Africa-Press – Uganda. The High Court Commercial Division has rejected an attempt by Three Ways Shipping Services (Group) Ltd and its directors to block a court order seizing the company’s bank accounts over a six-year-old debt of about Shs480 million.
Delivering the ruling, Lady Justice Susan Odongo said the applicants had not shown any evidence of fraud or irregularity in the garnishee order issued in favour of Transpares (K) Ltd.
“This court finds that the Garnishee Order Nisi was properly obtained and that the applicants have no valid reason for it to be set aside. The balance of convenience favours the respondent, who is simply enforcing a valid judgment,” Justice Odongo said.
The dispute began in 2019 (Civil Suit No. 279 of 2019), when Three Ways Shipping Services (K) Ltd was found in breach of contract over diesel fuel supply and weighbridge services. A judgment in default was entered against them.
In 2023, Transpares successfully extended the debt liability to the company’s directors — Geoffrey Baitwa Bihamaiso and Oscar Rolands Baitwa Businge — and the holding company by “piercing the corporate veil,” a legal move allowing courts to hold individuals behind a company personally responsible.
To recover the money, Transpares moved to attach the company’s accounts at Stanbic Bank Uganda and Standard Chartered Bank Uganda.
Three Ways Shipping argued that the company and directors were separate entities not part of the original suit. They also requested a temporary halt of the garnishee order, blaming delays on their former lawyer.
Justice Odongo dismissed these arguments, explaining that the law does not allow people to hide behind slightly different company names to avoid paying debts.
“The debtor has a judgment to settle. The evidence shows that the same individuals, through different corporate structures, are trying to avoid this debt. This is exactly when the corporate veil should be pierced,” she said.
The court also refused to pause the order, noting that doing so would unfairly deny Transpares the money owed for more than six years.
The application was dismissed, with the court awarding Shs 10.4 million in legal costs to the respondent.
The ruling clears the way for Transpares (K) Ltd to recover the debt from the attached bank accounts, reinforcing the court’s stance on enforcing commercial judgments and preventing misuse of corporate structures to dodge repayment.
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