Uganda Case Law

Equity Bank (U) Limited v Rubahimbya

Equity Bank (U) Limited v Rubahimbya (Civil Appeal 19 of 2023) [2024] UGHC 124 (4 April 2024)

Court

High Court of Uganda

Case number

Civil Appeal 19 of 2023

Judge

Allan Nshimye, J

The court found that the respondent, having mortgaged his property and defaulted on his loan obligations, did not fall within the exception under Regulation 13(6) of the Mortgage Regulations, which is limited to spouses. The Deputy Registrar erred in waiving the mandatory 30% security deposit before granting a temporary injunction to stop the sale of the mortgaged property. The court distinguished the Nakayaga case cited by the respondent, noting that it involved spousal consent issues not present here. The proper procedure requires the mortgagee to issue a fresh notice under Section 19(3) of…

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• Mortgage Enforcement
• Temporary Injunctions
• Security Deposit Requirements
• Power Of Sale
• Appeal From Registrar

Stanbic Bank Uganda Limited v Dahable Uganda Limited & Another

Stanbic Bank Uganda Limited v Dahable Uganda Limited & Another (Miscellaneous Application 93 of 2023) [2024] UGCommC 107 (18 March 2024)

Court

Commercial Court of Uganda

Case number

Miscellaneous Application 93 of 2023

Judge

Stephen Mubiru, J

The High Court foreclosed the respondents’ equity of redemption over mortgaged properties, ordered vacant possession, and directed sale by public auction.

• Mortgage Enforcement
• Foreclosure Proceedings
• Power Of Sale
• Equity Of Redemption
• Public Auction
• Default And Remedies

Masiko v Equity Bank Limited

Masiko v Equity Bank Limited (Miscellaneous Application No. 204 of 2022) [2022] UGCommC 13 (16 March 2022)

Court

Commercial Court of Uganda

Case number

Miscellaneous Application No. 204 of 2022

Judge

Stephen Mubiru, J

The High Court set aside an ex parte interim order stopping a mortgagee sale, holding that Regulation 13 of the Mortgage Regulations requires a 30% deposit.

• Mortgage Enforcement
• Interim Injunctions
• Review Of Registrar Orders
• Deposit Requirement
• Power Of Sale
• Abuse Of Process

Guaranty Trust Bank (U) Limited v Dokwals Uganda Limited and Another

Guaranty Trust Bank (U) Limited v Dokwals Uganda Limited and Another (Civil Suit Originating Summons 1 of 2021) [2021] UGCommC 189 (10 November 2021)

Court

Commercial Court of Uganda

Case number

Civil Suit Originating Summons 1 of 2021

Judge

Stephen Mubiru, J

The High Court granted a bank foreclosure claim, ordered sale of the mortgaged property by public auction, vacant possession, and costs after loan default.

• Mortgage Foreclosure
• Power Of Sale
• Vacant Possession
• Costs Award
• Mortgage-foreclosure
• Power-of-sale

Letshego Uganda Limited v Kulayige (Originating Summons No. 5 of 2020)

Letshego Uganda Limited v Kulayige (Originating Summons No. 5 of 2020) [2021] UGCommC 119 (1 November 2021)

Court

Commercial Court of Uganda

Case number

Originating Summons No. 5 of 2020

Judge

Boniface Wamala, J

The court found that the Plaintiff, as mortgagee, had established the existence of a duly registered mortgage over the Defendant's property, securing two loan facilities. The Defendant defaulted on repayment, and the Plaintiff complied with all statutory requirements for foreclosure, including service of notices of default and sale under the Mortgage Act. The Plaintiff was therefore entitled to foreclose and sell the mortgaged property to recover the outstanding sum. However, the court held that consent to sale by private treaty must be given by the mortgagor at the time of sale and not retro…

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• Mortgage Enforcement
• Foreclosure
• Loan Default
• Power Of Sale
• Public Auction
• Costs Award

Margherita Millers Limited and Anor v Housing Finance Bank (HCCS 390 of 2018)

Margherita Millers Limited and Anor v Housing Finance Bank (HCCS 390 of 2018) [2021] UGCommC 45 (31 August 2021)

Court

Commercial Court of Uganda

Case number

HCCS 390 of 2018

Judge

Wabwire, J

The court found that although the Mortgage Deed was not executed by the Defendant bank, the affixation of the Plaintiff's seal and the conduct of the parties, including registration and enjoyment of the loan facilities, created an enforceable equitable mortgage. The debenture, though registered late, was valid as the Plaintiff benefited from the facility and did not challenge the registration until years later. The sale of the securities was valid under the terms of the charge documents, with the Defendant entitled to realise the assets either through a receiver or as attorney of the Plaintif…

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• Mortgage Validity
• Debenture Registration
• Power Of Sale
• Duty Of Care In Realisation
• Secured Transactions
• Remedies For Breach

Luyimbazi Vs Uganda Commercial Bank

Luyimbazi Vs Uganda Commercial Bank (Civil Appeal No.50 of 2004) [2019] UGCA 3 (17 January 2019)

Court

Court of Appeal of Uganda

Case number

Civil Appeal No.50 of 2004

The Court of Appeal dismissed the mortgagor’s appeal, holding that the required notices were given, new sale objections could not be raised on appeal, and fraud was not proved.

• Mortgage Enforcement
• Power Of Sale
• Notice Requirements
• Fraud And Bad Faith
• Pleadings And Procedure
• Remedies In Contract

Babigumira & Anor v Global Trust Bank Ltd & 3 Ors

Babigumira & Anor v Global Trust Bank Ltd & 3 Ors (Civil Suit No. 344 of 2013) [2017] UGCommC 11 (20 January 2017)

Court

Commercial Court of Uganda

Case number

Civil Suit No. 344 of 2013

The High Court held that the bank lawfully sold mortgaged property after default, rejected allegations of fraud, and dismissed the suit with costs.

• Mortgage Enforcement
• Power Of Sale
• Fraudulent Transfer
• Loan Default
• Contractual Obligations
• Caveats

Mugoya Kyawa Guster v Global Trust Bank Ltd. & Anor

Mugoya Kyawa Guster v Global Trust Bank Ltd. & Anor (Miscellaneous Application No. 2262 of 2013) [2014] UGHCEBD 10 (8 July 2014)

Court

High Court: Execution and Bailiffs Division (Uganda)

Case number

Miscellaneous Application No. 2262 of 2013

The High Court upheld a mortgagee’s private treaty sale after default, finding the expired execution warrant did not invalidate the sale. The application was dismissed.

• Mortgage Enforcement
• Foreclosure
• Power Of Sale
• Private Treaty Sale
• Locus Standi
• Execution Of Decree

Owembabazi Nasimolo v Non - Performing Assets Recovery Trust

Owembabazi Nasimolo v Non - Performing Assets Recovery Trust (Miscellaneous Application 5 of 1997) [1997] UGPPDPAAT 1 (20 March 1997)

Court

Public Procurement and Disposal of Public Assets Appeals Tribunal

Case number

Miscellaneous Application 5 of 1997

Judges

Tsekooko, Chairperson, O' Bokk. member of the Tribunal

The Tribunal held that the sale of the mortgaged properties by the respondent under a power of sale did not bar it from instituting a suit to recover the balance of the loan from the applicant. The facts of Kinnaird v. Trollope were distinguished, and the Tribunal relied on the principle that where a mortgagee sells the property and realizes less than the debt, the mortgagee is entitled to sue for the balance on the personal covenant. The Tribunal found no statutory or equitable bar to the respondent's action, and therefore dismissed the application to strike out the plaint under Order 7 Rule…

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• Mortgage Enforcement
• Power Of Sale
• Personal Covenant Liability
• Strike Out Applications