Wakilii

Nanam Financial Services Limited v Busuulwa Manisuli (Originating Summons 3 of 2025)

High Court · [2026] UGHC 332 · 2026 Application Granted AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Application by originating summons for foreclosure and sale of mortgaged property following loan default
Decision
Application granted in full; mortgagee entitled to foreclose, sell by public auction, and obtain vacant possession

Observed later treatment

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Holding

Held that where a mortgagor defaults on a loan secured by mortgage and fails to comply with statutory notices, the mortgagee is entitled under the Mortgage Act to foreclose and sell the mortgaged property by public auction, obtain vacant possession, and recover costs. The court granted all relief sought by the plaintiff mortgagee following the defendant's failure to file a defence or attend proceedings.

Outcome

Application granted in full; mortgagee entitled to foreclose, sell by public auction, and obtain vacant possession

Facts

On 23 March 2023, the defendant approached the plaintiff for a loan of UGX 59,000,000 at 6% interest per month for six months, secured by mortgage over land comprised in Kyaggwe Block 87 Plot 1458. The defendant failed to service the loan. The plaintiff issued demand notices on 22 May 2023, followed by a 45-day statutory notice on 19 July 2023. The defendant failed to comply. The plaintiff issued a notice of sale and advertised the property in the Daily Monitor. The defendant ignored a notice to take possession and allegedly threatened potential buyers. At the time of filing, the outstanding sum was UGX 54,720,000. The defendant did not file an affidavit in reply. Service was effected by substituted service via newspaper publication after the defendant rejected personal service.

Issues

  1. Whether the Plaintiff (Mortgagee) is entitled to foreclose and sell the mortgaged property to recover all sums of money due in respect of the principal debt, interest, and other incidental charges.
  2. Whether the Plaintiff/Mortgagee is entitled to sell the property by public auction.
  3. Whether the plaintiff is entitled to an order of vacant possession of the mortgaged property and developments comprised in Kyaggwe Block 87 Plot 1458 (the suit land) pending completion of the foreclosure process.
  4. Whether the plaintiff should be granted the costs of this suit.

Orders

  • The Plaintiff (Mortgagee) is entitled to foreclose and sell the mortgaged property.
  • The Plaintiff/Mortgagee is entitled to sell the property by public auction.
  • The plaintiff is entitled to an order of vacant possession of the mortgaged property and developments comprised in Kyaggwe Block 87 Plot 1458 (the suit land) pending completion of the foreclosure process.
  • The Plaintiff is entitled to the costs of this suit.

Rules and key headnotes

Mortgage Law — Foreclosure — Entitlement upon Default
Under Section 8(1) of the Mortgage Act, a mortgagee may apply to court for foreclosure of the mortgagor's right to redeem the mortgaged property at any time after breach of covenant to pay, and where the mortgagor fails to pay, the court shall order foreclosure and that the land be offered for sale.
Mortgage Law — Sale of Mortgaged Property — Method of Sale
Under the Mortgage Act, the preferred method of sale of mortgaged property is by public auction, and where parties have agreed to sale by public auction in the event of default, the court will order sale by that method.
Mortgage Law — Vacant Possession — Entitlement
Where a court has found that a mortgagee is entitled to sell mortgaged property following default, it follows that the mortgagee is also entitled to an order for vacant possession of the mortgaged property pending completion of the foreclosure process.
Civil Procedure — Uncontested Affidavit Evidence
Where facts are sworn to in an affidavit and they are not denied or rebutted by the opposite party, the presumption is that such facts are accepted.

Legislation cited (15)

Cases cited (4)

  • Cairo Bank Uganda v James Ventures (U) Ltd and 2 Ors (Originating Summons No. 5 of 2023)
  • Samwiri Mussa v Rose Achen (1978) HCB 297
  • Barclays Bank of Uganda v Musimami and Anor (Originating Summons No. 6 of 2011)
  • Housing Finance Bank v Mugisha Charles Lwanga (Originating Summons No. 14 of 2014)

Full judgment

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

Nanam Financial Services Limited v Busuulwa Manisuli (Originating Summons 3 of 2025) [2026] UGHC 332 (19 March 2026)
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.