Uganda Case Law

Gabas Investments Limited v Exim Bank (Uganda) Limited

Gabas Investments Limited v Exim Bank (Uganda) Limited (Miscellaneous Application 2050 of 2023) [2023] UGCommC 194 (15 November 2023)

Court

Commercial Court of Uganda

Case number

Miscellaneous Application 2050 of 2023

Judge

Mutesi, J

The court found that the consent judgment was not expressly conditioned on refinancing from MSC or any specific financier. The applicant's obligations under the consent were open-ended regarding sources of funding, and the applicant was expected to pursue all available options. The alleged misapprehension regarding MSC's willingness to refinance was not material to the validity of the consent, as the applicant had actual notice and knowledge that MSC's facility would not be extended at the time of entering the consent. The court further held that no credible evidence of misapprehension of fac…

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• Consent Judgment
• Setting Aside Judgment
• Loan Refinancing
• Secured Transactions

Abairisa Naur Qorane v Ali (Originating Summons 9 of 2023)

Abairisa Naur Qorane v Ali (Originating Summons 9 of 2023) [2023] UGCommC 111 (24 October 2023)

Court

Commercial Court of Uganda

Case number

Originating Summons 9 of 2023

Judge

Kahigi Asiimwe, J

The High Court held that the lender had an enforceable security interest over shop stock and assets after default, but ordered sale by public auction, not private treaty.

• Secured Transactions
• Enforcement Of Security
• Movable Property Security
• Loan Default
• Secured-transactions
• Enforcement-of-security

Bank of India (U) Limited v NC Beverages Limited and Another

Bank of India (U) Limited v NC Beverages Limited and Another (Civil Suit No. 9 of 2021) [2022] UGCommC 33 (21 March 2022)

Court

Commercial Court of Uganda

Case number

Civil Suit No. 9 of 2021

Judge

Stephen Mubiru, J

The High Court held that URA’s distress and sale were void after liquidation commenced, and upheld the bank’s right as secured creditor to foreclose and take possession.

• Secured Transactions
• Priority Of Creditors
• Foreclosure
• Insolvency Proceedings
• Winding Up
• Remedies For Default

Bank of India (U) Limited v NC Beverages Limited and Another

Bank of India (U) Limited v NC Beverages Limited and Another (Civil Suit Originating Summons 9 of 2021) [2022] UGCommC 123 (21 March 2022)

Court

Commercial Court of Uganda

Case number

Civil Suit Originating Summons 9 of 2021

Judge

Stephen Mubiru, J

The court held that the dispute was not a tax dispute within the exclusive jurisdiction of the Tax Appeals Tribunal, as it did not concern a challenge to a tax assessment or decision under a taxing Act, but rather the priority of a secured creditor's rights over those of the tax authority in insolvency. The plaintiff's floating charge crystallised upon the filing of the winding up petition, giving the plaintiff a proprietary interest in the charged assets. The URA's distress and sale of the assets after the commencement of liquidation proceedings were illegal and void under section 97(1)(c) o…

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• Secured Transactions
• Insolvency Proceedings
• Priority Of Creditors
• Foreclosure
• Distress For Taxes
• Winding Up

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

Bank of Baroda (U) Ltd-v- Mpungu & Sons Transporters Ltd (HCT-00-CC-CS 921 of 1997)

Bank of Baroda (U) Ltd-v- Mpungu & Sons Transporters Ltd (HCT-00-CC-CS 921 of 1997) [2007] UGCommC 16 (19 February 2007)

Court

Commercial Court of Uganda

Case number

HCT-00-CC-CS 921 of 1997

The High Court found the defendants liable for an outstanding bank loan, upheld sale of the charged bus, and dismissed the counterclaim.

• Loan Default
• Guarantees And Sureties
• Debenture Enforcement
• Secured Transactions
• Interest Awards
• Bank-loan-recovery

Mwebaze Robert v Fred Mugume (HCT-05-CV-CS-0103-2002 ) (HCT-05-CV-CS-0103-2002)

Mwebaze Robert v Fred Mugume (HCT-05-CV-CS-0103-2002 ) (HCT-05-CV-CS-0103-2002) [2005] UGHC 95 (27 April 2005)

Court

High Court of Uganda

Case number

HCT-05-CV-CS-0103-2002

The High Court held that a borrower voluntarily handed over a pickup as loan security, found no forceful seizure, and dismissed the damages claim with costs.

• Secured Transactions
• Loan Default
• Damages Assessment
• Evidence Burden
• Secured-transactions
• Loan-default

Non-Performing Assets Recovery Trust vs Ples Quality Printers Ltd and Another

Non-Performing Assets Recovery Trust vs Ples Quality Printers Ltd and Another (Civil Appeal No. 19 of 1997) [1998] UGCA 4 (28 October 1998)

Court

Court of Appeal of Uganda

Case number

Civil Appeal No. 19 of 1997

Appeal allowed: the loan was for a printing press, not a specific machine, and the bank was not liable for non-delivery of the machine.

• Loan Contracts
• Mortgage Enforcement
• Undue Influence
• Misrepresentation
• Contractual Obligations
• Secured Transactions

Victoria Printing Press Limited v Many

Victoria Printing Press Limited v Many (Civil Case No. 149 of 1939) [1938] EACA 182 (1 January 1938)

Court

East African Court of Appeal

Case number

Civil Case No. 149 of 1939

Judge

Thacker J

The court held that the requirements of section 10 of the Moneylenders Ordinance, 1932, were satisfied because the memorandum of agreement expressly referred to the debenture, a copy of which was attached and delivered to the borrower at the time of execution. The court distinguished prior authorities where the borrower had not received a copy of the security, emphasizing that the borrower in this case was fully aware of the terms, including any onerous provisions. The court found that it is permissible for the statutory memorandum to consist of more than one document, provided there is a cle…

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• Moneylending Regulation
• Statutory Memorandum Requirements
• Secured Transactions
• Debenture Enforceability

Damji v Neb (C.A. 13/1930.)

Damji v Neb (C.A. 13/1930.) [1930] EACA 25 (1 January 1930)

Court

East African Court of Appeal

Case number

C.A. 13/1930.

Judge

Pickering, C.J. (Zanzibar), Sheridan CJ, Thomas, J. (Kenya)

The Court of Appeal for Eastern Africa held that omitting statutory interest wording from a bill of sale was a misleading departure from form and rendered it void.

• Bills Of Sale
• Statutory Form Requirements
• Secured Transactions
• Bankruptcy Proceedings
• Bills-of-sale
• Statutory-form-requirements