Francis Kayanja v Diamond Trust Bank of Uganda Ltd (High Court Miscellaneous Application No. 300 of 2008) [2008] UGCommC 63 (25 September 2008)

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\par }{\fs24\lang1036\langfe1033\langnp1036\insrsid15535177\charrsid7733379 COMMERCIAL DIVISION \par \par \par HCT-00-CC-MA-0300}{\b\fs24\lang1036\langfe1033\langnp1036\insrsid15535177\charrsid7733379 -2008 \par \par }{\fs24\lang1036\langfe1033\langnp1036\insrsid15535177\charrsid7733379 \par }{\fs24\insrsid15535177\charrsid7733379 FRANCIS KAYANJA \'85\'85\'85\'85\'85}{\fs24\insrsid10842574\charrsid7733379 \'85\'85\'85\'85\'85.}{\fs24\insrsid15535177\charrsid7733379 .\'85\'85\'85\'85.. APPLICANT \par \par VERSUS \par \par DIAMOND TRUST }{\fs24\insrsid15076139\charrsid7733379 BANK OF UGANDA LTD}{\fs24\insrsid15535177\charrsid7733379 . \'85}{\fs24\insrsid15076139\charrsid7733379 \'85\'85}{\fs24\insrsid15535177\charrsid7733379 RESPONDENT \par \par \par BEFORE: HON. MR. JUSTICE LAMECK N. MUKASA \par \par \par RULING: \par }\pard \ql \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid7733379 {\fs24\insrsid2976398\charrsid7733379 \par }\pard \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid7733379 {\fs24\insrsid2976398\charrsid7733379 This is an application brought by Chamber Summons under Order 41 rule 9 of Civil Pro}{ \fs24\insrsid2714423\charrsid7733379 cedure Rules. The Applicant Francis Kayanja is seeking Orders that:-}{\fs24\insrsid2976398\charrsid7733379 \par }{\fs24\insrsid2714423\charrsid7733379 \par {\listtext\pard\plain\lang1033\langfe1033\langnp1033\langfenp1033\insrsid2714423\charrsid7733379 \hich\af0\dbch\af0\loch\f0 (a)\tab}}\pard \qj \fi-405\li765\ri0\sl360\slmult1\widctlpar \jclisttab\tx765\aspalpha\aspnum\faauto\ls1\adjustright\rin0\lin765\itap0\pararsid7733379 {\fs24\insrsid2714423\charrsid7733379 A temporary injunction does issue restraining the Respondent from selling, alienating or }{ \fs24\insrsid16127695\charrsid7733379 in }{\fs24\insrsid2714423\charrsid7733379 any way disposing off the Applicant}{\fs24\insrsid15076139\charrsid7733379 \rquote }{\fs24\insrsid2714423\charrsid7733379 s property until after the hearing and determination of the main suit:- \par {\listtext\pard\plain\lang1033\langfe1033\langnp1033\langfenp1033\insrsid2714423\charrsid7733379 \hich\af0\dbch\af0\loch\f0 (b)\tab}The costs of the application be provided for \par }\pard \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid7733379 {\fs24\insrsid2714423\charrsid7733379 \par The grounds for the application are that:- \par \par {\listtext\pard\plain\lang1033\langfe1033\langnp1033\langfenp1033\insrsid2714423\charrsid7733379 \hich\af0\dbch\af0\loch\f0 1.\tab}}\pard \qj \fi-390\li750\ri0\sl360\slmult1\widctlpar \jclisttab\tx750\aspalpha\aspnum\faauto\ls2\adjustright\rin0\lin750\itap0\pararsid7733379 {\fs24\insrsid2714423\charrsid7733379 The Applicant has already paid off the Respondent. \par {\listtext\pard\plain\lang1033\langfe1033\langnp1033\langfenp1033\insrsid2714423\charrsid7733379 \hich\af0\dbch\af0\loch\f0 2.\tab}The Applicant}{\fs24\insrsid15076139\charrsid7733379 \rquote }{\fs24\insrsid2714423\charrsid7733379 s propert}{ \fs24\insrsid15076139\charrsid7733379 ies }{\fs24\insrsid6449780\charrsid7733379 are of considerable value than the Respondent\rquote s debt (if any}{\fs24\insrsid7413761\charrsid7733379 )}{\fs24\insrsid6449780\charrsid7733379 and the Applicant shall suffer irreparable loss if the property is sold. }{\fs24\insrsid2714423\charrsid7733379 \par {\listtext\pard\plain\lang1033\langfe1033\langnp1033\langfenp1033\insrsid6449780\charrsid7733379 \hich\af0\dbch\af0\loch\f0 3.\tab}}{\fs24\insrsid6449780\charrsid7733379 It would be just and equitable that a temporary injunction does issue. \par }\pard \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid7733379 {\fs24\insrsid6449780\charrsid7733379 \par \par The application }{\fs24\insrsid15076139\charrsid7733379 is }{\fs24\insrsid6449780\charrsid7733379 supported b}{\fs24\insrsid15076139\charrsid7733379 y an affidavit depone}{\fs24\insrsid6449780\charrsid7733379 d to by the Applicant. The Applicant therein avers that on 28}{\fs24\super\insrsid6449780\charrsid7733379 th}{\fs24\insrsid6449780\charrsid7733379 April 2004 he borrowed from the Respondent, Diamond Trust Bank Uganda Ltd, Shs100,000,000/= The Respondent acc}{\fs24\insrsid15076139\charrsid7733379 ep}{\fs24\insrsid6449780\charrsid7733379 ted as security three Applicant\rquote s properties, to wit K} {\fs24\insrsid15076139\charrsid7733379 yadondo Block 222 Plot 314 Namug}{\fs24\insrsid6449780\charrsid7733379 ongo, Kyadondo Block Plot 1546 and Plot 371 Kamuli Kireka, all valued at }{\fs24\insrsid15076139\charrsid7733379 more}{ \fs24\insrsid6449780\charrsid7733379 than Shs500,000,000/=}{\fs24\insrsid15076139\charrsid7733379 . }{\fs24\insrsid6449780\charrsid7733379 }{\fs24\insrsid15076139\charrsid7733379 T}{\fs24\insrsid6449780\charrsid7733379 hat he had paid all the principal sum plus a substantial sum on the interest. That despite the payment the Respondent has gone ahead to give }{\fs24\insrsid4223213\charrsid7733379 Quickway Auctioneers and Bailiffs instructions to advertise and sale the Applicant\rquote s properties. Consequently the Applicant filed Civil Suit 154 of 2008 and this applicat}{\fs24\insrsid15076139\charrsid7733379 ion}{ \fs24\insrsid4223213\charrsid7733379 .}{\fs24\insrsid6449780\charrsid7733379 \par }{\fs24\insrsid4223213\charrsid7733379 \par The Respondent filed an affidavit in reply deponed to by Betty Rukyalekere, its company secretary. She therein states:- \par \par }\pard \qj \li567\ri567\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin567\lin567\itap0\pararsid7733379 {\fs24\insrsid15076139\charrsid7733379 \'935. }{\fs24\insrsid4223213\charrsid7733379 That the Applicant defaulted in repayment of the debt by reason of which the Respondent by letter dated 14}{\fs24\super\insrsid4223213\charrsid7733379 th}{\fs24\insrsid4223213\charrsid7733379 May 2007 demanded for settlement of the sums outstanding}{ \fs24\insrsid15076139\charrsid7733379 }{\fs24\insrsid16127695\charrsid7733379 th}{\fs24\insrsid8406458\charrsid7733379 e}{\fs24\insrsid16127695\charrsid7733379 n being }{\fs24\insrsid15076139\charrsid7733379 Ugshs97,10,000/= ---}{ \fs24\insrsid4223213\charrsid7733379 }{\fs24\insrsid8406458\charrsid7733379 (}{\fs24\insrsid15076139\charrsid7733379 A copy }{\fs24\insrsid4223213\charrsid7733379 of the letter of demand is attached as \'93B\'94). \par }{\fs24\insrsid15076139\charrsid7733379 6.}{\fs24\insrsid4223213\charrsid7733379 The Respondent additionally issued a statutory notice of sale of the mortgage property on 19}{\fs24\super\insrsid4223213\charrsid7733379 th}{ \fs24\insrsid4223213\charrsid7733379 June 2007. (A copy of the Statutory Notice of sale is attached as \'93C\'94) \par }{\fs24\insrsid15076139\charrsid7733379 7.}{\fs24\insrsid4223213\charrsid7733379 That the Respondent subsequently advertised for sale of the }{\fs24\insrsid15076139\charrsid7733379 securities}{\fs24\insrsid11024273\charrsid7733379 in the Monitor Newspaper }{\fs24\insrsid10321640\charrsid7733379 dated 6}{\fs24\super\insrsid10321640\charrsid7733379 th}{\fs24\insrsid10321640\charrsid7733379 December 2007 however the sale was not conducted on 7}{ \fs24\super\insrsid10321640\charrsid7733379 th}{\fs24\insrsid10321640\charrsid7733379 January 2008 on the}{\fs24\insrsid15076139\charrsid7733379 basis that the Applicant had}{\fs24\insrsid10321640\charrsid7733379 undertaken to settle his indebtedness. }{\fs24\insrsid4223213\charrsid7733379 \par }{\fs24\insrsid10321640\charrsid7733379 8. }{\fs24\insrsid15076139\charrsid7733379 That in default}{\fs24\insrsid10321640\charrsid7733379 of settlement of the debt sum, the securities we}{\fs24\insrsid15076139\charrsid7733379 r}{ \fs24\insrsid10321640\charrsid7733379 e re-advertised for sale on 22}{\fs24\super\insrsid10321640\charrsid7733379 nd}{\fs24\insrsid10321640\charrsid7733379 May 2008. \par 9. That as at the 29}{\fs24\super\insrsid10321640\charrsid7733379 th}{\fs24\insrsid10321640\charrsid7733379 June 2008 the Applicant was indebted to the Respondent in the sum of Ugshs30,985,467/= --- which debt continue to accrue interest. (A co py of the statement }{\fs24\insrsid15076139\charrsid7733379 of }{\fs24\insrsid10321640\charrsid7733379 account is attached as \'93E\'94).\'94 \par }\pard \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid7733379 {\fs24\insrsid10321640\charrsid7733379 \par A}{\fs24\insrsid15076139\charrsid7733379 t}{\fs24\insrsid10321640\charrsid7733379 the hearing the Applicant was represented by Mr. Mukasa Lugalambi. There was }{\fs24\insrsid16127695\charrsid7733379 no}{\fs24\insrsid10321640\charrsid7733379 }{ \fs24\insrsid15076139\charrsid7733379 repre}{\fs24\insrsid10321640\charrsid7733379 s}{\fs24\insrsid15076139\charrsid7733379 entation }{\fs24\insrsid8406458\charrsid7733379 fo}{\fs24\insrsid16127695\charrsid7733379 r the Respondent }{ \fs24\insrsid10321640\charrsid7733379 and hearing proceeded exparte. \par \par The law is that the granting }{\fs24\insrsid2235806\charrsid7733379 of a temporary injunction is a judicial discretion which }{\fs24\insrsid10321640\charrsid7733379 }{\fs24\insrsid16127695\charrsid7733379 court }{\fs24\insrsid10321640\charrsid7733379 exercises judiciously upon considering the conditions below. First whether the applicant has shown a prima facie case with a probability of success. Secondly that the Applicant would suffer irreparable }{\fs24\insrsid9204271\charrsid7733379 injury whi ch would not adequately be compensated by an award of damages. Thirdly, if court is in doubt on any of the above two, it will decide the application on the balance of convenience. See, }{\i\fs24\ul\insrsid9204271\charrsid7733379 Geilla Vs Cas}{ \i\fs24\ul\insrsid2235806\charrsid7733379 sman}{\i\fs24\ul\insrsid9204271\charrsid7733379 B}{\i\fs24\ul\insrsid2235806\charrsid7733379 rown}{\i\fs24\ul\insrsid9204271\charrsid7733379 & Co Ltd (1975) EA 35}{\i\fs24\ul\insrsid2235806\charrsid7733379 8}{ \i\fs24\ul\insrsid9204271\charrsid7733379 , ELT K}{\i\fs24\ul\insrsid2235806\charrsid7733379 i}{\i\fs24\ul\insrsid9204271\charrsid7733379 yimba Kagwa Vs Hajji Abdu Nasser Katende (1986) HCB 43. \par }{\fs24\insrsid9204271\charrsid7733379 \par The prima purpose of a temporary injunction is to}{\fs24\insrsid2235806\charrsid7733379 preserve the status quo pending the disposal of the main suit. }{\fs24\insrsid9204271\charrsid7733379 }{\fs24\insrsid2235806\charrsid7733379 S}{ \fs24\insrsid9204271\charrsid7733379 ee, }{\i\fs24\ul\insrsid9204271\charrsid7733379 Noomohamed Jamamohamed Vs Kas}{\i\fs24\ul\insrsid2235806\charrsid7733379 amali Virji Nad}{\i\fs24\ul\insrsid9204271\charrsid7733379 hain (1953) 29 EACA 8}{ \i\fs24\ul\insrsid2235806\charrsid7733379 ;}{\i\fs24\ul\insrsid9204271\charrsid7733379 Erison Rainbow Musoke Vs Ahamed Kezeraha (1987) HCB 81}{\i\fs24\ul\insrsid2235806\charrsid7733379 ,}{\i\fs24\ul\insrsid9204271\charrsid7733379 Order 41 rules 1 and 2 of the Civil Procedure Rules}{\fs24\insrsid9204271\charrsid7733379 . \par \par Therefore, first and foremost, it is necessary to identify the status quo. In his affidavit the Applicant avers that his properties were advertised for sale in }{\fs24\insrsid2235806\charrsid7733379 the }{\fs24\insrsid9204271\charrsid7733379 Monito r Newspaper }{\fs24\insrsid10321640\charrsid7733379 }{\fs24\insrsid9204271\charrsid7733379 of 22}{\fs24\super\insrsid9204271\charrsid7733379 nd}{\fs24\insrsid9204271\charrsid7733379 May 2008. The application seeks to stop that advertised sale. The advert by Quickway Auctioneers and Court Bailiffs (Annexture \'93D\'94) is of an intended sale of the properties to be conducted on 24}{\fs24\super\insrsid9204271\charrsid7733379 th}{ \fs24\insrsid9204271\charrsid7733379 June 2008. In the Respondent}{\fs24\insrsid2235806\charrsid7733379 \rquote }{\fs24\insrsid9204271\charrsid7733379 s affidavit in a reply, filed on 23}{\fs24\super\insrsid9204271\charrsid7733379 rd}{ \fs24\insrsid9204271\charrsid7733379 June 2008, the Respondent does not say that the property had been sold. No evidence was adduced to that effect. In the circumstances I find that that Applicant}{\fs24\insrsid2235806\charrsid7733379 \rquote }{ \fs24\insrsid9204271\charrsid7733379 s properties had been advertised for sale but }{\fs24\insrsid2235806\charrsid7733379 n}{\fs24\insrsid9204271\charrsid7733379 ot as yet sold. }{\fs24\insrsid10321640\charrsid7733379 \par }{\fs24\insrsid9204271\charrsid7733379 \par Regarding the first test, whether the Applicant ha}{\fs24\insrsid2235806\charrsid7733379 s}{\fs24\insrsid9204271\charrsid7733379 a prima facie case with a probability of success, the trend in Uganda is to consider }{\fs24\insrsid12409541\charrsid7733379 only whether there are serious questions to be tried. See }{\i\fs24\ul\insrsid12409541\charrsid7733379 Robert Kauma Vs Hotel International SCCA No. 8 of 1990, Kiyimba Kaggwa Vs Haji Naser Katende (supra)}{\i\fs24\ul\insrsid2235806\charrsid7733379 ,}{ \i\fs24\ul\insrsid12409541\charrsid7733379 Muhamed Ya}{\i\fs24\ul\insrsid2235806\charrsid7733379 kim}{\i\fs24\ul\insrsid12409541\charrsid7733379 }{\i\fs24\ul\insrsid5123598\charrsid7733379 Vs }{\i\fs24\ul\insrsid12409541\charrsid7733379 Abdu Khamis H. C. C. S. No. 217 of 1994}{\fs24\insrsid12409541\charrsid7733379 }{\fs24\insrsid9204271\charrsid7733379 \par }{\fs24\insrsid12409541\charrsid7733379 A prima facie case has to be disclosed in the Applicants pleadings in }{\fs24\insrsid2235806\charrsid7733379 the}{\fs24\insrsid12409541\charrsid7733379 main suit. In the plaint the Applicant, inter alia, claim}{ \fs24\insrsid5123598\charrsid7733379 s}{\fs24\insrsid12409541\charrsid7733379 that:- \par \par {\listtext\pard\plain\lang1033\langfe1033\langnp1033\langfenp1033\insrsid12409541\charrsid7733379 \hich\af0\dbch\af0\loch\f0 1.\tab}}\pard \qj \fi-390\li1470\ri0\sl360\slmult1\widctlpar \jclisttab\tx1470\aspalpha\aspnum\faauto\ls1\ilvl1\adjustright\rin0\lin1470\itap0\pararsid7733379 {\fs24\insrsid12409541\charrsid7733379 By the end of }{\fs24\insrsid2235806\charrsid7733379 M}{\fs24\insrsid12409541\charrsid7733379 ay 2008 the Applicant had paid off }{\fs24\insrsid2235806\charrsid7733379 the }{\fs24\insrsid12409541\charrsid7733379 entire debt of the }{\fs24\insrsid5123598\charrsid7733379 Shs}{\fs24\insrsid12409541\charrsid7733379 10,000,000/= which was the principal sum and also Shs8,948,}{\fs24\insrsid5123598\charrsid7733379 813}{\fs24\insrsid12409541\charrsid7733379 /= as interest }{\fs24\insrsid5123598\charrsid7733379 leaving only a balance of Shs32,413,441/= as interest }{ \fs24\insrsid12409541\charrsid7733379 on the principal sum. \par {\listtext\pard\plain\lang1033\langfe1033\langnp1033\langfenp1033\insrsid12409541\charrsid7733379 \hich\af0\dbch\af0\loch\f0 2.\tab}He paid money to the defendant in accordance with the contract dated 17}{\fs24\super\insrsid12409541\charrsid7733379 th}{ \fs24\insrsid12409541\charrsid7733379 July 2006 and his contract to rep}{\fs24\insrsid5123598\charrsid7733379 a}{\fs24\insrsid12409541\charrsid7733379 y the defendant was still running up to October 15}{\fs24\super\insrsid12409541\charrsid7733379 th}{ \fs24\insrsid12409541\charrsid7733379 2008. \par {\listtext\pard\plain\lang1033\langfe1033\langnp1033\langfenp1033\insrsid12409541\charrsid7733379 \hich\af0\dbch\af0\loch\f0 3.\tab}The defendant to advertise his property for sale before the 15}{\fs24\super\insrsid12409541\charrsid7733379 th}{ \fs24\insrsid12409541\charrsid7733379 October 2008, is in breach of the contract between the parties and will be an outright rip off of the plaintiff since property to be sold is well above Shs500,000,000/= \par {\listtext\pard\plain\lang1033\langfe1033\langnp1033\langfenp1033\insrsid12409541\charrsid7733379 \hich\af0\dbch\af0\loch\f0 4.\tab}The defendant\rquote s debt, if any}{\fs24\insrsid2235806\charrsid7733379 ,}{\fs24\insrsid12409541\charrsid7733379 owing does not warrant the }{\fs24\insrsid11272256\charrsid7733379 sale of his properties which are well above any existing debt as may be claimed by the defendant. }{\fs24\insrsid12409541\charrsid7733379 \par }\pard \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid7733379 {\fs24\insrsid11272256\charrsid7733379 \par Annexture A to the plaint is the loan agreement. On repayment period it states that \endash }{\fs24\insrsid2235806\charrsid7733379 \par }\pard \qj \li567\ri567\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin567\lin567\itap0\pararsid7733379 {\fs24\insrsid2235806\charrsid7733379 \'93}{\fs24\insrsid5123598\charrsid7733379 ---}{\fs24\insrsid11272256\charrsid7733379 the }{ \fs24\insrsid6365062\charrsid7733379 loan will be repaid in a maximum period of thirty}{\fs24\insrsid5123598\charrsid7733379 months by thirty }{\fs24\insrsid6365062\charrsid7733379 equal installments comprising principal and interest by transfer from your current account with us as per repayment schedule.\'94}{\fs24\insrsid2235806\charrsid7733379 \par }\pard \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid7733379 {\fs24\insrsid2235806\charrsid7733379 \par }{\fs24\insrsid6365062\charrsid7733379 In the event of any default the agreement provided that}{\fs24\insrsid5123598\charrsid7733379 :-}{\fs24\insrsid6365062\charrsid7733379 }{\fs24\insrsid283497\charrsid7733379 \par \par }\pard \qj \li567\ri567\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin567\lin567\itap0\pararsid7733379 {\fs24\insrsid6365062\charrsid7733379 \'93 the entire loan balance outstanding will become due and payable immediately and any arrears amount will attract interest at the then applicable ruling rate.\'94}{\fs24\insrsid11272256\charrsid7733379 \par }\pard \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid7733379 {\fs24\insrsid6365062\charrsid7733379 \par Annexture B is a Reschedule}{\fs24\insrsid283497\charrsid7733379 me}{\fs24\insrsid6365062\charrsid7733379 nt of the loan dated 17}{\fs24\super\insrsid6365062\charrsid7733379 th}{\fs24\insrsid6365062\charrsid7733379 July 2006. The loan was thereby rescheduled for a period up to October 15, 2008. On repayment it stated: \par }\pard \qj \li567\ri567\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin567\lin567\itap0\pararsid7733379 {\fs24\insrsid6365062\charrsid7733379 \par \'93The rescheduled Term Loan will be repaid by October 15}{\fs24\super\insrsid6365062\charrsid7733379 th}{\fs24\insrsid6365062\charrsid7733379 2008, by 10 four- monthly (te}{\fs24\insrsid7825795\charrsid7733379 rm}{\fs24\insrsid6365062\charrsid7733379 ly) installments comprising principal and interest, starting from October 15, 2005 and ending on October 15, 2008 }{\fs24\insrsid7825795\charrsid7733379 --- we attach the schedule of repayment}{\fs24\insrsid283497\charrsid7733379 for your records. In this connection}{\fs24\insrsid7825795\charrsid7733379 we advise having given the schedule in June 2005.}{\fs24\insrsid6365062\charrsid7733379 \par }{\fs24\insrsid7825795\charrsid7733379 \par Notwithstanding the provisions above, the Bank shall be entitled to demand and call for immediate repayment of all or any of }{\fs24\insrsid283497\charrsid7733379 the secured}{\fs24\insrsid7825795\charrsid7733379 liabilities at its sole discretion at any time--- \par }\pard \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid7733379 {\fs24\insrsid7825795\charrsid7733379 \par In the event of default it provide}{\fs24\insrsid5123598\charrsid7733379 d:-}{\fs24\insrsid7825795\charrsid7733379 }{\fs24\insrsid283497\charrsid7733379 \par }\pard \qj \li567\ri567\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin567\lin567\itap0\pararsid7733379 {\fs24\insrsid7825795\charrsid7733379 \'93 --- all loan outstanding w ill become due and payment immediately and the arrears shall attract interest at the then applicable ruling rate.\'94 \par }\pard \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid7733379 {\fs24\insrsid7825795\charrsid7733379 \par Annexture B shows that the Rescheduled loan period was up to }{\fs24\insrsid283497\charrsid7733379 15}{\fs24\super\insrsid283497\charrsid7733379 th}{\fs24\insrsid283497\charrsid7733379 October}{\fs24\insrsid7825795\charrsid7733379 , 2008 but that repayment of both principal and interest was by four monthly installments, the first of such installments being due and payable on 15}{\fs24\super\insrsid7825795\charrsid7733379 th}{\fs24\insrsid7825795\charrsid7733379 October 2005. In the even}{\fs24\insrsid283497\charrsid7733379 t}{\fs24\insrsid7825795\charrsid7733379 of default all loan outstanding would become due and payable immediately. As of 22}{\fs24\super\insrsid7825795\charrsid7733379 nd}{ \fs24\insrsid7825795\charrsid7733379 May 2008, the date of advert for sale, the amount outstanding on the February - May 2008 period was shs11,130,494/= on both principal and interest as per the statement of Account Annexture}{ \fs24\insrsid283497\charrsid7733379 C}{\fs24\insrsid7825795\charrsid7733379 . As a result of the default, under the loan agreement (annexture \'93B\'94) all loan outstanding became due and payable. The statement, annexture C }{ \fs24\insrsid5586096\charrsid7733379 \endash }{\fs24\insrsid7825795\charrsid7733379 shows}{\fs24\insrsid5586096\charrsid7733379 }{\fs24\insrsid283497\charrsid7733379 that }{\fs24\insrsid7480641\charrsid7733379 the total}{ \fs24\insrsid5586096\charrsid7733379 outstanding as of 4}{\fs24\super\insrsid5586096\charrsid7733379 th}{\fs24\insrsid5586096\charrsid7733379 June 2008, the date of the statement, was Shs32,413,441/=. The }{\fs24\insrsid283497\charrsid7733379 Applicant }{\fs24\insrsid5586096\charrsid7733379 in paragraph 4 (c) of his plaint admits this sum as outstanding, which he; erroneously though}{\fs24\insrsid283497\charrsid7733379 ,}{\fs24\insrsid5586096\charrsid7733379 considers as a bala nce on only interest. It is trite that a party is bound by his/her pleadings. Considering all the above I find that the Applicant has failed to show that he has a prima facie case against the Respondent. }{\fs24\insrsid7825795\charrsid7733379 \par }{\fs24\insrsid7480641\charrsid7733379 \par The next issue is whether the Applicant would suffer irreparable injury which an award of damages cannot adequately atone if the injunction}{\fs24\insrsid283497\charrsid7733379 was not granted and later the A}{\fs24\insrsid7480641\charrsid7733379 pplicant turned out to be successful in the main suit. The Applicant must shows that he has a claim in the main suit which even if awarded damages would not be adequately compensated for the loss he is to suffer if the injunction is not granted. See }{ \i\fs24\ul\insrsid7480641\charrsid7733379 Tonny Waswa Vs Joseph Kakoba (1987) HCD 85, Napro Industries Ltd Vs Five Star Industries Ltd & Anor HC Commercial Division) Misc. App. No 773 of 2004 }{\fs24\insrsid7825795\charrsid7733379 \par }{\fs24\insrsid7480641\charrsid7733379 \par In paragraph}{\fs24\insrsid283497\charrsid7733379 s}{\fs24\insrsid7480641\charrsid7733379 8}{\fs24\insrsid283497\charrsid7733379 and 9}{\fs24\insrsid7480641\charrsid7733379 of his affidavit i}{\fs24\insrsid283497\charrsid7733379 n}{ \fs24\insrsid7480641\charrsid7733379 supported the Applicant avers:- \par \par }\pard \qj \li567\ri567\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin567\lin567\itap0\pararsid7733379 {\fs24\insrsid7480641\charrsid7733379 \'93}{\fs24\insrsid14156444\charrsid7733379 8That if the sale is not for}{ \fs24\insrsid854593\charrsid7733379 th}{\fs24\insrsid14156444\charrsid7733379 with stopped I shall suffer irreparable loss since I have }{\fs24\insrsid5127103\charrsid7733379 already paid the Bank all the substantial amounts of money as per the con tract, my properties shall be sold without being valued by an independent valuer and I therefore stand to los}{\fs24\insrsid283497\charrsid7733379 e}{\fs24\insrsid5127103\charrsid7733379 , and the pe}{\fs24\insrsid283497\charrsid7733379 n}{ \fs24\insrsid5127103\charrsid7733379 ding case before court shall be rendered useless.\'94}{\fs24\insrsid7480641\charrsid7733379 \par }\pard \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid7733379 {\fs24\insrsid5127103\charrsid7733379 \par }\pard \qj \li567\ri567\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin567\lin567\itap0\pararsid7733379 {\fs24\insrsid5127103\charrsid7733379 }{\fs24\insrsid854593\charrsid7733379 9. }{\fs24\insrsid283497\charrsid7733379 T}{ \fs24\insrsid854593\charrsid7733379 hat already the Respondent\rquote s auctioneers have threatened to b}{\fs24\insrsid15538491\charrsid7733379 ring}{\fs24\insrsid854593\charrsid7733379 potential viewers to the}{\fs24\insrsid15538491\charrsid7733379 site}{\fs24\insrsid5123598\charrsid7733379 ,}{\fs24\insrsid854593\charrsid7733379 however the property is comprise}{\fs24\insrsid15538491\charrsid7733379 d}{\fs24\insrsid854593\charrsid7733379 of a school Kireka Parents School, and the actions of the auctioneer are likely to affect the day to day administration and running of the school, which shall lead me to incur further loses.}{\fs24\insrsid5123598\charrsid7733379 \'94}{ \fs24\insrsid5127103\charrsid7733379 \par }\pard \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid7733379 {\fs24\insrsid854593\charrsid7733379 \par In }{\i\fs24\ul\insrsid854593\charrsid7733379 Kiyimba \endash Kagwa Vs Haji Nassar Katende (1988) HCB 43}{\fs24\insrsid854593\charrsid7733379 Odok}{\fs24\insrsid5123598\charrsid7733379 i}{\fs24\insrsid854593\charrsid7733379 }{ \fs24\insrsid15538491\charrsid7733379 J}{\fs24\insrsid854593\charrsid7733379 (as he then was) held that irreparable injury means that the injury must be substantial or immaterial one, that is, one that cannot be adequately compensated for in damages.

\par \par The }{\fs24\insrsid15538491\charrsid7733379 Applicant does not in his }{\fs24\insrsid854593\charrsid7733379 affidavit show the nature of loss he would suffer. Other}{\fs24\insrsid15538491\charrsid7733379 than }{\fs24\insrsid854593\charrsid7733379 stating that the land comprises of a school called Kireka Parents School, the Applicant does not show what injury that would result to him and which cannot be compensated by an award of damages. In his submission the }{ \fs24\insrsid15538491\charrsid7733379 A}{\fs24\insrsid854593\charrsid7733379 pplicant}{\fs24\insrsid15538491\charrsid7733379 \rquote }{\fs24\insrsid854593\charrsid7733379 s counsel stated that the school was the Applicant}{ \fs24\insrsid15538491\charrsid7733379 \rquote }{\fs24\insrsid854593\charrsid7733379 s only source of income a}{\fs24\insrsid15413160\charrsid7733379 nd that the Respondent had }{\fs24\insrsid11232096\charrsid7733379 granted the}{ \fs24\insrsid15413160\charrsid7733379 loan to the Applicant while aware of this fact. Counsel\rquote s submission in his regard was not supported by any evidence on record. Court should not be expected to speculate. }{ \fs24\insrsid854593\charrsid7733379 \par }{\fs24\insrsid15413160\charrsid7733379 \par In view of my holding }{\fs24\insrsid15538491\charrsid7733379 on }{\fs24\insrsid15413160\charrsid7733379 the first issue, I must point out that the relationship between a bank and its customer is contractual in nature. Monies lent to a customer are repayabl e either on demand or in the case of term loans, as in this case, at a specified future date. Where the loan is secured by a mortgage a special property in the mortgage}{\fs24\insrsid15538491\charrsid7733379 d}{\fs24\insrsid15413160\charrsid7733379 }{ \fs24\insrsid11232096\charrsid7733379 property passes}{\fs24\insrsid15413160\charrsid7733379 to }{\fs24\insrsid15538491\charrsid7733379 the }{\fs24\insrsid15413160\charrsid7733379 bank in order that it }{\fs24\insrsid11232096\charrsid7733379 may be able to sell the property}{\fs24\insrsid6622685\charrsid7733379 if its right to sell arises. In paragraph 12 of its }{\fs24\insrsid8718166\charrsid7733379 affidavit in reply the Respondent contends that as mortgage}{ \fs24\insrsid15538491\charrsid7733379 e}{\fs24\insrsid8718166\charrsid7733379 it is empowered to have recourse to the mortgaged property to recover the sums due to it. A }{\fs24\insrsid15538491\charrsid7733379 mortgagee}{ \fs24\insrsid8718166\charrsid7733379 where he exercises his }{\fs24\insrsid10904662\charrsid7733379 right to liquidate }{\fs24\insrsid4607495\charrsid7733379 the debt due by attachment and sell of }{\fs24\insrsid15538491\charrsid7733379 the }{ \fs24\insrsid4607495\charrsid7733379 security he is under a duty to sell the security and }{\fs24\insrsid15538491\charrsid7733379 use}{\fs24\insrsid4607495\charrsid7733379 the proceeds to pay off the loan, accumulated interest and costs of the sale. The }{\fs24\insrsid5123598\charrsid7733379 mortgagee}{\fs24\insrsid4607495\charrsid7733379 has a duty to give an accountability to the mortgagor and pay th e balance, if any, o}{\fs24\insrsid15538491\charrsid7733379 f}{\fs24\insrsid4607495\charrsid7733379 the sale proceeds to the mortgagor.}{\fs24\insrsid15413160\charrsid7733379 \par }{\fs24\insrsid4607495\charrsid7733379 \par The issue is not how much has been paid on the loan but whether there monies due and payable on the loan as per the loan agreement and a def}{\fs24\insrsid15538491\charrsid7733379 aul}{\fs24\insrsid4607495\charrsid7733379 t in payment. In light of all the above I find that the Applicant has failed to show that he will suffer irreparable injury in the event the main suit is decided in his favour when the property has already been sold. \par \par The last test is that in case of doubt court should decide whether or not }{\fs24\insrsid10643186\charrsid7733379 to grant}{\fs24\insrsid4607495\charrsid7733379 a temp orary injunction on the balance of convenience. This test is resorted to when Court is }{\fs24\insrsid10643186\charrsid7733379 in }{\fs24\insrsid4607495\charrsid7733379 doubt on any of the first two issues. Without any doubt my finds on the first two issues have been in the negative. I therefore find no need to consider}{\fs24\insrsid1526855\charrsid7733379 }{\fs24\insrsid4607495\charrsid7733379 the issue of convenience. \par \par In the fi}{\fs24\insrsid1526855\charrsid7733379 nal result this application is dismissed with costs.}{\fs24\insrsid4607495\charrsid7733379 \par }{\fs24\insrsid1526855\charrsid7733379 \par }\pard \ql \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid7733379 {\fs24\insrsid1526855\charrsid7733379 \par \par \par }\pard \qc \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid7733379 {\fs24\insrsid1526855\charrsid7733379 Hon. Mr. Justice Lameck N. Mukasa \par Judge \par 26}{\fs24\super\insrsid1526855\charrsid7733379 th}{\fs24\insrsid1526855\charrsid7733379 September, 2008 \par }\pard \ql \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid7733379 {\fs24\insrsid1526855\charrsid7733379 \par \par }{\fs24\insrsid7825795\charrsid7733379 \par \par \par }{\fs24\insrsid6365062\charrsid7733379 \par \par }{\fs24\insrsid6754790\charrsid7733379 \par }}