Stanbic Bank Uganda Limited v Ataco Freight Services Limited and Others (Miscellaneous Application No. 0367 of 2025)
Observed later treatment
No later-treatment classification is recorded for this judgment.
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Holding
The court held that objectors who purchased motor vehicles from a court bailiff pursuant to a lawful auction had sufficient interest in and possession of the vehicles at the date of attachment to warrant their release from execution. The fact that the vehicles remained registered in the judgment debtor's name was not conclusive evidence of ownership and did not defeat the objectors' claim where they demonstrated actual possession and lawful purchase.
Outcome
Motor vehicles unconditionally released from attachment and execution
Facts
Stanbic Bank Uganda Limited obtained judgment against Ataco Freight Services Limited in Civil Suit No. 471 of 2017 for UGX 1,051,788,630 plus costs and interest. In execution proceedings, a warrant of attachment was issued for motor vehicles registered in the judgment debtor's name. Two vehicles were successfully attached: Mercedes Benz UBD 246H and Isuzu UAD 230D. The objectors, Faisal Yusuf and Nabende Sulaiman, filed this application claiming they had purchased the vehicles from a court bailiff following a lawful auction in November 2023 and January 2024 respectively. The vehicles had been sold pursuant to a Memorandum of Understanding between the judgment debtor and Multilines International Limited, under which the judgment debtor transferred its interests to the bailiff for disposal to settle a debt. The objectors took immediate possession after purchase and had been using the vehicles until attachment in February 2025. The judgment creditor opposed the application, asserting the vehicles belonged to the judgment debtor and no valid transfer had occurred.
Issues
- Whether the Applicants have an interest in the attached motor vehicles.
- Whether on the date of attachment, the Judgment debtor or the Objectors were in possession of the motor vehicles.
- What remedies are available in the circumstances.
Orders
- Motor Vehicle Reg. No. UBD246H, Mercedes Benz Actros 2651LS, Bluetech 5 Truck, Engine No. 54296000653110, be unconditionally released from attachment and execution.
- Motor Vehicle Reg. No. UAD 230D, Isuzu Box Body, Elf Truck, White Colour, Engine No. 4BEI199255, and Chassis No. NPR58L7125537, be unconditionally released from attachment and execution.
- Costs of the application awarded to the applicants.
Rules and key headnotes
Legislation cited (4)
Cases cited (5)
- Muhenda & 3 Others v Kamuje (Civil Appeal No. 9 of 1999)
- Chotabhai M. Patel Vs Chaturbhai M. Patel & Anor [1958] EA 743 at 746
- Harilal & Co. Vs Buganda Industries Ltd [1960] EA 318 at 319
- Trans Africa Assurance Co. Ltd v NSSF (Civil Appeal No. 1 of 1999)
- Lagol and 2 Others v Bonga and Another (Civil Appeal No. 119 of 2019)
Full judgment
The original judgment as reported. Read the original PDF before relying on any passage.