Uni Group Limited v Uganda Broadcasting Corporation and Another (Civil Suit 330 of 2012)
Observed later treatment
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Holding
Held that a successor in title to a lessor is bound by existing lease obligations and cannot demand ground rent already paid to the predecessor. The plaintiff's leasehold certificate of title, issued by Uganda Land Commission in 2005 for 49 years, remained valid and binding on Uganda Broadcasting Corporation (UBC) when it acquired the reversionary interest in 2007. UBC's demand for UGX 1.8 billion in unpaid ground rent had no legal basis where the plaintiff had paid annual ground rent to the original lessor under the lease agreement.
Outcome
Judgment entered for the plaintiff with declaratory relief and permanent injunction granted; claim for damages dismissed
Facts
On 7 January 2005, Unigroup Limited became the registered proprietor of land comprised in Leasehold Register Volume 3323 Folio 1, Plot 8 Water Lane, Kampala, for a period of 49 years commencing 15 October 2004. The leasehold was carved out of Plot M35, Naguru, belonging to Uganda Land Commission (ULC), which was the lessor. Unigroup took occupation by installing and operating telecommunications masts on the land and paid annual ground rent of UGX 1,000,000 to ULC under the lease agreement. On 6 February 2007, Uganda Broadcasting Corporation (UBC) was registered as successor in title to ULC on the reversionary interest (Freehold Register Volume 211 Folio 11, Plot M35 Naguru). On 30 June 2012, UBC wrote to Unigroup demanding UGX 1,830,122,372 as unpaid ground rent for the period January 1994 to June 2012, plus UGX 4,722,950 per month, and threatened to switch off the masts and confiscate property. Unigroup brought this suit seeking declarations that the demand had no legal basis and that it was entitled to quiet possession. The 2nd Defendant (Registrar of Titles) entered a consent judgment. The matter proceeded ex parte against the 1st Defendant on 17 January 2025.
Issues
- Whether the Defendant has any right to demand from the Plaintiff the payment of UGX 1,830,122,372 and a further UGX 4,722,950 per month as unpaid ground rent.
- Whether the 1st Defendant is bound by the existing obligations of Uganda Land Commission over the suit land including the Plaintiff's interest in the Lease Agreement and Title Deeds relating to LRV 3323 Folio 1 Plot 8 Water Lane.
- Whether the Plaintiff is entitled to the relief sought.
Orders
- A declaration that the Defendant's claim against the Plaintiff for UGX 1,830,122,372 and a further UGX 4,722,950 per month has no legal basis.
- A declaration that the Plaintiff, as the registered proprietor of land comprised in Leasehold Register Volume 3323 Folio 1, Plot 8 Water Lane, is entitled to enjoy quiet possession of the suit land without any disturbance or interference whatsoever from the 1st Defendant.
- An order of rectification of records in the registry and on the duplicate certificate of title in respect of Freehold Register Volume 211 Folio 11, Plot M35, to reflect the encumbrances that attach to the said freehold including the lease for the suit land.
- A permanent injunction restraining the 1st Defendant, her agents, successors in title, assignees or those claiming under the 1st Defendant from dealing with or interfering with the Plaintiff's use and enjoyment of the suit property in any way whatsoever.
Rules and key headnotes
Legislation cited (3)
Cases citing this judgment (1)
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
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