contracts Act Cap 284 s.64(1)
- Landlord & Tenant Act Cap 238 s.2
- Land Act Cap 236 s.1
- Land Act Cap 236 s.29
- Land Act Cap 236 s.31
- Land Act Cap 236 s.35
- Land Act Cap 236 s.36(3)
- Succession Act Cap 268 s.180
- Succession Act Cap 268 s.192
- Succession Act Cap 162 s.268
- Civil Procedure Act Cap 282 s.26(2)
- Civil Procedure Act Cap 282 s.27
Cases cited (13)
- Pardan Jwarj v Whelpade (1920-29) 3 ULR 193
- Wamulugwa v Bugisu Cooperative Union (HCT-04-CV-CA-62 of 2016)
- Kampala District Land Board & Chemical Distributors v National Housing and Construction Corporation (Civil Appeal No. 2 of 2004)
- Olango Joseph v Tooron Richard (Civil Appeal No. 39 of 2019)
- Byaruhanga v Ruvugwaho & Anor (Civil Appeal No. 9 of 2014)
- Katende v Haridar & Company Ltd [2008] 2 EA 173
- Stanbic Bank Uganda Limited v Haji Yahaya Sekalega t/a Sekalega Enterprises (Civil Suit No. 185 of 2009)
- Livingstone Mpiima v Elizabeth Nanteza (Civil Suit No. 853 of 1989)
- Akena & Ors v Opwonya (Civil Appeal No. 35 of 2016)
- Gapco (U) Ltd v A.S. Transporters Ltd (Civil Appeal No. 7 of 2007)
- Adjumani Service Station v Fredrick Batte (Civil Suit No. 345 of 2014)
- Dharamshi vs Karsan [1974] I EA 41
- Zimbiha v Attorney General (Civil Suit No. 109 of 2011)
Full judgment
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