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Monday,November 23,2020 18:50 PM

UK bank to deposit sh173m in court

By Vision Reporter

Added 8th March 2004 03:00 AM

A UK-based merchant bank, HSBC Equator Bank Plc, has been ordered to deposit sh173m as security for costs before its suit against the pre-shipment inspection company, SGS for breach of contract can be heard.

A UK-based merchant bank, HSBC Equator Bank Plc, has been ordered to deposit sh173m as security for costs before its suit against the pre-shipment inspection company, SGS for breach of contract can be heard.

By Hillary Kiirya

A UK-based merchant bank, HSBC Equator Bank Plc, has been ordered to deposit sh173m as security for costs before its suit against the pre-shipment inspection company, SGS for breach of contract can be heard.

The High Court’s commercial division registrar, Henrietta Wolayo, passed the order after SGS’s lawyers applied for the same because the plaintiff is a non-resident foreigner and has no assets here.

The registrar gave HSBC 30 days from March 3 to deposit the money in court otherwise the suit may not stand.

HSBC’s lawyers contested the application for costs saying the bank had lent money to people in Uganda but the registrar could not agree with them.

HSBC sued the pre-shipment company to recover over $7.9m, (about sh17.7b) lost in alleged false declaration.

The bank is also requesting court to order SGS to pay $900,000 (about sh1.8b) as legal costs it incurred while investigating the breach.

The court heard that SGS breached the contract by falsely stating that there were sufficient coffee stocks held by HSBC’s borrower, H.M. Nsamba and Sons Limited, a coffee dealer.

HSBC claims it appointed SGS in 1999 to verify and determine the volume, grade, value and status of Nsamba’s coffee stocks in the warehouse at Kawempe but it did not.

UK bank to deposit sh173m in court

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