Muhangi sues StanChart
Nov 11, 2003
BUSINESSMAN, Charles Muhangi has accused Standard Chartered Bank (SCB) of illegally selling his building on William Street in Kampala to an Asian businessman.
By Jude Etyang
BUSINESSMAN, Charles Muhangi has accused Standard Chartered Bank (SCB) of illegally selling his building on William Street in Kampala to an Asian businessman.
Muhangi, the proprietor of Horizon Coaches on Monday asked the Commercial Court to nullify the sale of the building on Plot 9, to Gian Singh Bhambras. The building was sold at sh1.1b.
Muhangi has already placed a caveat, stopping the transfer of the building which formerly housed the bank’s branch that originally belonged to the defunct Co-operative Bank.
Muhangi, through lawyer Peter Nyombi, has sued StanChart, seeking to nullify the sale and recover damages.
The bank’s lawyer, Henry Wambuga, however, told court the building was sold on April 17, 2003, after Muhangi failed to repay a loan sh1.134b which he used to complete payment of the building.
But Nyombi said there was no transparency in the sale.
He said there should have been advertisement of the intended sale. He said his client was not given the chance to pay the money to redeem the building.
But Wambuga said Muhangi was given ample notice in accordance with the mortgage agreement but failed to pay the loan.
“It was upon such failure that the defendant (StanChart) notified the plaintiff (Muhangi) of its intention to realise the security under the mortgage,†Wambuga said.
Muhangi obtained a- $410,000 loan from StanChart to buy the building from Bank of Uganda at $810,000.
Nyombi said Muhangi agreed to repay the loan within 60 months, with sh18.9m monthly instalments effective January 31, 2003.
Ends
BUSINESSMAN, Charles Muhangi has accused Standard Chartered Bank (SCB) of illegally selling his building on William Street in Kampala to an Asian businessman.
Muhangi, the proprietor of Horizon Coaches on Monday asked the Commercial Court to nullify the sale of the building on Plot 9, to Gian Singh Bhambras. The building was sold at sh1.1b.
Muhangi has already placed a caveat, stopping the transfer of the building which formerly housed the bank’s branch that originally belonged to the defunct Co-operative Bank.
Muhangi, through lawyer Peter Nyombi, has sued StanChart, seeking to nullify the sale and recover damages.
The bank’s lawyer, Henry Wambuga, however, told court the building was sold on April 17, 2003, after Muhangi failed to repay a loan sh1.134b which he used to complete payment of the building.
But Nyombi said there was no transparency in the sale.
He said there should have been advertisement of the intended sale. He said his client was not given the chance to pay the money to redeem the building.
But Wambuga said Muhangi was given ample notice in accordance with the mortgage agreement but failed to pay the loan.
“It was upon such failure that the defendant (StanChart) notified the plaintiff (Muhangi) of its intention to realise the security under the mortgage,†Wambuga said.
Muhangi obtained a- $410,000 loan from StanChart to buy the building from Bank of Uganda at $810,000.
Nyombi said Muhangi agreed to repay the loan within 60 months, with sh18.9m monthly instalments effective January 31, 2003.
Ends