Bank of Baroda head office in UgandaThe High Court has declared Akazibwe Hamida the lawful owner of two plots of land in Nalumunye and nullified a mortgage registered in favour of Bank of Baroda (Uganda) Limited after finding the transaction was tainted by fraud and misrepresentation.In a ruling delivered by Lady Justice Patience T.E. Rubagumya, the court held that the first defendant, Kamya Robert Kitandwe, concealed the plaintiff’s interest in the land from the bank and misrepresented her as a tenant.Hamida told court she purchased the land on April 1 and May 1, 2011, paid UGX 54.5 million in full, took possession and later developed commercial structures on it. She said she later discovered that Kitandwe had mortgaged the same land without her knowledge or consent.Kitandwe denied fraud, arguing that Hamida had been his tenant and that their agreements were tied to a 2013 arrangement. Bank of Baroda maintained that it had conducted due diligence before granting the mortgage and was not liable.Justice Rubagumya rejected the plaintiff’s application to admit a late statement from the LC1 Chairperson, ruling that it did not qualify under Section 30 of the Evidence Act.However, on the substance of the case, the judge found the mortgage dealings fraudulent.“Therefore, the 1st Defendant’s acts of concealing the Plaintiff’s interest in the suit land from the mortgagees, mortgaging part of her land without her knowledge and consent as well as misrepresenting to the 2nd Defendant that she was a tenant yet she was an owner of part of the suit land depict fraud,” Justice Rubagumya ruled.She added: “I find that the fraudulent mortgaging and entry of the 2nd Defendant’s mortgage on the suit land, including the Plaintiff’s portion of the land, was occasioned due to the concealment and misrepresentation of facts by the 1st Defendant. As a result, the mortgage transaction between the Defendants to the extent of the portion of the suit land that is owned by the Plaintiff, is null and void.”The court vested the land in Hamida, issued a permanent injunction restraining the defendants from further interference, and awarded her UGX 15 million in general damages.The post High Court Nullifies Bank of Baroda Mortgage in Fraudulent Nalumunye Land Deal appeared first on Business Focus.