Tuesday , November 12 2019
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Centenary bank loses loan case

 

FILE PHOTO: Centenary bank

Kampala, Uganda | THE INDEPENDENT | A prominent businessman in Kabale town has won a suit against Centenary Rural Development Bank-CERUDEB for impounding his property. In May 2018, Moses Sunday obtained a loan of Shillings 25 million to increase stock in his business.

He staked his Canter vehicle registration number UAY 115A and house all valued at Shillings 125 million as collateral. According to the loan agreement, Sunday was supposed to service the loan within a space of two year.

However, on   January 10th 2019, CERUDEB loans department officials and Caro Natukunda T/A Associates, Auctioneers & High Court Bailiffs impounded his vehicle on grounds that the Sunday has failed to clear the loan.

This forced Sunday to drag CERUDEB and Caro Natukunda T/A Associates, Auctioneers & High Court Bailiffs to Court through his lawyers M/S Twikirize & Company Advocates under Miscellaneous 001 of 2019 of Kabale High court.

Sunday argued that Caro Natukunda T/A Associates, Auctioneers & High Court Bailiffs that impounded his vehicle isn’t known and licensed by the office of the court registrar. He also said that he was not served with a hearing notice about the matter.

Sunday explained that by the time his vehicle was impounded he had paid back Shillings 8 million and was ready to pay the remaining installments as agreed. On Wednesday, the Kabale High Court Judge, Justice Moses Kamumi Kazibwe delivered a judgment that was read for him by the Kabale High Court registrar, Didas Muhumuza in favor of Sunday.

He said Caro Natukunda T/A Associates, Auctioneers & High Court Bailiffs impounded Sunday’s vehicle illegally because it is not licensed. Kazibwe also said that the Grade I Magistrates Court illegally exercised the duty of clearing Centenary Bank and the Bailiff to impound the vehicle because it has no jurisdiction to do so since the amount exceeded Shillings 20 million, which contravenes, the Magistrates Courts (Amendment) Act No.2 of 2007.

Justice Kazibwe also noted that the applicant was never given time to defend himself and that all the steps taken to impound his vehicle were illegal. He also ordered CERUDEB to return the impounded vehicle to Sunday and compensate him damages and costs of the suit.

Sunday hailed the judgment and commended court for defending his rights. The CERUDEB Manager Kabale Branch, Edmond Muhumuza declined to comment on the matter when contacted by our reporter.

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One comment

  1. Centenary you deserved this, i will walk in next to explain to me how i am liable to pay a loan i know nothing about. I cannot guarantee someone to get a loan from your bank then she pays her monthly installment but just because she had guaranteed a defaulter earlier you decide to deposit her installment on the defaulters overdue then you deduct money from my account in pretense that you are covering her loan. I am moving to one of your branches tomorrow and you explain to me how your credit system works and you as well show me where i signed to be added to a string of loans recovery. I also need an explanation of why i was not notified when you were deducting money from my account and tell me the person who authorized you to do so because that becomes fraud. you cannot start playing with my account just because you have access. Should you fail to explain i wont hesitate suing you, anti you want to learn the hard way.

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