Wakilii

Namiiro v Uganda Marines Products Ltd & Anor (Miscellaneous Cause No. 78 of 2015)

High Court · [2016] UGHCLD 58 · 2016 Application Granted AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Application under Section 98 of the Civil Procedure Act and Section 33 of the Judicature Act to discharge equitable mortgage, vacate caveat, and obtain special certificate of title where donee of power of attorney and lender cannot be traced
Decision
Application granted with orders for payment of loan amount to Deputy Registrar, vacation of caveat, and issuance of special certificate of title

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

The High Court held that where a donee of power of attorney and the lender under an equitable mortgage cannot be traced, the court may exercise its inherent powers under Section 98 of the Civil Procedure Act and Section 33 of the Judicature Act to permit the donor to discharge the loan by depositing the amount with the Deputy Registrar, direct vacation of the caveat, and issue a special certificate of title to the applicant.

Outcome

Application granted with orders for payment of loan amount to Deputy Registrar, vacation of caveat, and issuance of special certificate of title

Facts

In 2002, the applicant donated a power of attorney to Kusasira William regarding her land at Kyadondo Block 213 Plot 404 at Bukoto. William pledged the certificate of title as security for a loan of UGX 6,000,000 from Uganda Marines Products Ltd for fish supply business. The loan was disbursed and the 1st Respondent registered a caveat on 25 February 2002 pursuant to an equitable mortgage. Subsequently, both the attorney Kusasira William and the 1st Respondent company could not be traced at known addresses. The 1st Respondent appeared to have wound up operations and closed its offices. The applicant, still in possession of the property, sought to discharge the loan obligation and recover her certificate of title.

Issues

  1. Whether the Applicant as donor of a Power of Attorney can under the law be permitted to discharge the loan obligations incurred by her donee.
  2. Whether the caveat lodged by the 1st Respondent pursuant to the equitable mortgage can be vacated in the circumstances.
  3. What remedy is available to the Applicant regarding the certificate of title for the subject matter land which cannot be retrieved because the 1st Respondent cannot be traced.

Orders

  • The Applicant shall pay UGX 6,000,000 deemed as the amount owing under the equitable mortgage, and the loan shall be deemed discharged.
  • The amount shall be paid to the Deputy Registrar (Land Division) for safe keeping until the 1st Respondent appears and claims it.
  • If the 1st Respondent appears and the actual amount varies from UGX 6,000,000, the parties shall adjust the figure accordingly.
  • Upon payment of the money to the Deputy Registrar, the Registrar of Titles shall issue a Special Certificate of Title to the Applicant.
  • The Registrar of Titles is directed to vacate the caveat lodged by the 1st Respondent.
  • The Applicant shall meet costs of the process of obtaining a Special Certificate of Title.
  • The Applicant shall bear costs of this application.

Rules and key headnotes

Land & Property — Equitable Mortgage — Power of Attorney — Discharge by Donor
Where a donee of power of attorney has created an equitable mortgage and subsequently cannot be traced, the donor of the power of attorney may discharge the loan obligations incurred by the donee under the court's inherent powers.
Administrative Law — Inherent Powers of Court — Section 98 CPA and Section 33 Judicature Act
Under Section 98 of the Civil Procedure Act and Section 33 of the Judicature Act, the High Court has wide inherent and discretionary powers to grant remedies necessary for the ends of justice, including directing payment of loan amounts to the Deputy Registrar where the creditor cannot be traced.
Land & Property — Caveat — Vacation Where Caveator Cannot Be Traced
A court may exercise its inherent powers to direct vacation of a caveat lodged pursuant to an equitable mortgage where the caveator cannot be traced at its known physical address and the applicant has demonstrated readiness to discharge the secured obligation.
Land & Property — Special Certificate of Title — Issuance After Payment to Deputy Registrar
Where the certificate of title cannot be retrieved because the holder cannot be traced, the court may order issuance of a special certificate of title to the registered proprietor upon payment of the secured amount to the Deputy Registrar for safe keeping.

Legislation cited (2)

Full judgment

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Namiiro v Uganda Marines Products Ltd & Anor (Miscellaneous Cause No. 78 of 2015) [2016] UGHCLD 58 (19 December 2016)
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.