The High Court has ordered Bank of Baroda to release Shs 20 million to 92-year-old Christine Nanfuka, a widow, to cater for her medical and daily needs after her account was frozen amid a dispute with her co-signatory.
Justice Dr. Ginamia Melody Ngwatu delivered the ruling in a case where Nanfuka sued the bank and Edmund Sebaana Mulondo, her co-signatory, over the contested account.
The bank had frozen Nanfuka’s account after a disagreement arose between her and Mulondo over withdrawals from the account. In her application, Nanfuka asked the court to order the bank to unfreeze her account and release Shs 20 million to meet her “basic medical and personal needs.”
Through her lawyers, Gideon Okwalinga and Bakadde Kiwanuka, Nanfuka argued that the freezing of her account had left her unable to afford treatment and daily expenses.
“She requests that she be availed Shs 2o million for her basic medical and basic needs. It is in the interest of justice that the application is granted,” Okwalinga told the court.
He cited the case of Victoria Candles Ltd v Bank of Africa Uganda Ltd (2023) in which Justice Musa Ssekaana held that “courts must intervene to prevent illegalities by respondent banks.”
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However, Bank of Baroda, represented by John Fisher Kanyemibwa, opposed the application. Kanyemibwa told the court that the bank had no personal interest in the dispute between Nanfuka and Mulondo but had frozen the account “to protect itself from potential claims by either party.”
“The bank only blocked the account to protect itself against a potential claim for compensation by any of those two parties,” Kanyemibwa said.
He explained that the account was initially operated solely by Nanfuka, but on September 7, 2023, she wrote to the bank requesting that Mulondo be added as a co-signatory.
“Annexed to our affidavit is a letter signed by the applicant herself. Surprisingly, after we acted on that request, she complained about the withdrawals made by the second respondent. These were made in compliance with the altered mandate,” he told the court.
Kanyemibwa further argued that there was no basis for a lawsuit against the bank since it had acted according to Nanfuka’s written instructions. He suggested that the matter be resolved through mediation, noting:
Mulondo, the other co-signatory to the account, supported the bank’s position and argued that Nanfuka’s complaint stemmed from her own decision to alter the account’s operation.
After hearing both sides, Justice Ngwatu acknowledged Nanfuka’s advanced age and urgent medical needs, noting that justice required immediate intervention.
“In consideration of the submissions of both counsel and taking into account the applicant’s (92 years old) need for medical attention and catering for other basic needs, it is hereby ordered that the first respondent immediately avails the applicant Shs 20 million as prayed for,” the judge ruled.
The court directed that the money be released immediately by the Bank of Baroda to allow Nanfuka to meet her health and daily requirements.
However, the judge declined to grant Nanfuka’s other prayers, including a permanent injunction against the bank and an order for a detailed statement of all account transactions.
Each party was ordered to bear its own costs.
