Court dismisses Bitature’s UGX 48 billion debt evasion application

Ugandan businessman Patrick Bitature has lost his bid to defend a $13 million (about Shs48 billion) award to ABSA Bank.

Justice Harriet Grace Magala of the Commercial Division of the High Court dismissed Bitature’s application with costs reasoning that his case does not affect the bank’s right to claim against him as a guarantor for Electro-Maxx (U) Ltd.

Bitature had argued that he was not indebted to the bank, reasoning that he had no contract of guarantee related to the Consent Judgment.

However, Justice Magala found that the Consent Judgment only enforced the bank’s rights under the personal guarantee signed by Bitature.

Electro-Maxx (U) Ltd, where Bitature is a director and guarantor, entered a Consent Judgment with ABSA Bank in 2020.

The agreement was varied twice, with both variations signed by the parties and sealed by the court.

Bitature admitted to guaranteeing loan facilities in both variations.

Despite paying 13 installments out of 46, Electro-Maxx (U) Ltd sought to set aside the Consent Judgment, which was dismissed by the court.

Bitature’s application was deemed an abuse of process, as he had accepted and partly honored the Consent Judgment terms.

The court records show that Bitature was sued as the guarantor of $13,568,876 owed by Electro-Maxx (U) Ltd to the bank.

The judge held that the Bitature’s attached guarantee documents dated April 30, 2014, and August 6, 2018, where signed and executed by him.

Justice Magala ruled that Bitature could not accept the transaction’s validity and then dispute it for another advantage.

She explained that the principle of approbation and reprobation, based on the doctrine of election, prohibits this.

The court emphasized that Civil Application No. 1184 of 2023 and Civil Suit No. 1190 of 2023 had different questions for determination and that Consent Judgment didn’t affect the bank’s right to claim against Bitature as a guarantor.

This ruling adds to Bitature’s ongoing legal battles, including a $32 million debt dispute with Vantage Mezzanine Fund II Partnership.

The businessman has faced multiple court defeats, including a failed bid to block the auctioning of his prime properties.