Agnes Bainomugisha v DFCU Ltd (HCT-00-CC-MA 435 of 2007)
Observed later treatment
No later-treatment classification is recorded for this judgment.
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Holding
Application for temporary injunction dismissed. Where an applicant spouse was herself the director and secretary of the company that mortgaged family land, and executed both the mortgage deed on behalf of the company and a personal guarantee, the court found no prima facie case that prior spousal consent under Land Act s.39 was required, as she was the actual mind of the mortgagor.
Outcome
Application for temporary injunction dismissed with costs
Facts
The applicant's husband was the registered proprietor of land in Mbarara. He granted powers of attorney over the property to Bainebitamazire Mixed Farm Ltd, a company of which both the applicant and her husband were directors, with the applicant serving as secretary. In 2002, the company mortgaged the property to DFCU Ltd as security for a loan. The applicant signed the mortgage deed as director/secretary and also executed a personal guarantee for the loan. When the respondent sought to exercise its power of sale under the mortgage, the applicant applied for a temporary injunction, contending the mortgage was a nullity because she had not provided prior written spousal consent under Land Act s.39 before its 2004 amendment.
Issues
- Whether the applicant demonstrated a prima facie case for the grant of a temporary injunction.
- Whether a mortgage executed without prior written spousal consent under Land Act s.39 is a nullity where the spouse was also a director and secretary of the mortgaging company.
Orders
- Application dismissed.
- Costs awarded to the respondent.
Rules and key headnotes
Legislation cited (2)
Full judgment
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