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Mugume and Another v Abubakari [2024] UGHC 1224

High Court · 2024 Application Granted AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Application to vacate caveat lodged on estate land under Section 14(1) of the Registration of Titles Act
Decision
Caveat vacated; Respondent ordered to pay damages of UGX 3,000,000 and costs of the application

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

Held that for a caveat to be valid under Section 139(1) of the Registration of Titles Act, the caveator must have a caveatable interest, legal or equitable, in the land. Where a prospective buyer lodges a caveat after the termination of a commitment deed and following refund of the commitment fee, the caveator has no sufficient grounds to maintain the caveat. The court ordered vacation of the caveat and awarded damages for maintaining it without reasonable cause.

Outcome

Caveat vacated; Respondent ordered to pay damages of UGX 3,000,000 and costs of the application

Facts

The Applicants are administrators of the estate of the late Mugoya Kennedy and registered proprietors of land in Kibuga Block 9 Plots 301 and 318. The Respondent, intending to purchase Plot 301, entered a commitment deed with the second Applicant on 13th November 2023, depositing UGX 10,000,000 as a commitment fee with an agreement to pay the full purchase price within 14 days or the agreement would terminate. The Respondent lodged a caveat on Plot 301 on 20th December 2023 but failed to make full payment within the stipulated period. On 19th January 2024, the Applicants refunded the commitment fee of UGX 10,000,000 to the Respondent, but the caveat remained on the property. The Applicants brought this application to have the caveat vacated. The Respondent did not file any affidavit in reply or oppose the application.

Issues

  1. Whether the Respondent has any sufficient grounds to maintain the caveat on the suit land.
  2. Whether there are any remedies available to the Applicants.

Orders

  • The Commissioner Land Registration is directed to vacate the Respondent's caveat lodged on 20th December 2023 on land comprised in Kibuga Block 9 Plot 301, Kagugube, Kampala District.
  • The Respondent shall pay damages in the sum of UGX 3,000,000 for maintaining a caveat on the above land without reasonable cause.
  • The Respondent shall pay the costs of the application.

Rules and key headnotes

Caveats — Validity — Requirement of Caveatable Interest
For a caveat to be valid under Section 139(1) of the Registration of Titles Act Cap. 230, the caveator must have a caveatable interest, legal or equitable, in the land.
Caveats — Removal — Grounds for Vacation
The court may order removal of a caveat where the caveator fails to show sufficient cause why it should not be removed, including where the caveator has no protectable legal or equitable interest in the land.
Caveats — Prospective Purchaser — Caveat After Termination of Agreement
A prospective buyer who lodges a caveat after the termination of a commitment deed and following refund of the commitment fee has no sufficient grounds to maintain the caveat, as the agreement conferring any interest has terminated.
Caveats — Damages for Lodging Without Reasonable Cause
Under Section 142 of the Registration of Titles Act, any person who lodges or maintains a caveat without reasonable cause is liable to pay damages to any person who sustains loss as a result of the caveat.
Administrators — Powers — Right to Sue for Removal of Caveat
Letters of administration vest in the administrators all rights and interest belonging to the intestate, including the right to sue for removal of a caveat lodged on estate property.
Uncontested Applications — Effect of Failure to File Affidavit in Reply
Where no affidavit in reply is filed, the contents of the affidavit in support are taken to be unchallenged and truthful, subject to whether they pass the test of evidence, cogency and probative value; however, this does not relieve the applicant of the burden of proving the case on the balance of probabilities.

Legislation cited (10)

Cases cited (9)

  • Samwiri Massa v Rose Achen [1978] HCB 297
  • Makerere University v St. Mark Education Institute Ltd and Others (1994) KALR 26
  • Tororo District Administration v Andalalapo Ltd (1997) IV KALR 126
  • Ronald Kanshabe v Nyiro Joseph T/a Task Associate and Others (Misc. Application No. 170 of 2022)
  • Khalid Walusimbi v Jamil Kaaya [1993] 1 KALR 20
  • Sentogo Produce v Coffee Farmers Ltd and Another (HCMC No. 690 of 1999)
  • Hunter Investments Ltd v Simon Lwanyaga and Another (HCMC No. 34 of 2012)
  • Rutungo Properties Ltd v Linda Harriet (Civil Appeal No. 61 of 2010)
  • Ali Sidi Ngarukiye v Muyonga Andrew Mubiru (Misc. Application No. 0031 of 2018)

Full judgment

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

Mugume and Another v Abubakari 2024 UGHC 1224 (20 January 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.