Wakilii

Uganda Ecumenical Church Loan Fund Ltd v Mary Florence Nabiyinja Mbuga - (HCT-00-CC-OS 1 of 2005)

High Court · [2005] UGCOMMC 30 · 2005 Application Partly Allowed AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Originating summons seeking foreclosure and sale of mortgaged property for loan default
Decision
Matter adjourned for three months with liberty to plaintiff to return for foreclosure order if mortgagor fails to pay

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

The court determined that UGX 7,430,000.00 principal plus interest at 20% per annum from 15 August 1997 was due from the principal borrower. The mortgagor was ordered to pay within three months, failing which the plaintiff may seek foreclosure under Mortgage Act s.8. General damages were dismissed as not available under Order 34 Rule 3A proceedings.

Outcome

Matter adjourned for three months with liberty to plaintiff to return for foreclosure order if mortgagor fails to pay

Facts

The defendant was registered proprietor of Block 254 Plot No. 145 at Kasanga. She granted a power of attorney dated 23 July 1997 to M/S Tweyambe Kitodha Development Group authorising use of the property as security for a loan from the plaintiff. The principal borrower signed a mortgage deed with the plaintiff but the deed was never registered with the Registrar of Titles. The principal borrower defaulted on repayment of the loan of UGX 7,430,000.00. The plaintiff sought foreclosure and sale of the mortgaged property. The defendant did not contest the claim. Efforts at personal service had failed and the last service was by substituted service.

Issues

  1. Whether the mortgagee/plaintiff is entitled to foreclose the mortgagor's right of redemption of the suit property.
  2. Whether the mortgagee/plaintiff is entitled to sell the suit property.
  3. Whether the mortgagee/plaintiff is entitled to an order for payment of UGX 7,430,000.00, interest thereon and general damages for breach of contract.
  4. Whether the defendant/mortgagor should pay the costs of this suit.
  5. Whether general damages are recoverable under Order 34 Rule 3A proceedings.

Orders

  • The mortgagor is to pay UGX 7,430,000.00 principal plus interest at 20% per annum from 15 August 1997 to 22 February 2005, plus interest at court rate from 22 February 2005 until payment in full, within three months expiring 31 August 2005.
  • In event of default, the plaintiff may return to court for an order of foreclosure.
  • The mortgagor/defendant is to be notified of this order through a newspaper with national circulation.
  • The claim for general damages is dismissed.
  • The defendant shall bear the costs of these proceedings.

Rules and key headnotes

Land & Property — Mortgage — Foreclosure — Procedure under Mortgage Act s.8
A mortgagee may apply to court to foreclose the right of the mortgagor to redeem mortgaged land anytime after breach of covenant to pay. The court shall determine the amount due and may fix a date not exceeding six months from the date of failure to pay within which the mortgagor shall pay. If the mortgagor fails to pay on the date fixed, the court shall order foreclosure and that the land be offered for sale.
Contract Law — Interest — Rate — Proof of Agreed Rate
Where a plaintiff claims interest at a rate higher than that stated in the mortgage deed and the supporting affidavit, the court will apply the rate stated in the mortgage deed in the absence of evidence supporting the higher rate.
Civil Procedure — Originating Summons — Order 34 Rule 3A — Remedies Available
General damages are not recoverable in proceedings brought by originating summons under Order 34 Rule 3A, as such relief is not envisioned under those procedural provisions.

Legislation cited (3)

Full judgment

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

Uganda Ecumenical Church Loan Fund Ltd v Mary Florence Nabiyinja Mbuga - (HCT-00-CC-OS 1 of 2005) [2005] UGCommC 30 (19 June 2005)
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.