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Standard Chartered Bank (II) Ltd v Milton Kanzira Rwari [2026] UGHC 722

High Court · 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 an outstanding loan, heard ex parte after the defendant and his counsel failed to attend
Decision
Judgment entered for the plaintiff bank for UGX 71,451,566 with interest at the court rate from judgment and costs; contractual interest from date of breach refused

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

The bank proved on a balance of probabilities that the borrower breached an unsecured personal loan of UGX 100,000,000 by failing to pay monthly instalments, and was indebted in UGX 71,451,566. The borrower's plea that the balance was payable by insurance covering retrenchment failed because he neither testified nor adduced any evidence that expiry and non-renewal of his employment contract was an insured event; a bare assertion in a written statement of defence is merely an attempt to escape liability. The prayer for interest at 18.5% per annum from the date of breach was refused as that was not an agreed term; interest at the court rate was awarded from judgment until payment in full. Costs followed the event.

Outcome

Judgment entered for the plaintiff bank for UGX 71,451,566 with interest at the court rate from judgment and costs; contractual interest from date of breach refused

Facts

By a loan application dated 10 May 2016 the defendant applied to the plaintiff bank for an unsecured term loan of UGX 100,000,000. The bank approved the facility and disbursed the money to the defendant's loan account on 18 May 2016. The loan was repayable over 58 monthly instalments of UGX 2,935,132 at interest of 18.5% per annum. The defendant serviced the loan irregularly and later defaulted, arrears and interest accruing. Despite reminders and a demand letter dated 9 March 2022, he failed to regularise the account, prompting the bank to recall the facility and demand UGX 71,451,566 as outstanding principal and accrued interest. In his written statement of defence the defendant admitted the loan and that instalments ceased when he ran out of means, but contended the facility was a salary loan insured against retrenchment and that the insurer, not he, was liable for the balance. The bank replied that the loan was a regular personal loan and that expiry and non-renewal of the defendant's employment contract was not an insured event. The defendant and his counsel did not attend the hearing and the suit proceeded ex parte.

Issues

  1. Whether the defendant breached the terms of the loan agreement.
  2. Whether the defendant is indebted to the plaintiff in the sum of UGX 71,451,566.
  3. Whether the plaintiff is entitled to the remedies sought, including interest at the contractual rate from the date of breach, general damages and costs.

Orders

  • The defendant is indebted to the plaintiff in the sum of UGX 71,451,566 and is ordered to pay that sum to the plaintiff.
  • The prayer for interest at 18.5% per annum from the date of breach until payment in full is refused.
  • Interest at the court rate is awarded from the date of judgment until payment in full.
  • Costs of the suit are awarded to the plaintiff.

Rules and key headnotes

Banking & Finance — Loan Facilities — Proof of Indebtedness on Default
Where a borrower admits the existence and disbursement of a loan facility and does not dispute failure to pay the agreed monthly instalments, the lender discharges its burden on a balance of probabilities by producing the loan application, the account statement and the demand letter showing the outstanding principal and accrued interest.
Contract Law — Credit Life Insurance Cover — Burden of Proving an Insured Event
A borrower who alleges that the outstanding loan balance is payable by an insurer bears the burden of proving that the event relied on falls within the cover; an unproved assertion in a written statement of defence, unsupported by testimony or documentation, does not displace personal liability under the loan contract.
Damages & Quantum — Interest — Contractual Rate from Date of Breach Not Recoverable Absent Agreement
Interest at the contractual rate running from the date of breach until payment in full cannot be awarded where that stipulation was not an agreed term of the parties' contract; in such a case the court awards interest at the court rate from the date of judgment until payment in full.
Civil Procedure — Ex Parte Hearing — Non-Attendance of Defendant and Counsel After Consent Adjournment
Where a defendant and his counsel fail to attend the hearing on a date they endorsed by consent, the court may grant the plaintiff leave to proceed ex parte and determine the suit on the plaintiff's evidence and the pleadings on record.
Civil Procedure — Costs — Costs Follow the Event
Costs follow the event, and a successful party will be awarded the costs of the suit unless the court has good reason to deprive it of them.

Full judgment

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

Standard Chartered Bank (II) Ltd v Milton Kanzira Rwari [2026] UGHC 722 (6 June 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.