The High Court Judge Susan Abinyo has ordered DFCU Bank to pay Shs 810 million in general damages to 27 claimants in a long-standing land dispute concerning property in Nakwero.
In June 2012, Hosanna Real Estates Limited obtained a Shs 2.5 billion loan from Global Trust Bank Uganda Limited (GTB), using the contested land as collateral. After failing to meet its financial obligations, Hosanna was sued by GTB, which sought foreclosure of the mortgaged property and recovery of Shs 3.1 billion owed under the loan.
The dispute was resolved through a consent judgment, wherein the parties agreed that 34.26 acres of the 43.22-acre property would be sold by GTB to recover the outstanding debt. The remaining 8.96 acres were to be retained by Hosanna Real Estates Limited.
The plaintiffs subsequently purchased portions of the 8.96-acre parcel—designated as Block 171, Plot 37 in Lugala, Kyadondo, Wakiso—from Hosanna and claimed equitable interests in the land. However, following the liquidation of GTB by the Bank of Uganda and the acquisition of selected assets by DFCU Bank under a purchase and assumption agreement, the plaintiffs were unable to register their ownership.
Both DFCU Bank and the Commissioner for Land Registration refused to issue mortgage releases or facilitate the transfer of land titles in favor of the plaintiffs, despite the consent judgment and approved subdivision. DFCU denied being a successor in title to GTB, but the Court found that the bank had consistently presented itself as such and was estopped from denying responsibility. The Court also ruled that DFCU had assumed related obligations, including the release of mortgages.
In its decision, the Court found that DFCU and the Commissioner for Land Registration had violated the plaintiffs’ rights to quiet enjoyment and equitable interest in the land. It held that their failure to implement the valid consent judgment and subdivision amounted to a breach of duty. The Bank of Uganda was found to have been wrongly joined to the suit, with no cause of action established against it.
The Court entered judgment in favor of the plaintiffs. DFCU Bank and the Commissioner were ordered to release the mortgage encumbrance and effect title transfers. Each of the 27 plaintiffs was awarded Shs 30 million in general damages with 8% interest, totaling Shs 810 million. The plaintiffs were also awarded the costs of the suit.
