Wakilii

Platinum Credit (U) Limited v Sendegeya Kyeyune Farouk (Civil Suit No. 306 of 2022)

High Court · [2025] UGCOMMC 223 · 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 money had and received following default on loan agreement; interlocutory judgment entered under Order 9 rule 8 CPR; matter set down for formal proof
Decision
Judgment entered for the Plaintiff; Defendant ordered to pay principal sum, general damages, interest, 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

Held that where a defendant defaults on a loan agreement and fails to file a defence, the plaintiff must still prove its case at formal proof. The court awarded the full principal sum claimed, general damages of UGX 15,000,000 for economic loss and inconvenience suffered by the lending institution, interest at 23% per annum on the principal from date of breach, interest at 6% per annum on general damages from judgment, and costs to the plaintiff.

Outcome

Judgment entered for the Plaintiff; Defendant ordered to pay principal sum, general damages, interest, and costs

Facts

On 30 April 2021, the Plaintiff advanced a loan of UGX 60,815,383.52 to the Defendant, repayable in 18 equal monthly instalments of UGX 5,886,247.76. The loan was secured by a legal mortgage over a Scania Dump Truck, Registration Number UBF 502E. The Defendant defaulted on the loan and ignored multiple demand notices issued between June and November 2021. The Defendant also disassembled the motor vehicle pledged as security and sold it as scrap. Summons to file a defence were served on the Defendant on 3 March 2025, but no defence was filed. On 28 May 2025, interlocutory judgment was entered against the Defendant under Order 9 rule 8 of the Civil Procedure Rules, and the matter was set down for formal proof.

Issues

  1. Whether the Plaintiff is entitled to general damages?
  2. Whether the Plaintiff is entitled to interest and costs of the suit?

Orders

  • The Defendant shall pay the Plaintiff the sum of UGX 64,494,864.52 being the outstanding sum owed arising from the loan agreement.
  • The Defendant shall pay the Plaintiff general damages amounting to UGX 15,000,000.
  • The Defendant shall pay interest at the rate of 23% per annum on the sum in (1) above from the date of breach of the contract until payment in full.
  • The Plaintiff is awarded interest at the rate of 6% per annum on the sum in (2) above from the date of Judgment until payment in full.
  • Costs of the suit are awarded to the Plaintiff.

Rules and key headnotes

Civil Procedure — Default Judgment — Formal Proof — Duty of Plaintiff to Prove Case
Where the court sets down a suit for formal proof after a default order has been made, the plaintiff is under a duty to place before the court evidence to sustain the averments in the plaint.
Contract Law — Breach of Contract — Compensation for Loss or Damage
Section 60(1) of the Contracts Act empowers the court to award compensation for any loss or damage caused to one party due to another's breach of contract.
Damages & Quantum — General Damages — Measure and Assessment
The general rule regarding the measure of general damages is that the award is such a sum of money that will put the party who has been injured or who has suffered in the same position as he or she would have been had he or she not sustained the wrong for which compensation is awarded.
Damages & Quantum — General Damages — Assessment Factors — Economic Loss
In assessing the quantum of damages, courts are guided by the value of the subject matter, the economic inconvenience that a party might have been put through, and the nature and extent of the breach or injury suffered. A money lending institution deprived of the economic benefit of its money from the date of breach is entitled to general damages for economic loss and inconvenience.
Banking & Finance — Interest on Loans — Contractual Interest Rate — Reasonableness
Where a plaintiff is in the business of money lending, a contractual interest rate of 23% per annum on the principal sum from the date of breach until payment in full may be reasonable and justifiable, taking into account inflation, currency depreciation, and the need to compensate the lender for loss of use of money.

Legislation cited (5)

Cases cited (9)

  • Sam Akankwasa v Attorney General (Civil Suit No. 202 of 2013)
  • Kirungi and Another Vs Kabiya and Others [1987] KLR 347
  • Kabandize John Baptist and 21 Others v Kampala Capital City Authority (Civil Appeal No. 36 of 2016)
  • Takiya Kashwahiri and Another v Kajungu Denis (Civil Appeal No. 85 of 2011)
  • Uganda Commercial Bank Vs Deo Kigozi [2002] 1 EA 305
  • Milly Masembe v Sugar Corporation (U) Ltd and Another (Supreme Court Civil Appeal No. 1 of 2000)
  • Mohanlal Kakubhai Radia v Warid Telecom Uganda Ltd (High Court Civil Suit No. 224 of 2011)
  • Wallersteiner Vs Moir [1975] 1 All ER 849
  • Uganda Development Bank Vs Muganga Construction Co. Ltd [1981] H.C.B 35

Full judgment

↓ Download PDF

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

Platinum Credit (U) Limited v Sendegeya Kyeyune Farouk (Civil Suit No. 306 of 2022) [2025] UGCommC 223 (31 July 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.