[2007] UGCommC 16

[2007] UGCommC 16

The court found that the plaintiff had proved, on a balance of probabilities, that the defendants were indebted in the sum of Shs.126,944,136 after accounting for proceeds from the sale of the bus. The debenture executed by the first defendant validly charged all present and future assets, including the bus, and authorized sale by public auction or private treaty. The sale of the bus was lawful, properly advertised, and not shown to be at an undervalue. The argument that the plaintiff was required to exhaust all securities before suing was rejected, as the law allows a mortgagee to pursue multiple remedies. The court found no evidence supporting the counterclaim or the assertion that the...

Citation
[2007] UGCommC 16
Parties
Plaintiff: Bank Of Baroda (U) Ltd; Defendant: Mpungu & Sons Transporters Ltd; Defendant: Justine Nalunkuma Iga; Defendant: George William Mpungu; Defendant: Sserunkuma Phillip
Court
Commercial Court of Uganda
Jurisdiction
Uganda
Judgment Date
19 February 2007
Case Number
HCT-00-CC-CS 921 of 1997
Procedural Posture
Civil Suit / Judgment
Outcome
Judgment for the plaintiff; counterclaim dismissed.
Legal Topics
Loan Default, Guarantees and Sureties, Debenture Enforcement, Secured Transactions, Interest Awards
Source Language
English
Banking and Finance Commercial and Corporate Loan Default Guarantees and Sureties Debenture Enforcement Secured Transactions Interest Awards

Case Brief

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Parties

Bank Of Baroda (U) Ltd

Plaintiff

Mpungu & Sons Transporters Ltd

Defendant

Justine Nalunkuma Iga

Defendant

George William Mpungu

Defendant

Sserunkuma Phillip

Defendant

Procedural Posture

Civil Suit / Judgment

Legal Issues

  1. 1 Whether the defendants are indebted to the plaintiff, and if so, to what extent.
  2. 2 Whether the third defendant (in the counter claim) is liable on the loan.
  3. 3 Whether the sale of the first defendant's motor vehicle was lawful.

Ratio Decidendi

The court found that the plaintiff had proved, on a balance of probabilities, that the defendants were indebted in the sum of Shs.126,944,136 after accounting for proceeds from the sale of the bus. The debenture executed by the first defendant validly charged all present and future assets, including the bus, and authorized sale by public auction or private treaty. The sale of the bus was lawful, properly advertised, and not shown to be at an undervalue. The argument that the plaintiff was required to exhaust all securities before suing was rejected, as the law allows a mortgagee to pursue multiple remedies. The court found no evidence supporting the counterclaim or the assertion that the...

Court Disposition

Judgment for the plaintiff; counterclaim dismissed.

Orders

  • Special damages of Shs.126,944,136 awarded to the plaintiff.
  • Interest at 24% per annum from the date of judgment until payment in full.