Okello v Obel (Civil Suit No. 157 of 2017)
Observed later treatment
No later-treatment classification is recorded for this judgment.
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Holding
The court held that a suit for breach of contract and damages arising from the unlawful sale of land was not time barred under the Limitation Act. The cause of action arose on the date of the alleged unlawful sale (9 June 2015), and the suit filed on 1 March 2017 was well within the six-year limitation period prescribed by section 3(1) of the Limitation Act for actions founded on contract.
Outcome
Preliminary objection dismissed; matter to proceed to hearing on the merits
Facts
The plaintiff advanced a loan of UGX 16,850,000 to the defendant on 18 March 2001 to enable the defendant to purchase land. The parties agreed that upon the defendant acquiring the certificate of title, the land would be divided into two plots, one for each party. The defendant obtained the certificate of title on 15 May 2002 but did not divide the land. On 9 June 2015, the defendant sold the entire property to a third party for UGX 360,000,000. The plaintiff filed suit on 1 March 2017 for breach of contract and damages arising from the sale. The defendant raised a preliminary objection that the suit was time barred under the Limitation Act.
Issues
- Whether Civil Suit No. 157 of 2017 is time barred and should therefore be struck out
Orders
- Preliminary objection dismissed.
- Suit to be set down for hearing.
Rules and key headnotes
Legislation cited (2)
Cases cited (1)
- Iga v Makerere University [1972] 1 EA 65
Full judgment
The original judgment as reported. Read the original PDF before relying on any passage.