A Germany national has petitioned the Commercial Division of the High Court seeking recovery of Shs121m from a local cocoa beans trader.
Mr Gaghunath Joshi Mukund accuses Mr Robert Mugisha of breach of contract and is in the alternative seeking a court declaration to force Mr Mugisha refund the amount in question.
Acting through Walusimbi & Co Advocates, Mr Mukund claims that after entering an agreement, he lent Mr Mugisha money to buy cocoa beans from farmers in Bundibugyo, which produce he would locally resell to traders or in Kampala.
In the agreement, he claims, the two had agreed that after accounting for the money, they would share the profits.
According to court documents, Mr Mukund had initially invested Shs30m, which Mr Mugisha traded successfully and would periodically transfer money to Mr Mukund’s account in form of profits.
However, the value of Mukund’s contribution increased over time to Shs180m but as a result of market dynamics the business started to suffer.
Subsequently, according to court documents, Mr Mugisha started to default on agreed payments which forced Mr Mukund to call off the agreement.
Court documents indicate that Mr Mugisha later informed the petitioner that the Bundibugyo store had been robbed and that he had also suffered a motorbike accident before making several promises to pay back.
However, he did not honour his undertakings, prompting Mr Mukund to petition court.