Wakilii

Centenary Rural Development Bank Ltd v Mwaga Peace (Civil Suit 143 of 2020)

High Court · [2026] UGCOMMC 201 · 2026 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 debt under finance lease agreements, heard exparte after defendant failed to appear
Decision
Judgment entered for the plaintiff for recovery of outstanding debt with interest and costs

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

The High Court Commercial Division held that the defendant breached two finance lease facility agreements by failing to pay monthly instalments as agreed. The court awarded the plaintiff recovery of UGX 100,449,501 being the outstanding balance after sale of the leased trucks, together with interest at 12% per annum from filing of suit until payment in full. General damages for breach of contract were refused on the basis that the bank had realised its security.

Outcome

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

Facts

The plaintiff bank advanced two finance lease facilities totalling UGX 225,000,000 to the defendant in October 2015 and September 2016 to enable her procure two Isuzu Giga trucks for commercial transport business. The defendant took possession of the trucks and was obliged to repay by monthly instalments with interest. She defaulted on repayment obligations, resulting in accumulated arrears. Despite repeated demands and notices, the defendant failed to regularise the account. The plaintiff exercised its contractual rights by instructing valuers and auctioneers to recover the outstanding amount through sale of the leased trucks. The trucks were sold but the proceeds were insufficient to clear the debt. As at 16th September 2019, the outstanding balance stood at UGX 100,449,501. The defendant filed a defence but did not participate further and failed to appear for hearing. The court proceeded exparte.

Issues

  1. Whether the defendant breached the lease facility agreements dated 15th October 2015 and 2nd September 2016.
  2. What remedies are available to the parties.

Orders

  • The defendant shall refund the plaintiff UGX 100,449,501 (One hundred million four hundred forty nine thousand five hundred one shillings) that is due and owing.
  • Interest of 12% per annum is imposed on the principal sum from the date of filing this suit till payment in full.
  • The plaintiff is awarded costs of the suit.

Rules and key headnotes

Contract Law — Breach of Contract — Finance Lease Agreements — Failure to Pay Instalments
Failure to pay lease instalments as they fall due under a finance lease facility agreement constitutes breach of contract, being a failure to fulfil obligations imposed by the contract.
Civil Procedure — Burden of Proof — Exparte Proceedings — Legal and Evidential Burden
Even in exparte proceedings where the defendant has filed a defence but adduced no evidence, the legal and evidential burden remains on the plaintiff to prove each element of the claim on the balance of probabilities. Pleadings are not evidence and cannot substitute for adducing evidence.
Civil Procedure — Pleadings — Departure from Pleadings — Submissions
Parties are bound by their pleadings. Submissions are not pleadings and the court cannot entertain a departure from pleadings that is not grounded in procedural compliance. A plaintiff cannot claim a higher sum in submissions than was pleaded in the plaint.
Contract Law — Remedies for Breach — General Damages — Realisation of Security
Where a bank has realised its security and the claim is for the residual sum after sale of the secured assets, the plaintiff does not merit an award of general damages for breach of contract, as the bank has not suffered serious loss warranting such an award.

Legislation cited (9)

Cases cited (20)

  • Nakawa Trading Co. Ltd v Coffee Marketing Board (Civil Suit No. 137 of 1991)
  • Ecobank Uganda Ltd v King James Comprehensive School Ltd & 2 Others (Civil Suit No. 654 of 2017)
  • Altica Sea Carriers Corporation v Ferrostoal Bank Reederei GmbH [1976] 1 Lloyd's Rep 250
  • Centenary Rural Development Bank Ltd v Hon. Michael Maranga Mawanda (High Court Civil Suit No. 437 of 2016)
  • Isaac Aluoch Polo Aluochier v The Senate & 2 Ors Petition No. E014 of 2025
  • Raila Odinga & another v Independent Electoral and Boundaries Commission & 2 others; Aukot & another (Interested Parties); Attorney General & another (Amicus Curiae) (Presidential Election Petition 1 of 2017) [2017] KESC 42 (KLR)
  • Sheikh Abdulai Rajab & 3 Others v Sheikh Abubakar Songa Wailojo & 2 Others High Court Civil Suit No. 0028 of 2013
  • Shaneebal Limited v County Government of Machakos High Court Civil Suit No. 25 of 2016 (Kenya)
  • Logistics Link Limited v Yalelo (U) Limited [2023] KEHC 27381 (KLR)
  • Kirugi and another v Kabiya & Others (1987) KLR 347
  • Printing and Numerical Registering Co. v Simpson (1875) LR 19 Eq 462
  • Behange v School Outfitters (U) Ltd (2000) 1 E.A 20
  • James Fredrick Nsubuga v Attorney General (High Court Civil Suit No. 13 of 1993)
  • Erukana Kuwe v Isaac Patrick Matovu and another (High Court Civil Suit No. 177 of 2003)
  • Wainwright v Fontenot, 774 So. 2d 70 (2000)
  • Hadley v Baxendale (1894) 9 Exch 341
  • Takiya Kashwahiri & Anor v Kajungu Denis (Court of Appeal Civil Appeal No. 85 of 2011)
  • Charles Acire v M. Engola (High Court Civil Suit No. 143 of 1993)
  • Kibimba Rice Ltd v Umar Salim (Supreme Court Civil Appeal No. 17 of 1992)
  • Kenford Co. v County of Erie, 73 NY 2d 312

Full judgment

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

Centenary Rural Development Bank Ltd v Mwaga Peace (Civil Suit 143 of 2020) [2026] UGCommC 201 (14 February 2026)
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.