Wakilii

Shamilah Nakalule v Standard Chartered Bank (Miscellaneous Application No. 1930 of 2025)

High Court · [2025] UGCOMMC 432 · 2025 Application Granted AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Application for temporary injunction arising from Civil Suit No. 1034 of 2025 to restrain sale of mortgaged property
Decision
Temporary injunction granted conditional upon payment of 30% security deposit within 60 days

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

Held that the applicant has locus standi as the registered proprietor of the mortgaged property. The application is not barred by res judicata because the previous civil suit abated, causing all related orders to lapse. The application is not moot as no evidence proves the property has been sold. Payment of 30% security deposit under Regulation 13(1) of the Mortgage Regulations is not required before filing but is a mandatory condition upon grant of the injunction. The applicant satisfied the grounds for a temporary injunction. Temporary injunction granted conditional upon payment of 30% of the outstanding amount within 60 days, failing which the order lapses automatically.

Outcome

Temporary injunction granted conditional upon payment of 30% security deposit within 60 days

Facts

The applicant obtained a loan facility from the respondent bank in 2014 for UGX 700,000,000 secured by land at Kyadondo Block 218 Plot 1028 at Najjera. The applicant claims she fully repaid the loan in 2017. In August 2025, the respondent advertised the applicant's property for sale, asserting the applicant was indebted to the tune of UGX 672,124,957. The applicant filed Civil Suit No. 1034 of 2025 challenging the debt and the proposed sale. The respondent contends the applicant defaulted and entered into a repayment agreement in 2018 with a third party who failed to settle the outstanding sums. The respondent exercised its rights as mortgagee and accepted a bid from the highest bidder. The applicant filed this application seeking a temporary injunction to restrain the sale pending determination of the main suit.

Issues

  1. Whether the Applicant lacks locus standi to bring the application.
  2. Whether the application is barred by res judicata.
  3. Whether the application has been rendered moot by subsequent events.
  4. Whether the application infringes upon the rights of a non-joined third party.
  5. Whether the Applicant was required to pay 30% of the outstanding amount before filing the application.
  6. Whether the Applicant has satisfied the grounds warranting the grant of a temporary injunction.

Orders

  • A temporary injunction is issued restraining the respondent, her agents, associates, assignees, affiliates, licensees, or legal representatives from attaching and selling off the applicant's property comprised in Kyadondo Block 218 Plot 1028 land at Najjera until hearing and determination of High Court Civil Suit No. 1034 of 2025 subject to the applicant depositing, in court, 30% of the outstanding amount within a period of 60 days of this order failing which the order shall lapse automatically.
  • The costs of this application are to abide the result of the main suit.

Rules and key headnotes

Preliminary Objections — Locus Standi — Registered Proprietor of Mortgaged Property
A registered proprietor of land retains locus standi to bring proceedings concerning the property even where a third party claims an interest by caveat, in the absence of evidence that the proprietor has disposed of their interest.
Res Judicata — Effect of Abatement of Suit on Previous Orders
Where a civil suit abates under Order XIA rule 1(6) of the Civil Procedure Rules, all interlocutory orders made in that suit lapse and the substratum for those orders ceases to exist. A fresh suit filed thereafter is not barred by res judicata in relation to orders made in the abated suit.
Mortgage Regulations — Timing of Payment of 30% Security Deposit
Under Regulation 13(1) of the Mortgage Regulations 2012, payment of a 30% security deposit is not required before filing an application to stop the sale of mortgaged property or during the hearing of the application. The payment requirement arises only upon the court's decision to adjourn the sale and forms part of the conditions attached to the grant of the injunction.
Mortgage Regulations — Mandatory Nature of 30% Security Deposit
The payment of 30% security deposit under Regulation 13(1) of the Mortgage Regulations 2012 is mandatory once the court exercises its discretion to adjourn a sale of mortgaged property. The use of the word 'upon' in the regulation imposes a condition that triggers automatically when an injunction is granted.
Mortgage Regulations — Lex Specialis Principle — Temporary Injunctions
Applications for temporary injunctions involving mortgaged property must be dealt with in conformity with the statutory provisions of the Mortgage Act 2009 and the Mortgage Regulations 2012. The specific statutory requirements override traditional considerations for the grant of a temporary injunction under the principle lex specialis derogat legi generali.
Mortgage Regulations — Policy Rationale of Regulation 13
Regulation 13 of the Mortgage Regulations 2012 enacts the principle 'pay now, argue later' and is designed to restrict the ability of mortgagors to use litigation vexatiously to delay recovery by the mortgagee. The 30% deposit is the applicant's warranty that the law will uphold the issuance of the injunction and protects the mortgagee from loss if the injunction is wrongfully issued.

Legislation cited (10)

  • Civil Procedure Act Cap 282 s.98
  • Judicature Act Cap 16 s.37
  • Civil Procedure Rules SI-71-1 Order 41 rules 1, 2, 3 & 9
  • Civil Procedure Rules SI-71-1 Order 15 rule 3
  • Civil Procedure Rules SI-71-1 Order XIA rule 1(6)
  • Civil Procedure Rules SI-71-1 Order XIA rule 1(7)
  • Mortgage Act 2009
  • Mortgage Regulations 2012 Regulation 13
  • Mortgage Regulations 2012 Regulation 13(1)
  • Mortgage Regulations 2012 Regulation 13(6)

Cases cited (13)

  • Mukisa Biscuit Manufacturing Co. Ltd v West End Distributors Ltd [1969] EA 696
  • Njau and others v City Council of Nairobi [1976-1985] 1 EA 397
  • Equity Bank (U) Ltd and Another v Great Value Safaris Ltd and Another (Miscellaneous Application No. 007 of 2024)
  • Fellowes and Son v Fisher [1976] 1 QB 122
  • American Cyanamid Co v Ethicon Limited [1975] AC 396
  • Geilla v Cassman Brown Co. Ltd [1973] EA 358
  • GAPCO Uganda Limited v Kaweesa and another (Miscellaneous Application No. 259 of 2013)
  • Willis International Engineering and Contractors Ltd and another v DFCU Bank (Miscellaneous Application No. 1000 of 2015)
  • Miao Huaxian v Crane Bank Limited and another (Miscellaneous Application No. 935 of 2015)
  • G.S Royal Hardware and Industries Ltd and another v Equity Bank (U) Ltd and another (Miscellaneous Application No. 721 of 2015)
  • Parul Ben Barot v Victoria Finance Company Ltd (Miscellaneous Application No. 319 of 2017)
  • Alpha2 Business Company Ltd v Diamond Trust Bank Ltd and two others (Miscellaneous Civil Application No. 71 of 2016)
  • Housing Financing Bank Limited v Silk Events Limited and Another (Civil Appeal No. 0300 of 2021)

Full judgment

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Shamilah Nakalule v Standard Chartered Bank (Miscellaneous Application No. 1930 of 2025) [2025] UGCommC 432 (19 November 2025)
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.