Wakilii

Standard Chartered Bank Limited v Anzeti Grismus [2026] UGCOMMC 245

High Court · 2026 Judgment Partly Allowed AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
First instance civil suit for recovery of debt arising from breach of loan facility agreement
Decision
Plaintiff awarded partial recovery of debt; defendant liable for UGX 75,587,378 plus interest and costs

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

Held that the defendant's termination from employment constituted retrenchment under the insurance policy terms, entitling him to twelve months' coverage of loan instalments. The court found that the insurance covered only twelve of the forty outstanding instalments, leaving twenty-eight instalments unpaid. The defendant was liable for the unpaid principal sum of UGX 75,587,378 plus contractual interest from the date of default.

Outcome

Plaintiff awarded partial recovery of debt; defendant liable for UGX 75,587,378 plus interest 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 seventy-two months at 16.9% per annum. Repayment was deducted from his salary as an employee of MONUSCO. The defendant paid thirty-three instalments before defaulting on 24 September 2021. His employment was terminated effective 30 June 2021 following a Comparative Review Process that identified him for retrenchment due to staff reduction. The loan was insured against death, permanent disability, and retrenchment. The insurance covered retrenchment for a maximum of twelve monthly instalments. Forty instalments remained outstanding at the time of default. The plaintiff sued for recovery of UGX 103,396,606.

Issues

  1. Whether the plaintiff is entitled to recover the sum of UGX 103,396,606 from the defendant.
  2. 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 on the principal from 24 September 2021 until payment in full.
  • Costs of the suit awarded to the plaintiff.

Rules and key headnotes

Contract Law — Loan Agreements — Breach — Liability Despite Insurance Coverage
A borrower remains liable for instalments not covered by an insurance policy even where the event triggering the insurance (retrenchment) has occurred and the insurer has paid the covered portion.
Banking & Finance — Loan Recovery — Scope of Insurance Coverage — Retrenchment
Where a loan facility is insured against retrenchment with a specified limit (twelve months of instalments), the borrower's liability extends to all instalments beyond the insurance cap after the insured event occurs.
Insurance — Credit Life Assurance — Retrenchment Cover — Distinction from Contract Expiry
Termination of employment following a comparative review process for staff reduction constitutes retrenchment within the meaning of a credit life insurance policy, not mere expiry of a fixed-term contract.
Contract Law — Loan Agreements — Contractual Interest — Accrual from Date of Default
Contractual interest on an unpaid loan principal runs from the date of first default as agreed in the facility agreement until payment in full.

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

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

Standard Chartered Bank Limited v Anzeti Grismus 2026 UGCommC 245 (8 April 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.