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[QUOTE="Munyaradzi Mafaro, post: 52292, member: 636"]
Uganda's High Court Commercial Division sided with Tropical Bank Limited against David Bwenge, who failed to repay a vehicle loan and concealed the pledged collateral. Justice Susan Odongo determined that Bwenge defaulted on his 120 million shilling credit facility from February 2019, which financed the purchase of a Tata truck bearing registration UBE 082W. The borrower stopped making scheduled payments and hid the vehicle when bank officials attempted repossession. Bwenge resorted to violent resistance during recovery efforts, the court found. The truck served as security under a chattel mortgage arrangement.

The defendant claimed he had paid 160 million shillings and disputed penalty charges, arguing he owed only 48 million shillings. Bank recovery head Stella Nansamba testified that Bwenge's actual debt totaled 64,154,850 shillings as of August 2023. This amount comprised 41.5 million in principal, 6.5 million in interest, and 16 million in penalty fees. The court rejected Bwenge's defense that he lacked proper legal advice when signing the agreement. Justice Odongo upheld the 12 percent default rate penalty above prime lending rates.

The ruling grants Tropical Bank authority to seize and sell the Tata lorry if Bwenge fails to pay within 14 days. The bank also received court costs plus six percent annual interest on the judgment amount.
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