Standard Chartered Bank (U) Limited v Kanzira (Civil Suit 626 of 2022)
Observed later treatment
No later-treatment classification is recorded for this judgment.
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Holding
The High Court Commercial Division held that the defendant breached a personal loan agreement by failing to make monthly instalments on a UGX 100,000,000 loan advanced in 2016. The court rejected the defendant's claim that the loan was covered by insurance upon expiry of his employment contract, finding this to be an attempt to escape liability. Judgment was entered for the plaintiff for UGX 71,451,566 being outstanding principal and accrued interest, with court rate interest from judgment and costs.
Outcome
Defendant ordered to pay outstanding loan amount with interest and costs
Facts
On 10 May 2016, the defendant applied for and was granted an unsecured term loan of UGX 100,000,000 by the plaintiff bank, disbursed on 18 May 2016 to account No. 20105950717529. The loan was repayable over 58 months at 18.5% per annum interest with monthly instalments of UGX 2,935,132. The defendant irregularly serviced the loan and subsequently defaulted. Despite repeated demands, the defendant failed to regularise his account. The plaintiff recalled the facility and demanded payment of all monies due. The defendant claimed the loan was a salary loan covered by insurance for retrenchment and that his employment contract expired in 2018, but did not attend court to testify or adduce evidence of insurance coverage. The plaintiff contended the loan was a regular personal loan and that expiry of employment was not covered by insurance.
Issues
- Whether the defendant breached the terms of the loan agreement
- Whether the defendant is indebted to the plaintiff to the tune of UGX 71,451,566
- Whether the plaintiff is entitled to the remedies sought
Orders
- Judgment entered for the plaintiff against the defendant in the sum of UGX 71,451,566.
- Interest at court rate awarded from the date of judgment until payment in full.
- Costs of the suit awarded to the plaintiff.
Rules and key headnotes
Full judgment
The original judgment as reported. Read the original PDF before relying on any passage.