Businessman Defends Shs 427m Loan Recovery Suit Against Stanbic Bank
Businessman Defends Shs 427m Loan Recovery Suit Against Stanbic Bank
The High Court’s Commercial Division has permitted city businessman Dalaus Katongole, operating under Ngoleda Stores, to formally defend a loan recovery case filed by Stanbic Bank Uganda seeking over Shs 427 million.
Presiding judge Justice Patience T.E. Rubagumya ruled that the businessman had raised “serious legal and factual questions” requiring full trial rather than a summary judgment.
Disputed Mortgage and Alleged Forgery
Katongole disputed the authenticity of the mortgage agreement, stating that the title to the mortgaged property had previously been cancelled in a separate High Court matter. His wife, through a sworn affidavit, also denied having provided spousal consent to the most recent mortgage agreement. She further accused the bank of forging her signature on the consent form.
Bank Refutes Allegations
In its defence, Stanbic Bank rejected all claims of impropriety, describing Katongole’s audit report as “biased and professionally compromised.” The bank revealed that since 2012, it had extended over 52 loan facilities to him and that the disputed loan was a consolidation of earlier credit arrangements.
The bank insisted that the property in question is still legally registered under Katongole’s name and that the financial liability stands unchanged.
Full Trial Ordered
Justice Rubagumya emphasized that the complexity of the case—particularly the allegations of fraud, forgery, and unlawful deductions—demanded a detailed hearing. “The facts and evidence adduced by both parties disclose triable issues of law and fact that ought to be determined by the Court,” she stated in her ruling.
Katongole has been granted unconditional leave to defend the suit and is required to file a written statement of defence within 15 days. The matter will now proceed to a full trial. The court will determine the application’s costs at the conclusion of the main case.
