Wakilii

Shumuk Properties Ltd v Guaranty Trust Bank (U) Ltd (Miscellaneous Application No. 231 of 2018)

High Court · [2018] UGCOMMC 43 · 2018 Injunction Granted (Conditional) AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Application for temporary injunction to restrain sale of mortgaged property arising from Civil Suit No. 263 of 2018
Decision
Temporary injunction granted subject to payment of 30% deposit within 30 days

Observed later treatment

Cited — treatment unverified cited in 1 (treatment unverified) Sequitur — Uganda’s citator · Derived from citing cases in the Wakilii corpus — not an assertion that this case is good law.

Citator coverage is limited to judgments in the Wakilii corpus and source-matched treatment records. Absence of a signal is not an assertion that the case remains good law.

No adverse treatment recorded Cited 1 time with no adverse treatment recorded; not yet tested on the merits. Derived from citing cases in the Wakilii corpus — a deterministic signal, not legal advice.

AI-generated summary. This summary was generated by AI from the full text of the judgment. It may contain errors or omissions—always read the source judgment before relying on it.

Holding

The court granted a temporary injunction restraining the respondent bank from selling the applicant's mortgaged property pending final determination of the main suit, but made the injunction conditional upon the applicant depositing 30% of the outstanding amount or forced sale value within 30 days, in accordance with Regulation 13(1) of the Mortgage Regulations 2012 as interpreted by the Court of Appeal.

Outcome

Temporary injunction granted subject to payment of 30% deposit within 30 days

Facts

The applicant mortgaged properties in Block 192 plots 1454, 1455, 1460, 1461 at Nganda, Kyagwe in Mukono District to the respondent bank as security for an overdraft facility of UGX 500,000,000 and a term loan of UGX 968,000,000. The applicant failed to repay the overdraft or pay monthly loan instalments. The respondent issued a notice of sale of the mortgaged properties, advertising them for sale on 21 April 2018. The applicant obtained an interim order on 25 April 2018 stopping the sale and filed this application seeking a temporary injunction to restrain the sale until the main suit is determined.

Issues

  1. Whether the court should grant a temporary injunction to restrain the sale of the mortgaged property pending determination of the main suit.
  2. Whether Regulation 13(1) of the Mortgage Regulations 2012 requires payment of 30% of the forced sale value or outstanding amount as a condition for stoppage of sale.

Orders

  • Temporary injunction granted restraining the respondent, its agents, and any person acting on their behalf from selling, transferring, or disposing of the applicant's property comprised in Block 192 plots 1454, 1455, 1460, 1561 at Nganda Kyagwe in Mukono District until final determination of the main suit.
  • The applicant shall deposit with the respondent 30% of the outstanding amount or forced sale value (whichever is higher) of the mortgaged property within 30 days from the date of the order.
  • Should the applicant fail to deposit the said 30% within the stipulated period, the injunction shall lapse and the respondent shall be at liberty to exercise its statutory power of sale under the Mortgage Act 2009.
  • Costs in the cause.

Rules and key headnotes

Mortgage Enforcement — Temporary Injunction — Mandatory Deposit Requirement
Under Regulation 13(1) of the Mortgage Regulations 2012, a court may grant an order stopping the sale of mortgaged property, but such order is conditional upon the mortgagor's payment of 30% of either the forced sale value of the mortgaged property or the outstanding amount, whichever is higher.
Injunctions — Availability to Applicants in Breach of Statutory Requirements
Grant of an order of injunction is not available to an applicant who is in breach of Regulation 13(1) of the Mortgage Regulations 2012, meaning that compliance with the mandatory deposit requirement is a precondition to injunctive relief.
Mortgage Enforcement — Conditional Injunction — Failure to Comply
Where a temporary injunction restraining sale of mortgaged property is granted subject to deposit of the required 30% within a specified period, failure to deposit within that period causes the injunction to lapse automatically and restores the mortgagee's statutory power of sale.

Legislation cited (8)

Cases cited (2)

  • Ganafa Peter Kisawuzi v DFCU Bank Ltd (Civil Application No. 0064 of 2016)
  • Mutuba Zaituni v Crane Bank Limited and Others (Miscellaneous Application No. 1536 of 2017)

Cases citing this judgment (1)

How later Ugandan judgments in the Wakilii corpus have cited this case. Treatment labels come from Sequitur — Uganda’s citator — each backed by a verbatim span from the citing judgment, and are not an assertion that this case is, or is not, good law.

Full judgment

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

Shumuk Properties Ltd v Guaranty Trust Bank (U) Ltd (Miscellaneous Application No. 231 of 2018) [2018] UGCommC 43 (6 July 2018)
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.