Judge sues bank over sale of disputed property

Soroti High Court resident Judge, Henry Peter Adonyo, is seeking redress in the Commercial Division of the High Court in Kampala after Housing Finance Bank allegedly sold him a Shs270m property with encumbrances.

Justice Adonyo contends that on December 12, 2019, the bank — through its property managers of Speedway Auctioneers — publicised a suit property that was up for sale. 

After carrying out due diligence, the judge says he discovered that the property was up for sale 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 states in his lawsuit that he filed before court on September 7.

The suit adds that the judge’s “offer was accepted by the [bank]…after 30 days period advertisement had lapsed” with a Shs270m payment being executed on November 7, 2020. 

A land sale agreement was then signed on December 4, 2020. The bank is reported to have also handed Justice Adonyo the certificate as well as signed transfer forms of the suit property.

Justice Adonyo adds that — with the help of the area LC — the bank later placed him into possession of his newly acquired suit property. He wasted no time in carrying out some renovations, but to his dismay the judge “receive[d] suit documents from persons unknown to him claiming that he had trespassed on their land and that he had fraudulently acquired the suit land.”

He adds: “The persons unknown to the plaintiff (judge) further filed an application for a temporary injunction against the plaintiff and others to which this court ordered a temporary injunction, restraining the plaintiff from renovating, demolishing, encumbering, transferring and selling off the suit property and further stopped the plaintiff (judge) from transferring the suit property into his names.” 

In light of this development, the judge wrote to the bank demanding refund of his money. The bank, Justice Adonyo adds, responded in a negative manner. It stated no refund would be executed since the transaction was properly conducted. 

The judge has now sought redress through his lawyers of Kampala Associated Advocates. He is desirous of Shs270m plus interest from the bank. By press time, the bank had not yet filed its defence.