Nalweyiso v Kalule and 3 Others (Civil Suit No. 419 of 2016)
Observed later treatment
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Holding
The High Court held that all four defendants committed fraud in dealing with matrimonial property in contravention of an earlier court order declaring the sale null and void. The 1st defendant fraudulently mortgaged property he knew was matrimonial land subject to a court order. The 2nd defendant obtained the property through a mortgage transaction made in disregard of the court order and the plaintiff's unregistered interest. The 3rd defendant was not a bona fide purchaser as he failed to make reasonable inquiries despite the plaintiff's occupation. The 4th defendant, the plaintiff's husband, betrayed his family by selling the matrimonial home without spousal consent in violation of section 39 of the Land Act. All transactions were declared invalid and the plaintiff awarded compensation and damages.
Outcome
All transactions relating to the suit land declared invalid; plaintiff awarded compensation and general damages; title to be transferred to plaintiff's name
Facts
The plaintiff and her husband, the 4th defendant, lived on matrimonial land at Kajjansi for 11 years. The 4th defendant sold the land to the 1st defendant without the plaintiff's consent. In 2008, the Chief Magistrate's Court declared the sale null and void and ordered the 1st defendant to stop trespassing. Despite this order, the 1st defendant mortgaged the land to the 2nd defendant in 2013. When the 1st defendant defaulted, the 2nd defendant obtained a court order and sold the property. The land was subsequently transferred to the 3rd defendant in 2016. The plaintiff and her children, who had built rental units on the land, were evicted. The 4th defendant had the title transferred into his name in 2014 before selling to the 3rd defendant, all without the plaintiff's knowledge or consent and in violation of the 2008 court order.
Issues
- Whether Haji Moses Kalule, the 1st defendant, was fraudulent in purchasing and mortgaging the suit property.
- Whether Mr. Abaasi Kabogo, the 2nd defendant, was fraudulent in granting a mortgage over the suit property.
- Whether Mr. Kasule Lukenge Ishak, the 3rd defendant as the registered proprietor, committed fraud.
- Whether the actions of Ahmed Mukasa, the 4th defendant, committed fraud.
Orders
- A declaration issues that all transactions made in contravention of the orders made in Civil Suit No. 732 of 2008 relating to the land now comprised in Busiro Block 383 plot 5356, which was the subject of that suit, were invalid.
- An award of UGX 150,000,000/= is granted as compensation for the destroyed rental units on the suit property which shall be payable by the 3rd and 4th defendants.
- General damages UGX 100,000,000/= awarded to the plaintiff 30% of which shall be paid by the 1st defendant; 50% by the 4th defendant; and the balance equally between the 2nd and 3rd defendants.
- A permanent injunction issues against the defendants from further trespass onto the suit property.
- Interest payable in respect to compensation and general damages at a rate of 15% per annum from date of delivery of this judgment until payment is made in full.
- Costs of the suit awarded to the plaintiff.
- Cancellation of the certificate of title for the land comprised in Kyadondo Block 383 plot No. 5356 at Kitende, Kayoto Wakiso district from the names of the 3rd defendant and entry of the same into the names of the plaintiff.
Rules and key headnotes
Legislation cited (6)
Cases cited (24)
- George William Kakoma v Attorney General [2010] HCB 1
- Sebutiba v Cooperative Bank Ltd [1982] HCB 130
- Oketha v Attorney General (Civil Suit No. 0069 of 2004)
- Tito Lukuago v Samwiri Mudde Kizza & Another (Civil Appeal No. 13 of 1996)
- Kampala Bottlers Ltd. Vs Damanico (U) Ltd (supra)
- Kampala Bottlers Ltd v Damanico (U) Ltd (SCCA No. 2 of 1992)
- Fam International Ltd & Another v Mohamed Hamid El-Fatih (Civil Appeal No. 16 of 1993)
- F.I. K Zaabue v Orient Bank and 5 Others (SCCA No. 4 of 2002)
- Uganda Super League v Attorney General (Constitutional Application No. 13 of 2013)
- Wildlife Lodges Ltd v County Council of Narok & Another [2005] EA 344
- Smith v Auto Electric Services Ltd (1951) 24 KLR 22
- Asuman B Kivala v Chief Registrar of Titles (HC MA No. 106 of 2004)
- Haji Asuman Mutekanga v Equator Growers (U) Ltd (SCCA No. 07 of 1995)
- Assets Company Ltd v Mere Roihi & Others [1905] AC 176
- Omar Salim Mukasa v Haji Muhammed & Another (CACA No. 114 of 2003)
- Danna Seffaka Nalima v Rebecca Musoke (SCCA No. 12 of 1985)
- Uganda Posts and Telecommunications v Abraham Kifumba (SCCA No. 36 of 1995)
- Vivo Energy Uganda Ltd v Lydia Kisitu (CACA No. 193 of 2013)
- Attorney General v Kiruhura District Local Government & 2 Others (HCMA No. 35 of 2012)
- Fam International Ltd and Ahmad Farah v Mohammed El Fith [1994] KARL 307
- Bishoryates Motor Finance v Transport Brakes Ltd [1949] 1 KB 332
- Halling Manzoor v Servan Singh Baram (SCCA No. 9 of 2001)
- Uganda Commercial Bank v Kigozi (2002) 1 EA 305
- Makula International v His Eminence Cardinal Nsubuga & Another (CA No. 4 of 1981)
Cases citing this judgment (3)
How later Ugandan judgments in the Wakilii corpus have cited this case. Treatment labels come from Sequitur — Uganda’s citator — each backed by a verbatim span from the citing judgment, and are not an assertion that this case is, or is not, good law.
Full judgment
The original judgment as reported. Read the original PDF before relying on any passage.