Civtec Africa Limited v Mantrac Uganda Limited
Civtec Africa Limited v Mantrac Uganda Limited (Miscellaneous Cause 154 of 2023) [2024] UGHCCD 63 (3 May 2024)
The court found that the debt claimed by the Respondent was substantially disputed, as the computation of the outstanding sum was done unilaterally without the Applicant's participation, making the debt unascertained. The Applicant also raised a counter claim that required investigation in a separate civil suit. No evidence was presented to show that the Applicant was undergoing financial distress or was unable to pay its debts; the dispute was over the amount owed, not the ability to pay. The court emphasized that insolvency proceedings should not be used as a debt collection tool for disput…
Source excerpt
- Statutory Demand
- Insolvency Proceedings
- Debt Dispute
- Counter Claim
- Bad Faith In Debt Collection