Wife blocks sale of family house over husband’s loan

Ms Hilder Amuge was relieved yesterday when court temporally stopped the sale of her matrimonial home that her husband mortgaged to the bank.
The deputy registrar of High Court Commercial Division, Dr Agnes Nkonge, stopped Diamond Trust Bank Uganda from evicting Ms Gunya and their tenants in occupation of property on Plot 4 Bazar Road in Lira Municipality until her main case has been disposed of.

Ms Amuge sued her husband, Mr Geofrey Okwir Gunya, and his Gunya Company Limited for using the matrimonial property as security for a loan from the bank without spousal consent. She is seeking a permanent injunction in order to protect her right to the property.
While issuing the order, Dr Nkonge explained that the bank had advertised the property for sale on account of default on mortgage taken by Mr Gunya and his company.

“In the circumstances, the applicant (Ms Gunya) has demonstrated that there is a treat and has also established and met the principles for grant of a temporary injunction. The applicant hence succeeds,” court ruled.

In her main case, Ms Gunya claims that she and Mr Gunya formalised their relationship in 2008, after which they did extensive renovations and upgrades to the property up to its current state, where they occupy the top floor as a family and rent out the other part.

She further states that on 10th January 2020, two gentlemen came to inspect their property claiming they were interested buyers after seeing a published advert on 19th December 2019 by the bank, stating that their property would be up for sale, if her husband and his company failed to pay their loan within 30 days.

However, in reply to her claims Mr Gunya stated that because he was the managing director in the company, he was personally involved in every stage of the transactions forming the subject matter of the main suit.

“I acquired the suit property in 1999 but at the time I was cohabiting with the applicant and we were then not formally married though living together and it is registered in my sole names thus she is not my co-registered proprietor,” Mr Gunya stated.

Court documents further indicate that Mr Gunya secured credit facilities from Diamond Trust Bank but the property was not intended to be one of the securities for purposes of registration of the mortgage, which the bank is also aware of.

Mr Gunya further stated that because his wife was a director in their company and not a co-registered proprietor, she had no business being consulted in the transactions of the company and its dealings with the bank, save that the bank registered a mortgage on the property well aware of its occupation by his wife, their children and tenants.

He further stated that it is the bank that has embarked on an illegal sale of the suit property despite the matter being a subject of ongoing court proceedings.

However the bank insists in its defence that Mr Gunya availed it with title of the suit property as security for borrowing and to that effect a lease was granted by Lira District Land Board.

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