Uganda Case Law

Barclays Bank of Uganda Limited v Etats Limited and 3 Other

Barclays Bank of Uganda Limited v Etats Limited and 3 Other (Civil Appeal 65 of 2014) [2024] UGCA 54 (11 March 2024)

Court

Court of Appeal of Uganda

Case number

Civil Appeal 65 of 2014

Judge

Kibeedi, JA, Gashirabake, JA, Kihika ,JA

The Court of Appeal found that the appellant, Barclays Bank of Uganda Limited, acted fraudulently, negligently, and in breach of statutory duty in the sale of the mortgaged property. The sale was conducted in secrecy, without proper valuation, and in contravention of the Mortgage Act, rendering it void ab initio. The appellant failed to call key witnesses or provide sale agreements, further supporting the inference of fraud. The court held that the appellant could not enforce personal guarantees against the respondents because the outstanding balance arose from its own illegal and fraudulent…

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• Mortgage Enforcement
• Fraudulent Sale Of Property
• Valuation Of Security
• Guarantee Liability
• Remedies And Damages
• Costs Award

United Bank of Africa (U) Limited v Makafra Contractors Limited & 2 Others

United Bank of Africa (U) Limited v Makafra Contractors Limited & 2 Others (Civil Suit 902 of 2016) [2023] UGCommC 210 (14 November 2023)

Court

Commercial Court of Uganda

Case number

Civil Suit 902 of 2016

Judge

Anna B. Mugenyi, J

The High Court upheld a bank’s claim for the outstanding loan balance after finding default and lawful foreclosure, while dismissing the borrowers’ undervaluation counterclaim.

• Loan Default
• Mortgage Foreclosure
• Valuation Of Security
• Remedies For Breach Of Contract
• Loan-default
• Mortgage-foreclosure

Kanyankole & Another v Equity Bank (U) Limited & 2 Others

Kanyankole & Another v Equity Bank (U) Limited & 2 Others (Civil Suit 341 of 2018; Civil Suit 950 of 2017) [2023] UGCommC 265 (10 October 2023)

Court

Commercial Court of Uganda

Case number

Civil Suit 341 of 2018 ; Civil Suit 950 of 2017

Judge

Anna B. Mugenyi, J

The court found no evidence of fraud or breach of fiduciary duty by the 1st Defendant in the execution of the mortgage or sale of the properties. The transactions for the Makerere and Bugolobi properties were intertwined, but the Plaintiffs willingly entered into the agreements and failed to prove any misrepresentation or concealment amounting to fraud. The 2nd and 3rd Defendants were held to be bonafide purchasers for value, having acquired good title without notice of fraud or irregularity. The sale of the mortgaged properties was conducted pursuant to a valid court order and consent of the…

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• Mortgage Enforcement
• Fiduciary Duty Breach
• Property Sale By Court Order
• Bonafide Purchaser
• Valuation Of Security
• Fraud In Property Transactions

Sendagire and Another (Both T/A Bright Future Vocational Secondary School (HC Civil Suit No. 26 of 2008)

Sendagire and Another (Both T/A Bright Future Vocational Secondary School (HC Civil Suit No. 26 of 2008) [2019] UGCommC 238 (26 August 2019)

Court

Commercial Court of Uganda

Case number

HC Civil Suit No. 26 of 2008

Judges

Ali, Panel Member

The court found that while the sale of the mortgaged property was procedurally regular in terms of notice and advertisement, it was conducted in a manner lacking transparency and at a price below the forced sale value, contrary to the duty of care owed by the mortgagee and receiver. The 2nd Defendant failed to document the sale process and did not obtain the best price, resulting in loss to the Plaintiffs. The 3rd Defendant's evidence was inconsistent and unreliable, and he was not a bona fide purchaser for value. Regarding movables, the Plaintiffs proved that some movable property was retain…

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• Mortgage Enforcement
• Receiver Sale
• Duty Of Care
• Valuation Of Security
• Movable Property Conversion
• Damages Assessment

Bbaale Samuel Wakulira V Cairo International Bank Limited & 2 Others

Bbaale Samuel Wakulira V Cairo International Bank Limited & 2 Others (Civil Suit No. 149 of 2013) [2019] UGHCLD 42 (10 July 2019)

Court

HC: Land Division (Uganda)

Case number

Civil Suit No. 149 of 2013

Judge

Kawesa, J

The court found that the prior suit in the Chief Magistrate's Court did not bar the present action as that court lacked jurisdiction over the subject matter. The transfer of the suit land was void ab initio due to non-compliance with statutory requirements: the transfer instrument was not executed in Latin character as required by law, and registration occurred before payment of stamp duty, contrary to the Stamps Act. The 1st Defendant acted in bad faith by blocking the Plaintiff's account and proceeding with the sale despite oral agreements and the Plaintiff's efforts to redeem the property.…

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• Mortgage Enforcement
• Fraudulent Transfer
• Banker Customer Relationship
• Res Judicata
• Valuation Of Security
• Registration Of Titles

Prime I.K Uganda Limited v Eco Bank Uganda Limited

Prime I.K Uganda Limited v Eco Bank Uganda Limited (Miscellaneous Application No. 852 of 2016) [2017] UGCommC 43 (5 May 2017)

Court

Commercial Court of Uganda

Case number

Miscellaneous Application No. 852 of 2016

The court found that while the applicant did not deny obtaining credit facilities, there was insufficient disclosure by both parties regarding the amounts owed and the proceeds from the sale of the mortgaged property. The respondent failed to provide particulars of the sale as directed, and the applicant did not specify the amount owed at the time of sale. The court held that the applicant raised plausible defences, including whether statutory procedures under the Mortgage Act and Regulations were followed in the sale of the mortgaged property, and whether the amount claimed was accurate. The…

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• Mortgage Enforcement
• Summary Procedure
• Loan Default
• Statutory Notices
• Valuation Of Security
• Right To Defend

National Bank of Commerce Ltd v Saad Trading Co (HCT-00-CC-CS 496 of 2003)

National Bank of Commerce Ltd v Saad Trading Co (HCT-00-CC-CS 496 of 2003) [2005] UGCommC 38 (11 July 2005)

Court

Commercial Court of Uganda

Case number

HCT-00-CC-CS 496 of 2003

The court found that the Plaintiff, as mortgagee, did not take reasonable steps to obtain the true market value of the mortgaged property when exercising its power of sale. The advertisement for the sale was inadequate in terms of publicity, description, and timing, and the sale was conducted by private treaty without competitive bidding or proper re-valuation. The Plaintiff failed to demonstrate that the sale price reflected the forced sale value or true market value, and the Defendants were not adequately informed or involved in the process. Applying the legal principles from Cuckmere Brick…

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• Mortgage Enforcement
• Duty Of Care In Sale
• Valuation Of Security
• Guarantor Liability

Reamaton Limited v Uganda Corporation Creameries Limited and Another

Reamaton Limited v Uganda Corporation Creameries Limited and Another (Miscellaneous Appeal 230 of 1998) [1999] UGHC 30 (30 June 1999)

Court

High Court of Uganda

Case number

Miscellaneous Appeal 230 of 1998

Judge

Okumu Wengi, J

The High Court set aside a registrar’s stay of execution, holding that no formal stay application was before the registrar and the deposited land title was misleading.

• Stay Of Execution
• Jurisdiction Of Registrar
• Attachment Of Property
• Valuation Of Security
• Personal Attendance In Execution
• Fraudulent Security

Shaw v Jack (Privy Council Appeal No. 110 of 193-)

Shaw v Jack (Privy Council Appeal No. 110 of 193-) [1932] EACA 1 (1 January 1932)

Court

East African Court of Appeal

Case number

Privy Council Appeal No. 110 of 193-

Judges

Lord Blanesburgh, Lord Tomlin, Sir George Lowndes

The Privy Council held that an agent was not liable for a later mortgage loss where the security was adequate when the loan was made and the سقوط was unforeseeable.

• Professional Negligence
• Agency Liability
• Mortgage Investment
• Valuation Of Security
• Agency-liability
• Professional-negligence