Cooperative Bank Ltd v Rukokoma Mixed Farmers Cooperative Society Ltd (HCT-00-CC-OS 11 of 2006)
Observed later treatment
No later-treatment classification is recorded for this judgment.
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Holding
The court granted leave to issue an Originating Summons for foreclosure proceedings where the applicant bank demonstrated an equitable mortgage by deposit of certificate of title, default on loan repayment, and proper registration by caveat under the Mortgage Act.
Outcome
Originating Summons granted; matter to proceed to substantive hearing on foreclosure and sale
Facts
The Coop Bank Ltd (in Liquidation) advanced a loan of UGX 10,000,000 to Rukokoma Mixed Farmers Cooperative Society Ltd. As security, the Respondent deposited its certificate of title for LRV 2461 Folio 7 Plot 37 Mutooma County Block 27. The Applicant registered an equitable mortgage by caveat (Instrument No. 398752) on 18 May 2000. The Respondent defaulted on repayment. By 31 January 2005, the indebtedness stood at UGX 22,099,452. The bank issued a demand letter but the Respondent failed to pay. The Applicant sought foreclosure and sale of the mortgaged property.
Issues
- Whether the facts raised in the application support disposal by way of Originating Summons.
- Whether the Applicant Bank has established a proper case for foreclosure proceedings under an equitable mortgage.
Orders
- Originating Summons to issue.
- Originating Summons to be served on the Respondent.
- Matter to be fixed for hearing on a date to be determined by the Registrar.
Rules and key headnotes
Legislation cited (6)
Full judgment
The original judgment as reported. Read the original PDF before relying on any passage.