Court of Appeal has dismissed an application in which proprietors of Simbamanyo Estates Ltd filed against Equity Bank.
The appeal was seeking legal costs against Equity Bank that had won a case to auction their property over unpaid loans.
The bank won a civil case to auction the properties in Kampala to recover outstanding loans of $10.8m (about Shs40b).
Simbamanyo filed an application in court seeking to stop the auction.
However later, it withdrew the application but court awarded costs of the application to the bank.
Simbamanyo challenged the award of the costs to the bank.
On Tuesday, court dismissed the application and upheld the award of the costs to the bank.
Justice Christopher Madrama ruled that Simbamanyo Estates did not present to court acceptable grounds for the court to deny the bank the costs of the application.
“…the respondent (Equity Bank) upon being served, instructed lawyers and the lawyers took action to oppose the application by filing the appropriate affidavits in reply, as well as written submissions,” he ruled.
The ruling means that Equity Bank will now proceed and file a bill of costs payable by Simbamanyo.
The judge said the application for withdrawal was not conceded to unconditionally but was on condition of payment of costs.
In the circumstances, therefore, the applicant (Simbamanyo Estates) application stands dismissed upon withdrawal.