Frontier Logistics International (U) Ltd and Another v Absa Bank (U) Limited (Miscellaneous Application No. 1755 of 2025 (Arising from Civil Suit No. 0119 of 2019))
Observed later treatment
No later-treatment classification is recorded for this judgment.
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Holding
The High Court dismissed an application for discovery of a valuation report related to property used as loan collateral. The Court held that where facility letters impose a contractual obligation on the borrower to provide a valuation report, and the lender asserts after searching its records that the document does not exist in its possession, discovery will be denied absent contrary evidence. The Court found that although the valuation report would be relevant and material to the applicants' defence of fraud and illegality, the applicants failed to meet all grounds for discovery because they did not discharge their burden of proving the document was in the respondent's custody or control.
Outcome
Application dismissed
Facts
The respondent bank sued the applicants in Civil Suit No. 119 of 2019 for recovery of a debt arising from a loan disbursed to the first applicant and guaranteed by the second applicant. Prior to disbursing the loan, a valuation was conducted of property at Kibuga Block 4 Plot 890 used as collateral. The applicants filed this interlocutory application seeking an order that the respondent deliver a copy of the valuation report, which they intended to use in their defence. The facility letters dated 27 July 2016 required the first applicant to avail the respondent with a valuation of the property. The respondent stated it had searched its records and could not trace the valuation report. The applicants alleged fraud and illegality in the realization of the security and argued the valuation report was needed to prove the property was sold at an undervalue.
Issues
- Whether the Applicants have adduced sufficient grounds for orders sought?
- What remedies are available?
Orders
- Application dismissed with costs in the cause.
Rules and key headnotes
Legislation cited (7)
Cases cited (9)
- Kiyega George William v Rapid Advisory Services Ltd (Miscellaneous Application No. 2352 of 2025)
- Simbamanyo Estates Ltd and Another v Equity Bank and Another (Miscellaneous Application No. 583 of 2022)
- Suleiman Kaweesi v Bank of Uganda and Another (Miscellaneous Application No. 258 of 2022)
- Senkungu and 4 Others v Mukasa (Civil Appeal No. 17 of 2014)
- Jovelyn Barugahare v Attorney General (SCCA No. 28 of 1993)
- Kaweesi Suleiman and Others v Bank of Uganda and Another (Miscellaneous Application No. 258 of 2022)
- Dresdner Bank A.G Vs Sango Bay Estates Ltd (No. 3) [1971] E.A 326 at 328
- Dresdner Bank A.G Vs Sango Bay Estates Ltd (No. 4) [1971] E.A 409
- Simbamanyo Estates Ltd and Another v Equity Bank (U) Limited and Another (Miscellaneous Application No. 583 of 2022)
Full judgment
The original judgment as reported. Read the original PDF before relying on any passage.