Kampala, Uganda — The High Court Commercial Division has firmly rejected an application by Three Ways Shipping Services (Group) Ltd and its directors to overturn a garnishee order freezing the company’s bank accounts over an outstanding debt of USD 126,000 dating back six years.
In her ruling, Lady Justice Susan Odongo dismissed the request to halt the enforcement of a judgment in favor of Transpares (K) Ltd, emphasizing that the applicants failed to show any irregularities or fraud in obtaining the Garnishee Order Nisi.
“This court finds that the Garnishee Order Nisi was properly obtained and that the Applicants have not provided any justifiable reason for it to be set aside. The balance of convenience tilts heavily in favour of the Respondent, who has a valid judgment and is simply seeking to enforce it,” Justice Odongo stated.
The dispute originated from Civil Suit No. 279 of 2019, where a default judgment was entered against Three Ways Shipping Services (K) Ltd for breach of contract involving the supply of diesel fuel and weighbridge services. In 2023, Transpares (K) Ltd successfully obtained an order piercing the corporate veil, holding the company’s directors Geoffrey Baitwa Bihamaiso, Oscar Rolands Baitwa Businge and the holding company liable for the debt.
Following this, Transpares moved to attach bank accounts held by the group at Stanbic Bank Uganda and Standard Chartered Bank Uganda to recover the judgment sum.
The applicants, represented by Counsels Masiga Collins and Vivian Karungi, contended that the entities were separate legal persons and were not party to the original suit. They further sought an interim stay of execution and an extension to file a review application, attributing delays to former legal counsel.
However, Justice Odongo rejected these arguments, reinforcing that the principle of separate corporate personality is not absolute. She noted the lack of evidence distinguishing the operations of the entities, concluding that the applicants were attempting to evade their obligations through multiple corporate vehicles.
“The judgment debtor, Three Ways Shipping Services (K) Ltd, has a judgment debt to settle. The evidence points to a situation where the same individuals, acting through slightly different corporate vehicles, are attempting to avoid this debt. This is a classic case where the corporate veil should be pierced,” the judge explained, citing legal precedents aimed at preventing injustice.
Regarding the request for an interim stay, the court held that no substantive application had been filed and that delaying execution would unjustly deprive the respondent of the benefits of a judgment pending for over six years.
Consequently, Miscellaneous Application No. 1526 of 2025 was dismissed with costs awarded to Transpares (K) Ltd. The case file was sent back to the Registrar to proceed with execution, enabling Transpares to recover the principal debt along with taxed costs amounting to UGX 10.4 million from the attached accounts.
This ruling underscores the judiciary’s commitment to enforcing commercial judgments and limits attempts to exploit corporate structures to evade financial liabilities.