Kampala International University (KIU) risks being attached by a forex bureau in Kampala that is demanding more than Shs500m from its proprietors Hassan Basajjabalaba and his brother Muzamiru Basajja.
Roltex International Forex Bureau Ltd in its law suit filed on December 19, states that it has failed to recover the money from Haba Group U Ltd, and one of the companies owned by the two brothers and alleges that they are hiding property.
The management of the forex bureau now wants court to issue an order for the attachment of the known assets of the brothers such as KIU and Haks Express in Kampala in a bid to recover its money.
I have been advised by my advocates to apply for lifting of the corporate veil and proceed to attach the properties of the 2nd and 3rd respondents (Basajja brothers) herein named, the court documents reads in part.
We have carried out due diligence and inquiries, we found that the 1st respondent (Haba Group Ltd) has no known properties but the 2nd and 3rd respondents (Basajja brothers) own various properties acquired from trading as 1st respondent.
The 2nd and 3rd respondent (Basajja brothers), own shares at Kampala International University, Haks Express at industrial area and personal properties, the documents further state.
Court records indicate that the legal battle started between 2001 and 2002.
This was when the forex bureau entered into an oral agreement with Haba Group to rent part of its premises on City Centre Complex building in Kampala.
An oral agreement and express term of contract with the defendant (Haba Group) was that as part of management of building, the plaintiff (forex bureau) would provide security during day and the defendant (Haba Group), would be responsible for security during the night, the forex bureau states.
The agreement remained subsisting and was implemented without any problem until there was a break-in of the premises, the documents add.
By press time last Friday, the court was yet to summon the brothers to file their defence before a hearing date could be fixed.
Court documents show that the break-in of the forex bureau happened on March 27, 2012. Burglars made off with more than Shs188m at the time when employees of Haba Group were in charge of the buildings security making them liable for the loss of the money.
Subsequently, the forex bureau sued Haba Group for the loss with Justice Christopher Madrama Izama (now at Court of Appeal) on September 2015, ordering the former to compensate the latter, including damages and interest that has since accumulated to more than Shs500m.
Source: www.mknewslink.com a greater western Uganda news website