Wakilii

Ebirungi Birugo'mututu SACCO Limited v Nsaire & 3 Others (Civil Suit 2 of 2019)

High Court · [2024] UGHC 378 · 2024 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
Decision
Judgment entered against 1st Defendant for outstanding loan balance with interest and costs

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

The court held that the plaint disclosed a cause of action. The 1st Defendant was found indebted to the Plaintiff SACCO for UGX 38,942,674/= after accounting for partial payments made during the pendency of the suit. Evidence that departed from pleadings was rejected. The Plaintiff was awarded interest at 3% per annum from judgment date and costs.

Outcome

Judgment entered against 1st Defendant for outstanding loan balance with interest and costs

Facts

On 14 February 2018, the 1st Defendant borrowed UGX 40,000,000/= from the Plaintiff SACCO under a written loan agreement guaranteed by the 2nd, 3rd and 4th Defendants. The 1st Defendant made partial repayments totalling approximately UGX 11,598,000/= by December 2018 but defaulted on the agreed repayment schedule. The Plaintiff commenced suit on 24 January 2019 claiming UGX 54,890,674/= jointly and severally from all Defendants. During the pendency of the suit, the 1st Defendant continued making payments. The Defendants raised issues concerning a separate land title processing transaction allegedly involving a deduction of UGX 12,000,000/= from the loan, but provided no evidence beyond deposit slips showing UGX 3,000,000/= paid during the suit. The court calculated total payments of UGX 15,948,000/= against the original loan.

Issues

  1. Whether the Plaint discloses a cause of action
  2. Whether the Defendants are indebted to the Plaintiff in the sum of UGX 54,890,674/=
  3. What remedies are available to the parties

Orders

  • The 1st Defendant is indebted to the Plaintiff in the sum of UGX 38,942,674/=
  • Interest awarded at 3% per annum from the date of judgment until payment in full
  • Costs of the suit awarded to the Plaintiff

Rules and key headnotes

Evidence — Burden of Proof — Civil Cases — Standard of Proof on Balance of Probabilities
In civil proceedings, the party desiring the court to give judgment must prove the existence of the facts asserted on a balance of probabilities, and this burden can only shift to the defendant when the plaintiff has led evidence that is more probable than not to be true.
Civil Procedure — Pleadings — Departure from Pleadings — Effect on Evidence
A departure by a party's evidence from their pleadings is good ground for rejecting that evidence, as parties are bound by their pleadings and cannot introduce entirely new causes of action or defences through testimony.
Contract Law — Interest — Court's Discretion to Award Interest
The award of interest and the determination of the rate of interest are matters within the discretion of the court, and under Section 26(2) of the Civil Procedure Act the court has power to award interest where none is agreed upon.
Civil Procedure — Costs — Entitlement of Successful Party
A successful party is entitled to costs of the suit unless for good cause the court orders otherwise under Section 27(2) of the Civil Procedure Act.

Legislation cited (4)

Cases cited (7)

  • Miller v Minister of Pensions [1972] 2 All ER 372
  • AW Biteremo v Damascus Muyanda (Court of Appeal No. 15 of 1991)
  • Interfreight Forwarders (U) Ltd v East African Development Bank (Civil Appeal No. 33 of 1992)
  • Onmunyokol Akol Johnson v Attorney General [2012] UGSC 4
  • Crescent Transportation Co Ltd v Bin Technical Services Ltd (Civil Appeal No. 25 of 2000)
  • Hope Mukankusi v Uganda Revenue Authority (Court of Appeal Civil Appeal No. 6 of 2011)
  • James Mbabazi & Another v Matco Stores Ltd & Another (Court of Appeal Civil Reference No. 15 of 2004)

Full judgment

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

Ebirungi Birugo'mututu SACCO Limited v Nsaire & 3 Others (Civil Suit 2 of 2019) [2024] UGHC 378 (29 May 2024)
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.