[2007] UGCommC 108

[2007] UGCommC 108

The court found that the plaintiff failed to serve the required statutory notice of default or demand on the defendants prior to the sale of the mortgaged property, in violation of Sections 116 and 117 of the Registration of Titles Act and the terms of the mortgage deed. The sale was therefore unlawful. Furthermore,...

Source-derived case information.

Citation
[2007] UGCommC 108
Parties
Plaintiff: Greenland Bank Ltd (In liquidation); Defendant: Wasswa Birigwa; Defendant: Achiles Muwonge
Court
Commercial Court of Uganda
Jurisdiction
Uganda
Case Number
HCT-00-CC-CS 26 of 2004
Procedural Posture
Civil Suit / Judgment
Outcome
Judgment for the defendants on the counterclaim. Plaintiff's suit dismissed.
Legal Topics
Mortgage Enforcement, Statutory Notice Requirements, Fraudulent Sale, Duty of Care in Mortgage Sales, Valuation of Mortgaged Property, Remedies for Unlawful Sale
Source Language
en
Banking and Finance Land and Property Civil Procedure Mortgage Enforcement Statutory Notice Requirements Fraudulent Sale Duty of Care in Mortgage Sales Valuation of Mortgaged Property +1 more

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Parties

Greenland Bank Ltd (In liquidation)

Plaintiff

Wasswa Birigwa

Defendant

Achiles Muwonge

Defendant

Procedural Posture

Civil Suit / Judgment

  1. 1 Whether due statutory notice was served on defendant no.1 before sale of the mortgaged property.
  2. 2 Whether the property was sold fraudulently.
  3. 3 Whether the plaintiff made the correct declaration of the sale price.

Ratio Decidendi

The court found that the plaintiff failed to serve the required statutory notice of default or demand on the defendants prior to the sale of the mortgaged property, in violation of Sections 116 and 117 of the Registration of Titles Act and the terms of the mortgage deed. The sale was therefore unlawful. Furthermore, the court found clear evidence of fraud, as the property was sold for Shs.17,000,000.00 but only Shs.13,000,000.00 was declared to the defendants, with the difference concealed. The plaintiff also acted negligently by failing to obtain a pre-sale valuation and selling the property by private treaty at a price far below the open market value (Shs.50,000,000.00). The appropriate...

Court Disposition

Judgment for the defendants on the counterclaim. Plaintiff's suit dismissed.

Orders

  • Plaintiff to pay the defendants Shs.37,000,000.00 being the difference between the true market value and the sale price.
  • Interest at 25% per annum from 8th September 1998 until payment in full.