Court Orders Boss Beverage to Pay Absa Bank Shs710 Million Debt, Allows Property Sale

Boss Beverage Company Limited has been ordered by the Commercial Court to settle a debt of over Shs710 million to Absa Bank Uganda. The ruling also permits Absa Bank to proceed with the sale of mortgaged property belonging to Boss Beverages International Limited to recoup the outstanding loan.

Justice Dr Ginamia Melody Ngwatu dismissed Boss Beverages’ claims that the bank had unlawfully calculated interest and penalties on its loan facilities. The beverage company had argued that the bank’s charges led to an inflated debt figure and sought to halt any recovery processes, including the sale of its assets.

Court records indicate that Boss Beverages defaulted on its loan repayments. After a restructuring, the outstanding balance was Shs593.4 million, which later increased to Shs710.1 million due to continued default and accrued interest. The court found that Boss Beverages failed to provide sufficient evidence to support its claims of erroneous interest charges.

The judge noted that efforts by both parties to reconcile the accounts independently had stalled. The court also addressed the testimony of the company’s accountant, whose qualifications were questioned by the bank, but found his evidence admissible as an employee’s review of financial transactions.

Ultimately, the court ruled that the bank applied the agreed-upon contractual interest rates, which were deemed not unconscionable. The judge authorized the sale of the mortgaged property in Banda-Kireka, Kampala, to recover the Shs710,176,404 plus further interest. Boss Beverages was also ordered to cover the bank’s legal costs.

Source: https://www.monitor.co.ug/uganda/news/national/court-orders-boss-beverage-to-pay-shs710m-debt-to-absa-bank-clears-sale-of-mortgaged-property-5498548