The High Court’s Commercial Division has ordered DFCU Bank and the Commissioner of Land Registration to pay Shs810 million in damages to 27 individuals for refusing to release their land titles.
The land in question was purchased from Hosanna Real Estates, but DFCU Bank and the land registrar failed to transfer the titles despite a court order.
The dispute arose from a loan agreement between Hosanna Real Estates and Global Trust Bank (GTB) in 2011.
When Hosanna defaulted on the loan, GTB sued to recover the debt, and the parties agreed that Hosanna would surrender 34.26 acres of land to GTB, retaining 8.96 acres.
However, before GTB could transfer the title of the remaining land back to Hosanna, it was liquidated, and DFCU Bank took over its assets.
The 27 individuals, who had purchased plots from Hosanna, were unable to obtain their land titles, prompting them to sue DFCU Bank and the Commissioner of Land Registration.
Judge Suzan Abinyo ruled in their favor, finding that DFCU Bank had wrongfully refused to transfer the titles and that the Commissioner of Land Registration had failed to effect the transfer.
The court awarded each of the 27 plaintiffs Shs30 million in damages, totaling Shs810 million, plus costs and an annual interest rate of 8%.
The judge also ordered the registrar of titles to immediately effect the transfer of the land titles to the plaintiffs.
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