Wakilii

Jory Ready Mixed Concrete & Construction Co. Limited v Nsajja & 2 Others (Civil Suit 45 of 2021)

High Court · [2023] UGHC 331 · 2023 Judgment for Plaintiff AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
First instance civil suit for cancellation of title, permanent injunction, and declaration of ownership based on allegations of fraud
Decision
Defendants' registration cancelled; plaintiff reinstated as registered proprietor; defendants declared trespassers; permanent injunction granted

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

The High Court held that the defendants fraudulently acquired the plaintiff's registered land through forged board resolutions and transfer documents executed while the company's directors were abroad. The court found fraud attributable to both defendants based on forensic evidence of forgery, instantaneous transfers occurring nine minutes apart, undervaluation of the property to evade stamp duty, and the defendants' failure to take possession or make inquiries. The court cancelled the defendants' registration and reinstated the plaintiff as registered proprietor.

Outcome

Defendants' registration cancelled; plaintiff reinstated as registered proprietor; defendants declared trespassers; permanent injunction granted

Facts

Jory Ready Mixed Concrete & Construction Co. Ltd, a Kuwaiti-owned company, purchased land at Block 148 Plot 33 MSK 384 folio 9 in 2017 and took possession. In 2019, while the company directors were in Kuwait, their land title and company documents went missing. The 1st defendant, Nsajja Edward, was registered as proprietor on 28 July 2020 at 10:47am under a purported transfer from the plaintiff company. Nine minutes later, at 10:56am, the 2nd defendant, Kakooza Ibrahim Kasiita, was registered as proprietor under a transfer from the 1st defendant. Both transfers were based on forged board resolutions and signatures. The plaintiff discovered the fraud in 2021, reported to police, and instituted this suit. Forensic analysis confirmed the signatures were forged. Passport records proved the directors were abroad when the resolutions were allegedly passed. Neither defendant ever took possession of the land, and the property was undervalued to evade stamp duty. The defendants failed to file defences and the suit proceeded ex parte.

Issues

  1. Whether the 1st and 2nd defendants' acquisition of the suit property was marred with fraud?
  2. Whether the 1st and 2nd defendants took the necessary diligence in acquiring the suit property?
  3. Whether the plaintiff is the lawful owner of the suit property?
  4. What remedies are available to the parties?

Orders

  • The 3rd defendant is ordered to cancel the 1st and 2nd defendants' registration on certificate of title Block 148 Plot 33 MSK 384 folio 9.
  • The 3rd defendant shall register the plaintiff as registered proprietor to the suit land.
  • The 1st and 2nd defendants are declared trespassers on the suit land.
  • An injunction issues restraining the 1st and 2nd defendants from registering a lease on the suit land.
  • The plaintiffs are awarded UGX 50,000,000 in general damages.
  • The award of damages shall attract interest at 15% per annum from the date of judgment until payment in full.
  • The plaintiffs are awarded costs of this suit.
  • D/AIP Andama Joseph is directed to deposit the owner's duplicate certificate of title to Block 148 plot 33 Folio 9 land at Lutente with the Registrar of this court for onward transmission to the plaintiff.

Rules and key headnotes

Land & Property — Fraud — Forged Transfer Documents — Attribution of Fraud to Transferee
Fraud is attributable to a transferee where the transferee relies on forged transfer documents to claim ownership, and possession of such fraudulent documents directly imputes fraud to the transferee in the absence of any direction to the contrary.
Land & Property — Fraud — Instantaneous Transfers — Inference of Fraudulent Cooperation
Instantaneous transfers occurring within minutes of each other point to fraud and fraudulent cooperation between transferor and transferee, particularly where it is impossible to complete the necessary valuation, stamp duty payment, and lodgment procedures within the intervening period.
Land & Property — Fraud — Undervaluation — Evasion of Stamp Duty
Undervaluation of property for purposes of stamp duty aimed at defrauding government revenue is against public policy and illegal, and constitutes fraud that voids the transaction, as one cannot be allowed to benefit from an illegality.
Land & Property — Due Diligence — Failure to Inquire from Occupant — Fraudulent Omission
A purchaser who acquires land known to be in occupation and use of another person without making inquiries from the person in occupation commits fraud by omission, and such conduct is attributable to the purchaser as fraud.
Land & Property — Remedies — Cancellation of Title — Registration of Titles Act s.177
Upon recovery of land by proceedings from a person registered as proprietor where the acquisition was marred by fraud, the High Court may direct the Registrar to cancel the certificate of title and substitute such certificate as the circumstances require, thereby reinstating the rightful owner as registered proprietor.

Legislation cited (7)

Cases cited (13)

  • Kampala Bottlers Ltd v Damanico (U) Ltd (Supreme Court Civil Appeal No. 22 of 1992)
  • Nabanoba Desiranta & Anor v Kayiwa Joseph & Anor (High Court Civil Suit No. 496 of 2005)
  • UP & TC VS ABRAHAM KATUMBA [1997] IV KALR 103
  • Makula International Ltd Vs Cardinal Nsubuga 1982 HCB 11
  • Sinba K Ltd & 4 Others v UBC (Supreme Court Civil Appeal No. 3 of 2014)
  • David Sejjaka Nalima v Rebecca Musoke (Supreme Court Civil Appeal No. 12 of 1985)
  • Mubiru & Anor Vs Byensiba & Anor [1985] HCB 106
  • Betty Kizito v David Kizito Kanonya & Others (Supreme Court Civil Appeal No. 8 of 2018)
  • John Bageire v Ausi Matovu (Court of Appeal Civil Appeal No. 7 of 1996)
  • Hajji Nasser Katende v Vithalidas Halidas & Co. Ltd (Court of Appeal Civil Appeal No. 84 of 2003)
  • FJK Zaabwe v Orient Bank & 5 Others (Supreme Court Civil Appeal No. 4 of 2006)
  • Storms vs Hutchison (1905) A 515
  • Uganda Commercial Bank Vs Kigozi (2002(1EA 305

Full judgment

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

Jory Ready Mixed Concrete & Construction Co. Limited v Nsajja & 2 Others (Civil Suit 45 of 2021) [2023] UGHC 331 (20 March 2023)
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.