Stanbic Bank Uganda Limited v Great Lakes Petroleum (U) Ltd and Others (Miscellaneous Cause No. 81 of 2025)
Observed later treatment
No later-treatment classification is recorded for this judgment.
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Holding
The court held that a mortgage enforcement suit brought by originating summons is not properly before court where the defendants raise complex disputed facts regarding the outstanding loan amount. The defendants commissioned an audit revealing multiple variances between the bank's stated figures and actual loan statements. The court found that establishing the actual amount due is a complex matter requiring viva voce evidence and cannot be determined in a summary manner by affidavit evidence alone. The originating summons was dismissed with liberty to the plaintiff to institute an ordinary suit.
Outcome
Originating summons dismissed with liberty to plaintiff to file ordinary suit
Facts
The plaintiff bank held legal mortgage charges over three properties securing loan facilities totalling UGX 1,671,616,874. The defendants defaulted and the plaintiff initiated foreclosure proceedings, serving notices of default and sale. The plaintiff advertised the properties for sale and sought vacant possession to complete valuation and foreclosure. The defendants did not dispute obtaining the loan facilities or receiving notices, but commissioned an independent audit which revealed multiple variances between the bank's stated outstanding amounts and the actual loan statements. The audit identified discrepancies totalling over UGX 77 million, including improper charges during COVID-19 restructuring, variances in restructuring documentation, and missing credit and debit entries. The defendants argued that they had been paying interest on inflated sums they never actually received. A third party had also filed a separate suit in the Land Division challenging the legality of the mortgage over one of the properties.
Issues
- Whether the present suit is properly before court?
- Whether the plaintiff is entitled to the remedies sought?
Orders
- Originating summons dismissed.
- Plaintiff at liberty to institute an ordinary suit for determination of the contentious issues raised by the defendants.
- Each party to bear their own costs.
Rules and key headnotes
Legislation cited (10)
- Judicature Act Cap 13 s.33
- Civil Procedure Act Cap 282 s.98
- Civil Procedure Rules SI 71-1 Order 37 rule 4
- Civil Procedure Rules SI 71-1 Order 37 rule 8
- Civil Procedure Rules SI 71-1 Order 37 rule 11
- Civil Procedure Rules SI 71-1 Order 15 rule 5(1)
- Civil Procedure Act s.6
- Constitution of the Republic of Uganda 1995 Article 28(1)
- Constitution of the Republic of Uganda 1995 Article 126(2)
- Mortgage Act s.19
Cases cited (22)
- Guaranty Trust Bank (U) Ltd v Dokwals (U) Ltd and Another (Civil Suit No. 0001 of 2021)
- Cairo Bank Uganda v James Ventures (U) Ltd and 2 Others (No. 0005 of 2023)
- Kyomuhendo Nathan v Baguma Timothy Katabarwa (Originating Summons No. 0058 of 2023)
- Wakf Commissioners vs Mohammed (1984) KLR 346
- Kulsumbai Gulamhussein Jaffer Ramji and another vs Abdulhussein Jaffer Mohamed Rahim, Executor of Gulamhussein Jaffer Ramji, Secretary, Wakf Commissioners, Zanzibar and others [1957] 1 EA 699
- Salehmohamed Mohamed vs P. H. Saldanha (3), Kenya Supreme Court (Mombasa) Civil Case No. 243 of 1953
- General Parts U Ltd and Another v NPART (Civil Appeal No. 49 of 2004)
- Bukenya and 7 Others v Nakawunde and Another (Civil Appeal No. 132 of 2016)
- Kibutiri vs Kibutiri [1983] KLR 62
- Re Giles (2) [1890] 43 Ch.D.3911
- GT Bank Ltd v Richline International Ltd and Another (HC OS 10 of 2014)
- Ecumenical Church Loan Fund Uganda Ltd v Ways Km Uganda Ltd (CS (OS) 11 of 2014)
- Stanbic Bank Uganda Limited v Bluesky Estates Ltd and Others (Originating Summons No. 33 of 2023)
- Godfrey Sentongo v David Balya (CACA 274/2017)
- Lugya Andrew v Kikonyogo Richard and Another (High Court Miscellaneous Application No. 248/2021)
- Isadru Vicky v Perina Aroma and Others (High Court Miscellaneous Application No. 33/2014)
- R vs Morin [1992] 1 SCR 771
- Kasande Sylvia and Another v Uganda (CCCR 52/2010)
- KK Fresh Produce Exporters Limited and 2 Others v Turkish Airlines Inc (Miscellaneous Application No. 2291 of 2023)
- Millicent Asare Boafo vs Peter Ababio [2012] 50 GMI I6BCA [Page 185]
- Rutajengwa Elistariko and Another v Sanyu Scovia Gatete (Civil Appeal No. 467 of 2022)
- Emmanuel llona vs Sunday ldakwo (2003) 11 NWLR (Pt. 830) 53 at 86; (2003) LLIR-SC
Full judgment
The original judgment as reported. Read the original PDF before relying on any passage.