Stanbic Bank Uganda Limited v Saidi Kisaka and Another (Originating Summons 9 of 2025)
Observed later treatment
No later-treatment classification is recorded for this judgment.
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Holding
The High Court dismissed the bank's application by Originating Summons seeking foreclosure and vacant possession of mortgaged property. The court sustained three preliminary objections: the applicant's submissions were filed late without leave; the procedure under Order 37 Rule 4 is incompetent against a third-party purchaser who is not a party to the mortgage; and the dispute involves complex allegations of fraud, stolen titles, and contested equitable interests requiring a full trial with oral evidence rather than summary disposal.
Outcome
Application dismissed with liberty to file an ordinary suit
Facts
In 2018, Stanbic Bank granted loan facilities to Saidi Kisaka secured by a legal mortgage over two plots registered in his name. The bank issued a notice of default in January 2023 for an outstanding debt of UGX 339,163,122 as of August 2023. The 2nd Respondent, Babirye Sarah Kityo, claimed she purchased the same plots from Hajji Ibrahim Matovu in November 2017 for UGX 390,000,000 and had been in physical possession since then, constructing a residential house. She registered caveats in May 2024 and alleged that Kisaka fraudulently obtained the titles from the vendor. The bank's own valuation report from February 2018 contained a Google Earth image from January 2017 showing a house on the land. Kisaka was served by substituted service and did not respond.
Issues
- Whether the Applicant's written submissions should be rejected and struck out for being filed outside the court-mandated timelines without leave of the court?
- Whether the application is legally competent and sustainable against the 2nd Respondent under Order 37 Rule 4 of the CPR?
- Whether the dispute involves complex and contentious matters of fact that render the procedure of Originating Summons inappropriate?
Orders
- The preliminary objections raised by the 2nd Respondent are sustained.
- The application by Originating Summons is hereby dismissed under Order 37 Rule 11 of the CPR.
- The Applicant is at liberty to file an ordinary suit to ventilate its grievances.
- Each party shall bear its own costs.
Rules and key headnotes
Legislation cited (11)
- Civil Procedure Rules Order 37 Rule 4
- Civil Procedure Rules Order 37 Rule 11
- Civil Procedure Rules Order 17 Rule 4
- Civil Procedure Rules Order 15 Rule 3
- Civil Procedure Rules Order 6 Rule 28
- Mortgage Act 2009 s.3(1)
- Mortgage Act 2009 s.19(2)
- Mortgage Act 2009 s.26
- Registration of Titles Act Cap. 240 s.59
- Registration of Titles Act Cap. 240 s.64(1)
- Civil Procedure Act s.27
Cases cited (20)
- Kulsumbhai Gulamhussein Jaffer Ramji & anor V. Abdul Jaffer Mohammed Rahim & others E.A 699
- Guarantee Trust Bank v Dokwals Uganda Limited (High Court Civil Suit No. 0001 of 2021)
- Letshego Uganda Limited v Felix Kulayigye (Originating Summons No. 5 of 2020)
- Stanbic Bank Uganda Limited v Sarick Construction Limited & Ors (Originating Summons No. 15 of 2023)
- General Parts (U) Ltd v Non-Performing Assets and Recovery Trust (Supreme Court Civil Appeal No. 05 of 1999)
- Alp Investments Limited v Bank of India (U) Limited (Originating Summons No. 0001 of 2024)
- Mutebo Wilson and Others v Namutete Kyagaba and 2 Others (Miscellaneous Cause No. 008 of 2025)
- Buchana Stephen v I&M Bank Uganda (High Court Civil Suit No. 760 of 2024)
- Miwanda Ignatius & Others v Kalule Henry Lucky & Others (Court of Appeal Civil Appeal No. 42 of 2024)
- Wicks V. DPP (1947) A.C 362
- Mrs. Seforoza Nyamuchoncho & Another v Attorney General & Others (High Court Miscellaneous Cause No. 241 of 2017)
- Kalusumbai vs. Abdul Hussein (1975) EA 708
- Namutebi Mariam Bitalo v Nabisere Jalia (Originating Summons No. 004 of 2023)
- Mugabi Edward & Another v Kampala District Land Board & Another (High Court Miscellaneous Cause No. 18 of 2012)
- Oscar Industries Limited v The Commissioner for Land Registration & Others (High Court Miscellaneous Cause No. 0181 of 2011)
- Joseph Borowski vs. Attorney General of Canada (1989) 1 S.C.R
- Male H. Mabirizi v The Kabaka of Buganda (Supreme Court Civil Appeal No. 0257 of 2017)
- Necta (U) Limited & Anor v Crane Bank Limited (Court of Appeal Civil Appeal No. 219 of 2013)
- Uganda Telecom Limited v ZTE Corporation (Supreme Court Civil Appeal No. 03 of 2017)
- Nakabugo Vs. Serunjogi (1981) HCB 58
Full judgment
The original judgment as reported. Read the original PDF before relying on any passage.