Wakilii

Buyanja Cooperative Savings & Credit Society Ltd v Ndyamuhaki Edward and Others (Civil Suit No. 11 of 2024)

High Court · [2025] UGHC 1505 · 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 liquidated sum and general damages for breach of loan agreement, heard ex parte after defendants failed to file defence
Decision
Judgment entered for the plaintiff with recovery of outstanding loan, general damages, interest on general damages, and costs

Observed later treatment

No later-treatment classification is recorded for this judgment.

Citator coverage is limited to judgments in the Wakilii corpus and source-matched treatment records. Absence of a signal is not an assertion that the case remains good law.

AI-generated summary. This summary was generated by AI from the full text of the judgment. It may contain errors or omissions—always read the source judgment before relying on it.

Holding

The court held that where a principal borrower and guarantors default on a loan agreement executed with a cooperative society, the plaintiff is entitled to recover the outstanding loan balance jointly and severally from all defendants. The court awarded the liquidated sum of Ugx. 64,273,011/= plus general damages of Ugx. 5,000,000/= for breach of contract, with interest at 10% per annum on general damages from judgment until payment, and costs to the plaintiff.

Outcome

Judgment entered for the plaintiff with recovery of outstanding loan, general damages, interest on general damages, and costs

Facts

The 1st Defendant, a member of the Plaintiff cooperative society, obtained a loan of Ugx. 50,000,000/= on 27 August 2021 at 2.5% monthly interest, repayable over two years, secured by two pieces of land at Kigaaga and Kahoko in Rukungiri District. The 2nd and 3rd Defendants executed guarantees committing to pay if the principal borrower defaulted. All three defendants breached the agreement by failing to honour their obligations. By the time of suit, the outstanding balance stood at Ugx. 64,273,011/= inclusive of interest and penalties. All defendants were served with summons but none filed a defence, leading to an ex parte hearing under Order 9 Rules 10 and 11 of the Civil Procedure Rules.

Issues

  1. Whether the Plaintiff is entitled to recover Ugx. 64,273,011/= from the Defendants.
  2. Whether the Plaintiff is entitled to general damages for breach of contract.
  3. What other remedies are available to the Plaintiff.

Orders

  • The Plaintiff is awarded Ugx. 64,273,011/= as the outstanding loan amount against the Defendants jointly and severally.
  • The Plaintiff is awarded Ugx. 5,000,000/= as general damages for breach of contract.
  • Interest at 10% per annum on the general damages from the date of judgment until payment.
  • Costs of the suit are awarded to the Plaintiff.

Rules and key headnotes

Contract Law — Breach of Contract — Loan Agreements — Liability of Principal Borrower and Guarantors
Where a principal borrower and guarantors execute a loan agreement and guarantees with a cooperative society and subsequently default on repayment obligations, all parties are jointly and severally liable for the outstanding loan balance including accrued interest and penalties.
Contract Law — Breach of Contract — General Damages — Assessment
General damages for breach of a loan agreement are awarded to place the injured party as nearly as possible in the position they would have been had the breach not occurred, and should restore some satisfaction as far as money can to the injured party who suffered financial loss and disruption of operations.
Civil Procedure — Default Judgment — Ex Parte Hearing — Liquidated and Unliquidated Claims
Where a plaint contains both a liquidated claim and a claim for general damages, the matter must proceed under Order 9 Rules 10 and 11 of the Civil Procedure Rules for formal proof, rather than under Order 9 Rule 6 which applies to purely liquidated claims.
Banking & Finance — Loan Agreements — Interest — Discretion of Court
Under Section 26 of the Civil Procedure Act, the court has discretion to award interest provided it is exercised judicially, and may decline to award interest on the principal sum where a contractual interest rate has already been applied, while awarding interest on general damages at a reasonable rate.

Legislation cited (7)

Cases cited (4)

  • Ronald Kasibante v Shell Uganda Ltd (HCCS No. 542 of 2006)
  • Kibimba Rice Ltd v Umar Salim (SCCA No. 17 of 1992)
  • Takiya Kashwahiri and Another v Kajungu Denis (CACA No. 85 of 2011)
  • Uganda Revenue Authority v Stephen Mbosi (SCCA No. 26 of 1995)

Full judgment

↓ Download PDF

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

Buyanja Cooperative Savings & Credit Society Ltd v Ndyamuhaki Edward and Others (Civil Suit No. 11 of 2024) [2025] UGHC 1505 (10 December 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.