Sal Oil Limited has scored a major victory after the Mbale High Court threw out an attempt by veteran lawyer Dr. Alan Shonubi’s law firm to block the recovery of Shs100 million linked to a failed real estate deal.
In a ruling delivered on October 28, 2026, Presiding Judge Farouq Lubega dismissed the application filed by Shonubi’s firm with costs awarded to Sal Oil Limited. Justice Lubega held that the prominent legal team had failed to present valid reasons to overturn the garnishee orders previously issued by the Deputy Registrar.
The cash in question was deposited into a Stanbic Bank Uganda account (Acc. No. 9030005842564) registered under Shonubi, Musoke and Company Advocates (currently operating as SM and Company Advocates). The funds were wired by Sal Oil as partial payment for a prime plot of land along Pallisa Road in Mbale District.
How the deal fell apart
Court records trace the clash back to a September 12, 2019 land purchase agreement. Sal Oil had agreed to buy Plots 33 and 35 from four sellers for a total consideration of Shs350 million.
As part of the pact, Sal Oil deposited an advance of Shs100 million into an escrow account run by Shonubi’s law firm. The funds were meant to sit in the firm’s care until all transaction conditions were met.
However, the purchase hit a snag and collapsed, forcing Sal Oil to take legal action against both the property vendors and Shonubi’s firm. On August 15, 2025, the High Court directed the full recovery of the debt from the vendors.
Why the judge rejected Shonubi’s technicalities
Fighting to save the account from attachment, Shonubi’s legal team argued that the garnishee proceedings were irregular and exceeded the scope of the original court decree. They also claimed the process violated procedural rules regarding a mandatory seven-day notice under the Civil Procedure Rules.
Justice Lubega was not convinced by the procedural technicalities. He highlighted that when the matter first came up in June 2024, the applicant’s team raised an objection which led to an adjournment. The issue was fully addressed before the Deputy Registrar delivered a decision on July 7.
The judge pointed out that trying to re-litigate the same point amounted to an abuse of the court process. He further noted that during initial appearances, Shonubi’s counsel had only contested the hearing dates rather than the actual liability as a garnishee.
“The garnishee order nisi is not illegal and can be enforced,” Justice Lubega stated in his ruling.
Addressing whether a client-held account can be attached, the court cited precedent, ruling that since the Shs100 million was deposited specifically for the land transaction, it remains subject to attachment to satisfy court decrees.
Justice Lubega warned that allowing debtors to shield funds by simply parking them in lawyers’ client accounts would undermine the entire judicial system.
Stanbic Bank ordered to reveal records
The court also upheld orders directing Stanbic Bank Uganda to hand over specimen signatures and transaction logs related to the account. Justice Lubega clarified that the Deputy Registrar acted within proper powers to enforce the judgment, and that unmasking who withdrew the Shs100 million is critical to tracing and recovering the money.
The green light from the High Court now paves the way for execution proceedings to attach the funds.
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