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The Commercial Division of the High Court has dismissed an application in which businessman Patrick Bitature had sought to challenge personal liability for an unpaid loan of $13.5 (about Shs50.3b) due to Electro-Maxx.

In an application filed last year, Mr Bitature noted that whereas Absa had sought to recover Shs50.3b arising from a consent judgment of 2020 regarding indebtedness of Electro-Maxx, he was not indebted to the bank, reasoning there was no contract of guarantee executed relating to the consent judgment.

Absa had earlier sought to recover Shs50.3b from Mr Bitature as a guarantor of a $15.8m (Shs58.9b) loan advanced to Electro-Maxx and whose indebtedness, had been agreed to in a May 24, 2020 consent judgment signed by the businessman on behalf of Electro-Maxx.

“The applicant [Mr Bitature] is not indebted to the respondent [Absa] to the above amounts presumably arising from a contract of guarantee as there is no contract of guarantee executed ... relating to the consent judgment,” Mr Bitature said in an application filed through Moogi Brian & Co. Advocates.

He also noted that there was an existing application for stay of execution brought by Electro-Maxx against Absa in its bid to recover the $13.5m, indicating that his application raised bona fide triable issues that related to whether there existed a contract of guarantee and whether the enforcement of a consent judgment “can be done during the subsistence of an appeal and pending stay of execution”.

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