Tumusiime v Karungi & Anor (MISCELLANEOUS CAUSE NO. 002 OF 2018)
Observed later treatment
No later-treatment classification is recorded for this judgment.
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Holding
Held that a wife who signs as guarantor to a mortgage over property impliedly consents to disposal of that property to satisfy the mortgage debt. Where a family derives sustenance from multiple properties, disposal of one property does not contravene Land Act provisions on family land. The caveat was ordered removed as the sale was made with the 1st Respondent's consent, evidenced by her guarantee.
Outcome
Caveat removed; property may be transferred to the purchaser
Facts
The Applicant, registered proprietor of Plot 17 Market Street, Kyenjojo Central, mortgaged the property with Centenary Bank. The 1st Respondent, his wife, signed as guarantor to the mortgage. When the mortgage terms were breached and an outstanding debt of UGX 90,000,000 remained, the Applicant sold the property to Mugenyi Julius on 23 June 2017 to clear the mortgage debt. On 5 July 2017, the 1st Respondent lodged a caveat on the property, claiming equitable interest as matrimonial or family property. The Court made an order of vacant possession on 22 August 2017, and the purchaser developed a commercial apartment on the land. The 1st Respondent challenged the sale in Civil Suit No. 19 of 2017 and filed Divorce Cause No. 001 of 2018, alleging the sale was made without her consent and that her signature on the mortgage was forged. The Applicant submitted that the family's matrimonial home was at Kyenjojo-Nyakabura and that the family derived sustenance from other properties including a commercial house at Kasina, a business at Mukeye, and developed kibanja at Nyakabara.
Issues
- Whether the property subject to the caveat constituted family land or matrimonial property requiring the wife's consent before disposal.
- Whether the 1st Respondent consented to the disposal of the property by signing as guarantor to the mortgage.
- Whether the caveat lodged by the 1st Respondent should be removed to enable transfer of the property to the purchaser.
Orders
- Application allowed.
- The Registrar of Titles (Fort Portal) is directed to remove the caveat lodged by the 1st Respondent on Freehold Register Volume HQT 526 Folio 2, Block (Road), Market Street, Plot 17 at Kyenjojo Central.
- Each party to bear their own costs.
Rules and key headnotes
Legislation cited (8)
- Civil Procedure Act s.98
- Civil Procedure Rules O.52 r.1
- Civil Procedure Rules O.52 r.3
- Land Act s.38A
- Land Act s.39(7)
- Evidence Act s.101
- Evidence Act s.102
- Constitution of the Republic of Uganda 1995 Art.31(b)
Cases cited (1)
- Makula International Ltd v His Eminence Cardinal Emmanuel Nsubuga and Another [1982] HCB 11
Full judgment
The original judgment as reported. Read the original PDF before relying on any passage.