Turyamureeba v Ngobi and 2 Others (Civil Suit No. 457 of 2014)
Observed later treatment
No later-treatment classification is recorded for this judgment.
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Holding
The court held that the sale and transfer of the plaintiff's land under execution was unlawful and fraudulent. The 2nd defendant proceeded with execution despite a court order staying execution after the plaintiff deposited security for costs. The property advertised for sale (Plot 7879) differed from the suit property (Plot 787). No valid warrant of attachment was issued for the suit property. The 1st defendant failed to conduct due diligence and was not a bona fide purchaser. The 3rd defendant acted negligently in cancelling the plaintiff's name and registering the 1st defendant without verifying documentation. The court cancelled the 1st defendant's registration and reinstated the plaintiff's name on the title.
Outcome
Plaintiff's title reinstated; 1st defendant's registration cancelled; damages and costs awarded to plaintiff
Facts
In 2001, the plaintiff borrowed money from Anil Daman and pledged his land title (Lubaga Block 8, Plot 787) as security. Daman filed Civil Suit No. 747 of 2001 and obtained judgment for UGX 7,000,000/=. The plaintiff filed Civil Suit No. 398 of 2002 challenging Daman's withholding of his vehicle. In Miscellaneous Application No. 895 of 2004, the plaintiff obtained a stay of execution upon depositing UGX 3,500,000/= as security for costs. Despite the stay order and full payment of security, the 2nd defendant proceeded with execution. The 2nd defendant advertised Plot 7879 (not the suit property Plot 787) for sale and sold it to the 1st defendant on 13 June 2006 for UGX 16,000,000/=. The 2nd defendant applied for a special certificate of title claiming the plaintiff refused to surrender the original title. The 3rd defendant issued a special certificate and registered the 1st defendant as owner on 30 January 2007. In 2013, the plaintiff discovered the fraudulent transfer and filed this suit.
Issues
- Whether the sale and transfer of property comprised in Block 8 Plot 787 by the 2nd defendant to the 1st defendant under execution in Civil Suit No. 747 of 2001 was valid.
- Whether the 2nd defendant acted illegally and fraudulently in the sale and transfer of the suit property comprised in Rubaga Block 8, Plot 787.
- Whether the 1st defendant was privy/party to the illegalities and fraud in the process of the transfer of the suit property to him.
- Whether the 3rd defendant acted negligently in the process of cancellation of the plaintiff's name and registration of the 1st defendant's name on the title comprised in Rubaga Block 8, Plot 787.
Orders
- The registration of Emmanuel Ngobi on the certificate of title for land comprised in Lubaga Block 8, Plot No. 787 is cancelled and substitution thereof made by the Commissioner, Land Registration into the names of the plaintiff, Benon Turyamureeba.
- The defendants shall pay a sum of UGX 100,000,000/= as an award to the plaintiff in general damages, as follows: 50% is to be paid by the 2nd defendant; the balance of UGX 50,000,000/= is to be paid jointly by the 1st and the 3rd defendants.
- Interest at the rate of 15% per annum is payable from the date of delivering this judgment till payment is made in full.
- Costs of the suit to be met by the 1st and 2nd defendants.
Rules and key headnotes
Legislation cited (7)
Cases cited (10)
- Semwungu v Yakobo (Supreme Court Criminal Appeal No. 35 of 2006)
- Frederick J.K Zaabwe v Orient Bank & 5 Others (Supreme Court Civil Appeal No. 4 of 2006)
- Kampala Bottlers Ltd and Ahmad Farah v Mohamed El Dib [1994] KALR 307
- Kampala Bottlers v Damanico (U) Ltd (Supreme Court Civil Appeal No. 27 of 2012)
- Haji Amin Serunjogi v Green Wild Bank and Another (High Court Commercial Division Miscellaneous Application No. 469 of 2012)
- Jannes Kolbotei P.T.E v Charles Oundo and Another (High Court Civil Suit No. 777 of 1994)
- Philemon Wandera & 2 Others v Yeselo Mugenyi & Another (Supreme Court Civil Appeal No. 11 of 2018)
- Kampala District Land Board v Venansio Babweyaka (Court of Appeal Civil Appeal No. 2 of 2007)
- Rev. Kajufunba Frederick v Waako Loston (Revision Cause No. 006 of 2011)
- Kanji Devji Damji Mfobhai and Co. (1934) 1 EACA 47
Full judgment
The original judgment as reported. Read the original PDF before relying on any passage.