The Co-operative Bank Ltd v Mwase Heron (HCT-00-CC-OS 20 of 2006)

Observed later treatment

No later-treatment classification is recorded for this judgment.

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.

Holding

The High Court Commercial Division granted an application by The Co-operative Bank Ltd (in liquidation) for an Originating Summons seeking foreclosure and sale of mortgaged property to recover a debt of Shs 21,365,397 plus interest at 21% per annum. The court found this an appropriate case for Originating Summons procedure under the Mortgage Act and Civil Procedure Rules, and directed that the summons issue for hearing on a date to be fixed.

Outcome

Originating Summons issued for hearing on foreclosure and sale of mortgaged property

Facts

On 7 August 1995, The Co-operative Bank Ltd advanced Mwase Heron credit facilities by way of overdraft secured by a mortgage over land comprised in LRV 944 Block 190 Plot 209 Nabweli Mukono. As of 30 November 2005, the respondent's indebtedness stood at Shs 21,365,397 in principal and interest, continuing to attract interest at 21% per annum. The respondent failed to pay the debt. The applicant bank, now in liquidation, sought to enforce the mortgage security through foreclosure and sale of the mortgaged property to recover the monies due.

Issues

1. Whether an Originating Summons for foreclosure and sale should be issued.

Orders

• Originating Summons issued for hearing on a date to be fixed by the Registry.

Legislation cited (6)

• Mortgage Act Cap 229 s.7
• Mortgage Act Cap 229 s.8
• Civil Procedure Rules Order 34 rule 3A
• Civil Procedure Rules Order 34 rule 7
• Civil Procedure Rules Order 37 rule 4
• Civil Procedure Rules Order 37 rule 8

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