THE REPUBLIC OF UGANDA

IN THE HIGH COURT OF UGANDA AT JINJA

MISCELLENEOUS CAUSE NO……………….………OF 2024

OFFICIALRECEIVER……………………………………...………..……..APPLICANT
VERSES

1. MUGAGA (A MONEY LENDER)

2. STANBIC BANK (U) LTD
3. MR.MULUNZI NKOKO…………………………………...RESPONDENTS

NOTICE OF MOTION
(Brought Under Section 15, 16, 17, 18 And 19 Of The Insolvency Act No.14/2011, and
Regulation 189 Of the Insolvency Regulations S I No.36 Of 2013 And Section 98 of the Civil
Procedure Act Cap 71).
TAKE NOTICE THAT THIS Honorable Court shall be moved on the 25th Day of June, 2024 at
9:00 O’clock in the afternoon or soon after as Counsel for the Applicant can be heard for orders
that;
(i)That the transaction with Mugaga dated February 2022 be set aside.
(ii)That the transaction of Stanbic Bank dated June, 2021 be set aside.
(iii)That the debtor pay the debt amounting to USD 450,000&UGX 2,190,000,000/=.
(IV)That the costs of this application be provided for.
The grounds upon which this application is based are set out in the affidavit in support of this
application sworn by the applicant which shall be read and relied on at the hearing but briefly are
that;
1. That the 3rd respondent executed a pledge with the 1st respondent on a matrimonial home
without the consent of the wife contrary to the law.
2. That the 1st respondent transferred the security into his names without following the
procedures under the law.
3. That the 2nd respondent entered into a transaction with the 3rd respondent in respect of the
property which was of undervalue.
 4. That the 2nd respondent entered into a transaction worth USD 500,000 with a Congolese
customer for maize supplies which the 3rd respondent deducted USD 80,000 to satisfy a
loan of 1.5billion.
That it is in the interest of justice that this application be allowed and the transactions be set
aside.

Dated at Jinja this 25th day of 2024

……………………………………………..
COUNSEL FOR THE APPLICANT
GIVEN under my hand and seal of this Honorable Court this………………day of………..2024
…………………………………………
REGISTRAR
DRAWN & FILED BY
FIRM E7&CO.ADVOCATES
P.O BOX 1172
Jinja-UGANDA.

THE REPUBLIC OF UGANDA

IN THE HIGH COURT OF UGANDA AT JINJA
MISCELLENEOUS CAUSE NO……………….………OF 2024

OFFICIALRECEIVER……………………………………...………..……..APPLICANT
VERSES

1. MUGAGA (A MONEY LENDER)

2. STANBIC BANK (U) LTD
3. MR.MULUNZI NKOKO…………………………………...RESPONDENTS
 AFFIDAVIT IN SUPPORT OF THE APPLICATION
I, FIRM E7&CO.ADVOCATES, P.O BOX 1172, Jinja Road, Jinja-UGANDA, do solemnly
swear and state as follows;
1. That the applicant is an adult male Ugandan of sound mind and a resident of Jinja, Jinja
road, well versed with the grounds of the application and depone this affidavit in that
capacity.
2. That the 3rd respondent in March 2022 a year preceeding his insolvency entered into a
transaction with the 1st respondent which involved borrowing a loan of UGX 50M from
the 1st respondent called Mugaga payable at 6% per month where the 3rd respondent
pledged title for his matrimonial home as a security .( A copy of the loan agreement
and transfer Forms are attached hereto and marked ‘A’).

3. That by the time the transaction between the 1st and 3rd respondent took place, the 3rd
respondent was insolvent because he has an outstanding loan of 1.5billion with Stanbic
Bank thereby making the transaction voidable liable to be set aside.( A copy of loan
agreement with Stanbic Bank is hereto attached and marked as “B”)

4. That the loan transaction was executed without the consent of Mrs. Nkoko the wife to the
3rd respondent thereby making it voidable because it is contrary to the law governing
matrimonial property.
5. That the 1st respondent in a year preceding the 3rd respondent’s insolvency, contrary to
statutory provisions went ahead and transferred the security into his names without
following the right procedures thereby the transaction becoming voidable.
6. That the 2nd respondent in June,2021, the year preceding the 3rd respondent’s insolvency
entered into a loan transaction worth 1.5 billion payable in 2 years with the 3rd respondent
where 10 acres of land was to be a security for repayment of load.(A copy of 1.5b loan
agreement is hereto attached and marked as “B”).
7. That the 2nd respondent upon revaluating the mortgaged land found that it was of much
less value compared to how it reflected initially, it is worth 500million instead of
1.5billion thereby making the whole transaction voidable because of being undervalue.
8. That the 2nd respondent in March, 2024 the year which the 3rd respondent became
insolvent and unable to pay his debts, deducted UGX80,000 equivalent to UGX300m
from USD 500,000 which money was deposited by the 3rd respondent’s customer for
maize supplies.
9. That it is in the interest of justice that this application be allowed to set aside the above
voidable transactions
10. That whatever I have stated herein is true and correct to the best of my knowledge and
belief.

SWORN at Jinja this…………….day of…………..2024

By the said OFFICIAL RECEIVER.

 …………………………………………
DEPONENT

BEFORE ME
…………………………………………..
COMMISSIONER FOR OATHS
DRAWN AND FILED BY;
FIRM E7&CO.ADVOCATES
P O BOX 1172
Jinja-Road
Jinja-UGANDA.