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GHANA BAR REPORT 1993 -94 VOL 4

 

Bediako v Arthur and another [1992 – 1993] 4 G B R 1594 -  1602 C.A

COURT OF APPEAL

AMPIAH JSC, ESSIEM, ADJABENG JJA

13 MAY 1993

 

Land Registration Instrument affecting land Receipt Whether registrable  Land Registry Act 1962 (Act 122) s 24.

Land law and conveyancing Deed of conveyance  Title Vendor in possession of property purchased from owner without conveyance Vendor seeking to resell property Whether good conveyancing practice for purchaser to obtain conveyance from owner.

Costs Award Discretion Claims by plaintiff and co-defendant dismissed  Whether costs against plaintiff for co-defendant proper.

The plaintiff had purchased the disputed property from O who had purchased the land on which he constructed the property from A stool in 1959. As O had no conveyance the plaintiff procured a direct grant from A stool. The plaintiff then renovated the house and continued to receive rents from the tenants, including the defendant, for about four years until O died. Thereafter the defendant claiming to be a niece of O, disputed the plaintiff’s ownership of the house and refused to pay rents. The plaintiff instituted an action against the defendant for a declaration of ownership and recovery of possession. O’s family head applied and was joined as a co-defendant. He counterclaimed for a declaration of title to the property, cancellation of the plaintiff’s deed of conveyance, damages for trespass, account, mesne profits, perpetual injunction and refund of all rents collected by the plaintiff from the house. The trial court dismissed the claim and counterclaim with costs against the plaintiff. The court held that the receipt issued by O to the plaintiff for the purchase price of the property was a document affecting land, required to be registered under section 24(1) of the Land Registry Act 1962 (Act 122). For want of registration it gave no effect to the sale of the disputed property. The court held further that the conveyance by A stool was ineffectual in law as it made no reference to the sale of the land to O or the house thereon. In the view of the court, A stool had no title to convey at the material time as the land was vested in O. On appeal by the plaintiff to the Court of Appeal,

Held: (1) The fact that land was recited in a document did not make the document registrable. A receipt issued for the purchase of the land did not by itself convey the land and was not registrable under the Land Registry Act 1962 (Act 122) s 24. Djan v Owoo [1976] 2 GLR 401 referred to.

(2) It was good conveyancing practice in the circumstances that A stool conveyed the land to the plaintiff with the knowledge of O. Although the house was not referred to in the conveyance to the plaintiff, there was sufficient evidence on record that it was sold to him by O. The maxim quicquid plantatur solo, solo cedit might be applied in such situation. On the other hand the principle of nemo dat quod non habet was inapplicable as A stool, to O’s knowledge, conveyed the land to the plaintiff. It was not necessary to recite O’s name to make the conveyance effective. Its registration made the grant effectual.

(3) The award of costs to the co-defendant was wrongful exercise of discretion. The co-defendant who applied to be joined turned out to be a busy body and his claim was rejected. If the plaintiff lost against the defendant, he won against the co-defendant and was entitled to costs against the co-defendant. The award in favour of the co-defendant would be set aside.

Cases referred to:

Ricketts v Addo [1975] 2 GLR 158, CA.

Djan v Owoo [1976] 2 GLR 401, CA.

APPEAL from the decision of the High Court to the Court of Appeal.

N K Kudjawu (with him Miss Irene Kumasenu) for the appellant.

James Ahenkorah for the respondents.

AMPIAH JSC. The plaintiff in this action claimed to have purchased a piece of land with a dwelling house thereon at Bubuashie, Accra, from one A K Oduro (now deceased). The house is numbered 89/18 Bubuashie, Accra. The late Oduro was said to have purchased the land on which he built, from the Asere stool in 1959. The late Oduro had no conveyance from the Asere stool. In 1977 when the plaintiff decided to purchase the property, he was directed to the Asere stool, which conveyed the property to the plaintiff. The deed, which was dated 6 December 1977 was registered as No 194/1978 and tendered in evidence as exhibit B.

The plaintiff gave notice of the change of ownership in the property to the tenants in the house, including the defendant. He then took charge of the house, made certain renovations and collected rents from all the tenants in the house including the defendant. This continued for about 3-4 years until the original owner, the late Oduro, died in November 1981.

Soon thereafter a misunderstanding arose between the plaintiff and the defendant. The defendant who claimed to be a niece of the late Oduro, refused to pay further rents and rejected the plaintiff’s claim to ownership of the house. Consequently, the plaintiff brought this action against the defendant claiming:

“(1) A declaration that he is the owner of all that piece or parcel of land situate lying and being at Bubuashie, Accra;

(2) An order of recovery of possession from the defendant of the portion of the house she occupies;

(3) Such further relief or reliefs as the court shall consider appropriate in the circumstances.”

The defendant resisted the claim.

On 11 June 1984, one Nana Amoako Kosare Diamin II who claimed to be the head of late Oduro’s family applied to join the action as a co-defendant. His request was acceded to. He counterclaimed for a declaration of title to the property, recall and cancellation of the plaintiff’s deed of conveyance, damages for trespass, order for account and refund of all rents collected by the plaintiff from the house from May 1977 to the date of judgment. He also claimed mesne profits and, an order of perpetual injunction against the plaintiff.

On 29 June 1988, the judge dismissed both the plaintiff’s claim and the co-defendant’s counter-claim. She awarded costs of ¢100,000 and ¢60,000 against the plaintiff in favour of the defendant and co-defendant respectively. Against this judgment the plaintiff has appealed. The grounds of appeal are contained in the Notices filed on 29 June 1988 and 9 February 1993.

Counsel for the plaintiff-appellant (hereinafter referred to as “the plaintiff”) has submitted that “the learned trial judge misdirected herself on the practice and the law of conveyancing and thereby, fell into error by holding that exhibit A and B failed to prove the plaintiff-appellant’s title to the land and the house, the subject of the dispute.”

With regard to exhibit A the trial judge held that since it was a document affecting land, it was required to be registered under section 24(1) of the Land Registry Act 1962 (Act 122) and since it had not so been registered it was ineffective to give effect to the alleged sale of the property in dispute to the plaintiff. In other words, exhibit A was incapable of supporting the plaintiff’s case. In coming to this conclusion, the trial judge held that exhibit A (a receipt) was an instrument as defined in Act 122 and since it affected land, it needed to be registered before it became effective.

With all due deference to the trial judge, it is not in all cases that a document referring to land needs to be registered. It is not quite clear from Djan v Owoo [1976] 2 GLR 401, upon which the trial judge relied so heavily, the nature of the receipts in that case and for what purpose they had been tendered. It would be seen from the case itself that even though the court rejected the receipts as ineffective, the same court relied on them to order specific performance. In my opinion the mere fact that land has been recited in a document does not make the document registrable. A receipt which merely


 

acknowledges that money has been paid for a piece of land, but does not by itself convey the land, is not registrable to become effective. It is acceptable as evidence in proof of payment if it is duly stamped. If the position were to be otherwise, it would mean that where the purchase price for land is paid by instalment, each receipt issued for a part payment should be registered to make it effective. Would a rent card which refers to a house (a landed property) be required to be registered? I do not think so.

In the instant case, the plaintiff had tendered the receipt (exhibit A) as evidence of payment for the purchase of the house in dispute. The conveyance itself was tendered as exhibit B to show the transfer of the house to the plaintiff in pursuance of the payment. If the trial judge was satisfied that the signature on the receipt (exhibit A) was that of the vendor, then that document having been stamped, was evidence in support of the plaintiff’s case. The rejection of the document as not having been registered was wrong.

Did exhibit A contain the signature of the late A K Oduro? The trial judge observed:

“Though the plaintiff can claim no rights under exhibit A - indeed I can make no observation on the signature purported to be that of Oduro - I have compared it to exhibit 2A and 2B which the parties are agreed are the genuine signatures of the deceased. It seems to me that while 2A and 2B are similar and flow naturally, the signature on exhibit A appears to me to be laboured and very different from both exhibits 2A and 2B. It seems to me that the writer has been at some pain to write it out. In other words it does not look like the undisputed signatures that we have of Oduro¼

Admittedly the judge who was not a handwriting expert found herself in a confused state with regard to the signature on exhibit A. Since she could not make an observation on the signature, she could have sought expert advice on it. Exhibits 2A and 2B were prepared in July 1963. Exhibit A was prepared in May 1977 at a time when the late Oduro was alleged to be ill. Within 14 years there was the likelihood of the signature varying not necessarily as to characters but as to the manner the characters are presented. It was the duty of an expert to assist with regard to the character formation.

PW3 (not PW4 as stated by the judge) was admitted to be the grandson of the late Oduro. He was entrusted with certain responsibilities by the late Oduro. He testified as to how exhibit A came to be prepared. He was emphatic that it was the late A K Oduro himself who had signed the document.

In her effort to reject the receipt (exhibit A) the judge observed quite feebly that PW3 at the age of 17 could not have been asked to write out the receipt. I do not see anything wrong with the late A K Oduro asking his grandson of 17 to write the contents of the receipt for Oduro himself, to sign. There is evidence that PW3 had been appointed the attorney of Oduro to do certain things for Oduro before his death. No one then can doubt the trust and confidence Oduro reposed in this “young” man. In the absence of positive evidence of forgery, evidence of which the co-defendant had the onus of establishing, I think exhibit A could be accepted as the deed of the late Oduro. By rejecting exhibit A on this ground also, the trial judge erred.

The learned trial judge had also rejected exhibit A on these grounds that:

“(1) No reference is made to the building B 89/18 situate on this land.

(2) Significantly the late A K Oduro is not mentioned at all in the recitals; the plaintiff does not trace the root of title through Oduro. He never executed the exhibit B as a vendor.

(3) On the face of exhibit B, the Asere Manche PW4 Nii Amontia IV was conveying this piece of land which had been vested in the late Oduro for over 20 years to the plaintiff. Certainly on the well known legal principle “nemo dat quod non habet”, the Asere Manche cannot proceed to convey the property of another to a 3rd person. It must be pointed out that the mere registration will not confer any legal right or title to the plaintiff where he took the grant from the chief who has no title to convey.”

This last ground for rejecting exhibit B, has in fact evoked the plaintiff’s additional ground that “the learned trial judge misunderstood the plaintiff-appellant’s case and failed to give adequate consideration to it”.

Exhibit B was prepared on 6/12/77 about 4 years before A K Oduro died (ie in November 1981). It is not clear on the evidence what his health condition was in 1977. There is evidence that Oduro in the latter part of his life was taken to Tepa Amenya for treatment. PW5 Ama Pokua, also known as Monica Oduro, a daughter of the late Oduro, also testified as to the health condition of the late Oduro in 1978. Her evidence more or less corroborated the evidence of PW3. The evidence on the health condition of the late Oduro was conflicting from both sides. Since Oduro was sent to a hospital for treatment, in the absence of positive evidence from the hospital records, a burden which fell on the defence, it would be assumed that when exhibit A was made, Oduro was not totally bedridden. That the late Oduro deputed PW3 to carry out certain duties for him cannot be disputed.

According to PW3 whose evidence the judge relied on heavily to discredit the plaintiff, after the sale of the property to the plaintiff, he was asked by the late Oduro to take the plaintiff to the house and he was introduced to the tenants including the defendant. PW3 introduced the plaintiff to the inmates as the new owner of the house. Whatever the conflicting evidence on this, the evidence shows incontrovertibly that from that time onwards to the time of the death of the late Oduro, the defendant who hitherto was not paying rent and who claimed to be the niece of the late Oduro, paid rents to the plaintiff without any protest. Whether the defendant was told the plaintiff was the new owner of the house or a mere caretaker, the defendant’s conduct in paying rent to this ‘stranger’ was inconsistent with her claim that the plaintiff was not known to her. If indeed she was not paying rent before, then her agreement to pay rent thereafter without hearing from her uncle was a very unreasonable behavior. From 1977 to 1981, when her uncle died, she could not ascertain the true facts from her uncle.

The co-defendant’s conduct was equally unacceptable. Even though both the defendant and co-defendant had heard about the sale or caretakership of the property, neither was able to ascertain the true situation. The reason for their inability to see the late Oduro about the property before his death was so feeble to be acceptable. Even though they claim the late Oduro was not well, within this period of four years, the late Oduro was able to do so many things. If they had resisted the claim then, the plaintiff would have been given an opportunity to assert his claim.

This was not a case of giving evidence against a deceased person’s property. The property had already been sold at a time when the deceased was alive and any body could have challenged the plaintiff’s title. But in this whole episode, PW3’s evidence was unique; none of the witnesses challenged PW3’s evidence that he had been appointed an attorney by the late Oduro. PW3 was a grandson of the deceased and they all lived together in late Oduro’s house ie No 15 opposite the Police Headquarters. He lived in the house with some of Oduro’s children and other relatives. Is it not strange that the late Oduro would not entrust his own children with the caretakership of his other properties but rather PW3? And, if the plaintiff was to be appointed a mere caretaker what prevented the late Oduro from appointing PW3 who was already his attorney to look after this property also. PW3 applied for letters of administration. Although these were, on the evidence, later revoked, the court did not totally reject PW3’s administering the estate with another person (not the co-defendant).

The rejection of the co-defendant’s claim was right as, on the evidence he could not have established any interest in late Oduro’s estate. The plaintiff’s case, which was supported in all material particulars, was that after the purchase, Oduro could not give him a conveyance, the reason being that he (Oduro) himself had no conveyance from the Asere stool which owned the land. PW2, a grandson and solicitor to the late Oduro, testified as to how exhibit B came to be prepared. PW4, Nii Nikooi Olai Amontia, the Asere Manche was clear on how exhibit B came to be prepared for the plaintiff. Though there were a few conflicts in the plaintiff’s case, they were not such as could undermine the reality of the situation. Apart from the plaintiff, there were other witnesses who supported the plaintiff’s claim. It appears that from the manner PW3 was recalled that an attempt was made to give him a bad name and hang him. He gave evidence on 27 November 1985. He was recalled on 11 May 1987 and on 7 November 1987 to be further cross-examined. The judge had not heard PW3 personally on 27 November 1985. The use of some inconsistent statements made in 1987 to discredit him was most unfortunate.

Since A K Oduro himself had no effective title to the land on which he had his house, it was consistent with conveyancing practice for the conveyance to the plaintiff to be prepared in the name of the original owner of the land. And this was done with the knowledge of Oduro. I do not see how Oduro’s lawyer who is also his grandson would have lied about the transaction.

It is true that the house was not specifically mentioned in exhibit B but there was some evidence that it had been sold to the plaintiff. The maxim quicquid plantatur solo, solo cedit ie whatever is affixed t the soil belongs to the soil may be applied here without any injustice to the late Oduro.

The plaintiff took the land which had been sold to him together with Oduro’s house. The principle of nemo dat quod non habet was inapplicable here. Since it was only land that exhibit B was trying to convey effectively, the original owners could not be said to have given away what did not belong to them. Oduro was in the know of that arrangement. Oduro could have had that conveyance set aside if he had found it fraudulent. The registration of that land made the grant effective and it took priority over all other sales of the land. It was not necessary that Oduro’s name should appear in exhibit B to make it effective.

The principle that a plaintiff should succeed on the strength of his own case and not to rely on the weakness in the defence case is a sound one but should be applied with caution. In Ricketts v Addo [1975] 2 GLR 158, the Court of Appeal held inter alia:

“The principle that in an action for a declaration of title the plaintiff should not rely on the weakness in the defence case but on the strength of his own case had its simplest application in the situation where a plaintiff could not on his own make out a case of his title at all and relied on the defects in the defendant’s case to justify his claim to title. However where the plaintiff could put forward some sort of claim to title, the principle then had meaning in practical terms if the defendant had some semblance of claim to the land, e.g. by occupation or possession what ever the defects in the defendant’s title the plaintiff could not rely on them; he must rely on the superior strength of his own title. Therefore, if the defendant’s case was measured against the plaintiff’s and the plaintiff’s was found more probable, a determination which necessarily involved the balancing of the strengths and weaknesses of the rival claims, the plaintiff’s case had to be accepted.”

In the instant case, the judge found that:

¼the defendant and co-defendant claim that the property had never been sold to the plaintiff, none of them proferred any direct evidence of any confrontation between the late Oduro and the plaintiff at which confrontation Oduro had denied ever selling the property to the plaintiff. The defendant confesses at one time she had wanted to ask Oduro about the sale but she never got the opportunity as the oldman was then seriously ill¼

The judge went on to dismiss the co-defendant’s counterclaim. Thus on the evidence the defendants had not put up any serious challenge to the plaintiff’s claim. On balancing the strength and weakness in the case, the judge was required to consider the entirety of the evidence on record and evaluate it. In this case the plaintiff was not relying on any weakness in the defence as the defence merely denied the sale. Oduro had died three or four years after the sale. Soon after the sale, the defendant who hitherto had not been paying rent was asked to pay rent; an act she readily agreed to comply with and continued to pay rent until Oduro died. The plaintiff in pursuance of the sale took possession of a room in the house and renovated the house to the knowledge of the defendant. The plaintiff continued to exercise these acts of ownership over the house without any protest whatsoever and there was no evidence that he ever accounted to the late Oduro. The plaintiff was introduced to the tenants as owner of the house by PW3. In certain cases the subsequent acts of a person should be capable of explaining what had been intended or agreed upon. These acts by the plaintiff, and the conduct of the defendant and co-defendant should be taken into consideration in assessing what value should be placed on the documents (exhibit A and B). The judge failed to look at the overwhelming evidence including exhibits A and B proffered by the plaintiff. Her wrongful rejection of the documents which the plaintiff tendered to establish his case, disabled her from evaluating critically the whole of the plaintiff’s case. Neither the defendant nor the co-defendant led any evidence of the family’s continued interest in the property. In fact, the rejection of the co-defendant’s claim left the house in the hands of the plaintiff and no other person. On the totality of the evidence, I accept that the judgment was against the weight of evidence.

With regard to the costs awarded, I think the award to the co-defendant was wrongful exercise of discretion. It was the co-defendant himself who applied to be joined in the action. It turned out that he was more or less a busy body; his claim was rejected. If the plaintiff had lost against the defendant, he had at least won against the co-defendant; I would have thought the plaintiff rather was entitled to costs against the co-defendant. I would in the circumstances set aside the award of costs in favour of the co-defendant.

The defendant depended upon the evidence of the co-defendant to resist the plaintiff’s claim. The co-defendant having failed, any costs in favour of the defendant should have been minimal. I think the costs awarded in favour of the defendant was excessive and should be set aside.

One of the claims against the defendant was for the recovery of that portion of the house occupied by the defendant. The failure of the family to claim the house left the plaintiff either as a purchaser or caretaker of the house and as such he was entitled to collect rents until a person with a better title, if any turns up. The defendant by her own conduct was not entitled to repudiate the title of the plaintiff. Since she had challenged the title of the plaintiff and refused to pay rents, the plaintiff was entitled to recover the room. By the total rejection of the plaintiff’s claims, the judge failed to consider this aspect of the claim.

The burden, undoubtedly, was on the plaintiff to establish that he had purchased the property. Despite the many faults that the judge found in the evidence of PW3, there was still sufficient evidence which, if properly considered, would have entitled the plaintiff on the preponderance of the probabilities, to his claim.

For the above reasons, I would allow the appeal and set aside the judgment of the court below, together with all costs awarded. There will be judgment for the plaintiff on his claim. The plaintiff is ordered to recover the room from the defendant. The defendant is given one month to vacate the house.

ESSIEM JA. I agree.

ADJABENG JA. I also agree.

Appeal allowed.

S Kwami Tetteh, Legal Practitioner

 
 

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