In response to an October 24, 2023, High Court decision finding that DFCU Bank had unlawfully taken ownership of 48 properties owned by Meera Investments, the Commissioner of Lands Registration revoked the 48 titles and gave the bank seven days to return the copies, which were now deemed "legally inconsequential."
Last month, High Court Judge Tadeo Asiimwe issued a decision concluding that DFCU committed fraud and illegality by acquiring and transferring leasehold interests without first obtaining written approval from Meera Investments, the registered owner of the Freehold/Mailo titles and interests.
Furthermore, the court ordered DFCU to pay Meera Investments UGX2.4 billion, which covers the cost of restoring all 48 properties to rentable state. He claimed that the properties in question had no permitted leases, making the leases in question illegal and in violation of the law.
As a consequence, the court ordered the commissioner of property registration to annul 48 leases, lease modifications, and lease extensions that had been registered as encumbrances on Crane Bank's mailo and freehold titles as soon as possible. Furthermore, a permanent injunction issued by Asiimwe prohibits DFCU, its officials, and employees from visiting the Crane Bank premises.
The DFCU Bank was needed to ensure that the covenant was observed before it could legally and physically take ownership of the property. DFCU Bank opted to depend on the receiver (the Bank of Uganda) to guarantee the recovery and sale of the reversionary interests despite knowing the legislation.
The judge determined that the DFCU Bank should have recognized that its agreements with the Receiver, which purported to contract Meera Investments out of its properties, were not legally binding on Meera Investments as the lessor and could not supersede Meera Investments' rights as a lessor, which are reserved under the terms of the lease and protected by the Registration of Titles Act (RTA).
However, in a letter dated November 3, 2023, DFC Bank acknowledged the ruling, claiming that it "does not affect the bank's day-to-day operations since the branches in question were vacated in 2020."
According to the bank, "dfcu Bank is also fully indemnified by the Bank of Uganda under the P&A agreement," forcing the Commissioner of Lands Registration to annul the 48 titles. The bank also demanded that DFCU Bank restore the copies, which are now "legally inconsequential," within seven days.
It's worth noting that the plaintiff, Meera Investments Limited, prevailed in the case against DFCU Bank Limited and the Office of the Commissioner Land Registration. Orders were issued ordering the office to withdraw leasehold certificates of title and update the record to meet the criteria of the decree. A copy of the decree is given for your convenience.
Given that the court's orders are self-executing, and in order to avoid any contempt actions, this office proceeded and carried out the court's judgment to the extent stipulated in the orders. Correcting the register and removing the leases that were encumbrances on the Mailo and Freehold certificates of title registered in Meera Investments Limited's names, as well as removing all entries from DFCU Bank Limited's register and white pages identifying it as the owner of the 48 leasehold properties, were all part of this. reads a section of the letter from the Lands Registration Commissioner.
The purpose of this request is to have the 48 duplicate certificates of title that you have in your possession returned to our office in order to avoid any possible misuse, since the leasehold titles have been canceled and are no longer legally meaningful. "Please respond to this correspondence within seven days of receipt," says the letter.
