Wakilii

Larb (U) Ltd v Bank of Baroda (U) Ltd (Miscellaneous Application No. 568 of 2018)

High Court · [2018] UGCOMMC 22 · 2018 Application Dismissed AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Application for extension of time to comply with condition of temporary injunction
Decision
Application dismissed; respondent free to realize security under original injunction order

Observed later treatment

No later-treatment classification is recorded for this judgment.

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AI-generated summary. This summary was generated by AI from the full text of the judgment. It may contain errors or omissions—always read the source judgment before relying on it.

Holding

Application for extension of time to comply with injunction condition dismissed. The court held that the applicants' plan to sell the mortgaged property to raise the required deposit was inconsistent with the purpose of the temporary injunction, which was to preserve the property pending determination of the main suit, not to facilitate its sale by the applicants.

Outcome

Application dismissed; respondent free to realize security under original injunction order

Facts

The applicants borrowed UGX 3,500,000,000 from the respondent bank on 18 July 2015 at 23.25% per annum, secured by two mortgaged properties and personal guarantees. The applicants defaulted and admitted owing UGX 2,000,000,000. When the bank sought to realize its security, the applicants filed suit challenging the mortgage's legality and obtained a temporary injunction on 4 July 2018, conditional on depositing UGX 2,000,000,000 within two weeks. Before the deadline expired, one of the mortgaged properties (Biko Student's Hostel Complex) was damaged by fire on 28 May 2018, destroying the fifth floor and roof. The applicants applied for an extension of time, stating they needed to repair the building (estimated cost UGX 970,579,853) before selling it to raise the required deposit.

Issues

  1. Whether the applicants should be granted an extension of time to deposit UGX 2,000,000,000 as required by the court's injunction order.
  2. Whether the applicants' intention to sell mortgaged property to raise the deposit is consistent with the purpose of the temporary injunction.

Orders

  • Application dismissed with costs.

Rules and key headnotes

Temporary Injunctions — Conditions for Grant — Compliance with Court Orders
Where a temporary injunction is granted to preserve mortgaged property pending determination of a suit, on condition that the borrower deposit an admitted debt within a specified time, the purpose of the injunction is to preserve the property for potential return to the borrower if the suit succeeds, not to give the borrower time to sell the property to raise the deposit.
Extension of Time — Applications to Extend Time for Compliance — Bad Faith
An application for extension of time to comply with a condition of a temporary injunction will be dismissed where the applicant's proposed means of compliance (selling the mortgaged property) is inconsistent with the fundamental purpose for which the injunction was granted.

Full judgment

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

Larb (U) Ltd v Bank of Baroda (U) Ltd (Miscellaneous Application No. 568 of 2018) [2018] UGCommC 22 (18 July 2018)
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.