Mutanda c Finance Trust Bank Limited and 2 Others (Miscellaneous Application 940 of 2020)
Observed later treatment
No later-treatment classification is recorded for this judgment.
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Holding
The High Court struck out Originating Summons No. 6 of 2018 for violating the lis pendens rule under section 6 of the Civil Procedure Act. The court held that where a suit raising the same issues between the same parties is already pending, a subsequent suit constitutes an abuse of court process and must be dismissed. The respondents' failure to appear or respond meant their application was treated as uncontested.
Outcome
Originating Summons struck out for violating lis pendens rule; applicant awarded costs
Facts
The applicant obtained a loan of UGX 50,000,000 from the first respondent bank, secured by property in Kyadondo Block 208 Plot 4226. The loan accumulated to UGX 73,873,012 and the bank sold the property through the second respondent to the third respondent. The applicant filed Civil Suit No. 396 of 2017 in the Land Division (later transferred to Commercial Division as Civil Suit No. 901 of 2020) challenging the sale as fraudulent and illegal. While that suit was pending, the respondents filed Originating Summons No. 6 of 2018 seeking possession of the mortgaged property. The respondents also filed Civil Suit No. 957 of 2018. The applicant applied to strike out the Originating Summons on grounds it violated the lis pendens rule. The respondents did not appear or file any response despite being served and notified of court directions.
Issues
- Whether Originating Summons No. 006 of 2018 offends the lis pendens rule.
- What remedies are available to the parties.
Orders
- Originating Summons No. 0006 of 2018 is struck out.
- Costs of the application awarded to the applicant.
Rules and key headnotes
Legislation cited (8)
Cases cited (6)
- Tindyebwa Stephen v Alpha International Investments Ltd (Miscellaneous Application No. 789 of 2005)
- Springs International Hotel v Hotel Diplomate (Civil Suit No. 227 of 2011)
- Uganda Land Commission v James Kamoga and Another (Supreme Court Civil Appeal No. 8 of 2004)
- Samwiri Massa vs Rose Achen, HCB 1978 at page 297
- Mucunguzi Myers v Sarah Kulata Basangwa (Miscellaneous Application No. 1329 of 2014)
- Springs International Limited v Hotel Diplomate Ltd and Bonney M Katatumba (High Court Civil Suit No. 227 of 2011)
Full judgment
The original judgment as reported. Read the original PDF before relying on any passage.