Wakilii

Basajjabalaba v Bank of Uganda & Anor (Miscellaneous Application No. 738 of 2011)

High Court · [2013] UGHCLD 81 · 2013 Application Granted AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Application for consequential orders following a consent judgment in Civil Suit No. OS 9 of 2005
Decision
Application granted. Certificates of title and securities to be released to the applicant with all encumbrances removed.

Observed later treatment

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Holding

The High Court held that where an applicant proves full payment of a decretal sum under a consent judgment by way of set-off and no rebuttal is offered by the respondent, the applicant is entitled to consequential orders for the release of securities held by the respondent pursuant to that consent judgment. The court ordered the return of all certificates of title held as security and the removal of encumbrances thereon.

Outcome

Application granted. Certificates of title and securities to be released to the applicant with all encumbrances removed.

Facts

Basajjabalaba Hides and Skins Ltd had entered into a consent judgment on 3 February 2010 in Civil Suit OS 9 of 2005 whereby it agreed to pay Bank of Uganda USD 11,575,000 within six months in respect of debts assigned from Standard Chartered Bank and Stanbic Bank. Upon default, Bank of Uganda would be at liberty to realise securities comprising 18 certificates of title mortgaged by the applicant. The applicant was also to pay costs of earlier proceedings and insurance and receivership costs. The applicant claimed it had fully discharged its obligations through a set-off arrangement with the Government of Uganda (which owed the applicant compensation) and direct payments. The applicant sought consequential orders for the return of the certificates of title, removal of encumbrances, and costs. Bank of Uganda opposed the application, alleging non-payment of the principal sum and arguing that the consent judgment did not provide for the release of securities.

Issues

  1. Whether the applicant performed or satisfied its obligation imposed by the consent judgment.
  2. Whether the consequential orders prayed for flow from the satisfaction of the consent judgment.
  3. Whether the applicant's securities held for satisfaction of the consent judgment obligation can be withheld to satisfy other anticipated decrees outside the consent judgment.

Orders

  • The first respondent returns to the applicant all the listed certificates of title that it held as security for the decretal sums already paid.
  • The first respondent shall release all the encumbrances on the returned securities whether as caveats or mortgages to ensure payments under the consent judgment.
  • The first respondent shall pay the applicant costs of this application.
  • Certificate for three advocates declined.

Rules and key headnotes

Civil Procedure — Affidavit evidence — Burden of rebuttal — Effect of failure to deny facts sworn on affidavit
Where certain facts are sworn to in an affidavit, the burden to deny them is on the other party and if that party does not deny or rebut them, they are presumed to have been accepted.
Civil Procedure — Consequential orders — Enforcement of consent judgments — Power of court to grant relief giving effect to consent terms
A court has power under section 33 of the Judicature Act to grant consequential orders to give effect to a consent judgment where the party obliged to perform has fully discharged its obligations, even where the consent judgment does not expressly provide for such consequential relief.
Land & Property — Securities — Release of securities held as collateral — Right to release upon discharge of underlying obligation
Where a party proves full payment of a decretal sum for which securities were held as collateral under a consent judgment, that party is entitled to the return of the securities and removal of encumbrances thereon as a matter of law and equity.
Contract Law — Performance — Set-off — Discharge of debt by set-off from sum owed to debtor
A debt may be discharged by set-off where the creditor owes the debtor a sum and both parties agree to set off the debt against the sum owed, supported by documentary evidence of the arrangement and payments made pursuant to it.

Legislation cited (4)

Cases cited (4)

  • Samwiri Massa v Rose Achen [1978] HCB 297
  • Makerere University v St. Mark Education Institute Ltd and Others [1994] KALR 26
  • Eridadi Ahimbisibwe v World Food Programme and Others [1998] KALR 32
  • Kalyesubula Fenekansi v Luwero District Land Board and Others (Miscellaneous Application No. 367 of 2011)

Full judgment

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The original judgment as reported. Read the original PDF before relying on any passage.

Basajjabalaba v Bank of Uganda & Anor (Miscellaneous Application No. 738 of 2011) [2013] UGHCLD 81 (12 November 2013)
Source: this page presents Wakilii’s issue analysis and metadata for a publicly reported Ugandan judgment. Any AI-generated summary is marked as such. Judgment text is sourced from the Uganda Legal Information Institute (ulii.org). Wakilii is not affiliated with ULII.