Samuel Frobisher Owori v N.P.A.R.T (Civil Application No. 32 of 1997) [1997] UGCA 12 (18 November 1997)
Full Case Text
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Jessica chemeri}{\operator Wor. Jessica chemeri}{\creatim\yr2008\mo9\dy19\hr13\min6}{\revtim\yr2008\mo9\dy19\hr13\min6}{\version2}{\edmins1}{\nofpages5}{\nofwords993}{\nofchars5661} {\*\company }{\nofcharsws6641}{\vern24689}}\widowctrl\ftnbj\aenddoc\noxlattoyen\expshrtn\noultrlspc\dntblnsbdb\nospaceforul\hyphcaps0\formshade\horzdoc\dgmargin\dghspace180\dgvspace180\dghorigin1800\dgvorigin1440\dghshow1\dgvshow1 \jexpand\viewkind1\viewscale100\pgbrdrhead\pgbrdrfoot\splytwnine\ftnlytwnine\htmautsp\nolnhtadjtbl\useltbaln\alntblind\lytcalctblwd\lyttblrtgr\lnbrkrule\nobrkwrptbl\snaptogridincell\allowfieldendsel\wrppunct \asianbrkrule\rsidroot16152941\newtblstyruls\nogrowautofit \fet0{\*\ftnsep \pard\plain \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0 \fs24\lang2057\langfe1033\cgrid\langnp2057\langfenp1033 {\insrsid14042987 \chftnsep \par }}{\*\ftnsepc \pard\plain \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0 \fs24\lang2057\langfe1033\cgrid\langnp2057\langfenp1033 {\insrsid14042987 \chftnsepc \par }}{\*\aftnsep \pard\plain \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0 \fs24\lang2057\langfe1033\cgrid\langnp2057\langfenp1033 {\insrsid14042987 \chftnsep \par }}{\*\aftnsepc \pard\plain \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0 \fs24\lang2057\langfe1033\cgrid\langnp2057\langfenp1033 {\insrsid14042987 \chftnsepc \par }}\sectd \linex0\endnhere\sectlinegrid360\sectdefaultcl\sectrsid9179329\sftnbj {\footer \pard\plain \s16\ql \li0\ri0\widctlpar\tqc\tx4320\tqr\tx8640\pvpara\phmrg\posxr\posy0\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4091404 \fs24\lang2057\langfe1033\cgrid\langnp2057\langfenp1033 {\field{\*\fldinst {\cs17\insrsid14042987 PAGE }}{\fldrslt {\cs17\lang1024\langfe1024\noproof\insrsid5244892 5}}}{\cs17\insrsid14042987 \par }\pard \s16\ql \li0\ri360\widctlpar\tqc\tx4320\tqr\tx8640\aspalpha\aspnum\faauto\adjustright\rin360\lin0\itap0\pararsid14042987 {\insrsid14042987 \par }}{\*\pnseclvl1\pnucrm\pnstart1\pnindent720\pnhang {\pntxta .}}{\*\pnseclvl2\pnucltr\pnstart1\pnindent720\pnhang {\pntxta .}}{\*\pnseclvl3\pndec\pnstart1\pnindent720\pnhang {\pntxta .}}{\*\pnseclvl4\pnlcltr\pnstart1\pnindent720\pnhang {\pntxta )}} {\*\pnseclvl5\pndec\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}{\*\pnseclvl6\pnlcltr\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}{\*\pnseclvl7\pnlcrm\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}{\*\pnseclvl8 \pnlcltr\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}{\*\pnseclvl9\pnlcrm\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}\pard\plain \s15\qc \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1 \widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid16721118 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\ul\insrsid16152941\charrsid16721118 THE REPUBLIC OF UGANDA \line IN THE COURT OF APPEAL OF UGANDA \line AT KAMPALA }{\insrsid16152941\charrsid16721118 \line }{\insrsid16721118 \par }\pard \s15\ql \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid16721118 {\insrsid16152941\charrsid16721118 (}{\ul\insrsid16152941\charrsid16721118 CORAM}{ \insrsid16152941\charrsid16721118 : }{\insrsid16721118 \tab }{\ul\insrsid16152941\charrsid16721118 S. T. MANYINDO,}{\ul\insrsid16721118 D. C. J; A. MPAGI-BAHIGEINE, J. A; S. G}{\ul\insrsid16152941\charrsid16721118 . }{\ul\insrsid16721118 \par }\pard \s15\ql \fi720\li720\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\ipgp1\pararsid16721118 {\ul\insrsid16152941\charrsid16721118 ENGWAU. J. A) \line }{\ul\insrsid16721118 \par }\pard \s15\qc \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid16721118 {\ul\insrsid16152941\charrsid16721118 CIVIL APPLICATION NO.32 OF 1997 }{\insrsid16152941\charrsid16721118 \line BETWEEN \line }{\insrsid16721118 \par }\pard \s15\ql \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid16721118 {\insrsid16152941\charrsid16721118 SAMUEL FROBISHER OWORI}{\insrsid16721118 \'85\'85\'85\'85\'85\'85\'85\'85\'85 \'85\'85\'85\'85\'85\'85\'85}{\insrsid16152941\charrsid16721118 APPLICANT \line }{\insrsid16721118 \par }\pard \s15\qc \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid16721118 {\insrsid16152941\charrsid16721118 AND \line }{\insrsid16721118 \par }\pard \s15\ql \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid16721118 {\insrsid16152941\charrsid16721118 NON-PERFORMING ASSETS RECOVERY}{\insrsid16721118 \'85\'85\'85\'85\'85\'85\'85 \'85\'85\'85}{\insrsid16152941\charrsid16721118 RESPONDENT \line TRUST \line }{\insrsid16721118 \par }\pard \s15\qc \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid16721118 {\i\insrsid16152941\charrsid16721118 (Arising from Court of Appeal Civil Appeal No. 33/97) \line }{ \i\insrsid16721118 \par }\pard \s15\ql \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid16721118 {\ul\insrsid16721118 RULING OF TH}{\ul\insrsid16152941\charrsid16721118 E COURT }{ \insrsid16152941\charrsid16721118 \line }{\insrsid16721118 \par }{\insrsid16152941\charrsid16721118 This is an application by Notice of Motion under Rule 5(2)(b) of the Rules of this Court, for an injunction restraining the respondents from selling the applicant\rquote s property situate at Plots Nos 6 and 4 Ma rtyrs Garden, Ntinda in Kampala (hereinafter referred to as the property) pending disposal of his appeal in this court. \line The applican}{\insrsid16721118 t borrowed a huge sum of money f}{\insrsid16152941\charrsid16721118 rom the Uganda Commercial Bank ten years ago. The loan was not repaid and was eventually treated as a non-performing one by the Bank. Accordingly, it was transferred to the respondents as a non- performing loan. \line }{\insrsid16721118 \par }{\insrsid16152941\charrsid16721118 In 1996, he filed a suit with the Non-performing Assets Recovery Tribunal (NPART) seeking, inter alia, a declaration that his loan wa s a performing loan and for an order that he be allowed to redeem the mortgage on the property mentioned above. On the 30th of July 1997, the tribunal dismissed the applicant\rquote s suit with costs to the respondents. The respondents counterclaim for Shs.357}{\insrsid16721118\charrsid16721118 , 945}{\insrsid16152941\charrsid16721118 , 008/ as the outstanding balance of the said loan was allowed as it was not disputed \lquote by the applicant. The applicant was ordered to pay the respondents\rquote costs of that counter-claim. \line }{\insrsid16721118 \par }{\insrsid16152941\charrsid16721118 On the 1st of August 1997, the respondents advertised the property f or sale. The sale was scheduled for 1st September, 1997. The applicant then applied to the tribunal for an order of stay of execution or a temporary injunction ag}{\insrsid16721118 ainst sale of the property. The }{\insrsid16152941\charrsid16721118 application was refused on the 25th August, 1997, on the ground that since taking out the loan, the applicant had not made any effort to comply with the terms of servicing it.. Hence this application. \line }{\insrsid16721118 \par }{\insrsid16152941\charrsid16721118 By 29th August 1997, when this application was lodged in this court the property was intact. But on 1st September 1997, it was sold by private treaty for Shs.185}{\insrsid16721118\charrsid16721118 , 000,000}{ \insrsid16152941\charrsid16721118 /\emdash . A down payment of Shs. 4O}{\insrsid16721118\charrsid16721118 , 0OO, OO0}{\insrsid16152941\charrsid16721118 / was deposited and the balance of Shs. 145}{\insrsid16721118\charrsid16721118 , OOO, 0OO}{ \insrsid16152941\charrsid16721118 / was to be paid within 6 months on terms to be mutually agreed by the parties. \line }{\insrsid16721118 \par }{\insrsid16152941\charrsid16721118 Learned Counsel for the applicant contended before us that the sale was incomplete in which case this court could stop it by injunction. He argued that the contract of sale was conditional because: - \line }{ \insrsid16721118 \par {\listtext\pard\plain\s15 \insrsid16152941\charrsid16721118 \hich\af0\dbch\af0\loch\f0 (a)\tab}}\pard \s15\ql \fi-360\li1080\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar \jclisttab\tx1080\aspalpha\aspnum\faauto\ls1\adjustright\rin0\lin1080\itap0\ipgp1\pararsid16721118 {\insrsid16152941\charrsid16721118 the buyer had to procure and present by 10th October 1997, a guarantee either by a Bank or Insurance Institution for the outstanding balance; \line (b) interest was imposed on the outstanding balance and; \line (c) transfer was not to be effected until after presentation of the Bank or Insurance guarantee. \line }{\insrsid16721118 \par }\pard \s15\ql \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid16721118 {\insrsid16152941\charrsid16721118 According to Counsel there was only a process of sale and not a }{ \insrsid16721118 sale in that the certificate of title, }{\insrsid13138200 possession and full purchase price have not yet changed hands. He cited section 50 of the Civil Procedure Act under which an order for a sale becomes absolute only on payment of the full purchase price. \par Further, learned Counsel for applicant cited the authority of: }{\b\ul\insrsid13138200 Erinford Propertied Ltd. V Cheshire County Council [1974] 412 All ER 448 }{\insrsid13138200 whose reasoning was adopted by the Supreme Court in }{\b\ul\insrsid13138200 Lawrence Musitwa Kyazze v. Eunice Busingye civil Application No. 18 of 1990 }{\b\insrsid13138200 (unreported) }{\insrsid13138200 for the proposition that there may, of course, be many cases where it would be wrong to grant an injunc tion pending appeal, as where any appeal would be frivolous, or to grant the injunction would inflict greater hardship than it would avoid and that when a party is appealing, exercising his undoubted right of appeal, the court ought to see that the appeal , if successful, is not rendered nugatory. \par }{\insrsid16152941\charrsid16721118 \line According to Counsel the memorandum of appeal}{\insrsid13138200 raises substantial questions of fact a}{\insrsid16152941\charrsid16721118 nd law rendering the appeal not frivolous and greater hardship would not be caused to the respondent1 especially as negotiations relating to the payment of the balance of the full purchase price was still in process within the next 6 months. He, therefore, prayed for the grant of the injunction. \line }{\insrsid13138200 \par }{\insrsid16152941\charrsid16721118 For the respondents; it was contended by their Counsel, that this application is misconceived, frivolous, and a waste of Court\rquote s time because:}{\insrsid13138200 -}{\insrsid16152941\charrsid16721118 }{ \insrsid13138200 \par }\pard \s15\ql \li720\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\ipgp1\pararsid13769785 {\insrsid13769785 (a}{\insrsid13138200 )\tab }{\insrsid16152941\charrsid16721118 the applicant does not deny his indebtedness to the respondents \line (b) }{\insrsid13138200 \tab }{\insrsid16152941\charrsid16721118 the applicant has never made any effort to pay any money to the respondents as part settlement of the loan}{ \insrsid13769785 ; \line (c)\tab befo}{\insrsid16152941\charrsid16721118 r}{\insrsid13769785 e the commencement of the hearing of the }{\insrsid16152941\charrsid16721118 suit the tribunal had, at the app1icants instance, granted him a temporary injunction restrainin}{\insrsid13769785 g the respondents from selling }{\insrsid16152941\charrsid16721118 the property in question provided he paid the expenses of postponing the sale but the applicant tailed or neglected to do so, and \line (d) that in any case as the property has since been sold oft the application has been overtaken by events. There is no impending sale to be stopped by an injunction. \line }{\insrsid13769785 \par }\pard \s15\ql \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid13769785 {\insrsid16152941\charrsid16721118 It was also argued that the sale by private treaty was done pursuant to the provisions of the mortgage between the parties so that section 50 of the Civil Procedure Act is inapplicable as it relates to a sale in execution of a decree which is not th e case here. \line }{\insrsid13769785 \par }{\insrsid16152941\charrsid16721118 We do not see any merit in this application. The sale of the two houses was advertised by the respondents pursuant to the powers conferred to }{\insrsid13769785 them by the respective mortgages}{ \insrsid16152941\charrsid16721118 . \line }{\insrsid13769785 \par }{\insrsid16152941\charrsid16721118 The advertisement clearly showed that the respondents were proc eeding under the Registration of Titles Act, the Mortgage Decree, 1974 and the Non-Performing Assets Recovery Statute. 1994. Regulation 7 of the NPART Regulations }{\insrsid13769785\charrsid16721118 1995}{\insrsid16152941\charrsid16721118 empowers the respondents to determine among others the value and price for the dispositi on of the assets. In this case the respondents sold the property to the H/s J. Z. Holdings Ltd. who partly paid the contract price. In our opinion the contract was complete when part of the purchase price was deposited. It is immaterial that the price was not paid in full or that the purchaser did not take possession of the property. The moment the contract was entered into the purchaser acquired an equitable interest in that property. \line We are satisfied that the applicant\rquote s property was sold off on 1}{\super\insrsid13769785\charrsid13769785 st}{\insrsid13769785 September 1997. So in the circumstances it would be futile to order a stay of sale. Such an order would not be enforced. \par In the result; the application is dismissed with costs to the respondents. \par Dated at Kampala this 19}{\super\insrsid13769785\charrsid13769785 th}{\insrsid13769785 day of November 1997. \par S. T. MANYINDO, \par }{\ul\insrsid13769785 DEPUTY CHIEF JUSTICE. \par {\listtext\pard\plain\s15 \insrsid13769785\charrsid15403003 \hich\af0\dbch\af0\loch\f0 A.\tab}}\pard \s15\ql \fi-360\li720\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar \jclisttab\tx720\aspalpha\aspnum\faauto\ls2\adjustright\rin0\lin720\itap0\ipgp1\pararsid15403003 {\insrsid13769785\charrsid15403003 MPAGI-BAHIGEINE}{\insrsid15403003 }{\ul\insrsid13769785 ,}{\insrsid13769785 }{\insrsid16152941\charrsid16721118 \line }{ \ul\insrsid15403003\charrsid15403003 JUSTICE OF APPEAL}{\ul\insrsid15403003 . \par }\pard \s15\ql \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid15403003 {\insrsid15403003 \par S. G. ENGWAU, \par }{\ul\insrsid15403003\charrsid15403003 JUSTICE OF APPEAL}{\ul\insrsid15403003 . }{\ul\insrsid16152941 \par }}