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Uganda Judgment

HC: Land Division (Uganda)

Jobbing Field Properties Limited v Ssemanda (Civil Suit No. 041 of 2008) [2014] UGHCLD 272 (21 February 2014)

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01

Holding and result

The court found that both parties held valid registered interests: the Defendant as Mailo owner and the Plaintiff as leaseholder. The Plaintiff's leasehold title was properly acquired from Italian Asphalt & Haulage Ltd. with the requisite consent from the Mailo owner, and the lease was validly varied to extend its term. The Defendant purchased the Mailo interest subject to the Plaintiff's lease, and is bound by its terms. The Defendant's refusal to accept ground rent did not constitute breach by the Plaintiff, as the Plaintiff made reasonable efforts to pay. The Plaintiff remains in lawful occupation, and the Defendant is not entitled to re-enter or interfere with the Plaintiff's possession. The counterclaim was dismissed, and no general damages were awarded as the Plaintiff suffered no proven loss. Each party was ordered to bear its own costs.

Court disposition

Plaintiff's claim partially succeeds; counterclaim dismissed.

Orders

  • Plaintiff has a valid lease on Defendant's Mailo land comprised in Kyaddondo Block 265 Plot 339 at Bunnamwaya, Wakiso District.
  • Defendant shall not interfere with Plaintiff's occupancy or do any act that offends the Lease Agreement.
  • Plaintiff shall pay Defendant all outstanding rent up to the date of judgment and for the rest of the lease period in accordance with the Lease Agreement.
  • Each party shall meet their own costs of the suit.
  • Counterclaim dismissed without costs.

02

Material facts

Parties

Jobbingfield Properties Ltd.

Plaintiff Counsel: Mr. Bautu Robert

Joseph Ssemanda

Defendant Counsel: Mr. Lutaakome

Amounts and remedies

  • Mailo Land Purchase Price: UGX 20,000,000
  • Plaintiff's Ground Rent Tendered: UGX 1,000,000

03

Procedural history

  1. Posture

    Civil Suit / Judgment

04

Questions and positions

Legal issues

Party arguments

Applicant
The Plaintiff argued it is the registered leaseholder of the suit property, having acquired the leasehold title from Italian Asphalt & Haulage Ltd. with the consent of the Mailo owner, Princess Kasalina Nkinzi. The Plaintiff contended that the Defendant, as the subsequent Mailo owner, is bound by the terms of the lease and cannot lawfully re-enter or interfere with the Plaintiff's quiet possession. The Plaintiff further asserted that it attempted to pay ground rent, which the Defendant refused, and sought declarations, an injunction, and general damages for breach of lease.
Respondent
The Defendant argued that the Plaintiff's leasehold title was void due to non-payment of stamp duty and that the transfer was ineffective. He claimed the Plaintiff's occupation amounted to trespass and that the lease was abandoned by the Plaintiff's predecessor. The Defendant sought a declaration that the Plaintiff's title was void, re-entry onto the land, and general damages, asserting that the Plaintiff acquired the lease fraudulently and breached lease terms.

05

Court’s reasoning

  1. 01

    Section 59, Registration of Titles Act

    A certificate of title issued under the Registration of Titles Act is conclusive evidence of proprietorship and interests as registered.

  2. 02

    Registration of Titles Act; documentary evidence

    Consent to transfer and registration of leasehold interests are essential for validity of leasehold title.

06

Ratio, limits and disposition

Ratio decidendi

The court found that both parties held valid registered interests: the Defendant as Mailo owner and the Plaintiff as leaseholder. The Plaintiff's leasehold title was properly acquired from Italian Asphalt & Haulage Ltd. with the requisite consent from the Mailo owner, and the lease was validly varied to extend its term. The Defendant purchased the Mailo interest subject to the Plaintiff's lease, and is bound by its terms. The Defendant's refusal to accept ground rent did not constitute breach by the Plaintiff, as the Plaintiff made reasonable efforts to pay. The Plaintiff remains in lawful occupation, and the Defendant is not entitled to re-enter or interfere with the Plaintiff's possession. The counterclaim was dismissed, and no general damages were awarded as the Plaintiff suffered no proven loss. Each party was ordered to bear its own costs.

Obiter and limits

  • Scheduling conferences should be taken seriously to ensure proper admission of uncontested documents and fair trial.
  • Pre-filed witness statements are not appropriate in land matters where oral testimony and witness demeanour are critical.
  • Section 59 of the Registration of Titles Act protects both Mailo and leasehold registered interests equally.

Court disposition

Plaintiff's claim partially succeeds; counterclaim dismissed.

  • Plaintiff has a valid lease on Defendant's Mailo land comprised in Kyaddondo Block 265 Plot 339 at Bunnamwaya, Wakiso District.
  • Defendant shall not interfere with Plaintiff's occupancy or do any act that offends the Lease Agreement.
  • Plaintiff shall pay Defendant all outstanding rent up to the date of judgment and for the rest of the lease period in accordance with the Lease Agreement.
  • Each party shall meet their own costs of the suit.
  • Counterclaim dismissed without costs.

Source and reliance status

HC: Land Division (Uganda)

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Judgment text

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Source document

HC: Land Division (Uganda)

Judgment

[2014] UGHCLD 272

Cravit Sile<br>Cravit Sile THE REPUBLIC OF UGANDA IN THE HIGH COURT OF UGANDA AT KAMPALA LAND DIVISION

Civil Suit No. 41 OF 2008

JOBBINGFIELD PROPERTIES LTD.:: VERSUS

JOSEPH SSSEMANDA (!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! mmm: DEFENDANT

Before: Hon. Mr. Justice J. W. Kwesiga

JUDGMENT

The Plaintiff is a Private Company with Limited Liability, a holder of a Leaseholder Title over the suit property registered as Leasehold Register Volume 769 Folio 5 Plot 339 Block 265 at Bunamwaya, Wakiso District. The Lease is for 49 years that was to expire on 20<sup>th</sup> May, 2019 plus 24 years granted in a Lease variation deed dated $2^{nd}$ August, 2004.

The Defendant is a Ugandan adult and is the Registered proprietor of Mailo Register, Kyadondo Block 265 Plot 339 at Bunamwaya, Wakiso District with effect from 29<sup>th</sup> April, 2004 when he purchased the Mailo interest from the previous registered proprietor KASALINA NKINZI, deceased and he became the registered proprietor on 15<sup>th</sup> July, 2005.

The Plaintiff sued the Defendant alleging that since the Defendant acquired the Mailo land interest in the suit property has refused to recognise the Plaintiff as the legal lessee of the suit land, refused to receive the Plaintiff's ground rent payment, threatened to re-enter upon the suit property and threatened to evict

$16,60$ <br> $2,22,51,17$ <br> $2,22,51,17$ <br> $2,22,51,17$

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the Plaintiff from the suit property. The Plaintiff seeks the following orders of this Court:-

- (a) A declaration that the Plaintiff is the registered proprietor of LRV 769 Folio 5 Plot 339 Block 265 at Bunamwaya. - (b) A declaration that the Defendant is not entitled to re-enter upon the suit land or termination ofthe Plaintiffs lease. - /o (c)An injunction be granted to restrain the Defendant or his agents from interfering with the Plaintiffs quiet possession ofthe suit land. - (cl) General damages for breach ofthe lease.

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The Defendant in reply to the Plaintiffs pleadings avers that on 29th April. 2004 he purchased the Mailo land interests from KASALINA NICINZI and he produced the Sale Agreement that was admitted as Defence exhibit DE........in proof of the purchase. He admits in the Written Statement of Defence the following:-

(a)That M/s Asphalt and Haulage Limited transferred to the Plaintiff the Leasehold Title of the suit land but contends it was illegal due to no'nepayment ofstamp duty and that there was no effective transfer.

3 (b)That the Plaintiffs occupancy ofthe suit land amounts to trespass.

The Defendant in counterclaim seeks Declaratory Judgment against the Plaintiff and gives the following orders:-

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3 pi) Thai the PlainlilT:: Leasehold Tide is void lor non-payment of cent.

- (b) That M/s Italian Asphalt and Haulage Limited abandoned'the Lease and the Defendant is entitled to re-enter. - (c)The Plaintiffs acquired the Lease in fraudulent manner for non-payment of Stamp duty. - (d)That the Leasee, by abandoning the Lease land to the Plaintiff was illegal and amounted to surrendering the Lease which entities the Defendant to reenter the suit land.

The Defendant seeks orders:-

(a) That this suit, be dismissed with costs.

(b)That the Plaintiffs Title be declared void for non-payment of Stamp duty.

(c)That the Plaintiffs predecessor in Title abandoned the Lease.

(d)That Re-entry be allowed. <sup>I</sup>

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(e) General damages with interests thereon. <sup>I</sup>

The scheduling conference was held on 16lh November, 2011 before Hon. Justice R. A. Opio, to my disappointment the parties avoided agreeing on facts that are clear from the pleadings as none-contentions. The only Agreed facts are that "the Plaintiff is in actual possession of the suit property and that the Plaintiff in pursuance of the I,ease terms and obligations advanced a sum of Shs.l,000,000/- by Cheque on or about 27,h February, 2007 as ground rent. However the Defendant rejected it."

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In my view these being the parties' agreed facts what they represent stands as proved and no contradiction by any testimony will be preferred to the prejudice ofthese agreed facts.

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There is a list of Agreed Plaintiffs documents (1) to (8). On the other hand there is Defendant's documents (Not agreed documents) listed as (1) to (5). Not all these documents constitute part of the evidence in these proceedings unless they are recorded as admitted or they were tendered as exhibits in course of the testimony. This is a challenge that is caused by what I observe as casual, scheduling conference. Parties appear not to take seriously this part., of the proceedings.

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In my view scheduling conferences deserve to be taken as a serious step in the proceedings where documents that are not contentious should be received as tendered exhibits and be given exhibit numbers and ought be endorsed by the trial Judge to prevent a possibility of documents entering.a trial file by methods prejudicial to fair trial.

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This appears to have been typical of casual conferencing by the advocates, however, I will as much as possible consider, for evidential value, the documents filed with the Witness Statements (evidence in chief) and as explained in Court. At this stage, <sup>I</sup> should comment on the practice of filing Witness Written Statement in advance of Court hearing. I have found this procedure not appropriate in land matters where detailed oral testimony is preferable where among other things the trial Court would benefit from the witness's demeanour and consistence which are cut short by advocate-tailored statements. The pre-filed statements become more of the advocate'<sup>s</sup> perceptions ofthe case than real statements made from knowledge of witnesses. I rejected witness statements and I rest absolved because JUMA

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as 3 Mubiru's oral testimony materially depalled from what had been intended as his witness statement that I was supposed to take as his evidence in chief. The position ofthis case is that save for the evidence of P.w.l which was record by my predecessor trial Judge I will consider the evidence of the witnesses testified before me. No filed statements will be considered.

Before examining the evidence as a whole the following were the issues agreed by the parties for this Court to answer.

- 1. Whether the Plaintiff is the legal proprietor of the suit land comprised in Leasehold Register Volume 769 Folio 5 Plot 339 Kyadondo Block 265. - 2. Whether the Defendant is a legal registered proprietor of the Mailo land, Kyadondo block 265 Plot 339 at Bunamwaya. - r 3. Whether the Defendant is bound by the terms ofthe Plaintiffs lease. - I 4. Whether the Plaintiff or Defendant is in breach ofthe Lease Agreement. - 5. What are the remedies available to the parties?

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I In seeking answers to the above issues <sup>I</sup> prefer to start with the second issue.

1. Whether the Defendant is a legal registered proprietor of the Mailo Land Kyadondo Block 265 Plot 339 at Bunamwaya.

The Defendant testified that he purchased the Mailo land from Princess KASALINA NKINZI on 12th April, 2005. The initial handwritten Memorandum of Sale was admitted as Defence exhibit D.4 and the\_.&,ial

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Agreement drawn by M/s Lutaakome & Co. Advocates dated 26lh May, 2004 was admitted as D.

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The Certificate of Title, Mailo Register Kyadondo Block 265 Plot 339 was admitted as Defence Exhibit D.3.

The above documental evidence was relied on by the Defendant to prove the Mailo ownership. The Documents were admitted without objection from the Plaintiff. The Plaintiff did not adduce any evidence that challenges and renders the Defendant's Mailo Land Title impeachable. From the Special Certificate of Title it is clear that on 24th September 1970 KASALINA NKINZI became a registered proprietor under Instrument Number KLA 58434 and on 15th July 2005 Joseph Ssemanda (the Defendant) became the Registered proprietor under Instrument Number KLA 277164.

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Ssemanda in his defence produced a Memorandum of Purchase exhibit D.l which shows that he purchased Mailo Register, Kyadondo Block 265 Plot 339 at Bunamwaya measuring approximately 10.50 acres at Shs.20,000,000/=. This memorandum was followed by a transfer deed dated 1st September, 2004, Exhibit D.2. The Certificate of Title in the Defendant's name, Exhibit D.3 shows that he became the Registered proprietor.

Pwl Lwigi Gianinazzi told Court that before the purchase ofthe lease interests, he knew that the Mailo owner was KASAL1NA. He stated his position as follows

*"... I am not sure whether the Defendant is the owner ofthe Mailo interest-. The Defendant was never introduced to us as a Mailo owner. The Prmzes-d*

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'6 *Kasalina never introduced Mr. Ssemanda to -is as new Mailo owner. That is all. "*

Throughout the trial I have found no better evidence from the Plaintiff challenging the Title of the Defendant. It was incumbent or. the Plaintiff who challenged the authority of his Landlord to prove who his landlord since there is nobody else claiming to be the proprietor ofthe Mailo land in question.

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Section 59 of the Registration of Titles Act provides *"... Every Certificate of Title issued under this Act shall be received in all Courts as evidence of the particulars set forth in the Certificate and the entry of the Certificate in the Register Book, and shall be conclusive evidence that the person named in the Certificate as theproprietor..."* .

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1 acres. My finding on the first issue in view of the evidence examined above and in light of the provision of Section 59 of the Registration of Titles Act is that Joseph Ssemanda, the Defendant is the registered proprietor of Mailo Register, Kyadondo Block 263 Plot 339 at Bunamwaya measuring approximately 10.50

> I will now consider "Whet her the Plaintiff is the legal registered proprietor of the suit land comprised in LRV 769 Folio 5 Plot 339 Kyadondo Block 265 and ifso whether the Defendant is bound by the terms of the Plaintiffs lease."

Pwl Luigi told Court that he was a Director of the Plaintiff and that in 2004 he purchased the land from an Italian lady called LUCIANA PAULINE who was Administrator of ITALIAN ASPHALT. That he met KASALINA jyitir^ LUMONYA ADVOCATE he produced a document PJ\_ as^-evidence of

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purchase. The lease between KASALINA and ITALIAN ASPHALT dated 29th July 1970 admitted as P.2.

Belbre the purchase, the Mailo land Title was in the names of KASALINA and KASALINA had signed a consent to transfer.

Ssemanda (Defendant) became a new Maiio owner but refused to recognise the Lease, refused to receive payments based on the lease terms.

The Defendant (Dwl) told Court that when he purchased the Mailo interest there was an old house and KASALINA told him it belonged to ITALIANS who had a lease on the land. He did not occupy the land after the purchase. He was approached by LUMONYA who was the Plaintiffs Advocate and later by one MUBIRU (Pw2) and a Whiteman Pwl, who wanted to pay rent and he refused it. A meeting was held in offices of the Defendant and Plaintiffs Cheque for rent was rejected by Defendant.

He told Court he found out the Plaintiff had a lease that he got from his predecessor in Title of Mailo Land and he prayed that the lease be cancelled.

Under cross-examination he testified that he carried out a search before the purchase and he found that:-

3 (a) The land belonged to Princess Kasalina Nkinzi.

J (b)There was <sup>a</sup> Lease ofITALIANS M/S ASHALT & HAULAGE LTD..

(c)He bought the land well aware ofthe encumbrances in form of a Iea§&> ,

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(d) Luigi had started renovating the house on the land and had fenced the land.

(e) The lease had not expired.

Mr. Bautu Robert for the Plaintiff submitted that the Plaintiff purchased the lease from ITALIAN ASPHALT AND HAULAGE LTD. See the Leasehold Certificate of Title P.3. This exhibit shows that LRV Block 265 Plot 339 was transferred from ITALIAN ASPHALT AND HAULAGE LTD. to JOBBINGFIELD PROPERTIES LTD. on 20<sup>th</sup> July 2004 under Instrument No. 344905 of that day. On 2<sup>nd</sup> August 2004 A VARIATION OF LEASE was executed between KASALINA NKINZI the then Mailo land owner and the Plaintiff. This document among other things granted the Lessee 24 years in addition to the original period that was to expire on 20<sup>th</sup> May, 2014. This variation was lodged for registration on $2^{nd}$ September, 2004 and was granted. I have had the opportunity to see and consider documents that surround sale and the transfer of the Lease to the Plaintiff and they include:-

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- (a) A Lease (P.2) between KASALINA and Italian Asphalt & Haulage Ltd. dated 29<sup>th</sup> July, 1970 for 49 years. - (b)Kasalina's consent to transfer the Lease from Italian Asphalt and Haulage Ltd. to Jobbingfield Properties Ltd. dated 7<sup>th</sup> May 2004. - (c) The transferred Leasehold Title will effect from 20<sup>th</sup> July 2004. - (d) The variation of Lease dated $2^{nd}$ August 2004.

The above series of documents support the Plaintiff's claim that it purchased the Leasehold interest. The Plaintiff's evidence is that it is in occupation and this was supported by the Defence evidence.

The Defence evidence materially corroborates the Plaintiffs case on this fact. Mr. Joseph Ssemanda told Court that by the lime he purchased the Mailo land tenure he saw a house that belonged v> the P'hriniiff. He added that. Kasaiina told him the property belonged to Italians. There was renovation and fencing that was taking place and that he has never taken possession of the suit property.

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My assessment of the above evidence is that the Plaintiff purchased the Leasehold interests whose Certificate of Title it holds and it has physical occupation ofthe property.

Mi\ Lutaakome submitted for the Defendant that when the Defendant purchased the Mailo, he had no knowledge that there was a transfer of lease to the Plaintiff company. This may have been true but lie told Court that he saw a house on. the land and the Mailo Seller told him that it belonged to ITALIANS. If he had been more diligent in his search he should have found that the ITALIANS' lease had not expired. The contention that there was no consent, to transfer because the Plaintiff did not call Mr. Lumonya who witnessed the consent to transfer is not sufficient to deny the Plaintiffits registered proprietorship. In the same .way that Section 59 of the Registration of Titles Act protects the Defendant's Certificate of Title. It also protects the Plaintiff registered interests in the Leasehold Title. It does not matter that Late Princess Kasalina sold to the Defendant the Mailo interest earlier than the Defendant became registered the Lease interest.

The Plaintiff succeed the previous registered proprietor who was registered in 1970 and by virtue ofthe variation of the lease the Plaintiff acquired .extra 24 years. The Defendant purchased the Mailo tenure subject to the Terms and Conditions ofthe Lease. Joseph Ssenianda became the registered proprietor of the Leasehold Title on 17"' July, 2004 while the Plaintiff became jhe-rcgistered

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proprietor of the Leasehold Title. It follows that the Defendant purchased the Mailo land when the place. Fitte was in place and the Defendant is bound by the terms of the Lease and the Deed of variation of the Lease. The Defendant shall not interfere with the Plaintiff's occupancy of the suit property or in any way to do any act that offends the provision of the Lease Agreement. Both parties gave evidence that the Defendant refused to receive the Cheque that had been paid for outstanding rent and I find that the Plaintiff did not default in payment of rent. It is ordered that the Plaintiff shall pay the Defendant all the outstanding rent up to the date of this Judgment.

I have found no evidence that justify grant of General damages because the Plaintiff has at all material times been in occupation of the suit property up to date and there is no proof of General damages.

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Each party shall meet his or her own costs because each party has been successful on the Declaration of each party's rights. I have found no merits in the counter claim. It is dismissed without orders to costs.

Dated at Kampala this 21<sup>st</sup> day of February, 2014.

J. W. Kwésiga JUDGE

21/2/2014

In the presence ? Now banto the set for the plants Mr Latarome for seperadant and pres The Defandant Not in Court. Mr. Magala-Cant dex `!!

THE REPUBLIC OF UGANDA IN THE HIGH COURT OF UGANDA AT KAMPALA (LAND DIVISION)

Seek for the R. P. Hammer's S. R. L. W.

CIVIL SUIT No:041 OF 2008

JOBBINGFIELD PROPERTIES LIMITED ::::::::::::::::::::::::::::::::::::

VERSUS

SSEMANDA JOSEPH ::::::::::::::::::::::::::::::::::::

DECREE

(Before Hon. Justice J. W Kwesiga)

This suit having come on the $21^{st}$ day of February, 2014 in the presence of counsel for the plaintiff and having heard the evidence from both parties and the submissions of counsel for both parties :-It is hereby DECREED :-

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- That the Plaintiff has a valid lease on the Defendant's Mailo land $\overline{a}$ comprised in Kyaddondo Block 265 Plot 339 at Bunnamwaya, Wakiso District. - That the Defendant shall not interfere with the plaintiff's occupancy $b)$ on the said land or in anyay to do any act that offends the provision of the Lease Agreement. - That the Plaintiff shall pay to the Defendant all the outstanding rent up to $c)$ the date of the judgement and for the rest of the lease period in accordance with the lease Agreement - That both parties shall meet their own costs of the suit. $d$ )

ISSUED at Kampala under my hand and Seal of the Court this ....................................

REGISTRAR

day of ...................................

DRAWN & FILED BY:-M/S. LUTAAKOME & CO. ADVOCATES, 1ST FLOOR, ESERIA BUILDING, PLOT 19-23, ENTEBBE ROAD, P. O. BOX 3101, KAMPALA

FEES PAI $RECE$

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Registration of Titles Act, Section 59

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