Rutungu Properties Limited v Linda Carington and Another (Civil Appeal 61 of 2010)
Observed later treatment
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Holding
The Court of Appeal held that a caveat operates like a statutory injunction giving only temporary protection, and a caveator who has lodged a caveat must bring an ordinary action timeously to determine its interest. The respondents had lodged a caveat but failed to institute any action for over fifteen months and had instead repudiated the sale agreement and demanded a refund, showing their interest had shifted from the land to their money. The trial Judge erred in failing to apply the correct principles and in holding the caveat should be maintained. The appeal was allowed and the Commissioner for Land Registration ordered to cancel the caveat.
Outcome
Appeal allowed; caveat ordered to be cancelled
Facts
On 19 February 2007 the appellant purchased land at Sekiunga comprised in Mailo Register Block 395 Plot 1391 from Rwost Contractors Ltd, paying UGX 100,000,000, and was registered as proprietor on 9 May 2008. On 10 March 2008 the respondents also purchased the same land from Rwost Contractors Ltd, paid a deposit of UGX 45,000,000, and lodged a caveat to protect their interest, which was registered on 20 November 2008. The appellant applied to the High Court for the caveat to be removed. The respondents alleged the appellant had acquired the land by fraud and claimed a caveatable interest. The respondents had not instituted any suit to determine their interest, and had instead repudiated their sale agreement and demanded a refund of their deposit, citing failure to receive the certificate of title.
Issues
- Whether the trial Judge applied the correct principles in determining whether the respondents' caveat ought to be removed from the Register Book.
- Whether the trial Judge properly evaluated the evidence on record in exercising his discretion to maintain the caveat.
- Whether the trial Judge erred in holding that there were triable issues warranting an ordinary suit rather than removal of the caveat.
Orders
- Appeal allowed with costs here and below.
- The Commissioner for Land Registration/Registrar of Titles to immediately cancel the respondents' caveat registered under Instrument No. KLA 397363.
Rules and key headnotes
Legislation cited (3)
- Registration of Titles Act Cap. 230 s.139(1)
- Registration of Titles Act Cap. 230 s.140
- Judicature (Court of Appeal Rules) Direction S.I 13-10 r.30(1)
Cases cited (5)
- Fr. Narcensio Bemugisa and Others v Eric Tibebaaga [2004] UGSC 18
- Boynes v Gather (1969) EA 385
- Lim Ah Moi v Ams Periasamy Suppiah Pillay Civil Appeal No. A-2-641-1995
- Eng Mee Young and Others v Letchumanan s/o Velayutham [1980] AC 331
- Teo Ai Choo v Leong Sze Hian [1982] 2 MLJ 12
Cases citing this judgment (2)
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.