Bank of Papua New Guinea v Muteng Basa [1992] PNGLR 271

• Jurisdiction: Papua New Guinea
• Citation: [1992] PNGLR 271
• Date: 21 July 1992
• Court: National Court
• Year: 1992

Full Title: Bank of Papua New Guinea v Muteng Basa [1992] PNGLR 271

National Court: Brown J

Judgment Delivered: 21 July 1992

1 Mortgages—mortgagor's default—claim to possession by mortgagee of registered mortgage—statutory rights

2 Mortgages—interest rate—penalty rate charged

3 Constitutional law—whether exercise of remedies by mortgagee is harsh and oppressive under Constitution s41

___________________________

Brown J: This is a claim by the Bank instituted by way of Originating Summons for possession of real property belonging to the defendant, Muteng Basa, but mortgaged to the Bank to secure the repayment of a loan given by the Bank to Mr Basa to assist him with the property's purchase. The plaintiff pleads the mortgage No 64545 which affects the defendant's land at Hohola more particularly described as State Lease Volume 29 Folio 7127, being Allotment 115 Section 231 Hohola, National Capital District.

That mortgage and the loan agreement are in evidence. The defendant obtained a staff loan at a concessional interest rate on 26 May 1987 and met his repayments from salary until he resigned from his employment with the Bank on 16 August 1990 when his repayment ceased. He was asked to refinance his housing loan through another institution but he has failed to do so. His arrears of principal and interest are now, on the Bank's calculation, some K34,665.00 and accruing with a current interest rate of 10% pa. The defendant relies on a...