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Judge Sues Housing Finance Bank Over Sale of Encumbered Property

Mr. Michael K Mugabi, Managing Director of Housing Finance Bank (left) and Henry Peter Adonyo, Soroti High Court Judge (right).

UGANDA, Kampala | Real Muloodi News | Henry Peter Adonyo, a Soroti High Court resident Judge, is claiming that Housing Finance Bank allegedly sold to him a Shs270m property with encumbrances. He is now searching for rectification in the Commercial Division of the High Court in Kampala.

Justice Adonyo asserts that on December 12, 2019, the bank publicisaed a suit property that was up for sale through the property managers of Speedway Auctioneers.

The Judge carried out a survey in which he said he discovered the property up for sale was on mortgage. 

“Upon the plaintiff (Judge) picking interest in the suit property, the plaintiff on September 25, 2020, submitted an offer of Shs270m to the defendant (bank) through its agent,” Justice Adonyo affirms in his lawsuit that he filed before the court on September 7.

The suit adds that the Bank accepted the Judge’s “offer after a 30-day period advertisement had lapsed,” with a Shs270m payment being effected on November 7, 2020.

On December 4, 2020, the defendant (bank) signed a land sale agreement. Furthermore, the bank reported having given Justice Adonyo the certificate and signed the transfer forms of the suit property.

Aided by the area LC, the bank later placed him into possession of his newly acquired suit property.

The Judge adds he wasted no time in carrying out some renovations, but to his dismay, he “received suit documents from persons unknown to him claiming he had trespassed on their land and had fraudulently acquired the suit land.”

Justice Adonyo also says, “The persons unknown to him further applied for a temporary injunction against the plaintiff and others to which this court ordered a temporary injunction, restraining the Judge from renovating, demolishing, encumbering, transferring and selling off the suit property and further stopped the Judge from transferring the suit property into his names.”

Faced with this challenge, the Judge wrote to the bank demanding a refund of his money. He adds the bank responded negatively, stating that no refund would occur since the transaction was  properly conducted.

The Judge now seeks rectification through his lawyers of Kampala Associated Advocates. He is seeking Shs.270m, with interest, from the bank.

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