Two Shell stations sued over bounced cheques

Thursday January 23 2020
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Oilwell Petroleum Limited, a fuel and petroleum products supplier, has petitioned court seeking recovery of more than Shs174m from two Shell filling stations.

Oilwell Petroleum Limited, a fuel and petroleum products supplier, has petitioned court seeking recovery of more than Shs174m from two Shell filling stations.
The case arose from failure to clear a debt of fuel delivered on credit to Shell C in Adjumani District and Shell Station Yumbe.
In a suit filed at the Commercial Division of the High Court, the two Shell Stations are sued alongside their proprietor Mr Musa Gule Nuru for breach of the Fuel Credit Agreement entered on June 25, 2019.

Court documents indicate that on June 25, 2019 Mr Nuru entered a Fuel Credit Agreement stipulating that Oilwell would sell fuel to Shell C and Shell Station Yumbe on credit at a prevailing market price at the time of each supply.
The two Shell stations would have to clear within 30-days by issuing post-dated cheques equivalent to the monthly value of the fuel amount taken in that particular month
The cheques would be replaced by actual payments within six months, but the two fuel stations, breached the terms.

It was agreed that in case of a breach, the aggrieved party would seek court redress, especially in regard to rejected or bounced cheques.
Court documents indicate that in December, 2019, the two fuel stations issued cheques drawn in Stanbic Bank Adjumani Branch and Stanbic Bank Yumbe Branch with words but the cheques were rejected on the basis of differing signatures.
Oilwell also claims that upon return of the bounced cheques, the two stations manager, Mr Mohamed Abdi Ibrahim, advised Mr Nuru to pay in cash or walk into the bank and rectify the situation.

However, Mr Nuru has been evasive and non-committal and unlawfully neglected to pay.
Court has given the accused the two stations and their proprietor Nuru 10 days within which they must file a written defence from date of service or judgement is entered in absentia.
Oilwell is seeking a liquidated sum of Shs174.7m, costs of the suit and any remedy with leave of court.

bndagire@ug.nationmedia.com

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