Ndawula Ronald v Ugafin Limited (Miscellaneous Application No. 1701 of 2014)
Observed later treatment
No later-treatment classification is recorded for this judgment.
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Holding
The court held that execution of a consent decree providing for foreclosure and sale is restricted to properties specifically named as collateral in the underlying mortgage agreement. Attachment of property outside those specified securities is unlawful unless justified by a separate court order after proof that the specified collaterals have not satisfied the decree. The Registrar Execution must strictly comply with Order 22 rule 51 requirements for attachment of immovable property, including obtaining the certificate of title and proper service and publication.
Outcome
Attachment order set aside and property released; judgment debtor remains obligated under consent order
Facts
The parties settled a Commercial Division suit by consent order providing for installment payment by the judgment debtor, with a clause that upon default the mortgage would be foreclosed and execution would issue. The loan agreement specified two plots at Kavule (Plot 835 and Plot 836, both Bulemezi Block 652) as collateral. The judgment debtor defaulted without paying any installment. The Registrar Execution issued a warrant attaching different property (Block 652 Plot 634 at Bulemezi Luwero) not named in the mortgage agreement. The property was valued for sale under execution. The judgment debtor applied to review the Registrar's orders, contending the attached property was not subject to the mortgage and therefore not liable for attachment under the consent order's foreclosure clause.
Issues
- Whether the Registrar Execution lawfully attached property not specified as collateral in the mortgage agreement when executing a consent order that provided for foreclosure.
- Whether the Registrar Execution complied with the mandatory procedural requirements for attachment of immovable property under Order 22 rule 51 of the Civil Procedure Rules.
Orders
- The order by the Registrar Execution attaching Block 652 Plot 634 at Bulemezi Luwero is set aside.
- The suit property is released from attachment.
- Costs of the application awarded to the Applicant.
Rules and key headnotes
Legislation cited (1)
- Civil Procedure Rules O.22 r.51
Full judgment
The original judgment as reported. Read the original PDF before relying on any passage.