Wakilii

Stanbic Bank (U) Limited v Kenneth Mambo TA Remedy Business Ventures and Bakaima Investments Limited [2025] UGHC 331

High Court · 2025 Consent Order Recorded; Costs Awarded AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
First instance civil suit for breach of contract and recovery of debt, resolved by consent judgment between plaintiff and 1st defendant; ruling on 2nd defendant's application for costs
Decision
Consent judgment recorded between plaintiff and 1st defendant; 2nd defendant awarded costs against 1st defendant

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

The court held that the 2nd defendant was a necessary party to the suit as the plaintiff sought orders requiring the 2nd defendant to hand over land titles held in custody. The consent judgment between the plaintiff and 1st defendant wholly disposed of the case. The 2nd defendant was entitled to costs, but these costs were to be paid by the 1st defendant rather than the plaintiff, as the 1st defendant's failure to honour the Acknowledgement of Debt Settlement Agreement and his instruction to the 2nd defendant not to release titles caused the litigation.

Outcome

Consent judgment recorded between plaintiff and 1st defendant; 2nd defendant awarded costs against 1st defendant

Facts

The plaintiff bank entered into a banking agency agreement with the 1st defendant to deliver financial services. The 1st defendant credited customer accounts but failed to properly debit his own account, resulting in a debt of UGX 2,938,523,563. A reconciliation revealed the 1st defendant had used these funds to purchase properties from the 2nd defendant's real estate business. The parties entered into an Acknowledgement of Debt Settlement Agreement on 15 September 2021, agreeing that properties purchased would be sold to settle the debt. The 1st defendant handed over some titles which were sold, but others remained in the 2nd defendant's custody. On 23 May 2022, the 1st defendant instructed the 2nd defendant not to release any titles without his authorization. The plaintiff sued both defendants when the 2nd defendant refused to release the remaining titles. The plaintiff and 1st defendant subsequently entered into a consent judgment on 6 May 2025.

Issues

  1. Whether the 2nd defendant is entitled to costs

Orders

  • The consent judgment entered into between the plaintiff and 1st defendant on 6 May 2025 is recorded, wherein the 2nd defendant hands over the 1st defendant's certificates of title to the plaintiff for disposal as full and final settlement of the 1st defendant's debt obligations.
  • Each party between the plaintiff and 1st defendant to bear its own costs.
  • The 2nd defendant is entitled to costs.
  • The costs borne by the 2nd defendant shall be paid by the 1st defendant.

Rules and key headnotes

Civil Procedure — Necessary Parties — Joinder of Parties — Party Whose Presence Essential for Complete Adjudication
A party may be joined in a suit even though there is no cause of action against that party, where the party's presence is necessary to enable the court to effectively and completely adjudicate and settle all questions involved in the case, particularly where the orders sought would legally affect that party's interests.
Civil Procedure — Costs — Discretion of Court — Costs Following the Event
Under section 27(2) of the Civil Procedure Act, costs of any suit shall follow the event unless the court for good reason orders otherwise. The award of costs is within the discretion of the court, and a party who engages in conduct which tends to defeat justice must compensate the opposite party for costs incurred.
Civil Procedure — Costs — Liability for Costs — Conduct Causing Litigation
Where a party's conduct causes another party to incur costs in defending litigation, the court may exercise its discretion to order that the party whose conduct necessitated the litigation bear the costs, even where that party is not the plaintiff. The general principle is that the person liable for the loss or costs should bear the burden of payment.

Legislation cited (4)

Cases cited (5)

Full judgment

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Stanbic Bank (U) Limited v Kenneth Mambo TA Remedy Business Ventures and Bakaima Investments Limited 2025 UGHC 331 (7 May 2025)
Source: this page presents Wakilii’s issue analysis and metadata for a publicly reported Ugandan judgment. Any AI-generated summary is marked as such. Judgment text is sourced from the Uganda Legal Information Institute (ulii.org). Wakilii is not affiliated with ULII.