Davensh Development (U) Ltd & Anor v Namuyimba & Anor (HCT-00-CC-CS 7 of 2013)
Observed later treatment
No later-treatment classification is recorded for this judgment.
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Holding
The court granted the application for attachment before judgment, finding that a nexus existed between the applicants and both respondents based on their conviction in the Anti-Corruption Court for conspiracy to defraud. The first respondent had jumped bail and left the jurisdiction, while evidence showed the second respondent was disposing of property. The court held that attachment was justified to secure potential recovery of US$3.6 million pending determination of the main suit.
Outcome
Attachment before judgment granted; listed properties and bank accounts secured pending determination of main suit
Facts
The applicants filed suit seeking recovery of US$3.6 million from the respondents. Both respondents had been convicted in the Anti-Corruption Court (Criminal Case No. 102 of 2011) for conspiracy to defraud in connection with money belonging to the first applicant company. The first respondent, Shanita Namuyimbwa, and the second respondent, Meddie Sentongo, were boyfriend and girlfriend who incorporated the applicant company as directors in 2010. After the conviction, the first respondent jumped bail pending appeal and left the country. Evidence showed that on 15 September 2010, US$120,000 was withdrawn in cash from the company account, and on the same day the second respondent's personal account at Standard Chartered Bank was credited with UGX 269,040,000. The applicants sought attachment before judgment, alleging the respondents were disposing of property to defeat justice. The second respondent denied ownership of the listed properties and argued there was no nexus between himself and the applicants.
Issues
- Whether the court should grant an order for attachment of the respondents' property before judgment.
- Whether a nexus exists between the applicants and the second respondent sufficient to justify attachment.
- Whether the respondents are disposing of property with intent to defeat justice.
Orders
- Application allowed.
- No action to be taken in respect of the listed properties by way of sale or transfer to a third party until the main case has been heard.
- Impoundment of specified vehicles: Toyota Pickup styled Medie5, Ford Explorer registered Medie5, BMW6 Registration No. UAP 304D, Range Rover Sport Registration No. UAP 838L, Mercedes Benz styled Black Gal, Harrier Toyota, Mercedes Benz C2000 styled Meddie5.
- Bank account Stanbic Bank (U) Ltd A/c 14003943501 in names of Meddie Ssentongo with Ugx 1,965,422,000 to be secured.
- Costs to be in the cause.
Rules and key headnotes
Legislation cited (2)
Cases cited (1)
- Muginu v Basabosa (1999) HCB 71
Full judgment
The original judgment as reported. Read the original PDF before relying on any passage.