Kikwanzi v Tumukunde (Civil Suit No. 117 of 2013)
Observed later treatment
No later-treatment classification is recorded for this judgment.
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Holding
A buyer cannot acquire equitable interest in land purchased from a seller who is not the registered owner and has no title to convey. Specific performance cannot be granted in such circumstances. The appropriate remedy is a refund of the purchase price paid to the seller who misrepresented his ownership.
Outcome
Specific performance claim refused; Plaintiff awarded refund of purchase price with interest and costs
Facts
In December 2008, the Plaintiff agreed to purchase land from the Defendant at Shs.40,000,000/-. She paid Shs.30,000,000/- on execution of the agreement and later paid the balance of Shs.10,000,000/- through the Defendant's advocates. A search at the Land Office revealed that the land file was missing. The Defendant assured her this was due to an ongoing transfer transaction. She verified with neighbours and local officials that the land belonged to the Defendant. She took possession of the land. The former registered owners later claimed they had never sold the land and demanded she vacate. The title remained in the names of Yosamu Lwanga, Administrator of the Estate of the late Yokana Sembajwe. The Defendant never delivered the Certificate of Title or transfer documents despite receiving full payment. The Defendant failed to file a defence and was served by substituted service through newspaper advertisement. The matter proceeded exparte.
Issues
- Whether the plaintiff acquired equitable interest in land purchased from a person who was not the registered owner.
- Whether specific performance can be ordered where the seller had no title to the land.
- Whether the plaintiff is entitled to a refund of the purchase price paid to a non-owner.
Orders
- Claim for specific performance dismissed.
- Judgment entered against the Defendant for refund of Shs.40,000,000/-.
- Interest on the principal sum awarded at court rate from judgment until payment in full.
- Costs of the suit awarded to the Plaintiff.
Rules and key headnotes
Cases cited (1)
- Katarikawe v Katwiremu (High Court Civil Suit No. 2 of 1973)
Full judgment
The original judgment as reported. Read the original PDF before relying on any passage.