Wakilii

Nateete Twale Muslim Community Ltd v Musoke Haruna and Others (Miscellaneous Application 1095 of 2023)

High Court · [2023] UGHCLD 500 · 2023 Application Granted AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Interlocutory application arising from Civil Suit No. 727 of 2017 seeking creation of escrow account for rent collected from disputed land
Decision
Application granted; escrow account to be established for rent proceeds from disputed land pending determination of ownership in main suit

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

The High Court granted the application for creation of an escrow account for proceeds from disputed land. The court held that where ownership is contested and rent is being collected, it is fair and just to require deposit of 100% of proceeds into an escrow account jointly managed by both parties' lawyers until final determination of ownership in the main suit. The preliminary objection on time was overruled on grounds that procedural mistakes of counsel should not prejudice parties where no injustice results.

Outcome

Application granted; escrow account to be established for rent proceeds from disputed land pending determination of ownership in main suit

Facts

The applicant claimed to be the registered proprietor of land comprised in Plot 12 Nateete FRV KCCA folio 16, Rubaga Division, Kampala District, having been registered on 21 March 2017. The respondents claimed that Uganda Muslim Supreme Council (UMSC) was the registered proprietor and that they were tenants of UMSC paying rent lawfully. The respondents had been collecting rent from the premises. The applicant's special certificate of title was cancelled and under rectification. Civil Suit No. 727 of 2017 was pending to determine ownership. The applicant sought an order requiring respondents to deposit all monies collected from the disputed property into an escrow account until determination of the main suit. The respondents opposed the application, arguing that the applicant had no right or ownership to warrant such an order.

Issues

  1. Whether the circumstances warrant the creation of an escrow account
  2. Whether the application was filed out of time contrary to Order 12 rule 3(1) of the Civil Procedure Rules

Orders

  • Application granted.
  • 100% of proceeds from suit land comprised in plot 12 Nateete FRV KCCA Folio 16 to be deposited in escrow account jointly opened and managed by parties' respective lawyers until final determination of Civil Suit No. 727 of 2017.
  • Escrow account to be jointly opened within two weeks from grant of orders.
  • Respective lawyers in consultation with clients to determine percentage reserved for maintenance of premises.
  • Costs of application in the main cause.

Rules and key headnotes

Civil Procedure — Interlocutory Applications — Time Limits — Application of Order 12 Rule 3(1) — Mistakes of Counsel
Where a main suit has not progressed to completion of alternative dispute resolution or scheduling conference, the timeline under Order 12 rule 3(1) of the Civil Procedure Rules requiring interlocutory applications to be filed within specified days has not begun to run, and an application filed before that cutoff date cannot be dismissed as out of time.
Civil Procedure — Procedural Irregularities — Mistakes of Counsel — Effect on Parties
Parties should not be visited with punishment arising from the mistake, inadvertence or negligence of counsel when the mistake relates to procedural matters, and the court will accommodate the parties' interests without allowing procedural irregularities to preclude determination of a case on its merits, provided the allegation of inadvertence is true and genuine and no injustice results.
Civil Procedure — Escrow Accounts — Grounds for Creation — Disputed Ownership and Collection of Rent
Where ownership of land is disputed and rent is being collected from the land by one party, it is fair and just in exercise of the court's inherent powers under Section 98 of the Civil Procedure Act and Section 33 of the Judicature Act to order that proceeds be deposited into an escrow account jointly managed by both parties' lawyers until the issue of ownership is determined.

Legislation cited (6)

Cases cited (2)

  • Edirisa Kanonya and Another v Asuman Nsubuga and Others (Miscellaneous Application No. 373 of 2022)
  • Banco Arabe Espanol v Bank of Uganda (Civil Appeal No. 8 of 1998)

Full judgment

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

Nateete_Twale_Muslim_Community_Ltd_v_Musoke_Haruna_and_Others_(Miscellaneous_Application_1095_of_2023)_[2023]_UGHCLD_500_(29_September_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.