Ham Enterprises Petitions the Constitutional Court Challenging Regulation 13 (2012) of the Mortgage Act
The High court yesterday nullified and dropped the 30% deposit requirement in Tycoon Ham’s case with Diamond trust bank as it contradicts constitutional article 28 of fair hearing as well as defeating the independence of the Judiciary.
History of 30% requirement.
The Mortgage Act was enacted in 2010 however it was not until 2012 that Regulation 13 under the Mortgage Regulation 2012 that requires payment of a 30% deposit was smuggled into the laws of Uganda as a photocopy to the income tax law which required a tax payer to pay URA a deposit of 30% on an assessment before they could challenge such assessment at courts of law.
Ham Petitions the Constitutional Court Challenging Mortgage Regulation 13
Ham Enterprises (U) Limited has additionally filled a Constitutional Petition challenging Regulation 13 and its Constitutionality on ground that it’s repugnant and inconsistent to Article 28 which provides for the right to a fair hearing and this Regulation has always been used by Banks as a clog against seeking justice by their clients.
Similar Regulation already Outlawed
It should however be noted that this requirement has recently been successfully outlawed by the Constitutional Court in Constitutional Petition No. 3/2009 Fuelex (U) Limited Vs Uganda Revenue Authority.
This is the same court hearing the Constitutional Petition filed by Ham Enterprises (U) Limited against Diamond Trust Bank Constitutional Petition No. 11/2020 which quotes similar injustices but this time under the Mortgage Regulations. This kind of injustice in Uganda should stop since courts of laws are conduits of Justice as Ugandans go to courts of law seeking justice not rather to be turned into victims.
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