The High Court in Kampala has ordered Barclays Bank Uganda Limited to defend itself in a case where it is accused of failing to pay benefits worth Shs21 million to deceased businessman Boney Katatumba.
The family of Katatumba has sued Barclays Bank, accusing it of breaching a contract with the deceased after allegedly failing to remit the Shs21 million accruing from a premium/prestige account he held with the bank. According to his family, Katatumba used to save monthly premium of Shs66,500 with the bank.
According to court documents, the bank policy is that if the account holder opens the premium account before the age of 65 years, he is entitled to a life insurance cover of Shs21 million up to the age of 70 years and that the said entitlement goes up to 85 years.
However, the Katatumba family says the bank has refused to honour this pledge.
“When the deceased passed on, the defendant undertook to pay the family the death beneficiaries, only to backtrack thereon soon after the burial of the deceased. In a further breach of contract, the defendant (Barclays Bank) on June 7,2017 offered to pay the beneficiaries of the estate of the deceased an exgratia payment of Shs10 million,” reads the court documents.
The Katatumba family now wants court to compel Barclays Bank to pay Shs21 million as death gratuity of the deceased Katatumba as well as interest of 25 per cent, general damages and legal costs.
Court has orderd Barclays Bank of Uganda to file their defence within 15 days.
“You are hereby required to file a defence in the said suit within 15 days from the date of service of summons on you in the manner prescribed. Should you fail to file a defence on or before the date, the plaintiff may be given in your absence,” reads the court document.
The Katatumba family is currently embroiled in another wrangle with businessman Mukesh Shukla over property valued at $15m (about Shs55b) in a case that is before the Court of Appeal.