Wakilii

Mazima Community Development Initiative Limited v Balikuddembe & Another (Miscellaneous Cause 27 of 2022)

High Court · [2024] UGHC 216 · 2024 Application Granted AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Application for removal of caveat lodged on land title
Decision
Caveat removed from the Register; applicant awarded damages and costs

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

The High Court held that a caveator who lodges a caveat on land must take positive steps to enforce his claim within a reasonable time. Where the caveator has delayed for four years since lodging the caveat and has failed to effectively serve or prosecute a suit challenging the applicant's title, the caveat must be removed. The court ordered removal of the caveat and awarded the registered proprietor general damages of UGX 20,000,000 for loss occasioned by the caveat lodged without reasonable cause.

Outcome

Caveat removed from the Register; applicant awarded damages and costs

Facts

The Applicant purchased land comprised in Kagoma, Jinja FRV 1136, Folio 10, Block 4, Plot 217 from Namuli Milly and Luyinda Emmanuel (minors) through their guardian Julie Ranee Ditty on 19 April 2018. The 1st Respondent had been the first registered proprietor in March 2012 and had transferred the land to Force Kappa Joselyne in March 2016, who then transferred it to Namuli Milly and Luyinda Emmanuel in February 2017. Before the Applicant could effect its transfer, the 1st Respondent lodged a caveat on 21 June 2019 alleging fraud in the chain of transfers. The Applicant took possession of the land in April 2018 and developed it with its headquarters, a charitable pre-school, vocational training centre, and community development centre. The 1st Respondent filed a suit in November 2022 but never served it on any of the defendants. The Applicant brought this application seeking removal of the caveat after it had remained on the title for approximately four years.

Issues

  1. Whether the 1st Respondent's caveat should be removed?
  2. What are the available remedies?

Orders

  • The 1st Respondent has failed to show cause why his caveat vide Instrument Number JJA-00018611 lodged on the Applicant's land comprised in Kagoma, Jinja FRV 1136, Folio 10, Block 4, Plot 217 situate at Kabowa should not be removed from the Register.
  • The 2nd Respondent is ordered to remove the Caveat lodged by the 1st Respondent on land comprised in Kagoma, Jinja FRV 1136, Folio 10, Block 4, Plot 217 situate at Kabowa after the delivery of this Ruling.
  • The 1st Respondent shall pay general damages to the Applicant to the tune of UGX 20,000,000 (Twenty Million Shillings Only) for the loss and damage occasioned by the existence of the said Caveat and for lodging it without lawful or reasonable cause.
  • The 1st Respondent shall pay interest on the general damages from the time of reading this Ruling to payment in full at court rate.
  • The 2nd Respondent the Commissioner Land Registration is directed to rectify the Register by removing or vacating the Caveat lodged by the 1st Respondent on 21st June 2019 on land comprised in Kagoma, Jinja FRV 1136, Folio 10, Block 4, Plot 217 situate at Kabowa from the date of delivering this Ruling.
  • The 1st Respondent shall pay full costs of this Application to the Applicant.

Rules and key headnotes

Land & Property — Caveats — Purpose and Duration — Temporary Protection — Duty to Bring Action
The primary objective of a caveat under the Registration of Titles Act is to give the caveator temporary protection, not to enable the caveator to relax and sit back for eternity without taking positive steps to handle the controversy and determine the rights of the parties affected by its existence.
Land & Property — Caveats — Removal for Delay — Four-Year Delay
A delay of four years from the lodging of a caveat during which the caveator has failed to take effective steps to prosecute his claim constitutes inordinate delay that justifies removal of the caveat, particularly where the caveator filed a suit but never served it on the defendants and has no intention of prosecuting it.
Land & Property — Caveats — Allegations of Fraud — Need for Ordinary Suit
Where a caveator alleges fraud in his statutory declaration supporting a caveat, he must bring an ordinary suit to establish his claim within a reasonable time; allegations of fraud cannot be properly adjudicated upon in an application for removal of caveat and do not justify indefinite maintenance of the caveat without instituting proceedings.
Land & Property — Indefeasibility of Title — Registered Proprietor — Absence of Proved Fraud
In the absence of proved fraud, the possession of a certificate of title by a registered proprietor is conclusive evidence of ownership of the land and the registered proprietor has indefeasible title; where a certificate of title has changed hands multiple times and no concrete proof of fraud has been established against the current holder, the court cannot draw conclusions of wrongdoing.
Land & Property — Caveats — Balance of Convenience — Registered Proprietor in Possession
Where the registered proprietor holds the certificate of title, is in full occupation of the land, has established developments on it, and is already putting it to use, the balance of convenience lies in favour of removing a caveat that has been maintained for an unreasonable period without the caveator taking steps to vindicate his claim.
Land & Property — Caveats — Compensation — Caveat Lodged Without Reasonable Cause
Under Section 142 of the Registration of Titles Act, any person lodging a caveat without reasonable cause is liable to make compensation to any person who has sustained damage by the lodging of the caveat; compensation is assessed based on the value of the subject matter, the economic inconvenience suffered, and the nature and extent of the breach or injury.
Civil Procedure — Lis Pendens — Non-Application in Uganda — Need for Caveat or Injunction
The doctrine of lis pendens does not apply in Uganda as there is no law governing its operation; pendency of a suit does not affect transactions in the land office and a party desirous of protecting their interest must do so by lodging a caveat or obtaining an injunction, but lodging a caveat is not a license to file cases without any intention of serving or prosecuting them.

Legislation cited (15)

Cases cited (28)

  • Rutungu Properties Limited v Linda Harriet Carrington and Another (Civil Appeal No. 61 of 2010)
  • Teo Ai Choo vs. Leong Sze Hian [1982]2 MLJ 12
  • Boyes v Gathure (1969) EA 385
  • Lim Ah Moi vs. Ams Periasamy Suppiah Pillay Civil Appeal No. A-2-641-1995
  • Eng Mee Young and Others vs. Lethchumanan s/o Velayutham [1980] A.C 331
  • Amba Venture Limited v Sembatya Abubakali and Another (HCMA No. 0164 of 2019)
  • Hunter Investments Ltd v Simon Lwanyaga and Another (HCMC No. 0034 of 2012)
  • Kampala Bottlers Ltd v Damanico (U) Ltd (Civil Appeal No. 22 of 1992)
  • Yahaya Walusimbi v Justine Nakalanzi and 4 Others (CA MA No. 386 of 2018)
  • Samwiri Massa v Rose Achen (1978) HCB 297
  • In Re Trevor Mugumu (Child) (Family Cause No. 68 of 2019)
  • Re Onen Cliff Mills & Laker Joy Onen (Minors) (Miscellaneous Civil Application No. 0022 of 2018)
  • Makula International Ltd v Eminence Cardinal Nsubuga and Another (SC Civil Appeal No. 4 of 1981)
  • John Katarikawe v Katwiremu and Another (1977) HCB 187
  • Olinda De Souza v Kasamali Manji (1962) EA 756
  • J. W. R. Kazoora v Rukuba (Supreme Court Civil Appeal No. 13 of 1992)
  • Bank of Uganda v Fred Masaba and 5 Others (SCCA 03/98)
  • Haji Asuman Mutekanga vs. Equator Growers (U) Ltd (Supra)
  • James Fredrick Nsubuga v Attorney General (HCCS No. 13 of 1993)
  • Erukan Kuwe v Isaac Patrick Matovu and Another (HCCS No. 177 of 2003)
  • Uganda Commercial Bank v Kigozi [2002] 1 EA 305
  • Charles Acire v Myaana Engola (HCCS No. 143 of 1993)
  • Kibimba Rice Ltd v Umar Salim (SCCA No. 17 of 1992)
  • Robert Cuossens v Attorney General (SCCA No. 8 of 1999)
  • Ongom v Attorney General (1979) HCB 267
  • Francis Butagira v Deborah Mukasa (Civil Appeal No. 6 of 1989)
  • Uganda Development Bank v Muganga Construction Company (1981) HCB 35
  • Sutherland vs. Canada (Attorney General) 2008 BCCA 27

Full judgment

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Mazima Community Development Initiative Limited v Balikuddembe & Another (Miscellaneous Cause 27 of 2022) [2024] UGHC 216 (18 April 2024)
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.