Bank of Africa Uganda, a company that carries out business banking in Uganda has been dragged to Mengo court over debts.
Under the civil suit number 1413 of 2014 by Mbejo investment limited, a private limited liability company located in Rubaga Kampala district is accusing Bank of Africa for carrying out an illegal sale of motor vehicle registration number UAB 077N.
The Notice of intention to sue was communicated to the defendant but was neglected and ignored.
This came after the plaintiff approached the defendant and applied for a credit facility worth Shs70,000,000 on April 30 2012 and the defendant accepted the application and offered the same on June 27 2014.
The defendant requested for security for the facility and the plaintiff furnished the defendant with log books for Renault Tractor head UAM 853M, Trailer Doll UAB 303C, Mercedes Benz UAB 077N and trailer truck UAD321Q.
The plaintiff serviced the loan but in the course of paying, he got some financial constraints during the term but the representatives of the plaintiff met the officials from Bank of Africa and explained the cause for the delay in making payments.
They explained that this was due to insecurity and war that broke out in south Sudan.
The applicants truck registration number UAM 852M had overturned in an accident and upon that, he requested for the extension of time to clear the loan obligations.
However the plaintiff was surprised to learn that the truck had been impounded and that on May 15 2014 and the Mercedes Benz registration number UAB 077N was advertised in news papers for sale.
The defendant however went ahead and wrote to Ferry and Marks Services to sell the truck at Shs20,000,000 a figure that was below the value of the said truck and subsequently sold on the June 10 2014.
It is stated that as per credit facility letter clause 7, the said track was to be valued by the bank’s approved experts and valuation reports submitted to the bank before disbursement which was never done.
This gives the defendant no authority to sell the truck as there was no consent given by the plaintiff to sell the same since it was just security and not mortgaged property.
While the two parties appeared in court before the chief Magistrate of Mengo court Namala Boniface ,the plaintiff requested the honorable court for orders that the defendant returns the motor vehicle registration number UAB 077N to the plaintiff in a mechanical condition that it was in before it was impounded , the defendants pays lost income of 30, 000,000 million Uganda shillings, general damages, Punitive costs and costs of this suit .
However His worship Namala Boniface the chief magistrate of Mengo advised both parties to file the negotiation summaries before April 30 and the next hearing is scheduled for June 2015