Rocks Plus loses Shs1.2bn claim in dfcu trucks dispute
The Commercial Division of the High Court has dismissed a claim against dfcu Bank, ruling that the lender lawfully repossessed and sold trucks belonging to Rocks Plus (U) Limited and did not act in bad faith or dispose of the assets at an undervalue. In a judgment delivered on June 2, 2026, the court found […] The post Rocks Plus loses Shs1.2bn claim in dfcu trucks dispute appeared first on Daily Star.
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The Commercial Division of the High Court has dismissed a claim against dfcu Bank, ruling that the lender lawfully repossessed and sold trucks belonging to Rocks Plus (U) Limited and did not act in bad faith or dispose of the assets at an undervalue.
In a judgment delivered on June 2, 2026, the court found that Rocks Plus and its co-plaintiff failed to prove allegations of fraud, collusion, or improper conduct in the sale of the repossessed trucks.
The dispute stems from a series of credit facilities extended by dfcu Bank to Rocks Plus (U) Limited beginning in 2012 to finance the acquisition of a fleet of commercial trucks.
Court records show that the bank first advanced a lease facility worth US$397,985 (Shs1.51 billion),representing 80 per cent of the purchase price for trucks and trailers, with the borrower contributing the remaining 20 per cent.
In addition to the lease arrangement, the bank extended multiple credit facilities, including a Shs150 million term loan, a Shs150 million overdraft, a Shs150 million revolving loan, and a Shs200 million commercial loan.
The loans were secured by mortgages on land in Busiro and Kyadondo, as well as corporate and personal guarantees from the company’s directors.
Initially, the company serviced the facilities using proceeds from its logistics business with DHL Global Forwarding Uganda. However, when the business declined in late 2013, the company defaulted on its obligations.
By early 2014, the bank demanded repayment of US$346,830 ( Shs1.32 billion) and Shs184.7 million. It later indicated that arrears had risen sharply, including Shs833.6 million on the lease account and Shs157.1 million on commercial loans.
Following continued default, dfcu repossessed the trucks and sold them in 2014 for Shs690 million, triggering the dispute.
Rocks Plus challenged the sale, arguing that the assets were disposed of without proper marketing and at a gross undervalue, and also disputed the bank’s loan calculations.
However, the court held that valuation is not an exact science and that the best indicator of market value is the price obtained at sale.
The judge emphasized that a sale cannot be overturned merely on claims of undervalue unless there is clear evidence of fraud, dishonesty, or bad faith.
“A slight discrepancy between the sale price and the estimated market value is not sufficient to invalidate a transaction,” the court noted.
The court further found no evidence that the bank excluded potential buyers or acted improperly.
“I find, as a fact, that there was no fraud, collusion or mala fides in the sale of the assets,” the judge ruled.
On the issue of outstanding debt, the court upheld dfcu Bank’s counterclaim arising from the restructuring of the facilities in September 2014.
A joint forensic audit by PricewaterhouseCoopers established that the borrowers owed Shs1.246 billion as of December 2020.
The court rejected Rocks Plus (U) Limited’s alternative audit, citing inconsistencies and lack of methodological clarity, and instead relied on the PwC report as the most credible.
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