Alliaz Pharmacy Limited v Stanbic Bank Uganda Limited (Civil Suit 246 of 2010)
Observed later treatment
No later-treatment classification is recorded for this judgment.
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Holding
The court held that the bank rightfully impounded and sold the buses following the plaintiff's default under the lease agreements, but failed to provide adequate accountability for sale proceeds of certain buses. The plaintiff was awarded UGX 196,000,000 for unaccounted sale proceeds and UGX 57,574,000 for refund of initial deposits wrongly applied. The counterclaim succeeded in part, with judgment for the defendant for UGX 442,522,638 as outstanding debt owed by the plaintiff.
Outcome
Plaintiff awarded partial relief for unaccounted sale proceeds and wrongfully applied initial deposits. Defendant's counterclaim succeeded for outstanding debt of UGX 442,522,638.
Facts
Between 2004 and 2008, the plaintiff and defendant entered into vehicle and asset finance lease agreements under which the defendant financed the plaintiff's acquisition of several buses. In March 2008, one bus was written off in an accident and the insurance company paid UGX 130,598,720 as compensation to the defendant. The plaintiff alleged the defendant continued debiting monthly instalments and insurance premiums after the bus was written off, refused to replace the bus, wrongfully impounded buses in September 2009 and June 2010, and made unauthorised debits after the plaintiff sold two buses to Ssebana Kizito. The plaintiff further claimed the defendant wrongfully debited the account for a bus attached by court order and overcharged on loan disbursements. The defendant counterclaimed for UGX 1,062,765,581.07 as outstanding debt, later reduced to UGX 442,522,638 as certified by an independent accountant appointed by consent of parties. The defendant impounded and sold buses following the plaintiff's default.
Issues
- Whether the Defendant caused loss to the Plaintiff by overcharging insurance premiums
- Whether the Defendant caused loss to the Plaintiff by making wrongful levies for insurance premiums on buses sold to a third party
- Whether the Defendant caused loss with regard to initial deposits on the lease facility for buses
- Whether the Defendant caused loss by disposal of buses
- Whether the Defendant caused loss with regard to excess money for payment of buses
- Whether the Defendant caused loss with regard to unclaimed VAT
- Whether the Defendant caused loss by disbursement of higher loan amounts
- Whether the Defendant caused loss by wrongful impoundment and disposal of buses
- Whether the Defendant caused loss with regard to utilisation of insurance compensation
- Whether the Defendant is entitled to judgment on its counterclaim
Orders
- Suit dismissed on most grounds but partly succeeds.
- Judgment for the Plaintiff for UGX 196,000,000 being unaccounted proceeds from sale of buses Reg. Nos. UAK 948T, UAL 321L, UAL 227L, UAG 120J and UAG 110J.
- Judgment for the Plaintiff for UGX 57,574,000 being refund of 25% initial deposit on cost of buses Reg. Nos. UAG 110J and UAG 120J.
- Interest at court rate awarded from date of award till payment in full.
- No order as to costs on the main suit.
- Counterclaim allowed for UGX 442,522,638 to be paid to the Defendant.
- Interest at court rate on counterclaim from date of award till payment in full.
- Costs of the counterclaim awarded to the Defendant.
Rules and key headnotes
Full judgment
The original judgment as reported. Read the original PDF before relying on any passage.