Abisha Steel Industries Limited (In recievership) and 2 Others v Exim Bank (U) Limited and Another (HCCS 5 of 2017)
Abisha Steel Industries Limited (In recievership) and 2 Others v Exim Bank (U) Limited and Another (HCCS 5 of 2017) [2023] UGHC 299 (27 February 2023)
The court found that the Bank did not breach the facility contracts, as the deductions and recovery actions taken were consistent with the terms of the loan agreements and statutory requirements. The payment of USD 170,000 by Abisha rectified the initial default, but subsequent defaults occurred, and the Bank was entitled to proceed with recovery steps, including appointment of a Receiver and sale of mortgaged assets. The appointment of the Receiver was lawful under both the debenture and the Mortgage Act, with the court taking a liberal approach to documentary omissions by the Bank. The Plai…
Source excerpt
- Credit Facility Enforcement
- Receivership Appointment
- Mortgage Default Notices
- Debenture Registration
- Contractual Breach
- Accountability Of Receiver