[2005] UGCommC 15

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;}\listid1352342148}}{\*\listoverridetable{\listoverride\listid1352342148\listoverridecount0\ls1}{\listoverride\listid165873469\listoverridecount0\ls2}}{\*\rsidtbl \rsid156155\rsid352203\rsid1259111\rsid1406200\rsid1452905\rsid1974580 \rsid2190417\rsid3220395\rsid3357737\rsid3434689\rsid3438240\rsid3556690\rsid4204904\rsid4594768\rsid4745737\rsid5134942\rsid5322956\rsid5660027\rsid5863625\rsid5898957\rsid6046545\rsid6245684\rsid6445406\rsid6704476\rsid7360223\rsid7501824\rsid8192511 \rsid8746476\rsid8788916\rsid9338492\rsid9397293\rsid9658681\rsid9778204\rsid9858678\rsid10119407\rsid10505478\rsid10562386\rsid11413835\rsid11546687\rsid11933508\rsid11950462\rsid12218938\rsid12259043\rsid12324983\rsid12402922\rsid12610749\rsid12661084 \rsid13585069\rsid13649792\rsid13776696\rsid15031385\rsid15276560\rsid15934243\rsid15950853\rsid16394311}{\*\generator Microsoft Word 11.0.6568;}{\info{\title IN THE HIGH COURT OF UGANDA AT KAMPALA}{\author Egonda-Ntende}{\operator Harry Mak} {\creatim\yr2006\mo2\dy7\hr10\min14}{\revtim\yr2006\mo2\dy7\hr10\min14}{\printim\yr2005\mo4\dy26\hr15\min27}{\version2}{\edmins0}{\nofpages3}{\nofwords3416}{\nofchars19473}{\*\company Courts of Judicature}{\nofcharsws22844}{\vern24579}} \widowctrl\ftnbj\aenddoc\noxlattoyen\expshrtn\noultrlspc\dntblnsbdb\nospaceforul\formshade\horzdoc\dgmargin\dghspace180\dgvspace180\dghorigin1800\dgvorigin1440\dghshow1\dgvshow1 \jexpand\viewkind1\viewscale100\pgbrdrhead\pgbrdrfoot\splytwnine\ftnlytwnine\htmautsp\nolnhtadjtbl\useltbaln\alntblind\lytcalctblwd\lyttblrtgr\lnbrkrule\nobrkwrptbl\snaptogridincell\allowfieldendsel\wrppunct \asianbrkrule\rsidroot13776696\newtblstyruls\nogrowautofit \fet0{\*\ftnsep \pard\plain \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0 \fs24\lang2057\langfe1033\cgrid\langnp2057\langfenp1033 {\insrsid11933508 \chftnsep \par }}{\*\ftnsepc \pard\plain \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0 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\li0\ri0\widctlpar\tqc\tx4320\tqr\tx8640\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0 {\insrsid9658681 \par }}{\*\pnseclvl1\pnucrm\pnstart1\pnindent720\pnhang {\pntxta .}}{\*\pnseclvl2\pnucltr\pnstart1\pnindent720\pnhang {\pntxta .}}{\*\pnseclvl3\pndec\pnstart1\pnindent720\pnhang {\pntxta .}}{\*\pnseclvl4\pnlcltr\pnstart1\pnindent720\pnhang {\pntxta )}} {\*\pnseclvl5\pndec\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}{\*\pnseclvl6\pnlcltr\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}{\*\pnseclvl7\pnlcrm\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}{\*\pnseclvl8 \pnlcltr\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}{\*\pnseclvl9\pnlcrm\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}\pard\plain \qc \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid13776696 \fs24\lang2057\langfe1033\cgrid\langnp2057\langfenp1033 {\insrsid13776696 IN THE HIGH COURT OF UGANDA AT KAMPALA \par \par (COMMERCIAL DIVISION) \par \par HCT-00-CV-CS- 1293 OF 1997 \par \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid13776696 {\insrsid13776696 ISAAC GOERGE MUNAABI PLAINTIFF \par \par }\pard \qc \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid13776696 {\insrsid13776696 VERSUS \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid13776696 {\insrsid13776696 \par ALBERT SEBUDDE DEFENDANTS \par RACHEL KAGGWA \par \par \par }{\b\ul\insrsid13776696\charrsid7089236 BEFORE THE HONOURABLE MR. JUSTICE FMS EGONDA-NTENDE}{\b\ul\insrsid13776696 \par \par JUDGEMENT}{\b\ul\insrsid13776696\charrsid7089236 \par }{\insrsid4594768 \par {\listtext\pard\plain\lang2057\langfe1033\langnp2057\insrsid13776696 \hich\af0\dbch\af0\loch\f0 1.\tab}}\pard \ql \fi-360\li720\ri0\sl360\slmult1\widctlpar\jclisttab\tx720\aspalpha\aspnum\faauto\ls2\adjustright\rin0\lin720\itap0\pararsid3434689 { \insrsid13776696 The }{\insrsid6046545 Plaintiff}{\insrsid13776696 seeks an order for cancellation of }{\insrsid10562386 the name of }{\insrsid6046545 Defendant}{\insrsid10562386 }{\insrsid11546687 No.}{\insrsid10562386 2 from the certificate of title to the suit property, substitution of the name of the }{\insrsid6046545 Plaintiff}{\insrsid10562386 therefore, general damages, costs and interest on decretal sum until payment in full. The }{\insrsid6046545 Plaintiff}{ \insrsid10562386 asserts that he was the registered proprietor of land comprised in }{\insrsid3434689 leasehold}{\insrsid10562386 volume 1387 folio 6 plot 74 and situate at Naziba, Mpigi District, herein after referred to as the suit property. }{ \insrsid13776696 \par {\listtext\pard\plain\lang2057\langfe1033\langnp2057\insrsid10562386 \hich\af0\dbch\af0\loch\f0 2.\tab}}{\insrsid10562386 Sometime in November 1996 }{\insrsid6046545 Defendant}{\insrsid10562386 }{\insrsid11546687 No.}{\insrsid10562386 1 lent to the }{ \insrsid6046545 Plaintiff}{\insrsid10562386 Shs.2,000,000.00 to be paid back in a }{\insrsid3434689 month\rquote s}{\insrsid10562386 time together with interest of Shs.600,000.00. As security for this loan the }{\insrsid6046545 Plaintiff}{ \insrsid10562386 deposited with }{\insrsid6046545 Defendant}{\insrsid10562386 }{\insrsid11546687 No.}{\insrsid10562386 1 the certificat}{\insrsid5863625 e of title to the suit property, together with executed blank land transfer forms in favour of }{ \insrsid6046545 Defendant}{\insrsid5863625 }{\insrsid11546687 No.}{\insrsid5863625 1. The }{\insrsid6046545 Plaintiff}{\insrsid5863625 failed to the said amount with one month as promised but subsequently made part payment of shs.600,000.00}{ \insrsid13585069 .}{\insrsid10562386 \par {\listtext\pard\plain\lang2057\langfe1033\langnp2057\insrsid13585069 \hich\af0\dbch\af0\loch\f0 3.\tab}}{\insrsid13585069 Soon thereafter the }{\insrsid6046545 Defendant}{\insrsid13585069 }{\insrsid11546687 No.}{\insrsid13585069 1 transferred the suit property into his names and in turn transferred it to the }{\insrsid6046545 Defendant}{\insrsid13585069 }{\insrsid11546687 No.}{\insrsid13585069 2. The }{\insrsid6046545 Plaintiff}{\insrsid13585069 alleges that these transfers were fraudulent, and sets out particulars of fraud in plaint against both }{\insrsid6046545 Defendant}{\insrsid13585069 s. \par {\listtext\pard\plain\lang2057\langfe1033\langnp2057\insrsid13585069 \hich\af0\dbch\af0\loch\f0 4.\tab}The }{\insrsid6046545 Defendant}{\insrsid13585069 }{\insrsid11546687 No.}{\insrsid9858678 1 }{\insrsid13585069 denies}{\insrsid9858678 the }{ \insrsid6046545 Plaintiff}{\insrsid13649792 \rquote }{\insrsid9858678 s claim and asserts that the }{\insrsid6046545 Plaintiff}{\insrsid9858678 agreed to a transfer of the suit property to the }{\insrsid6046545 Defendant}{\insrsid9858678 }{ \insrsid11546687 No.}{\insrsid9858678 1 in event that he failed to repay the loan extended to him. The suit property was transferred to the }{\insrsid6046545 Defendant}{\insrsid9858678 }{\insrsid11546687 No.}{\insrsid9858678 1 after the }{ \insrsid6046545 Plaintiff}{\insrsid9858678 failed to pay the loan.}{\insrsid13585069 \par {\listtext\pard\plain\lang2057\langfe1033\langnp2057\insrsid6046545 \hich\af0\dbch\af0\loch\f0 5.\tab}}{\insrsid6046545 Defendant}{\insrsid9858678 }{\insrsid11546687 No.}{\insrsid9858678 2 in her written statement of defence denied the }{\insrsid6046545 Plaintiff}{\insrsid13649792 \rquote }{\insrsid9858678 s claim and stated that she was a bona fide purchaser for value and that transfer into her names was lawful. \par {\listtext\pard\plain\lang2057\langfe1033\langnp2057\insrsid9858678 \hich\af0\dbch\af0\loch\f0 6.\tab}At the commencement of hearing of this case, the parties agreed upon the following facts: In November 1996 the }{\insrsid6046545 Defendant}{ \insrsid9858678 }{\insrsid11546687 No.}{\insrsid9858678 1 lent to the }{\insrsid6046545 Plaintiff}{\insrsid9858678 Shs2,000,000.00 (shillings two million) }{\insrsid3434689 repayable}{\insrsid9858678 with interest of shs600,000.00 in one }{ \insrsid3434689 month\rquote s}{\insrsid9858678 time. As security for the loan the }{\insrsid6046545 Plaintiff}{\insrsid9858678 deposited}{\insrsid2190417 with }{\insrsid6046545 Defendant}{\insrsid2190417 }{\insrsid11546687 No.}{\insrsid2190417 1 documents, namely, the certificate of title for the suit property and blank transfer forms duly signed by him. The }{\insrsid6046545 Plaintiff}{\insrsid2190417 paid back Shs600,000.00 and defaulted in respect of the balance. The }{\insrsid6046545 Defen dant}{\insrsid2190417 }{\insrsid11546687 No.}{\insrsid2190417 1 using the blank transfer forms transferred the property into his names. And on the same day transferred the suit property into the names of }{\insrsid6046545 Defendant}{\insrsid2190417 }{ \insrsid11546687 No.}{\insrsid2190417 2.}{\insrsid9858678 \par {\listtext\pard\plain\lang2057\langfe1033\langnp2057\insrsid2190417 \hich\af0\dbch\af0\loch\f0 7.\tab}}{\insrsid2190417 The }{\insrsid6046545 Plaintiff}{\insrsid2190417 called two witnesses. PW1 was Nicholas Ssali, a valuation surveyor. He testi fied that he was a fellow with the Institute of Surveyors in Uganda}{\insrsid13649792 and was registered as valua}{\insrsid2190417 tion }{\insrsid7360223 surveyor. He initially worked with Kampala City Council from 1976 to 1981. From 1981 to date he was employed by Katuramu and Company. He was instructed by the }{\insrsid6046545 Plaintiff}{\insrsid7360223 on 15}{\super\insrsid7360223\charrsid7360223 th}{ \insrsid7360223 December 1998 to value Plot 74, Block 268 at Massajja Naziwa, Lubowa Estate and advise him of the market value. He proceeded to the site, carried out the necessary inspection, including measurements of the buildings, and he produced t hereafter a report, Exhibit P1. }{\insrsid3434689 The market value of the property was Shs112, 000,000.00. The forced sale value of the unimproved value of property was about Shs52,000,000.00.}{\insrsid2190417 \par {\listtext\pard\plain\lang2057\langfe1033\langnp2057\insrsid12218938 \hich\af0\dbch\af0\loch\f0 8.\tab}}{\insrsid12218938 PW2 was the }{\insrsid6046545 Plaintiff}{\insrsid12218938 .}{\insrsid12610749 He testified that he was living on the suit property where he had a hatchery and poultry houses for a poultry farm that he has been running since 1986. He borrowed money from }{\insrsid6046545 Defendant}{\insrsid12610749 }{\insrsid11546687 No.}{ \insrsid12610749 1 in the sum of shs2,000,000.00 to }{\insrsid3434689 pay}{\insrsid12610749 back within one month }{\insrsid13649792 together with}{\insrsid12610749 agreed interest of shs600,000.00. As security for the loan the }{\insrsid6046545 Plaintiff}{\insrsid12610749 gave }{\insrsid6046545 Defendant}{\insrsid12610749 }{\insrsid11546687 No.}{\insrsid12610749 1 a }{\insrsid3434689 post-dated}{\insrsid12610749 cheque for Shs2,600,000.00, certificate of title to plot 74, the suit property, and signed blank transfer forms. }{\insrsid3357737 \par {\listtext\pard\plain\lang2057\langfe1033\langnp2057\insrsid12610749 \hich\af0\dbch\af0\loch\f0 9.\tab}}{\insrsid12610749 The }{\insrsid6046545 Plaintiff}{\insrsid12610749 managed to pay shs600,000.00 but failed to pay the principal amount. }{ \insrsid3357737 He tried to get in touch with the }{\insrsid6046545 Defendant}{\insrsid3357737 }{\insrsid11546687 No.}{\insrsid3357737 1 to explain his situation, which he did. He was however subsequently orally notified that the }{\insrsid6046545 Defendant}{\insrsid3357737 }{\insrsid11546687 No.}{\insrsid3357737 1 had foreclosed and taken over the land. When he checked in the land registry, he found that the }{\insrsid6046545 Defendant}{\insrsid3357737 }{\insrsid11546687 No.}{\insrsid3357737 1 had transferred the land to himself and then to the }{\insrsid6046545 Defendant}{\insrsid3357737 }{\insrsid11546687 No.}{\insrsid3357737 2 on the same day, 5}{\super\insrsid3357737\charrsid3357737 th}{\insrsid3357737 June 1997. The }{\insrsid6046545 Plaintiff}{\insrsid3357737 placed a caveat on the property and then commenced these proceedings.}{\insrsid12610749 \par {\listtext\pard\plain\lang2057\langfe1033\langnp2057\insrsid3357737 \hich\af0\dbch\af0\loch\f0 10.\tab}}{\insrsid3357737 The }{\insrsid6046545 Plaintiff}{\insrsid3357737 further testified that he had never agreed to sell the suit property to }{ \insrsid6046545 Defendant}{\insrsid3357737 }{\insrsid11546687 No.}{\insrsid3357737 1 at any time. }{\insrsid6046545 Defendant}{\insrsid3357737 }{\insrsid11546687 No.}{\insrsid3357737 1 had never paid the }{\insrsid6046545 Plaintiff}{\insrsid3357737 any sum of money as consideration for the suit property. }{\insrsid6046545 Defendant}{\insrsid3357737 }{\insrsid11546687 No.}{\insrsid3357737 1 did not account for the proceeds of the sale. Neither had the }{\insrsid6046545 Defendant}{\insrsid3357737 applied to court for foreclosure.}{\insrsid1974580 When shown Exhibit P2, the transfer form for transfer of the suit property to }{\insrsid6046545 Defendant}{\insrsid1974580 }{\insrsid11546687 No.}{\insrsid1974580 1, the }{\insrsid6046545 Plaintiff}{ \insrsid1974580 testified that he sees now a lot of signatures which were not there. He testified that he signed the form }{\insrsid3434689 in front}{\insrsid1974580 of the }{\insrsid6046545 Defendant}{\insrsid1974580 }{\insrsid11546687 No.}{ \insrsid1974580 1. Shown Exhibit P3 the application to transfer land consent form, he stated that he never signed this form or made the application. He never filled the form. The form does not mention the buildings on the property. Exhibit P3 states the consideration t o be Shs10,000,000.00 which in his view was too low. The }{\insrsid6046545 Plaintiff}{\insrsid1974580 never authorised any one to make this application or to sign it on his behalf.}{\insrsid3357737 \par {\listtext\pard\plain\lang2057\langfe1033\langnp2057\insrsid15276560 \hich\af0\dbch\af0\loch\f0 11.\tab}}{\insrsid15276560 The }{\insrsid6046545 Plaintiff}{\insrsid15276560 tendered in evidence Exhibits P4 and P5 which were an application to transfer land consent form and a transfer of land form}{\insrsid13649792 upon which}{\insrsid15276560 the transfer of land between }{\insrsid6046545 Defendant}{\insrsid15276560 }{ \insrsid11546687 No.}{\insrsid15276560 1 and }{\insrsid11546687 No.}{\insrsid15276560 2}{\insrsid13649792 was effected}{\insrsid15276560 . In Exhibit P4 the consideration is stated to be shs10,000,000.00. Exhibit P5 was lodged on 5}{ \super\insrsid15276560\charrsid15276560 th}{\insrsid15276560 June 1997. Exhibit P4 describes the developments on the land as banana plantations and other crops. }{\insrsid1974580 \par {\listtext\pard\plain\lang2057\langfe1033\langnp2057\insrsid15276560 \hich\af0\dbch\af0\loch\f0 12.\tab}}{\insrsid15276560 DW1 was Albert Sebude. He testified that }{\insrsid1259111 he lent Shs8.600,000.00 to the }{\insrsid6046545 Plaintiff}{ \insrsid1259111 , and Shs2,000,000.00 remained outstanding. That they eventually agreed with the }{\insrsid6046545 Plaintiff}{\insrsid1259111 that part of the land be sold to raise the money. }{\insrsid6046545 Defendant}{\insrsid1259111 }{ \insrsid11546687 No.}{\insrsid1259111 1 sold the land to }{\insrsid6046545 Defendant}{\insrsid1259111 }{\insrsid11546687 No.}{\insrsid1259111 2 for shs10,000,000.00. He transferred the land into his names and then transferred it to the names of the }{ \insrsid6046545 Defendant}{\insrsid1259111 }{\insrsid11546687 No.}{\insrsid1259111 2. }{\insrsid6046545 Defendant}{\insrsid1259111 }{\insrsid11546687 No.}{\insrsid1259111 2 was a relative of his wife, and his wife acted for }{\insrsid6046545 Defendant}{ \insrsid1259111 }{\insrsid11546687 No.}{\insrsid1259111 2 in this transaction, including signing the transfer papers.}{\insrsid15950853 His wife, also known as }{\insrsid3434689 Rachael}{\insrsid15950853 Kaggwa, was aware of the agreement between him and the }{\insrsid6046545 Plaintiff}{\insrsid15950853 .}{\insrsid15276560 \par {\listtext\pard\plain\lang2057\langfe1033\langnp2057\insrsid6046545 \hich\af0\dbch\af0\loch\f0 13.\tab}}{\insrsid6046545 Defendant}{\insrsid15950853 }{\insrsid11546687 No.}{\insrsid15950853 2 called no witnesses and did not testify. \par {\listtext\pard\plain\lang2057\langfe1033\langnp2057\insrsid5660027 \hich\af0\dbch\af0\loch\f0 14.\tab}}{\insrsid5660027 There are three issues that the parties agreed to. These are: 1. }{\insrsid3434689 whether }{\insrsid5660027 the transfer of the suit property into the name of }{\insrsid6046545 Defendant}{\insrsid5660027 }{\insrsid11546687 No.}{\insrsid5660027 1 was proper and lawful; 2. }{\insrsid3434689 whether}{\insrsid5660027 the transfer from }{\insrsid6046545 Defendant}{\insrsid5660027 }{ \insrsid11546687 No.}{\insrsid5660027 1 to }{\insrsid6046545 Defendant}{\insrsid5660027 }{\insrsid11546687 No.}{\insrsid5660027 2 was fraudulent; }{\insrsid13649792 }{\insrsid5660027 3. }{\insrsid3434689 what}{\insrsid5660027 are the remedies available if any? \par {\listtext\pard\plain\lang2057\langfe1033\langnp2057\insrsid5660027 \hich\af0\dbch\af0\loch\f0 15.\tab}I will deal with the issues in the order above. The facts relevant to this issue are not in dispute save as to the authority of transfer of the suit property from the }{\insrsid6046545 Plaintiff}{\insrsid5660027 to }{\insrsid6046545 Defendant}{\insrsid5660027 }{\insrsid11546687 No.}{\insrsid5660027 1. In his written statement of defence, paragraph 4 in particular, } {\insrsid6046545 Defendant}{\insrsid5660027 }{\insrsid11546687 No.}{\insrsid5660027 1 asserts, \'93\'85 the duly executed the transfer forms and agreed to execute transfer of the suit lands in the names of the 1}{\super\insrsid5660027\charrsid5660027 st} {\insrsid5660027 }{\insrsid6046545 Defendant}{\insrsid5660027 in the event of his failure to repay the said monies.\'94}{\insrsid8788916 From this pleading, it is being contended by the }{\insrsid6046545 Defendant}{\insrsid8788916 }{\insrsid11546687 No.}{\insrsid8788916 1 that it was a term of their agreement with the }{\insrsid6046545 Plaintiff}{\insrsid8788916 that in event the }{\insrsid6046545 Plaintiff}{\insrsid8788916 failed to the pay the money the }{\insrsid6046545 Plaintiff}{ \insrsid8788916 agreed that the suit property will be transferred to }{\insrsid6046545 Defendant}{\insrsid8788916 }{\insrsid11546687 No.}{\insrsid8788916 1. This term is not one of the agreed facts. \par {\listtext\pard\plain\lang2057\langfe1033\langnp2057\insrsid8788916 \hich\af0\dbch\af0\loch\f0 16.\tab}In his testimony the }{\insrsid6046545 Defendant}{\insrsid8788916 }{\insrsid11546687 No.}{\insrsid8788916 1 stated in part, }{\insrsid13649792 \par }\pard \ql \li1440\ri1440\widctlpar\aspalpha\aspnum\faauto\adjustright\rin1440\lin1440\itap0\pararsid13649792 {\fs20\insrsid8788916\charrsid13649792 \'93Shs2,000,000.00 remained outstanding from the }{\fs20\insrsid6046545\charrsid13649792 Plaintiff}{ \fs20\insrsid8788916\charrsid13649792 . The }{\fs20\insrsid6046545\charrsid13649792 Plaintiff}{\fs20\insrsid8788916\charrsid13649792 did not repay back the Shs2,000,000.00. I waited for him for quite sometime. I went to his house and left messages several times but he was not responding. Eventually I caught up with him and we agreed that we sell part of the land and raise the mone y. I sold the land to }{\fs20\insrsid3434689\charrsid13649792 Rachael}{\fs20\insrsid8788916\charrsid13649792 Kaggwa. It was about Shs10,000,000.00.\'94 \par {\listtext\pard\plain\lang2057\langfe1033\langnp2057\insrsid8788916 \hich\af0\dbch\af0\loch\f0 17.\tab}}\pard \ql \fi-360\li720\ri0\sl360\slmult1\widctlpar\jclisttab\tx720\aspalpha\aspnum\faauto\ls2\adjustright\rin0\lin720\itap0\pararsid3434689 { \insrsid8788916 In cross examination }{\insrsid6046545 Defendant}{\insrsid8788916 }{\insrsid11546687 No.}{\insrsid8788916 1 stated that the }{\insrsid6046545 Plaintiff}{\insrsid8788916 did not sell the land to him.}{\insrsid5660027 }{\insrsid8788916 He further admitted that the }{\insrsid6046545 Plaintiff}{\insrsid8788916 did not fill or sign the appli}{\insrsid352203 cation to transfer consent form, Exhibit P3. The }{\insrsid6046545 Plaintiff}{\insrsid352203 stated that he never filled in this form and it does not bear his signature.}{\insrsid5660027 \par {\listtext\pard\plain\lang2057\langfe1033\langnp2057\insrsid352203 \hich\af0\dbch\af0\loch\f0 18.\tab}}{\insrsid352203 The version of the story put forward by the }{\insrsid6046545 Plaintiff}{\insrsid352203 is that certificate of title and signed transfer forms were to act as security for the loan advanced, and he had not agreed to a sale of land to the }{\insrsid6046545 Defendant}{\insrsid352203 }{\insrsid11546687 No.}{\insrsid352203 1. He admits defaulting on the loan repayments. \par {\listtext\pard\plain\lang2057\langfe1033\langnp2057\insrsid352203 \hich\af0\dbch\af0\loch\f0 19.\tab}The }{\insrsid6046545 Defendant}{\insrsid352203 has not supported the term, that the }{\insrsid6046545 Plaintiff}{\insrsid352203 had agreed that in event of default, the suit property would be transferred to the }{\insrsid6046545 Defendant}{\insrsid352203 }{\insrsid11546687 No.}{\insrsid352203 1, which he set out in paragraph 4 of his written statement of defence, with any evidence whatsoever. I conclude that that term is not proven. }{\insrsid1452905 There was no such }{\insrsid13649792 term }{\insrsid1452905 in the agreement between the }{ \insrsid6046545 Plaintiff}{\insrsid1452905 and }{\insrsid6046545 Defendant}{\insrsid1452905 }{\insrsid11546687 No.}{\insrsid1452905 1}{\insrsid352203 .}{\insrsid1452905 }{\insrsid352203 \par {\listtext\pard\plain\lang2057\langfe1033\langnp2057\insrsid1452905 \hich\af0\dbch\af0\loch\f0 20.\tab}}{\insrsid1452905 The }{\insrsid6046545 Defendant}{\insrsid1452905 }{\insrsid11546687 No.}{\insrsid1452905 1 has claimed in testimony that after default, he met with the }{\insrsid6046545 Plaintiff}{\insrsid1452905 and they agreed that part of the land be sold to recover the outstanding monies. This claim runs counter to the pleadings of }{\insrsid6046545 Defendant}{\insrsid1452905 }{\insrsid11546687 No.}{\insrsid1452905 1, in so far}{\insrsid13649792 as}{\insrsid1452905 the claim in the pleadings was that the }{\insrsid6046545 Plaintiff}{\insrsid1452905 had agreed to transfer the suit property to the }{\insrsid6046545 Defendant}{\insrsid1452905 }{\insrsid11546687 No.}{\insrsid1452905 1, in event of default of payment.}{\insrsid9397293 It was never put to the }{\insrsid6046545 Plaintiff}{\insrsid9397293 during his cross examination by counsel for }{ \insrsid6046545 Defendant}{\insrsid9397293 }{\insrsid11546687 No.}{\insrsid9397293 1. The }{\insrsid6046545 Plaintiff}{\insrsid9397293 denied ever agreeing to sell the suit land to the }{\insrsid6046545 Defendant}{\insrsid9397293 }{\insrsid11546687 No. }{\insrsid9397293 1. }{\insrsid1452905 \par {\listtext\pard\plain\lang2057\langfe1033\langnp2057\insrsid9397293 \hich\af0\dbch\af0\loch\f0 21.\tab}}{\insrsid9397293 I accept the version of the story put forward by the }{\insrsid6046545 Plaintiff}{\insrsid9397293 that deposit of the certificate of title and signed blank transfer form was as security for the loan advanced to the }{\insrsid6046545 Plaintiff}{\insrsid9397293 . There was no agreement to transfer to }{\insrsid6046545 Defendant}{\insrsid9397293 }{ \insrsid11546687 No.}{\insrsid9397293 1 the suit property in event of default. There was no subsequent agreement or arrangement between }{\insrsid6046545 Defendant}{\insrsid9397293 }{\insrsid11546687 No.}{\insrsid9397293 1 and }{\insrsid6046545 Plaintiff }{\insrsid9397293 to sell the suit land to recover the outstanding monies. After default by the }{\insrsid6046545 Plaintiff}{\insrsid9397293 , it is clear that the }{\insrsid6046545 Defendant}{\insrsid9397293 }{\insrsid11546687 No.}{\insrsid9397293 1 proceeded unilaterally with all steps he took with regard to the suit property. \par {\listtext\pard\plain\lang2057\langfe1033\langnp2057\insrsid11413835 \hich\af0\dbch\af0\loch\f0 22.\tab}}{\insrsid11413835 The }{\insrsid6046545 Plaintiff}{\insrsid11413835 contends that the transfer of land to the }{\insrsid6046545 Defendant}{ \insrsid11413835 }{\insrsid11546687 No.}{\insrsid11413835 1 was fraudulent. Particulars of fraud were set out in the plaint, and further particulars added during the trial.}{\insrsid5898957 }{\insrsid1406200 \par {\listtext\pard\plain\lang2057\langfe1033\langnp2057\insrsid6245684 \hich\af0\dbch\af0\loch\f0 23.\tab}}{\insrsid6245684 Before I assess the evidence in this case, with regard to the issue of fraud, I should start by discussing the law applicable. First of all the burden of proof for fraud in cases of this nature must be heavier than the ord inary standard of balance of probability available in civil proceedings. It is not, however, as high as in criminal cases, where the standard of proof is beyond reasonable doubt. It is in between those two. \par {\listtext\pard\plain\lang2057\langfe1033\langnp2057\insrsid6245684 \hich\af0\dbch\af0\loch\f0 24.\tab}Secondly under an action permitted under Section 176 of the Registration of Titles Act, (formerly Section 184), this action for recovery of land must be brought by the person deprived of the land against the transferee. In effect the fraud to be proved is fraud on the part of the transferee to deprive t he transferor of the land in question.}{\insrsid6445406 \par {\listtext\pard\plain\lang2057\langfe1033\langnp2057\insrsid6445406 \hich\af0\dbch\af0\loch\f0 25.\tab}Section 176 of the Registration of Titles Act provides, \par }\pard \ql \li1440\ri1440\widctlpar\aspalpha\aspnum\faauto\adjustright\rin1440\lin1440\itap0\pararsid6445406 {\fs20\insrsid6445406\charrsid6445406 \'93 No action of ejectment or other action for the recovery of any land shall lie or be sustained against the person registered as proprietor under this Act, excep t in any of the following case--- (a)

(b) (c) the case of a person deprived of any land by fraud as against the person registered proprietor of that land through fraud or as against a person deriving otherwise than as a transferee bona fide for value from or through a person so registered through fraud;\'94}{\fs20\insrsid6245684\charrsid6445406 \par {\listtext\pard\plain\lang2057\langfe1033\langnp2057\insrsid6445406 \hich\af0\dbch\af0\loch\f0 26.\tab}}\pard \ql \fi-360\li720\ri0\sl360\slmult1\widctlpar\jclisttab\tx720\aspalpha\aspnum\faauto\ls2\adjustright\rin0\lin720\itap0\pararsid3434689 { \insrsid6445406 This question was considered in the case of }{\i\insrsid6445406\charrsid11546687 Kampala Bo}{\i\insrsid11546687\charrsid11546687 ttlers Ltd v Damanico (U) Ltd Supreme Court C}{\i\insrsid6445406\charrsid11546687 A }{\i\insrsid11546687 No.}{ \i\insrsid6445406\charrsid11546687 22 of 1992 }{\insrsid6445406 (unreported). Wambuzi CJ, observed,}{\insrsid11546687 \par }\pard \ql \li1440\ri1440\widctlpar\aspalpha\aspnum\faauto\adjustright\rin1440\lin1440\itap0\pararsid11546687 {\fs20\insrsid6445406\charrsid11546687 \'93\'85 as already indicated in this judgement, fraud must be attributable to the transferee. I must add here that it must be attributable either directly or by necess ary implication. By this I mean a transferee must be guilty of some fraudulent act or must have known of such act by somebody else and taken advantage of such act.\'94 \par {\listtext\pard\plain\lang2057\langfe1033\langnp2057\insrsid5898957 \hich\af0\dbch\af0\loch\f0 27.\tab}}\pard \ql \fi-360\li720\ri0\sl360\slmult1\widctlpar\jclisttab\tx720\aspalpha\aspnum\faauto\ls2\adjustright\rin0\lin720\itap0\pararsid3434689 { \insrsid5898957 On the facts before me it is clear that the }{\insrsid6046545 Defendant}{\insrsid5898957 }{\insrsid11546687 No.}{\insrsid5898957 1 presented to the Commissioner of Lands an application for consent to transfer the suit property}{ \insrsid1406200 Exhibit P3}{\insrsid5898957 in which he made a }{\insrsid15031385 false }{\insrsid5898957 representation that it was signed by the applicant or his advocate implying that the application was made by the transferor, when in actual fact }{ \insrsid6046545 Defendant}{\insrsid5898957 }{\insrsid11546687 No.}{\insrsid5898957 1 knew that the transferor, now the }{\insrsid6046545 Plaintiff}{\insrsid5898957 , had not authorised such an application to be made, much less }{\insrsid1406200 sign the same}{\insrsid5898957 . The }{\insrsid6046545 Defendant}{\insrsid5898957 }{\insrsid11546687 No.}{\insrsid5898957 1 further represented to the Commissioner of Lands that the transferee had paid to the transferor Shs10,000,000.00 as consideration for the suit property when in fact the transferee, being }{\insrsid6046545 Defendant}{\insrsid5898957 }{\insrsid11546687 No.}{\insrsid5898957 1 had paid no such consideration}{\insrsid15031385 , or any money whatsoever,}{ \insrsid5898957 to the transferor. }{\insrsid1406200 \par {\listtext\pard\plain\lang2057\langfe1033\langnp2057\insrsid5898957 \hich\af0\dbch\af0\loch\f0 28.\tab}}{\insrsid5898957 After the Commissioner of Land}{\insrsid1406200 s}{\insrsid5898957 granted consent to transfer the suit property, based on f alse representations}{\insrsid11546687 made by }{\insrsid6046545 Defendant}{\insrsid11546687 No.1}{\insrsid5898957 , }{\insrsid6046545 Defendant}{\insrsid5898957 }{\insrsid11546687 No.}{\insrsid5898957 1 presented this consent to the Registrar of Titles, together with }{\insrsid15031385 the }{\insrsid5898957 transfer form, knowing fully well, that the consent of the Commissioner of Lands to transfer the }{\insrsid1406200 suit property}{\insrsid5898957 }{\insrsid1406200 had been fraudulently obtained. }{\insrsid9338492 \par {\listtext\pard\plain\lang2057\langfe1033\langnp2057\insrsid6046545 \hich\af0\dbch\af0\loch\f0 29.\tab}}{\insrsid6046545 Defendant}{\insrsid1406200 }{\insrsid11546687 No.}{\insrsid1406200 1 further presented to the Registrar of Titles a transfer of land }{\insrsid9338492 form o}{\insrsid1406200 n which it was falsely }{\insrsid9338492 re}{\insrsid1406200 presented that a one Kavuma Kabenge}{\insrsid11546687 ,}{\insrsid1406200 an advocate, had witnessed the signature of the transferor or vendor as he was referred to,}{\insrsid9338492 the }{\insrsid6046545 Plaintiff}{\insrsid9338492 in this case,}{\insrsid1406200 when in fact Mr. Kavuma Kabenge had not witnesse}{ \insrsid9338492 d}{\insrsid1406200 such signature. }{\insrsid9338492 Attestation of instruments under the Registration of Titles Act, Section 147 }{\insrsid3434689 thereof}{\insrsid11546687 ,}{\insrsid9338492 is essential for the validity of such instruments. Mr. Kavuma Kabenge\rquote s name is inscribed as the witness}{\insrsid11546687 on Exhibit P2}{\insrsid9338492 . It is the unchallenged testimony of the }{\insrsid6046545 Plaintiff}{\insrsid9338492 that the blank transfer form he signed and handed to the }{\insrsid6046545 Defendant}{\insrsid9338492 }{\insrsid11546687 No.}{\insrsid9338492 1 did not bear any other signature other than his own.}{\insrsid9397293 \par {\listtext\pard\plain\lang2057\langfe1033\langnp2057\insrsid9338492 \hich\af0\dbch\af0\loch\f0 30.\tab}}{\insrsid9338492 The result of all these fraudulent acts of the }{\insrsid6046545 Defendant}{\insrsid9338492 }{\insrsid11546687 No.}{\insrsid9338492 1 was the transfer of the suit property into his names and then the immediate transfer of the land to another party. }{\insrsid6046545 Defendant}{\insrsid9338492 }{\insrsid11546687 No.}{\insrsid9338492 1 clearly received a benefit from his fraudulent acts. \par {\listtext\pard\plain\lang2057\langfe1033\langnp2057\insrsid12402922 \hich\af0\dbch\af0\loch\f0 31.\tab}}{\insrsid12402922 I am satisfied that in th}{\insrsid15031385 is}{\insrsid12402922 case it has been am ply established on the higher standard necessary for proof of fraud that the }{\insrsid6046545 Defendant}{\insrsid12402922 }{\insrsid11546687 No.}{\insrsid12402922 1 fraudulently got the suit property registered into his names. \par {\listtext\pard\plain\lang2057\langfe1033\langnp2057\insrsid4204904 \hich\af0\dbch\af0\loch\f0 32.\tab}}{\insrsid4204904 I now turn to the second issue, whether the transfer from }{\insrsid6046545 Defendant}{\insrsid4204904 }{\insrsid11546687 No.}{ \insrsid4204904 1 to }{\insrsid6046545 Defendant}{\insrsid4204904 }{\insrsid11546687 No.}{\insrsid4204904 2 was fraudulent. }{\insrsid15031385 This issue appears to have been wrongly framed. In my view, the issue at this stage is whether or not Defendant No.2 had notice of the fraudulent acts of Defendant No.1. }{\insrsid6046545 Defendant}{\insrsid12402922 }{\insrsid11546687 No.}{ \insrsid12402922 2 did not testify in this case nor did she call any evidence. In her pleadings she set up a defence of being an innocent purchaser for value.}{\insrsid15934243 In this regard it may be useful to first set out the law with regard to proof of this }{\insrsid4204904 plea}{\insrsid15934243 . This was discussed in }{\i\insrsid15934243\charrsid4204904 Sejjaka Nalima v Rebecca Musoke Supreme Court Civil Appeal }{ \i\insrsid11546687 No.}{\i\insrsid15934243\charrsid4204904 12 of 1985}{\insrsid4204904 (unreported)}{\insrsid15934243 in which }{\i\insrsid15934243\charrsid4204904 Odoki JA}{\insrsid15934243 , (as he then was), observed, }{\insrsid4204904 \par }\pard \ql \li1440\ri1440\widctlpar\aspalpha\aspnum\faauto\adjustright\rin1440\lin1440\itap0\pararsid4204904 {\fs20\insrsid15934243\charrsid4204904 \'93}{\fs20\insrsid3434689\charrsid4204904 While}{\fs20\insrsid15934243\charrsid4204904 the burden of proving the case lies on the }{\fs20\insrsid6046545 Plaintiff}{\fs20\insrsid15934243\charrsid4204904 , it is well settled that the onus of establishing the plea of a bona fide purchaser lies on the person}{ \fs20\insrsid7501824\charrsid4204904 who sets it up. It is a single plea and is not sufficiently made out by proving purchase for value and leaving to the }{\fs20\insrsid6046545 Plaintiff}{\fs20\insrsid7501824\charrsid4204904 to prove notice if he can. \'94}{\fs20\insrsid12402922\charrsid4204904 \par {\listtext\pard\plain\lang2057\langfe1033\langnp2057\insrsid6046545 \hich\af0\dbch\af0\loch\f0 33.\tab}}\pard \ql \fi-360\li720\ri0\sl360\slmult1\widctlpar\jclisttab\tx720\aspalpha\aspnum\faauto\ls2\adjustright\rin0\lin720\itap0\pararsid3434689 { \insrsid6046545 Defendant}{\insrsid3434689 }{\insrsid11546687 No.}{\insrsid3434689 2, if the testimony of }{\insrsid6046545 Defendant}{\insrsid3434689 }{\insrsid11546687 No.}{\insrsid3434689 1, is to be believed on this account, was represented in this transaction, by the wife of }{\insrsid6046545 Defendant}{\insrsid3434689 }{\insrsid11546687 No.}{\insrsid3434689 1. }{\insrsid10505478 In fact it is }{\insrsid6046545 Defendant}{ \insrsid10505478 No1\rquote s wife that signed the transfer forms. }{\insrsid6046545 Defendant}{\insrsid10505478 }{\insrsid11546687 No.}{\insrsid10505478 2, was aware that the suit property was not in the names of the }{\insrsid6046545 Defendant}{ \insrsid10505478 }{\insrsid11546687 No.}{\insrsid10505478 1. As a condition of the sale, the property ha}{\insrsid15031385 d}{\insrsid10505478 to be transferred first into the names of the }{\insrsid6046545 Defendant}{\insrsid10505478 }{ \insrsid11546687 No.}{\insrsid10505478 1. All this is according to the testimony of }{\insrsid6046545 Defendant}{\insrsid10505478 }{\insrsid11546687 No.}{\insrsid10505478 1. Furthermore the }{\insrsid6046545 Defendant}{\insrsid10505478 }{ \insrsid11546687 No.}{\insrsid10505478 1\rquote s wife, who was the agent for }{\insrsid6046545 Defendant}{\insrsid10505478 }{\insrsid11546687 No.}{\insrsid10505478 2, was aware of the agreement between }{\insrsid6046545 Defendant}{\insrsid10505478 }{ \insrsid11546687 No.}{\insrsid10505478 1 and the }{\insrsid6046545 Plaintiff}{\insrsid10505478 over the suit land. The only agreement that has been established between }{\insrsid6046545 Defendant}{\insrsid10505478 }{\insrsid11546687 No.}{ \insrsid10505478 1 and the }{\insrsid6046545 Plaintiff}{\insrsid10505478 is the equitable mortgage over the suit property.}{\insrsid7501824 \par {\listtext\pard\plain\lang2057\langfe1033\langnp2057\insrsid10505478 \hich\af0\dbch\af0\loch\f0 34.\tab}}{\insrsid10505478 In these circumstances it appears to me that the agent for }{\insrsid6046545 Defendant}{\insrsid10505478 }{\insrsid11546687 No.}{ \insrsid10505478 2, who acted for her in this transaction, and the wife of }{\insrsid6046545 Defendant}{\insrsid10505478 }{\insrsid11546687 No.}{\insrsid10505478 1, was aware of the relationship between the }{\insrsid6046545 Defendant}{\insrsid10505478 }{\insrsid11546687 No.}{\insrsid10505478 1 and the }{\insrsid6046545 Plaintiff}{\insrsid5134942 , if the testimony of }{\insrsid6046545 Defendant}{\insrsid5134942 }{\insrsid11546687 No.}{\insrsid5134942 1 is to be believed}{\insrsid10505478 .}{ \insrsid5134942 In answer to a question from the court the }{\insrsid6046545 Defendant}{\insrsid5134942 }{\insrsid11546687 No.}{\insrsid5134942 1 stated that }{\i\fs20\insrsid5134942\charrsid4204904 \'93I informed my wife of my agreement with the }{ \i\fs20\insrsid6046545 Plaintiff}{\i\fs20\insrsid5134942\charrsid4204904 with respect to this land.\'94}{\insrsid10505478 }{\insrsid5134942 In }{\insrsid6046545 Defendant}{\insrsid5134942 }{\insrsid11546687 No.}{\insrsid5134942 1\rquote s testimony in cross examination he stated that the }{\insrsid6046545 Plaintiff}{\insrsid5134942 did not sell the land to }{\insrsid6046545 Defendant}{\insrsid5134942 }{\insrsid11546687 No.}{\insrsid5134942 1. }{\insrsid5322956 \par {\listtext\pard\plain\lang2057\langfe1033\langnp2057\insrsid5322956 \hich\af0\dbch\af0\loch\f0 35.\tab}It is, I suppose, then inevitable to conclude that the }{\insrsid6046545 Defendant}{\insrsid5322956 }{\insrsid11546687 No.}{\insrsid5322956 1\rquote s wife, the agent for }{\insrsid6046545 Defendant}{\insrsid5322956 }{\insrsid11546687 No.}{\insrsid5322956 2,}{\insrsid10505478 was aware that the }{\insrsid6046545 Plaintiff}{\insrsid10505478 had not authorised the sale of the suit property to either }{\insrsid6046545 Defendant}{\insrsid10505478 }{\insrsid11546687 No.}{\insrsid10505478 1 or }{\insrsid6046545 Defendant}{\insrsid10505478 }{\insrsid11546687 No.}{\insrsid10505478 2. I}{\insrsid5322956 n those circumstances }{\insrsid6046545 Defendant}{ \insrsid5322956 }{\insrsid11546687 No.}{\insrsid5322956 1\rquote s wife could not have been unaware}{\insrsid10505478 of the fraud her husband perpetrated over the suit property}{\insrsid5322956 , transferring the land to himself, and then to }{ \insrsid6046545 Defendant}{\insrsid5322956 }{\insrsid11546687 No.}{\insrsid5322956 2}{\insrsid10505478 . \par {\listtext\pard\plain\lang2057\langfe1033\langnp2057\insrsid10119407 \hich\af0\dbch\af0\loch\f0 36.\tab}}\pard \ql \fi-360\li720\ri0\sl360\slmult1\widctlpar\jclisttab\tx720\aspalpha\aspnum\faauto\ls2\adjustright\rin0\lin720\itap0\pararsid10119407 { \insrsid10119407 Defendant No.2 has not called any evidence in this case. Not even that of her agent, wife of Defendant No.1, who was present in the court room during the trial, beside her husband, Defendant No.1}{\insrsid9658681 .}{\insrsid10119407 Both Defendant No.2 and her agent Defendant No.1\rquote s wife, bear the same names, Rachael Kaggwa. It is worth noting when Exhibit P5, the transfer instrument from Defendant No.1 to Defendant No.2 which was signed by Rachae l Kaggwa, wife to Defendant No.1, for Rachael Kaggwa, Defendant No.2, bears no indication that the signatory for the purchaser was not the purchaser, but a duly authorised agent for the purchaser, and the evidence of authority indicated. For instance }{ \insrsid9658681 i}{\insrsid10119407 f th e authority was derived from a power of attorney, the particulars of the power of attorney and its registration would have to be mentioned. Rachael Kaggwa signed as a purchaser. And her address is given as PO Box 284 Masaka on the application form for con sent to transfer, Exhibit P4. \par {\listtext\pard\plain\lang2057\langfe1033\langnp2057\insrsid10119407 \hich\af0\dbch\af0\loch\f0 37.\tab} Much as Defendant No.1 claimed in his testimony that Defendant No.2 was away in London when the suit property was sold to her, her none appearance wholly raises eyebrows. Does she really exist? We have not seen any papers by wh ich she authorised Defendant No.1\rquote s wife, and namesake, Rachael Kaggwa, to act for her in the purchase of the property. The person, who acted for her and signed the transfer papers in Defendant No.2\rquote s names, though present, was not called to testify. Defendant No.2 did not testify. \par {\listtext\pard\plain\lang2057\langfe1033\langnp2057\insrsid10119407 \hich\af0\dbch\af0\loch\f0 38.\tab}}\pard \ql \fi-360\li720\ri0\sl360\slmult1\widctlpar\jclisttab\tx720\aspalpha\aspnum\faauto\ls2\adjustright\rin0\lin720\itap0\pararsid3434689 { \insrsid10119407 Is the existence of another Rachael Kaggwa not a hoax in an attempt to cover up the fraudulent acts of Defendant No.1 with the knowledge of his wife, Rachael Kaggwa? The Rachael Kaggwa who signed the transfer papers and was give n the certificate of title by Defendant No.1 is the Rachael Kaggwa the wife of Defendant No.1. In all probability she is the only Rachael Kaggwa in this transaction and the Rachael Kaggwa connected to these proceedings. Even if one only accepted that she was the agent of Defendant No.2,}{\insrsid3556690 and not the actual Defendant No.2,}{\insrsid10119407 I am satisfied that she was aware of the fraudulent acts of her husband. \par {\listtext\pard\plain\lang2057\langfe1033\langnp2057\insrsid5322956 \hich\af0\dbch\af0\loch\f0 39.\tab}}{\insrsid5322956 In those circumstances can the knowledge of fraud of the agent be imputed into the principal?}{\insrsid16394311 Dicta from }{ \insrsid156155 Odoki, JA (as he then was) in }{\i\insrsid156155\charrsid4204904 Sejjaka Nalima v Rebecca Musoke}{\i\insrsid3434689 ,}{\i\insrsid156155\charrsid4204904 Supreme Court Civil Appeal }{\i\insrsid11546687 No.}{\i\insrsid156155\charrsid4204904 12 of 1985}{\insrsid4204904 (unreported)}{\insrsid156155 would seem to answer this question. }{\insrsid4204904 \par }\pard \ql \li1440\ri1440\widctlpar\aspalpha\aspnum\faauto\adjustright\rin1440\lin1440\itap0\pararsid4204904 {\fs20\insrsid156155\charrsid4204904 \'93 It seems to me that where a purchaser employs an agent, such as an advocate, to act on his behalf the notice he receives, actual or constructive, is imputed on the purchaser. And similarly where the advocate acts for both parties any notice he acquires is ordinarily imputed on both parties.\'94}{\fs20\insrsid5322956\charrsid4204904 \par {\listtext\pard\plain\lang2057\langfe1033\langnp2057\insrsid12661084 \hich\af0\dbch\af0\loch\f0 40.\tab}}\pard \ql \fi-360\li720\ri0\sl360\slmult1\widctlpar\jclisttab\tx720\aspalpha\aspnum\faauto\ls2\adjustright\rin0\lin720\itap0\pararsid3434689 { \insrsid12661084 The evidential burden that lay on the }{\insrsid6046545 Defendant}{\insrsid12661084 }{\insrsid11546687 No.}{\insrsid12661084 2 on account of the plea of bona fide purchaser for value without notice has not been discharged in the circumstances by }{\insrsid6046545 Defendant}{\insrsid12661084 }{\insrsid11546687 No.}{\insrsid12661084 2.}{\insrsid3556690 }{\insrsid8192511 Given the totality of evidence before me, }{\insrsid156155 I find that }{\insrsid6046545 Defendant}{\insrsid156155 }{\insrsid11546687 No.}{\insrsid156155 2 had notice of the fraud in this case, through her agent in this transactio n, Rachel Kaggwa, the wife of }{\insrsid6046545 Defendant}{\insrsid156155 }{\insrsid11546687 No.}{\insrsid156155 1.}{\insrsid8192511 }{\insrsid6704476 \par {\listtext\pard\plain\lang2057\langfe1033\langnp2057\insrsid8192511 \hich\af0\dbch\af0\loch\f0 41.\tab}}{\insrsid8192511 Accordingly, I direct the Registrar of Titles, in accordance with Section 177 of the Registration of Titles Act, to cancel the registration of }{\insrsid3434689 Rachael}{\insrsid8192511 Kaggwa, as the }{\insrsid4204904 registered}{\insrsid8192511 proprietor of the land comprised in Leasehold }{\insrsid4204904 R}{\insrsid8192511 egister Volume}{\insrsid4204904 1387 }{\insrsid8192511 Folio}{\insrsid4204904 6}{\insrsid8192511 }{\insrsid4204904 Block 268 }{\insrsid8192511 Plot }{\insrsid4204904 74 }{\insrsid8192511 and reinstate Isaac George Munabi as registered proprietor thereof.}{\insrsid156155 \par {\listtext\pard\plain\lang2057\langfe1033\langnp2057\insrsid8192511 \hich\af0\dbch\af0\loch\f0 42.\tab}}{\insrsid8192511 The }{\insrsid6046545 Plaintiff}{\insrsid8192511 claimed general damages. On the evidence he remained in possession of the suit property and to this day continues to remain in possession. He has been able to carry on his usual business of a poultry farm. There is no evidence that this business suffered any significant damage. In }{\insrsid3556690 any }{\insrsid8192511 case it appears to have been in trouble before and the purpose of the loans was to bring}{\insrsid3556690 the poultry business}{\insrsid8192511 back to life. On account of his business I am not able to find damages due to him. \par {\listtext\pard\plain\lang2057\langfe1033\langnp2057\insrsid8192511 \hich\af0\dbch\af0\loch\f0 43.\tab}The }{\insrsid6046545 Plaintiff}{\insrsid8192511 must}{\insrsid9778204 ,}{\insrsid8192511 however}{\insrsid9778204 ,}{\insrsid8192511 }{ \insrsid9778204 have }{\insrsid8192511 been inconvenienced greatly by these actions of the }{\insrsid6046545 Defendant}{\insrsid8192511 }{\insrsid11546687 No.}{\insrsid8192511 1. He had to move up and down. He went to the Registrar of Titles to find out what was happening to his property.}{\insrsid9778204 A sum of Shs3,000,000.00 will be adequate to compensate him as general damages for inconvenience.}{\insrsid8192511 \par {\listtext\pard\plain\lang2057\langfe1033\langnp2057\insrsid9778204 \hich\af0\dbch\af0\loch\f0 44.\tab}}{\insrsid9778204 The }{\insrsid6046545 Plaintiff}{\insrsid9778204 has indicated that he has always been willing to pay back Shs2,000,000.00 t hat was owing to the }{\insrsid6046545 Defendant}{\insrsid9778204 }{\insrsid11546687 No.}{\insrsid9778204 1 under the equitable mortgage. Much as the }{\insrsid6046545 Defendant}{\insrsid9778204 }{\insrsid11546687 No.}{\insrsid9778204 1 has not counterclaimed the same, it is just and equitable in the circumstances to direct the }{\insrsid6046545 Plaintiff}{\insrsid9778204 to pay back the said sum of shs2,000,000.00. It may be offset from the money I have ordered the }{\insrsid6046545 Defendant}{\insrsid9778204 }{\insrsid11546687 No.}{\insrsid9778204 1 to pay the }{\insrsid6046545 Plaintiff}{\insrsid9778204 as general damages. In which }{\insrsid6704476 event }{\insrsid9778204 only Shs1,000,000.00 would remain due to the }{ \insrsid6046545 Plaintiff}{\insrsid9778204 on that account. \par {\listtext\pard\plain\lang2057\langfe1033\langnp2057\insrsid6046545 \hich\af0\dbch\af0\loch\f0 45.\tab}}{\insrsid6046545 Defendant}{\insrsid9778204 }{\insrsid11546687 No.}{\insrsid9778204 2 is directed within 30 days from the date hereof to return the duplicate of certificate of title to the suit property to this court for delivery to the Registrar of Titles. \par {\listtext\pard\plain\lang2057\langfe1033\langnp2057\insrsid9778204 \hich\af0\dbch\af0\loch\f0 46.\tab}The }{\insrsid6046545 Plaintiff}{\insrsid9778204 is awarded costs of the suit }{\insrsid3220395 together with interest at court rate on the decretal amount from date of judgment until payment in full }{\insrsid9778204 against both }{\insrsid6046545 Defendant}{\insrsid9778204 s. \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9778204 {\insrsid9778204 \par }{\insrsid3556690 \par \par \par \par \par \par }{\insrsid9778204 Dated at Kampala this }{\insrsid8746476 2}{\super\insrsid8746476\charrsid8746476 nd}{\insrsid8746476 }{\insrsid9778204 day of }{\insrsid8746476 May}{\insrsid9778204 2005 \par \par \par \par \par FMS Egonda-Ntende \par Judge \par }}