Letshego Uganda Limited v Ingabire Anne Linda [2025] UGHC 1593
Observed later treatment
No later-treatment classification is recorded for this judgment.
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Holding
The High Court dismissed the mortgagee's application for foreclosure and vacant possession. Although the mortgagor was in default under a loan agreement secured by legal mortgage, the mortgagee failed to prove compliance with the mandatory statutory requirement under section 19 of the Mortgage Act to serve written notice of default giving the mortgagor forty-five working days to remedy the default. Without documentary proof of service of the default notice, the statutory condition precedent to foreclosure remained unmet, and the mortgagee was not entitled to the relief sought.
Outcome
Application for foreclosure and vacant possession dismissed for failure to prove compliance with statutory notice requirements
Facts
The plaintiff mortgagee advanced a loan of UGX 100,000,000 to the defendant mortgagor on 23 May 2019 for twelve months at 2.15% monthly interest, secured by legal mortgage over land comprised in FRV 779 Folio 19 Kyadondo Block 269 Plot 2095 at Lubowa Estates registered in the defendant's name. The plaintiff alleged the defendant defaulted, leaving an outstanding balance of UGX 37,000,000, and that the parties entered into a Memorandum of Understanding on 5 June 2023 wherein the defendant undertook to pay the outstanding balance but again defaulted, leaving a balance of UGX 46,990,000. The defendant admitted obtaining the loan but claimed full repayment of principal and interest, denied executing the MOU, and alleged the plaintiff refused to release her certificate of title or provide a loan statement. The plaintiff presented documentary evidence including the loan agreement, registered legal mortgage, loan statement, and the alleged MOU. The plaintiff sought foreclosure and vacant possession by way of Originating Summons under Order 37 rule 4 of the Civil Procedure Rules.
Issues
- Whether the plaintiff/mortgagee is entitled to foreclose property comprised in FRV 779 Folio 19 Kyadondo Block 268, Plot 2095, land at Lubowa Estates.
- Whether the defendant/mortgagor should give vacant possession of the property comprised in FRV 779 Folio 19 Kyadondo Block 269 Plot 2095 land.
Orders
- Suit dismissed.
- Each party to bear its own costs.
Rules and key headnotes
Legislation cited (3)
Cases cited (3)
- Nakabugo v Serunjogi (1981) HCB 58
- Lewis v Green [1905] 2 Ch 340
- Stanbic Bank Uganda Limited v Munwe Enterprises Limited & Anor (HCCS No. 1 of 2022)
Full judgment
The original judgment as reported. Read the original PDF before relying on any passage.