Cap. 296 Art. 52Right to indemnity in certain cases.

(1) Subject to the provisions of this Act to the contrary, any person suffering loss by reason of any rectification of the register under this Act shall be entitled to be indemnified under this Act.

(2) Where an error or omission has occurred in the register, but the register is not rectified, any person suffering loss by reason of such error or omission, shall, subject to the provisions of this Act, be entitled to be indemnified under this Act.

(3) Where any person suffers loss by reason of the loss or destruction of any document lodged at the registry for inspection or safe custody or by reason of an error in any official search, he shall be entitled to be indemnified under this Act.

(4) Subject as hereinafter provided, a proprietor of any registered land or charge claiming in good faith under a forged disposition shall, where the register is rectified, be deemed to have suffered loss by reason of such rectification and shall be entitled to be indemnified under this Act.

(5) No indemnity shall be payable under this Act in any of the following cases:

(a) where the applicant has himself caused or substantially contributed to the loss by his fraud or violence, or derives title (otherwise than under a disposition under an onerous title which is registered or protected on the register) from a person so committing fraud or violence;

(b) where the register is not rectified in accordance with article 51(6);

(c) where the register is rectified to give effect to an overriding interest;

(d) on account of costs incurred in taking or defending any legal proceedings without the consent of the registrar.

(6) Where an indemnity is paid in respect of the loss of a right over or an interest in or a charge on land, the amount so paid shall not exceed -

(a) where the register is not rectified, the value of the right, interest or charge at the time when the error or omission which caused the loss was made;

(b) where the register is rectified, the value (if there had been no rectification) of the right, interest or charge, immediately before the time of rectification.

(7) The registrar may, if the applicant desires it, and subject to an appeal to the Court of Appeal, determine whether a right to indemnity has arisen under this article, and, if so, award indemnity. In the event of an appeal to the court the applicant shall not be required to pay any costs except his own, even if unsuccessful, would otherwise be payable.

(9) Where indemnity is paid for a loss, the registrar, on behalf of the Government, shall be entitled to recover the amount paid from any person who has caused or substantially contributed to the loss by his fraud, violence, negligence or default, and shall be entitled to enforce any express or implied covenant, warranty or other right which the person who is indemnified would have been entitled to enforce in relation to the matter in respect of which indemnity has been paid.

(10) Any claim to indemnity under this Act shall be enforceable only if made within five years from the date on which the right to indemnity arises, and such period shall run against all persons: Provided that where the person entitled to indemnity is a minor the claim by him may be made within two years from the time he attains majority or within five years from the date on which the right to indemnity arises, whichever may be the later date.

(11) This article applies to the Government in like manner as it applies to a private person.