Score |
71
LAWYER @ SIGNUM ADVOCATES
The High Court of Uganda reaffirms the requirement to deposit 30% of either the outstanding sum of forced sale value in order to stop sale of mortgaged property.
<p>The Court in Misc. Application No. 1047 of 2025: Stanbic Bank Uganda Limited versus Global Scientific Supplies Limited (where we successfully represented the Applicant) reaffirmed the position that in order to stop a sale of mortgaged property, the person seeking such a stoppage must pay 30% of the either the outstanding sum or forced sale value of the mortgaged property - whichever is higher. <br/><br/>In court's interpretation of Regulation 13 of the Mortgage Regulations 2012, the court has the discretion to either grant or deny an injunction stopping the sale of mortgaged property. However, once the Injunction is granted, the order for the payment of 30% is an automatic remedy to the person on whom such an injunction has been issued against hence halting the sale of the mortgaged property.</p><p><strong>Key Takeaway</strong><br/><br/>The court has once again provided certainty to Financial Institutions engaged in debt recoveries by way of sale of mortgaged properties. This provides a buffer for the financial sector since the financial institutions are able to recover a portion of debt owed in the interim as any disputes are litigated in the Courts of law. <br/><br/>Furthermore, by emphasizing the pay now and argue later principle, the litigants seeking stoppages of sale of mortgaged property are required to show show the seriousness of their arguments. This way, the courts are able to deter unserious litigants who hope to use the courts of law as time wasting tool without meeting their obligations to the financial institutions. <br/><br/>For any inquiries regarding the Sale of and stoppage of sales of mortgaged properties please do not hesitate to reach out to the Debt Recovery team at Signum Advocates.</p>
176
Other insights from Ntamugabumwe Victor
Referral Earning
Points-to-Coupons
Insights for you.
25 views
3 upvotes
2 comments
Comments