Standard Chartered Bank Limited v Anzeti Grismus (Civil Suit 351 of 2022)
Observed later treatment
No later-treatment classification is recorded for this judgment.
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Holding
Held that the defendant's termination from MONUSCO constituted retrenchment, not mere contract expiry, and was covered by the loan insurance policy. The insurance covered only 12 monthly installments out of 40 outstanding installments. The defendant remained liable for the balance of UGX 75,587,378/= plus contractual interest at 16.9% per annum from the date of default. Judgment entered for the plaintiff for the reduced sum with interest and costs.
Outcome
Judgment entered for the plaintiff for UGX 75,587,378/= with interest at 16.9% per annum from 24 September 2021 until payment in full and costs
Facts
The defendant obtained a personal unsecured loan of UGX 140,000,000/= from the plaintiff bank on 18 August 2018, repayable over 72 months at 16.9% interest per annum. The defendant was employed by MONUSCO on a fixed-term contract. He paid 33 monthly installments and then defaulted from 24 September 2021. The defendant was retrenched by MONUSCO effective 30 June 2021 following a Comparative Review Process that resulted in staff reductions. The loan was covered by credit life insurance with Sanlam Life Insurance Limited, which included retrenchment cover limited to 12 monthly installments. The plaintiff sued for recovery of UGX 103,396,606/=. The defendant contended that the insurance should cover the full outstanding balance. The court found that 40 installments remained outstanding after the defendant's default, of which 12 were covered by insurance, leaving 28 installments unpaid.
Issues
- Whether the plaintiff is entitled to recover the sum of UGX 103,396,606/= from the defendant.
- What remedies are available to the parties?
Orders
- Judgment entered for the plaintiff.
- Defendant to pay UGX 75,587,378/=.
- Interest at 16.9% per annum from 24 September 2021 until payment in full.
- Costs of the suit awarded to the plaintiff.
Rules and key headnotes
Legislation cited (1)
Cases cited (2)
- Piprainch Sugar Mills v Piprainch Sugar Mills Mazdoor Union AIR (1957) SC 95
- Aporo George Goldie v Mercy Corps Uganda (Labour Dispute Reference No. 14 of 2021)
Full judgment
The original judgment as reported. Read the original PDF before relying on any passage.