Wakilii

Barclays Bank Limited v Dhakaba Abdu T A Fone Solutions (Civil Suit No. 160 of 2013)

High Court · [2025] UGCOMMC 194 · 2025 Judgment for Plaintiff AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
First instance civil suit for recovery of outstanding loan debt, heard ex parte after defendant's advocates withdrew
Decision
Judgment entered for the plaintiff for recovery of outstanding loan debt with interest and costs

Observed later treatment

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Holding

The High Court Commercial Division held that the defendant was indebted to the plaintiff bank in the sum of UGX 82,261,462 being the outstanding balance on two loan facilities granted in 2008 and 2009. The court found that the plaintiff proved the existence of loan agreements, disbursement of funds, and default by the defendant. The burden shifted to the defendant to controvert the plaintiff's case, but the defendant failed to appear despite substituted service. The court awarded the outstanding debt, interest at 6% per annum from the date of filing until payment in full, and costs.

Outcome

Judgment entered for the plaintiff for recovery of outstanding loan debt with interest and costs

Facts

The plaintiff bank, formerly Nile Bank, granted the defendant two loan facilities: an unsecured loan of UGX 26,000,000 on 22 October 2008 and a secured loan of UGX 90,000,000 on 30 May 2009. The second loan was secured by properties in Kyaggwe Block 101 Plots 2329 and 2332 registered to Shaban Saqid Nkuutu Muwabe, and property in Singo Block 119 Plot 33 registered to Maliko Suna. The defendant defaulted on servicing the loans, prompting the plaintiff to recall the loans and commence foreclosure proceedings. During foreclosure, the wife of Shaban Sadiq Nkutu instituted a suit halting the sale of some properties on grounds they were matrimonial property mortgaged without her consent. Those properties were redeemed for UGX 20,000,000. The remaining property in Singo Block 119 Plot 33 was foreclosed, leaving an outstanding balance of UGX 82,261,462. The defendant's advocates withdrew and the defendant failed to appear despite substituted service, resulting in an ex parte hearing.

Issues

  1. Whether the defendant is indebted to the plaintiff in the amount claimed?
  2. What remedies are available to the parties?

Orders

  • The defendant pays the plaintiff UGX 82,261,462/=, being the outstanding loan debt.
  • The defendant pays the plaintiff interest at 6% per annum on the principal sum from the date of filing this suit until payment in full.
  • Costs of the suit awarded to the plaintiff.

Rules and key headnotes

Contract Law — Loan Agreements — Definition and Essential Elements
A loan is money provided to a borrower by a financial institution with the prospect that the borrower will repay the principal amount plus interest over an agreed specified period, and the lending and borrowing of such money is governed by the law of contract.
Contract Law — Breach of Contract — Burden of Proof in Debt Recovery
In civil litigation for debt recovery, the burden of proof requires the plaintiff creditor to prove on a balance of probability the existence of a contract and its essential terms, together with a breach of duty imposed by the contract and resultant damages, and to demonstrate through evidence that it is more likely than not that their claims are true.
Civil Procedure — Burden of Proof — Shifting of Evidential Burden
Once the plaintiff makes out a prima facie case in their favour, the burden shifts to the defendant to controvert the plaintiff's case; otherwise, judgment must be entered in favour of the plaintiff.
Contract Law — Performance of Contracts — Obligation to Perform Promises
The parties to a contract shall perform or offer to perform their respective promises unless the performance is dispensed with or excused under the Contracts Act or any other law, and the only compensation for non-payment of a debt is payment of the debt.
Banking & Finance — Interest on Judgment Debts — Commercial Rate for Commercial Ventures
For commercial ventures, the offending party should always pay interest at commercial rate, and the court has discretionary powers under the Civil Procedure Act to order interest at such rate as the court deems reasonable to be paid on the principal sum adjudged from the date of the suit to the date of the decree.

Legislation cited (5)

Cases cited (4)

  • Standard Chartered Bank (U) Limited v Ssekamatte (Civil Suit No. 873 of 2020)
  • Barclays Bank Uganda Limited v Musinguzi (Civil Suit No. 349 of 2015)
  • Barclays Bank of Uganda Ltd v Howard M. Bakojja (Civil Suit No. 53 of 2011)
  • Milly Mirembe v Sugarcane Cooperation of Uganda Lugazi and Another (SCCA No. 1 of 2000)

Full judgment

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The original judgment as reported. Read the original PDF before relying on any passage.

Barclays Bank Limited v Dhakaba Abdu T A Fone Solutions (Civil Suit No. 160 of 2013) [2025] UGCommC 194 (27 June 2025)
Source: this page presents Wakilii’s issue analysis and metadata for a publicly reported Ugandan judgment. Any AI-generated summary is marked as such. Judgment text is sourced from the Uganda Legal Information Institute (ulii.org). Wakilii is not affiliated with ULII.