Stanbic Bank (U) Ltd v New Makerere Kobil Station Ltd (HCMA 565 of 2010)

Observed later treatment

No later-treatment classification is recorded for this judgment.

Citator coverage is limited to judgments in the Wakilii corpus and source-matched treatment records. Absence of a signal is not an assertion that the case remains good law.

Holding

The court held that attachment before judgment cannot issue where it affects the rights of third parties. Where property is owned by a lessor bank under a lease agreement, a lessee cannot sell it without special authority. The Applicant bank, as owner of the bus shown in the logbook, had its rights affected by the attachment in proceedings to which it was not a party. The delay was explained as procedural. No lien existed because the bus was under court attachment, not in the Respondent's possession. Bus released from attachment.

Outcome

Bus UAK 948T released from attachment

Facts

Bus UAK 948T was attached under court warrant in HCCS 425 of 2009 (New Makerere Kobil Station Ltd v Allianz Tours and Travel Ltd) pending judgment. The Applicant bank claimed ownership as lessor under a lease agreement dated 10 April 2008 with Alliaz Pharmacy Ltd. The logbook showed the bank as owner. Alliaz Pharmacy Ltd, as lessee, still owed the bank UGX 100,424,561 in arrears. The lessee had purportedly sold the bus to Rev. Bikangiso without encumbrance. The bank was not a party to HCCS 425 of 2009. The attachment had been in place for over nine months before the bank filed the application. The Respondent claimed a lien for unpaid fuel and argued the bank was estopped by delay.

Issues

1. Whether a bus owned by the Applicant bank under a lease agreement and attached before judgment in proceedings to which the bank was not a party should be released from attachment.
2. Whether the Applicant's delay in bringing the application bars relief.
3. Whether the Respondent has a lien over the bus for unpaid fuel.

Orders

• Bus Registration No. UAK 948T released from attachment.
• Each party to bear its own costs.

Rules and key headnotes

Legislation cited (3)

• Civil Procedure Rules Order 40 rule 8
• Civil Procedure Rules Order 40 rule 12
• Civil Procedure Rules Order 22 rules 55-57

Cases cited (3)

• Lawrence Muwanga v Stephen Kyeyune (SCCA 12 of 2001)
• Rev Ezra Bikangiso v New Makerere Kobil Station (MA 10 of 2010)
• Abby Mugimu v Basa Basa [1991] ULSLR 191

The original judgment as reported. Read the original PDF before relying on any passage.