The Commercial Division of the High Court has dismissed an appeal filed by Stanbic Bank Uganda Ltd and Umeme Ltd, contesting garnishee orders in favour of Makubuya William, trading as Polla Plast, over Shs 9.2 billion.
The dispute dates back to 2008, when Makubuya purchased plastic manufacturing equipment from BMK Industries Limited. As part of an agreement with his landlord, Makubuya took responsibility for paying electricity bills registered under BMK Industries’ account. He later requested the electricity account be transferred to his business name, Polla Plast. To his surprise, UMEME presented him with an outstanding electricity bill of Shs 155.1 million.
Makubuya acknowledged the debt and signed a deed of acknowledgment, pledging to settle the bill. He proceeded to illegally reconnect electricity, an act that prompted UMEME to disconnect power and impose charges for energy loss and associated fines.
The power disconnection severely impacted Makubuya’s business, rendering him unable to meet financial obligations, including rent. Consequently, his landlord seized and sold the manufacturing machines under a court order, leading to the collapse of his business.
Makubuya filed a lawsuit against UMEME in 2012. The High Court ruled in his favour, a decision UMEME appealed in 2015. However, the Court of Appeal upheld the original judgment and awarded further compensation. Still dissatisfied, Makubuya appealed to the Supreme Court in 2019, which ruled in his favour.
Following the Supreme Court’s decree, Makubuya obtained garnishee orders against Stanbic Bank on February 22, 2024, to enforce the payment. On March 7, 2024, Her Worship Nalukwago Harriet, Registrar of the Supreme Court, granted a garnishee order nisi in the presence of both parties.
Makubuya was awarded Shs 300 million in general damages (less Shs 25.5 million for the outstanding electricity bill), interest at 20% per annum from the Court of Appeal’s judgment until full payment, Shs 100 million in exemplary damages, and special damages totaling USD 2,519,557 (approximately Shs 9.2 billion).
In response, Umeme and Stanbic Bank petitioned the Commercial Division of the High Court, seeking to set aside the garnishee orders. They argued that the Registrar had acted prematurely by issuing the orders without first determining the applicable depreciation rate on the USD 2.5 million awarded as special damages. They also noted that applications for stay and review were concurrently pending in the Supreme Court.
The applicants stated they had already paid Makubuya Shs 663.6 million to cover general and exemplary damages, inclusive of interest. However, they asserted that the special damages should be subject to a depreciation rate before payment, as ordered by the Court.
Makubuya raised preliminary objections, citing lack of jurisdiction and abuse of process due to parallel proceedings in the Supreme Court.
In her ruling, Justice Patience Rubagumya held that the High Court lacked jurisdiction to overturn the Supreme Court Registrar’s orders. She noted that the duplicate applications contravened the legal principle of lis pendens and amounted to an abuse of court process.
Accordingly, the High Court dismissed the applications, with no order as to costs.
