21.4 C
Monday, September 25, 2023
Stanbic Bank
Stanbic Bank
Stanbic Bank
Stanbic Bank

City businessman ordered to pay Over Shs70million to Equity Bank

Must read

The Commercial Court in Kampala has ordered a city businessman, one Amir Nsamo, to pay Equity Bank over Shs77 million.

This is after Nsamo lost and application seeking the reversal of an earlier decision by the High Court on grounds that he was never served with the summons and plaint in the suit which the High Court had ruled on.

He further argued that  he has a good defense to the suit in as far as the sums claimed in the loan facility by Equity Bank is disputed and that the loan facility was itself frustrated by an act yet the High Court had denied him the opportunity to defend himself.

In response to the application, Samson Kakooza, Equity Bank’s Recoveries Manager Debt Recovery Unit stated that Nsamo obtained a credit facility of Shs90, 000,000 from Equity for the purchase of a truck.

He was contractually obliged to settle the above credit in 36 equal monthly installments comprising of both principal and interest.

However, due to failure by him to make monthly remittances on their due dates, the loan facility was recalled and HCCSNO.190 of 2014 was instituted against him at the High Court for recovery of the entire loan balance, interest and cost of the suit thereof.

“Court summons were published in the Daily Monitor News Paper of 18th June 2014, at page 29. On the 21st day of August 2014 the applicant through his lawyers Setimba & Co. Advocates filed a Notice of Joint Instructions which was served upon the respondent’s lawyers on the 22nd day of August 2014. Subsequently, the applicant through his above mentioned lawyers made a payment proposal (of Shs77,468,000) which was never honored,” reads the response in part.

Basing on the above submissions, Commercial Court judge, Billy Kainamura upheld the decision of the High Court, dismissing Nsamo’s application with costs.

“In the result this application is dismissed with costs,” the judge ruled.


Website | + posts
- Advertisement -

More articles

- Advertisement -

Latest article

- Advertisement -