The High Court has dismissed an application by Akright Projects Limited seeking to defer reconciliation of its loan accounts with Shelter Afrique and to obtain a fresh interpretation of Clause 8.2 of their loan agreement.
In a ruling delivered on August 14 by Lady Justice Patience T.E. Rubagumya, the court held that the reconciliation should proceed and declined to reinterpret the clause, noting that a court order or judgment can only be varied by another court judgment or order in accordance with the law.
Akright had asked court to stay the reconciliation pending Civil Suit No. 137 of 2026 and to determine the meaning of Clause 8.2 for purposes of reconciling the accounts.
The company argued that Shelter Afrique had advanced USD 1.5 million under a 2005 securitised loan, that its outstanding balance was USD 743,129.23, and that it had discovered a disputed payment of UGX 1,419,806,753 which the respondent allegedly did not acknowledge.
Shelter Afrique opposed the application, contending that Akright had repeatedly defaulted, that the loan had been foreclosed, and that the disputed payment had not been proved.
Justice Rubagumya ruled that the disputed UGX 1.4 billion falls within the scope of the reconciliation exercise and that any additional sums would not hinder the process.
“Therefore, it is my considered view that further reconciliation of the accounts will not result in any substantial loss to the Applicant but will instead set a way forward for the Applicant’s suit,” she ruled.
She added: “In the circumstances, I am unable to delve into the interpretation of Clause 8.2 of the Loan Agreement which was a subject of the Consent Judgment. Accordingly, this issue is answered in the negative. Having found issues No. 1 and 2 in the negative, this application is hereby dismissed. The costs of the application shall be in the cause.”
