The Co-operative Bank Ltd v Mwase Heron (HCT-00-CC-OS 20 of 2006) [2006] UGCommC 60 (21 September 2006)

{\rtf1\ansi\ansicpg1252\uc1\deff0\stshfdbch0\stshfloch0\stshfhich0\stshfbi0\deflang2057\deflangfe2057{\fonttbl{\f0\froman\fcharset0\fprq2{\*\panose 02020603050405020304}Times New Roman;}{\f263\froman\fcharset238\fprq2 Times New Roman CE;} {\f264\froman\fcharset204\fprq2 Times New Roman Cyr;}{\f266\froman\fcharset161\fprq2 Times New Roman Greek;}{\f267\froman\fcharset162\fprq2 Times New Roman Tur;}{\f268\froman\fcharset177\fprq2 Times New Roman (Hebrew);} {\f269\froman\fcharset178\fprq2 Times New Roman (Arabic);}{\f270\froman\fcharset186\fprq2 Times New Roman Baltic;}{\f271\froman\fcharset163\fprq2 Times New Roman (Vietnamese);}}{\colortbl;\red0\green0\blue0;\red0\green0\blue255;\red0\green255\blue255; \red0\green255\blue0;\red255\green0\blue255;\red255\green0\blue0;\red255\green255\blue0;\red255\green255\blue255;\red0\green0\blue128;\red0\green128\blue128;\red0\green128\blue0;\red128\green0\blue128;\red128\green0\blue0;\red128\green128\blue0; \red128\green128\blue128;\red192\green192\blue192;}{\stylesheet{\ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 \snext0 \styrsid6906184 Normal;}{\*\cs10 \additive \ssemihidden Default Paragraph

Font;}{\*\ts11\tsrowd\trftsWidthB3\trpaddl108\trpaddr108\trpaddfl3\trpaddft3\trpaddfb3\trpaddfr3\tscellwidthfts0\tsvertalt\tsbrdrt\tsbrdrl\tsbrdrb\tsbrdrr\tsbrdrdgl\tsbrdrdgr\tsbrdrh\tsbrdrv \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0 \fs20\lang1024\langfe1024\cgrid\langnp1024\langfenp1024 \snext11 \ssemihidden Normal Table;}{\s15\ql \li0\ri0\widctlpar \tqc\tx4320\tqr\tx8640\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 \sbasedon0 \snext15 \styrsid226073 footer;}{\*\cs16 \additive \sbasedon10 \styrsid226073 page number;}} {\*\latentstyles\lsdstimax156\lsdlockeddef0}{\*\listtable{\list\listtemplateid448052476\listhybrid{\listlevel\levelnfc0\levelnfcn0\leveljc0\leveljcn0\levelfollow0\levelstartat1\levelspace360\levelindent0{\leveltext\leveltemplateid134807567 \'02\'00.;}{\levelnumbers\'01;}\fi-360\li900\jclisttab\tx900\lin900 }{\listlevel\levelnfc4\levelnfcn4\leveljc0\leveljcn0\levelfollow0\levelstartat1\levelspace360\levelindent0{\leveltext\leveltemplateid134807577\'02\'01.;}{\levelnumbers\'01;}\fi-360\li1620 \jclisttab\tx1620\lin1620 }{\listlevel\levelnfc2\levelnfcn2\leveljc2\leveljcn2\levelfollow0\levelstartat1\levelspace360\levelindent0{\leveltext\leveltemplateid134807579\'02\'02.;}{\levelnumbers\'01;}\fi-180\li2340\jclisttab\tx2340\lin2340

}{\listlevel \levelnfc0\levelnfcn0\leveljc0\leveljcn0\levelfollow0\levelstartat1\levelspace360\levelindent0{\leveltext\leveltemplateid134807567\'02\'03.;}{\levelnumbers\'01;}\fi-360\li3060\jclisttab\tx3060\lin3060 }{\listlevel\levelnfc4\levelnfcn4\leveljc0\leveljcn0 \levelfollow0\levelstartat1\levelspace360\levelindent0{\leveltext\leveltemplateid134807577\'02\'04.;}{\levelnumbers\'01;}\fi-360\li3780\jclisttab\tx3780\lin3780 }{\listlevel\levelnfc2\levelnfcn2\leveljc2\leveljcn2\levelfollow0\levelstartat1\levelspace360 \levelindent0{\leveltext\leveltemplateid134807579\'02\'05.;}{\levelnumbers\'01;}\fi-180\li4500\jclisttab\tx4500\lin4500 }{\listlevel\levelnfc0\levelnfcn0\leveljc0\leveljcn0\levelfollow0\levelstartat1\levelspace360\levelindent0{\leveltext \leveltemplateid134807567\'02\'06.;}{\levelnumbers\'01;}\fi-360\li5220\jclisttab\tx5220\lin5220 }{\listlevel\levelnfc4\levelnfcn4\leveljc0\leveljcn0\levelfollow0\levelstartat1\levelspace360\levelindent0{\leveltext\leveltemplateid134807577 \'02\'07.;}{\levelnumbers\'01;}\fi-360\li5940\jclisttab\tx5940\lin5940 }{\listlevel\levelnfc2\levelnfcn2\leveljc2\leveljcn2\levelfollow0\levelstartat1\levelspace360\levelindent0{\leveltext\leveltemplateid134807579\'02\'08.;}{\levelnumbers\'01;} \fi-180\li6660\jclisttab\tx6660\lin6660 }{\listname

;}\listid161236476}{\list\listtemplateid-2084897018\listhybrid{\listlevel\levelnfc0\levelnfcn0\leveljc0\leveljcn0\levelfollow0\levelstartat1\levelspace0\levelindent0{\leveltext\leveltemplateid67698703 \'02\'00.;}{\levelnumbers\'01;}\fbias0 \fi-360\li720\jclisttab\tx720\lin720 }{\listlevel\levelnfc4\levelnfcn4\leveljc0\leveljcn0\levelfollow0\levelstartat1\levelspace0\levelindent0{\leveltext\leveltemplateid67698713\'02\'01.;}{\levelnumbers\'01;} \fi-360\li1440\jclisttab\tx1440\lin1440 }{\listlevel\levelnfc2\levelnfcn2\leveljc2\leveljcn2\levelfollow0\levelstartat1\levelspace0\levelindent0{\leveltext\leveltemplateid67698715\'02\'02.;}{\levelnumbers\'01;}\fi-180\li2160\jclisttab\tx2160\lin2160 } {\listlevel\levelnfc0\levelnfcn0\leveljc0\leveljcn0\levelfollow0\levelstartat1\levelspace0\levelindent0{\leveltext\leveltemplateid67698703\'02\'03.;}{\levelnumbers\'01;}\fi-360\li2880\jclisttab\tx2880\lin2880 }{\listlevel\levelnfc4\levelnfcn4\leveljc0 \leveljcn0\levelfollow0\levelstartat1\levelspace0\levelindent0{\leveltext\leveltemplateid67698713\'02\'04.;}{\levelnumbers\'01;}\fi-360\li3600\jclisttab\tx3600\lin3600 }{\listlevel\levelnfc2\levelnfcn2\leveljc2\leveljcn2\levelfollow0\levelstartat1 \levelspace0\levelindent0{\leveltext\leveltemplateid67698715\'02\'05.;}{\levelnumbers\'01;}\fi-180\li4320\jclisttab\tx4320\lin4320

}{\listlevel\levelnfc0\levelnfcn0\leveljc0\leveljcn0\levelfollow0\levelstartat1\levelspace0\levelindent0{\leveltext \leveltemplateid67698703\'02\'06.;}{\levelnumbers\'01;}\fi-360\li5040\jclisttab\tx5040\lin5040 }{\listlevel\levelnfc4\levelnfcn4\leveljc0\leveljcn0\levelfollow0\levelstartat1\levelspace0\levelindent0{\leveltext\leveltemplateid67698713 \'02\'07.;}{\levelnumbers\'01;}\fi-360\li5760\jclisttab\tx5760\lin5760 }{\listlevel\levelnfc2\levelnfcn2\leveljc2\leveljcn2\levelfollow0\levelstartat1\levelspace0\levelindent0{\leveltext\leveltemplateid67698715\'02\'08.;}{\levelnumbers\'01;}\fi-180\li6480 \jclisttab\tx6480\lin6480 }{\listname ;}\listid1253928929}}{\*\listoverridetable{\listoverride\listid1253928929\listoverridecount0\ls1}{\listoverride\listid161236476\listoverridecount0\ls2}}{\*\rsidtbl \rsid226073\rsid1536160\rsid2368904\rsid4614281 \rsid6894898\rsid6906184\rsid7013745\rsid7409994\rsid8613619\rsid13118885\rsid13653258\rsid16137175\rsid16283380\rsid16339346}{\*\generator Microsoft Word 11.0.5604;}{\info{\title THE REPUBLIC OF UGANDA}{\author Galiwango Esther}{\operator kgalenda} {\creatim\yr2009\mo8\dy7\hr13\min11}{\revtim\yr2009\mo8\dy7\hr13\min11}{\printim\yr2006\mo9\dy25\hr13\min24}{\version2}{\edmins1}{\nofpages2}{\nofwords295}{\nofchars1688}{\*\company Courts of

Judicature}{\nofcharsws1980}{\vern24689}} \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\rsidroot6906184\newtblstyruls\nogrowautofit \fet0{\*\ftnsep \pard\plain \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\insrsid6894898 \chftnsep \par }}{\*\ftnsepc \pard\plain \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\insrsid6894898 \chftnsepc \par }}{\*\aftnsep \pard\plain \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\insrsid6894898 \chftnsep \par }}{\*\aftnsepc \pard\plain \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\insrsid6894898 \chftnsepc \par }}\sectd \linex0\headery708\footery708\colsx708\endnhere\sectlinegrid360\sectdefaultcl\sftnbj {\footer \pard\plain \s15\ql

\li0\ri0\widctlpar \tqc\tx4320\tqr\tx8640\pvpara\phmrg\posxc\posy0\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid7013745 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\field{\*\fldinst {\cs16\insrsid226073 PAGE }}{\fldrslt { \cs16\lang1024\langfe1024\noproof\insrsid16137175 1}}}{\cs16\insrsid226073 \par }\pard \s15\ql \li0\ri0\widctlpar\tqc\tx4320\tqr\tx8640\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0 {\insrsid226073 \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\pararsid4614281 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\insrsid6906184\charrsid4614281 THE REPUBLIC OF UGANDA \par IN THE HIGH COURT OF UGANDA AT KAMPALA \par COMMERCIAL COURT DIVISION \par \par HCT-00-CC-OS-0020 OF

2006 \par \par }\pard \ql \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid8613619 {\insrsid6906184\charrsid4614281 THE COOP}{\insrsid8613619 BANK LTD \'85\'85\'85\'85\'85\'85\'85\'85\'85..\'85\'85\'85\'85\'85.}{ \insrsid6906184\charrsid4614281 APPLICANT/PLAINTIFF \par }\pard \qc \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4614281 {\insrsid6906184\charrsid4614281 \par VERSUS \par \par }\pard \ql \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4614281 {\insrsid8613619 MWASE HERON \'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85}{\insrsid6906184\charrsid4614281 . RESPONDENT/DEFENDANT }{\insrsid8613619 \par }{\b\i\ul\insrsid8613619 Legislation referred to: \par {\listtext\pard\plain\i\lang1033\langfe1033\langnp1033\langfenp1033\insrsid8613619\charrsid8613619 \hich\af0\dbch\af0\loch\f0 1.\tab}}\pard \ql \fi-360\li900\ri0\sl360\slmult1\widctlpar \jclisttab\tx900\aspalpha\aspnum\faauto\ls2\adjustright\rin0\lin900\itap0\pararsid8613619 {\i\insrsid8613619\charrsid8613619 Mortgage Act, Cap 229}{\i\insrsid6906184 \par {\listtext\pard\plain\i\lang1033\langfe1033\langnp1033\langfenp1033\insrsid8613619\charrsid8613619 \hich\af0\dbch\af0\loch\f0 2.\tab}}{\i\insrsid8613619\charrsid8613619 Civil Procedure Rules \par }\pard \qc

\li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4614281 {\insrsid6906184\charrsid4614281 \par \par BEFORE: HON. MR. JUSTICE LAMECK N. MUKASA \par \par RULING: \par }\pard \ql \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4614281 {\insrsid6906184\charrsid4614281 \par }\pard \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4614281 {\insrsid6906184\charrsid4614281 This application is brought by Originating Summons under sections 7 and 8 of the Mortgage Act, Cap 229 and Order 34 rule 3A and 7 (now Order 37 rule 4 and 8) of the Civil Procedure Rules by the Cooperative Bank Ltd }{\insrsid13653258\charrsid4614281 (in liquidation) }{\insrsid6906184\charrsid4614281 seeking for order that: \par \par {\listtext\pard\plain\lang1033\langfe1033\langnp1033\langfenp1033\insrsid6906184\charrsid4614281 \hich\af0\dbch\af0\loch\f0 1.\tab}}\pard \qj \fi-360\li720\ri0\sl360\slmult1\widctlpar \jclisttab\tx720\aspalpha\aspnum\faauto\ls1\adjustright\rin0\lin720\itap0\pararsid4614281 {\insrsid6906184\charrsid4614281 An order for fore closure of the defendant}{\insrsid2368904\charrsid4614281 \rquote }{\insrsid6906184\charrsid4614281 s equity of redemption of the mortgage property. \par

{\listtext\pard\plain\lang1033\langfe1033\langnp1033\langfenp1033\insrsid6906184\charrsid4614281 \hich\af0\dbch\af0\loch\f0 2.\tab}An order that the mortgaged property be offered for sale and sol}{\insrsid13653258\charrsid4614281 d}{ \insrsid6906184\charrsid4614281 by the mortgagee. \par {\listtext\pard\plain\lang1033\langfe1033\langnp1033\langfenp1033\insrsid6906184\charrsid4614281 \hich\af0\dbch\af0\loch\f0 3.\tab}Further and other relief Court may deem fit, just and reasonable. \par {\listtext\pard\plain\lang1033\langfe1033\langnp1033\langfenp1033\insrsid6906184\charrsid4614281 \hich\af0\dbch\af0\loch\f0 4.\tab}Costs of the suit. \par }\pard \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4614281 {\insrsid6906184\charrsid4614281 \par }{\insrsid13653258\charrsid4614281 The application}{\insrsid6906184\charrsid4614281 is supported by an affidavit sworn by Ben Ssekabira the Bank of Uganda Coordinator of the Cooperative Bank Ltd (in liquidation). T he facts as I have gathered from the said affidavit are that on 7}{\super\insrsid6906184\charrsid4614281 th}{\insrsid6906184\charrsid4614281 }{\insrsid2368904\charrsid4614281 August 1995 }{\insrsid4614281\charrsid4614281 the Applicant}{ \insrsid6906184\charrsid4614281 Bank advanced the Respondent Credit facilitates }{\insrsid4614281\charrsid4614281 by way}{\insrsid6906184\charrsid4614281

of overdraft on security of land comprised i}{\insrsid2368904\charrsid4614281 n LRV 944 Block 190 Plot 209 Nabweli Mukono. As of 30}{\super\insrsid2368904\charrsid4614281 th}{\insrsid2368904\charrsid4614281 November }{\insrsid13118885\charrsid4614281 2005 the}{\insrsid2368904\charrsid4614281 Respondent\rquote s indebtedness of both the principal and interest stood at Shs21}{\insrsid4614281\charrsid4614281 , 365,397}{\insrsid2368904\charrsid4614281 and continues to attract interest at the rate of 21% until the }{\insrsid4614281\charrsid4614281 entire debt}{ \insrsid2368904\charrsid4614281 is fully realized. The Respondent has failed to pay and the Applicant contends that it is entitled to realise and enforce the security under the mortgage by fore-closure and sale of the property to recover the monies due. }{\insrsid6906184\charrsid4614281 \par }{\insrsid2368904\charrsid4614281 \par I have carefully considered the above facts and I find that this is an appropriate case where Originating Summons should be issued and I accordingly so order. Let the Originating Summons issue for hearing on a date to be fixed by the Registry. \par }\pard \ql \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4614281 {\insrsid2368904\charrsid4614281 \par \par \par \par \par \par }\pard \qc

\li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4614281 {\insrsid2368904\charrsid4614281 Hon. Mr. Lameck N. Mukasa \par Judge \par 22}{\super\insrsid2368904\charrsid4614281 nd}{\insrsid2368904\charrsid4614281 September 2006 \par }\pard \ql \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4614281 {\insrsid2368904\charrsid4614281 \par }\pard \qc \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4614281 {\insrsid6906184\charrsid4614281 \par }\pard \ql \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4614281 {\insrsid6906184\charrsid4614281 \par }}